Pensions and Other Postretirement Benefit Plans

3 Months Ended

Mar. 31, 2013

Pensions and Other Postretirement Benefit Plans [Abstract]

Pensions and Other Postretirement Benefit Plans

4 . Pensions and Other Postretirement Benefit Plans

Pension Plans

The Company has defined benefit pension plans covering certain U.S. and non-U.S. employees. The U.S. qualified defined benefit pension plan has been closed to new participants since October 1998 and, as of February 2009, benefits accrued under this plan were frozen. As a result of the freeze, employees covered by the pension plan will receive, at retirement, benefits already accrued through February 2009, but no new benefits accrue after that date. Benefit accruals under the U.S. Supplemental Executive Retirement Plan ("SERP") were similarly frozen. The eligibility, benefit formulas, and contribution requirements for plans outside of the U.S. vary by location.

Other Postretirement Benefits

In addition to providing pension benefits, the Company provides various medical, dental, and life insurance benefits for certain retired United States employees. U.S. employees hired prior to 2005 may become eligible for these benefits if they reach normal retirement age while working for the Company. Benefits provided under this plan are subject to change. Retirees share in the cost of these benefits. Effective January 2005, any new employees who wish to be covered under this plan will be responsible for the full cost of such benefits, except for life insurance benefits, which continue to be provided. In September 2008, we changed the cost sharing arrangement under this program such that increases in health care costs are the responsibility of plan participants.

The Company also provides certain postretirement life insurance benefits to retired employees in Canada. The Company accrues the cost of providing postretirement benefits during the active service period of the employees. The Company currently funds the plan as claims are paid.

The composition of the net periodic benefit plan cost for the three months ended March 31, 2013 and 2012 was as follows:

	Pension plans				Other postretirement benefits
(in thousands)	2013		2012		2013		2012
Components of net periodic benefit cost:
Service cost	$842		$849		$285		$268
Interest cost	2,000		4,602		802		922
Expected return on assets	(2,034	)	(4,168	)	-		-
Amortization of prior service cost/(credit)	9		9		(917	)	(917	)
Amortization of transition obligation	17		19		-		-
Amortization of net actuarial loss	785		1,773		879		804
Settlement	-		9,175		-		-
Net periodic benefit cost	$1,619		$12,259		$1,049		$1,077

In the first quarter of 2012, the Company announced a plan to significantly reduce its pension plan liabilities by settling certain pension obligations, which led to settlement charges totaling $9.2 million for the first three months of 2012 related to the extinguishment of our pension plan liability in Sweden.