Note 9 - Postretirement Medical Benefits

3 Months Ended

Mar. 31, 2012

Pension and Other Postretirement Benefits Disclosure [Text Block]

9.  Postretirement Medical Benefits

Prior to 2003, the Company provided lifetime medical and dental benefits upon retirement for certain employees meeting the eligibility requirements as of December 31, 1989 (Plan 1). During 2003, the Company implemented an additional postretirement health insurance program (Plan 2). Under Plan 2, any employee meeting the service requirement of 20 years of full time service to the Company and is at least age 55 years of age upon retirement is eligible to continue their health insurance coverage. Under both plans, retirees not yet eligible for Medicare have coverage identical to the coverage offered to active employees. Under both plans, Medicare-eligible retirees are provided with a Medicare Advantage plan. The Company pays 100% of the cost of Plan 1. The Company and the retirees each pay 50% of the cost under Plan 2. Both plans are unfunded.

The following disclosures of the net periodic benefit cost components of Plan 1 and Plan 2 were measured at January 1, 2012 and 2011.

Three months ended March 31, (In thousands)	2012		2011
Service cost	$	154	$	108
Interest cost		152		151
Amortization of transition obligation		26		26
Recognized prior service cost		64		64
Recognized net actuarial loss		14		-
Net periodic benefit cost	$	410	$	349

The Company expects benefit payments of $330 thousand for 2012, of which $64 thousand have been made during the first three months of 2012.