18. Benefit Plans

Pension Plans

Retirement benefits under the two Company-sponsored pension plans are based on the employee’s length of service, average compensation over the five consecutive years that give the highest average compensation and average Social Security taxable wage base during the 35-year period before reaching Social Security retirement age. Contributions to the plans are based on the projected unit credit actuarial funding method and are limited to the amounts currently deductible for income tax purposes. On February 22, 2006, the Board of Directors of the Company approved an amendment to the principal Company-sponsored pension plan to cease further benefit accruals under the plan effective June 30, 2006.

The components of net periodic pension cost were as follows:


	Second Quarter						First Half
In Thousands	2013			2012			2013			2012
Service cost	$	32		$	27		$	64		$	55
Interest cost		3,086			3,123			6,172			6,247
Expected return on plan assets		(3,547	)		(2,972	)		(7,094	)		(5,945	)
Amortization of prior service cost		4			5			8			10
Recognized net actuarial loss		838			694			1,676			1,387

Net periodic pension cost	$	413		$	877		$	826		$	1,754

The Company made no contributions to the Company-sponsored pension plans during YTD 2013. Anticipated contributions for the two Company-sponsored pension plans will be in the range of $2 million to $4 million during the remainder of 2013.

Subsequent to Q2 2013, the Company announced a limited Lump Sum Window distribution of present valued pension benefits to certain terminated plan participants that meet certain criteria. The benefit election window will be open during the third quarter of 2013 and benefit distributions will be made before the end of 2013. Dependent upon the number of plan participants electing to take a distribution, and the total amount of such distributions, the Company may incur a non-cash charge. The distribution of these benefit payments will reduce the cost of administering the pension plan in the future.

Postretirement Benefits

The Company provides postretirement benefits for a portion of its current employees. The Company recognizes the cost of postretirement benefits, which consist principally of medical benefits, during employees’ periods of active service. The Company does not pre-fund these benefits and has the right to modify or terminate certain of these benefits in the future.

The components of net periodic postretirement benefit cost were as follows:


	Second Quarter						First Half
In Thousands	2013			2012			2013			2012
Service cost	$	413		$	316		$	826		$	632
Interest cost		715			782			1,430			1,563
Recognized net actuarial loss		700			612			1,400			1,225
Amortization of prior service cost		(378	)		(379	)		(756	)		(758	)

Net periodic postretirement benefit cost	$	1,450		$	1,331		$	2,900		$	2,662

401(k) Savings Plan

The Company provides a 401(k) Savings Plan for substantially all of its full-time employees who are not part of collective bargaining agreements.

During 2012, the Company changed the Company’s 401(k) Saving Plan matching contribution from fixed to discretionary, maintaining the option to make matching contributions for eligible participants of up to 5% based on the Company’s financial results for 2012 and future years. The 5% matching contribution was accrued during 2012. Based on the Company’s financial results, the Company decided to match 5% of eligible participants’ contributions for the entire year of 2012. The Company made this contribution payment for 2012 in the first quarter of 2013. The Company continued to accrue the 5% discretionary matching contribution for YTD 2013, as this is the best estimate of the Company’s probable obligation. The total expense for this benefit was $3.8 million and $4.3 million in YTD 2013 and YTD 2012, respectively.

Multi-Employer Benefits

The Company currently has a liability to a multi-employer pension plan related to the Company’s exit from the plan in 2008. As of June 30, 2013, the Company had a liability of $9.5 million recorded. The Company is required to make payments of approximately $1 million each year through 2028 to this multi-employer pension plan.