EMPLOYEE RETIREMENT PLANS

9 Months Ended

Sep. 30, 2016

Compensation and Retirement Disclosure [Abstract]

EMPLOYEE RETIREMENT PLANS

EMPLOYEE RETIREMENT PLANS

The components of net periodic benefit cost (income) for Employers Mutual’s pension and postretirement benefit plans is as follows:

	Three months ended   September 30,						Nine months ended   September 30,
($ in thousands)	2016			2015			2016			2015
Pension plans:
Service cost	$	3,639		$	3,497		$	10,824		$	10,471
Interest cost	2,551			2,341			7,620			6,983
Expected return on plan assets	(4,841		)	(5,074		)	(14,521		)	(15,223		)
Amortization of net actuarial loss	1,111			719			3,233			2,033
Amortization of prior service cost	9			8			24			23
Net periodic pension benefit cost	$	2,469		$	1,491		$	7,180		$	4,287
Postretirement benefit plans:
Service cost	$	319		$	353		$	955		$	1,059
Interest cost	553			537			1,661			1,611
Expected return on plan assets	(1,056		)	(1,104		)	(3,168		)	(3,312		)
Amortization of net actuarial loss	374			437			1,121			1,309
Amortization of prior service credit	(2,835		)	(2,867		)	(8,504		)	(8,600		)
Net periodic postretirement benefit income	$	(2,645	)	$	(2,644	)	$	(7,935	)	$	(7,933	)

Net periodic pension benefit cost allocated to the Company amounted to $1.1 million and $456,000 for the three months and $2.5 million and $1.3 million for the nine months ended September 30, 2016 and 2015, respectively.  Net periodic postretirement benefit income allocated to the Company amounted to $937,000 and $761,000 for the three months and $2.4 million and $2.3 million for the nine months ended September 30, 2016 and 2015, respectively.

The Company’s share of Employers Mutual’s remaining 2016 planned contribution to the pension plan, if made, will be approximately $2.5 million. No contributions will be made to the Voluntary Employee Beneficiary Association (VEBA) trust in 2016.