Pension and postretirement benefits

3 Months Ended

Mar. 31, 2018

Disclosure Text Block

Pension and postretirement benefits

Note 29 – Pension and postretirement benefits

The Corporation has a non-contributory defined benefit pension plan and supplementary pension benefit restoration plans for regular employees of certain of its subsidiaries. The accrual of benefits under the plans is frozen to all participants.

The components of net periodic pension cost for the periods presented were as follows:

		Pension Plan				Benefit Restoration Plans
		Quarters ended March 31,				Quarters ended March 31,
(In thousands)		2018		2017		2018		2017
Other operating expenses:
Interest cost	$	6,029	$	6,120	$	344	$	352
Expected return on plan assets		(9,551)		(10,186)		(509)		(502)
Amortization of net loss		4,716		5,054		349		411
Total net periodic pension cost (benefit)	$	1,194	$	988	$	184	$	261

During the quarter ended March 31,2018 the Corporation made a contribution to the pension and benefit restoration plans of $59 thousand. The total contributions expected to be paid during the year 2018 for the pension and benefit restoration plans amount to approximately $235thousand.

During the quarters ended March 31,2018 and 2017, there is no service cost recognized as part of the net periodic pension cost since the accrual of benefits for all participants has been frozen. As part of the implementation of ASU 2017-07, the other components of net periodic pension cost in the amount of $ 1.2 million were reclassified from “Personnel costs” to “Other operating expenses” in the consolidated statement of operations for the quarter ended March 31, 2017.

The Corporation also provides certain postretirement health care benefits for retired employees of certain subsidiaries. The table that follows presents the components of net periodic postretirement benefit cost.

		Quarters ended March 31,
(In thousands)		2018		2017
Personnel costs:
Service cost	$	257	$	256
Other operating expenses:
Interest cost		1,390		1,426
Amortization of prior service cost		(867)		(950)
Amortization of net loss		321		142
Total postretirement cost	$	1,101	$	874

Contributions made to the postretirement benefit plan for the quarter ended March 31,2018 amounted to approximately $1.2 million. The total contributions expected to be paid during the year 2018 for the postretirement benefit plan amount to approximately $6.3million.

As part of the implementation of ASU 2017-07, the other components of net periodic postretirement benefit cost other than the service cost components in the amount of $ 0.6 million were reclassified from “Personnel costs” to “Other operating expenses” in the consolidated statement of operations for the quarter ended March 31,2017.