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)	2018			2017			2018			2017
Pension plans:
Service cost	$	4,213		$	3,783		$	12,639		$	11,351
Interest cost	2,681			2,798			8,044			8,393
Expected return on plan assets	(6,013		)	(5,192		)	(18,039		)	(15,574		)
Amortization of net actuarial loss	135			911			403			2,732
Amortization of prior service cost	—			5			—			15
Net periodic pension benefit cost	$	1,016		$	2,305		$	3,047		$	6,917

Postretirement benefit plans:
Service cost	$	369		$	341		$	1,105		$	1,022
Interest cost	521			570			1,563			1,710
Expected return on plan assets	(1,204		)	(1,077		)	(3,611		)	(3,233		)
Amortization of net actuarial loss	234			342			701			1,028
Amortization of prior service credit	(2,783		)	(2,788		)	(8,347		)	(8,365		)
Net periodic postretirement benefit income	$	(2,863	)	$	(2,612	)	$	(8,589	)	$	(7,838	)

Net periodic pension benefit cost allocated to the Company amounted to $305,000 and $692,000 for the three months and $914,000 and $2.1 million for the nine months ended September 30, 2018 and 2017, respectively. Net periodic postretirement benefit income allocated to the Company amounted to $806,000 and $736,000 for the three months and $2.4 million and $2.2 million for the nine months ended September 30, 2018 and 2017, respectively. The service cost component of net periodic pension and postretirement benefit cost/(income) allocated to the Company is included in the income statement line titled "other underwriting expenses". The other components of net periodic pension and postretirement benefit cost/(income) are included in the income statement line titled "other income".

The Company does not plan to make additional contributions to the pension plan in 2018. No contributions will be made to the Voluntary Employee Beneficiary Association (VEBA) trust in 2018.