EMPLOYEE RETIREMENT PLANS

6 Months Ended

Jun. 30, 2017

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   June 30,						Six months ended   June 30,
($ in thousands)	2017			2016			2017			2016
Pension plans:
Service cost	$	3,708		$	3,545		$	7,568		$	7,185
Interest cost	2,800			2,544			5,595			5,069
Expected return on plan assets	(5,191		)	(4,840		)	(10,382		)	(9,680		)
Amortization of net actuarial loss	913			1,083			1,821			2,122
Amortization of prior service cost	5			7			10			15
Net periodic pension benefit cost	$	2,235		$	2,339		$	4,612		$	4,711
Postretirement benefit plans:
Service cost	$	340		$	318		$	681		$	636
Interest cost	570			554			1,140			1,108
Expected return on plan assets	(1,078		)	(1,056		)	(2,156		)	(2,112		)
Amortization of net actuarial loss	343			373			686			747
Amortization of prior service credit	(2,788		)	(2,834		)	(5,577		)	(5,669		)
Net periodic postretirement benefit income	$	(2,613	)	$	(2,645	)	$	(5,226	)	$	(5,290	)

Net periodic pension benefit cost allocated to the Company amounted to $670,000 and $683,000 for the three months and $1.4 million and $1.4 million for the six months ended June 30, 2017 and 2016, respectively.  Net periodic postretirement benefit income allocated to the Company amounted to $736,000 and $730,000 for the three months and $1.5 million and $1.5 million for the six months ended June 30, 2017 and 2016, respectively.

The Company’s share of Employers Mutual’s remaining 2017 planned contribution to the pension plan, if made, will be approximately $2.7 million. No contributions will be made to the Voluntary Employee Beneficiary Association (VEBA) trust in 2017.