Retirement Plans and Other Post-Retirement Benefits

9 Months Ended

Sep. 30, 2020

Compensation And Retirement Disclosure [Abstract]

Retirement Plans and Other Post-Retirement Benefits

12. 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 September 30
In thousands	2020			2019
Pension Benefits
Service cost	$	61		$	216
Interest cost		318			3,287
Expected return on plan assets		—			(3,895	)
Amortization of prior service cost		12			64
Amortization of unrecognized loss		164			819
Total net periodic benefit cost	$	555		$	491
Other Benefits
Service cost	$	8		$	7
Interest cost		46			67
Amortization of prior service credit		(115	)		(2	)
Amortization of actuarial gain		(209	)		(293	)
Total net periodic benefit credit	$	(270	)	$	(221	)

	Nine months ended September 30
In thousands	2020			2019
Pension Benefits
Service cost	$	153		$	1,073
Interest cost		919			10,074
Expected return on plan assets		—			(11,290	)
Amortization of prior service cost		35			152
Amortization of unrecognized loss		485			2,383
Total net periodic benefit cost	$	1,592		$	2,392
Other Benefits
Service cost	$	22		$	25
Interest cost		138			235
Amortization of prior service credit		(347	)		(7	)
Amortization of actuarial gain		(626	)		(639	)
Total net periodic benefit credit	$	(813	)	$	(386	)

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 enhanced defined contribution plan, or 401(k), to which we contributed a percent of eligible compensation. Currently we contribute 10% from a suspense account established in connection with the termination of the qualified pension plan and reversion of excess assets to us.

During the second quarter of 2020, we recorded a $6.3 million pension settlement charge, net of post settlement adjustments, in connection with the completion of the reversion of $55.5 million of excess pension plan assets. After transferring $14.1 million to a suspense account to fund future 401(k) contributions and accruing $8.2 million of excise taxes, approximately $33.1 million is available for general corporate purposes. During the third quarter of 2020, we paid approximately $0.4 million to the third party that assumed the qualified pension liabilities as a result of certain identified adjustments to obligations transferred as part of the pension settlement.

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 the Plan provides 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.