XML 90 R20.htm IDEA: XBRL DOCUMENT v3.20.1
Retirement Plans and Other Post-Retirement Benefits
3 Months Ended
Mar. 31, 2020
Compensation And Retirement Disclosure [Abstract]  
Retirement Plans and Other Post-Retirement Benefits

11.

RETIREMENT PLANS AND OTHER POST-RETIREMENT BENEFITS

The following tables provide information with respect to the net periodic costs of our pension and post-retirement medical benefit plans included in continuing operations.

 

 

Three months ended

March 31

 

In thousands

 

2020

 

 

 

2019

 

Pension Benefits

 

 

 

 

 

 

 

 

 

Service cost

 

$

44

 

 

 

$

484

 

Interest cost

 

 

301

 

 

 

 

3,450

 

Expected return on plan assets

 

 

 

 

 

 

(3,696

)

Amortization of prior service cost

 

 

12

 

 

 

 

34

 

Amortization of unrecognized loss

 

 

160

 

 

 

 

775

 

Total net periodic benefit cost

 

$

517

 

 

 

$

1,047

 

 

 

 

 

 

 

 

 

 

 

Other Benefits

 

 

 

 

 

 

 

 

 

Service cost

 

$

7

 

 

 

$

9

 

Interest cost

 

 

46

 

 

 

 

84

 

Amortization of prior service credit

 

 

(116

)

 

 

 

(2

)

Amortization of actuarial gain

 

 

(209

)

 

 

 

(173

)

Total net periodic benefit credit

 

$

(272

)

 

 

$

(82

)

 

During 2019, our qualified pension plan was terminated, and all plan liabilities were settled by either a lump sum distribution or assumed by a third-party in exchange for a transfer of assets from the pension plan trust fund. For active participants, the pension benefit was replaced with an enhance defined contribution plan, or 401(k), to which we contributed a percent of eligible compensation. Currently we contribute 10%.

As of March 31, 2020, $51.1 million of assets remained in the pension trust and was included in cash and cash equivalents in the accompanying condensed consolidated balance sheet. We expect to complete the reversion of the qualified pension plan assets in the second quarter of 2020, after a portion of the assets are transferred to a trust fund to be used to make contributions over the next seven years to the 401(k) plan and satisfying excise tax obligations, approximately $33 million is expected to revert to us and will be available for general corporate purposes.

In December 2019, our Board of Directors approved the freezing of benefit accruals in the non-qualified pension plan for active participants effective December 31, 2019. As of January 1, 2020, each active participant’s frozen non-qualified pension benefit was transferred to a newly approved Deferred Compensation Plan non-qualified benefit plan and earns interest credits going forward. The Deferred Compensation Plan also provides for employer contributions and, in the future, the Plan may provide for elective employee deferrals. Under the Deferred Compensation Plan, participants are eligible to receive annual Company contributions that such

participants would have received under the P. H. Glatfelter 401(k) Savings Plan but for certain limitations imposed by the Internal Revenue Code on 401(k) plan contributions (“Company Contributions”).

The remaining non-contributory pension plans are unfunded non-qualified plans.