Employee Benefit Plans

Net periodic cost (benefit) of the Defined Benefit Pension, Post-Retirement Medical and Supplemental Executive Retirement plans included in general insurance expenses in the accompanying condensed consolidated statements of income includes the following components:



	Three Months Ended September 30,
	Defined Benefit Pension Plan						Post-Retirement Medical Plan						Supplemental Executive Retirement Plan
	2014			2013			2014			2013			2014		2013
Components of net periodic cost (benefit):
Service cost	$	1,364		$	1,627		$	327		$	246		$	30	$	251
Interest cost	5,824			5,328			171			138			503		637
Expected return on plan assets	(7,328		)	(6,317		)	—			—			—		—
Amortization of unrecognized prior service costs (benefits)	12			13			(427		)	(413		)	234		233
Amortization of losses (gains) from earlier periods	885			4,212			(77		)	(55		)	165		325
Settlement	—			—			—			—			2,666		—
Net periodic cost (benefit)	$	757		$	4,863		$	(6	)	$	(84	)	$	3,598	$	1,446



	Nine Months Ended September 30,
	Defined Benefit Pension Plan						Post-Retirement Medical Plan						Supplemental Executive Retirement Plan
	2014			2013			2014			2013			2014		2013
Components of net periodic cost (benefit):
Service cost	$	3,713		$	4,146		$	739		$	710		$	440	$	752
Interest cost	17,301			15,673			431			384			1,896		1,911
Expected return on plan assets	(21,966		)	(18,375		)	—			—			—		—
Amortization of unrecognized prior service costs (benefits)	38			38			(1,280		)	(1,237		)	700		699
Amortization of losses (gains) from earlier periods	2,174			12,001			(337		)	(262		)	350		975
Settlement	—			—			—			—			2,666		—
Net periodic cost (benefit)	$	1,260		$	13,483		$	(447	)	$	(405	)	$	6,052	$	4,337

On August 1, 2014, the Company made a lump-sum benefit payment from the Supplemental Executive Retirement Plan. The lump-sum distribution resulted in the settlement of 21% of the Supplemental Executive Retirement Plan’s projected benefit obligation and exceeded the total of the projected service cost and interest cost for the plan year. In connection with this settlement during the third quarter of 2014, the Company: (i) remeasured the Supplemental Executive Retirement Plan’s funded status, resulting in a $1,955 increase before tax to other liabilities with an offsetting decrease to accumulated other comprehensive income; and (ii) reclassified a $2,666 loss before tax to earnings from accumulated other comprehensive income. The discount rate used to remeasure the benefit obligation was based on the rates of return on high-quality fixed-income investments currently available and expected to be available during the period the benefits will be paid. It was 4.12% as of the remeasurement date.

On August 29, 2014, the Company completed the acquisition of RPS. See Note 3 for additional discussion regarding the acquisition. Per the terms of the Purchase and Sale Agreement, the Company was required to give each RPS employee full credit for the employee’s service period with RPS prior to the closing date, for the purpose of eligibility to participate, vesting and level of benefits under the Post-Retirement Medical Plan. As a result, approximately 980 individuals became eligible participants of the Post-Retirement Medical Plan at the acquisition date. In connection with the RPS acquisition, the Company remeasured the Post-Retirement Medical Plan’s funded status, resulting in a $1,368 increase before tax to other liabilities with an offsetting decrease to accumulated other comprehensive income and a $3,311 increase before tax to other liabilities with an offsetting increase to goodwill. The discount rate used to remeasure the benefit obligation was based on the rates of return on high-quality fixed-income investments currently available and expected to be available during the period the benefits will be paid. It was 4.07% as of the remeasurement date.

The Company expects to make payments of approximately $524 with respect to its Post-Retirement Medical Plan and $16,917 with respect to its Supplemental Executive Retirement Plan during the year ended December 31, 2014. The Company expects to make contributions of $10,717 to its Defined Benefit Pension Plan during the year ended December 31, 2014. A December 31 measurement date is used for the employee benefit plans.

The following table summarizes contributions to the Defined Benefit Pension Plan and payments made to the Post-Retirement Medical Plan and the Supplemental Executive Retirement Plan:



	Three Months Ended September 30,
	2014		2013
Contributions to the Defined Benefit Pension Plan	$	6,003	$	14,624
Payments to the Post-Retirement Medical Plan	178		109
Payments to the Supplemental Executive Retirement Plan	14,255		915



	Nine Months Ended September 30,
	2014		2013
Contributions to the Defined Benefit Pension Plan	$	10,717	$	16,649
Payments to the Post-Retirement Medical Plan	393		391
Payments to the Supplemental Executive Retirement Plan	16,044		2,775