Benefit Plans

9 Months Ended

Sep. 30, 2019

Components of net periodic benefit cost for our pension plans for the three and nine months ended September 30, 2019 and 2018 were as follows:



	Three months ended						Nine months ended
In millions	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Service cost	$	0.7		$	1.0		$	1.8		$	3.1
Interest cost	0.9			3.0			6.3			9.0
Expected return on plan assets	(0.2		)	(2.2		)	(3.6		)	(6.7		)
Plan settlement loss (gain)	0.4			2.2			(11.8		)	2.2
Net periodic benefit expense (income)	$	1.8		$	4.0		$	(7.3	)	$	7.6

Components of net periodic benefit expense (income) for our other post-retirement plans for the three and nine months ended September 30, 2019 and 2018 were not material.

In 2017, our Board of Directors approved amendments to terminate the Pentair Salaried Plan (the “Salaried Plan”), a U.S. qualified pension plan. The Salaried Plan discontinued accruing benefits on December 31, 2017 and the termination was effective December 31, 2017.

Salaried Plan participants whose benefits were not in pay status by July 1, 2018 were given the opportunity to elect a lump-sum (or monthly annuity) payment during a special election window. During the third quarter of 2018, lump-sum payments of $171.9 million were made and resulted in a settlement loss of $2.2 million for the three and nine months ended September 30, 2018.

In 2019, we received all required government approvals to complete the termination of the Salaried Plan. In June 2019, we entered into an agreement with an insurance company to purchase from us, through an annuity contract, our remaining obligations under the Salaried Plan. For the nine months ended September 30, 2019, we contributed $11.1 million to the Salaried Plan as part of the process to settle our obligations. As a result of these actions, a non-cash pre-tax settlement gain of $11.8 million was recorded for the nine months ended September 30, 2019 and is reflected within Plan settlement loss (gain) in the table above.