EMPLOYEE RETIREMENT PLANS

9 Months Ended

Sep. 30, 2011

EMPLOYEE RETIREMENT PLANS [Abstract]

EMPLOYEE RETIREMENT PLANS

6.           EMPLOYEE RETIREMENT PLANS

The components of net periodic benefit cost for Employers Mutual's pension and postretirement benefit plans is as follows:

	Three months ended						Nine months ended
	September 30,						September 30,
	2011			2010			2011			2010
Pension plans:
Service cost	$	2,421,225		$	2,316,334		$	8,645,589		$	8,038,274
Interest cost		2,464,609			2,475,369			7,277,395			7,471,895
Expected return on plan assets		(3,876,510	)		(3,169,247	)		(11,629,532	)		(9,507,743	)
Amortization of net actuarial loss		965,508			994,174			2,646,072			2,996,742
Amortization of prior service cost		99,361			113,020			324,101			339,060
Net periodic pension benefit cost	$	2,074,193		$	2,729,650		$	7,263,625		$	9,338,228
Postretirement benefit plans:
Service cost	$	1,150,622		$	982,900		$	3,451,866		$	2,948,700
Interest cost		1,499,645			1,383,440			4,498,935			4,150,320
Expected return on plan assets		(732,473	)		(738,123	)		(2,197,420	)		(2,214,367	)
Amortization of net actuarial loss		444,212			337,737			1,332,636			1,013,211
Amortization of prior service credit		(532,814	)		(532,814	)		(1,598,442	)		(1,598,442	)
Net periodic postretirement benefit cost	$	1,829,192		$	1,433,140		$	5,487,575		$	4,299,422

Net periodic pension benefit cost allocated to the Company amounted to $641,814 and $845,049 for the three months and $2,237,759 and $2,879,931 for the nine months ended September 30, 2011 and 2010, respectively.  Net periodic postretirement benefit cost allocated to the Company amounted to $527,791 and $409,930 for the three months and $1,583,382 and $1,229,796 for the nine months ended September 30, 2011 and 2010, respectively.

During the first nine months of 2011, Employers Mutual contributed $2,000,000 to its postretirement benefit plans, and made no contribution to its qualified pension plan.  In connection with the settlement of the monthly transaction balances, the Company reimbursed Employers Mutual $561,000 for its share of the contribution to the postretirement benefit plans.  Employers Mutual expects to make a contribution of $22,000,000 to the qualified pension plan and an additional contribution of $2,000,000 to the postretirement benefit plans during the fourth quarter of 2011.  The Company's share of these contributions, if made, will be approximately $6,750,000 and $561,000, respectively.