Retirement Plans

6 Months Ended

Jun. 30, 2011

Retirement Plans [Abstract]

Retirement Plans

NOTE 14: Retirement Plans

The Corporation has a noncontributory defined benefit retirement plan (the Retirement Account Plan (“RAP”)) covering substantially all full-time employees. The benefits are based primarily on years of service and the employee’s compensation paid. Employees of acquired entities generally participate in the RAP after consummation of the business combinations. The plans of acquired entities are typically merged into the RAP after completion of the mergers, and credit is usually given to employees for years of service at the acquired institution for vesting and eligibility purposes. The RAP and a smaller acquired plan that was frozen in December 31, 2004, are collectively referred to below as the “Pension Plan.”

Associated also provides healthcare access for eligible retired employees in its Postretirement Plan (the “Postretirement Plan”). Retirees who are at least 55 years of age with 5 years of service are eligible to participate in the plan. The Corporation has no plan assets attributable to the plan. The Corporation reserves the right to terminate or make changes to the plan at any time.

The components of net periodic benefit cost for the Pension and Postretirement Plans for the three and six months ended June 30, 2011 and 2010, and for the full year 2010 were as follows.

	Three Months Ended						Six Months Ended						Year Ended
	June 30,						June 30,						December 31,
	2011			2010			2011			2010			2010
	($ in Thousands)
Components of Net Periodic Benefit Cost
Pension Plan:
Service cost	$	2,613		$	2,475		$	5,225		$	4,950		$	9,622
Interest cost		1,589			1,590			3,180			3,180			6,377
Expected return on plan assets		(3,220	)		(3,019	)		(6,440	)		(6,038	)		(12,152	)
Amortization of prior service cost		18			18			35			35			72
Amortization of actuarial loss		451			405			903			810			1,601
Total net periodic benefit cost	$	1,451		$	1,469		$	2,903		$	2,937		$	5,520
Postretirement Plan:
Interest cost	$	50		$	58		$	100		$	115		$	227
Amortization of prior service cost		99			99			198			198			395
Amortization of actuarial gain		—			—			—			—			(3	)
Total net periodic benefit cost	$	149		$	157		$	298		$	313		$	619

The Corporation’s funding policy is to pay at least the minimum amount required by the funding requirements of federal law and regulations, with consideration given to the maximum funding amounts allowed. The Corporation regularly reviews the funding of its Pension Plan. The Corporation made a contribution of $6 million to its Pension Plan in the first quarter of 2011.