Note 5 - Pension Plans and Other Postretirement Benefits

The Company has the following retirement plans: a defined contribution plan; a 401(k) plan; a defined benefit plan for employees hired on or before December 31, 1998; and certain employees participate in a supplemental defined contribution plan or a supplemental defined benefit plan or both.

Defined Benefit Plan and Supplemental Defined Benefit Plans

The following tables summarize the components of net periodic pension cost recognized for the defined benefit plan and the supplemental defined benefit plans for the three and nine months ended September 30, 2013 and 2012.

	Defined Benefit Plan
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Components of net periodic
pension (income) expense:
Service cost:
Benefit accrual	$	-	$	-	$	-	$	-
Other expenses		90		90		270		270
Interest cost		342		356		1,027		1,070
Expected return on plan assets		(560)		(605)		(1,679)		(1,817)
Settlement loss		244		161		731		1,079
Amortization of:
Prior service cost		-		-		-		-
Actuarial loss		401		512		1,202		1,538
Net periodic pension expense	$	517	$	514	$	1,551	$	2,140

	Supplemental Defined Benefit Plans
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Components of net periodic
pension (income) expense:
Service cost:
Benefit accrual	$	-	$	-	$	-	$	-
Other expenses		-		-		-		-
Interest cost		154		171		461		506
Expected return on plan assets		-		-		-		-
Settlement loss		-		-		-		-
Amortization of:
Prior service cost		31		31		94		93
Actuarial (gain) loss		50		(362)		152		128
Net periodic pension expense (benefit)	$	235	$	(160)	$	707	$	727

Postretirement Benefits Other Than Pensions

In addition to providing pension benefits, the Company also provides certain health care and life insurance benefits to a closed group of eligible employees. Effective January 1, 2007, the Company eliminated the previous group health insurance benefits for retirees 65 years of age and over, including elimination of pharmacy benefits for Medicare eligible retirees, and established a Health Reimbursement Account (“HRA”) for each eligible participant in that closed group. Funding of HRA accounts was $132 and $133 for the nine months ended September 30, 2013 and 2012, respectively.

The following table summarizes the components of the net periodic benefit for postretirement benefits other than pensions for the three and nine months ended September 30, 2013 and 2012.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Components of net periodic benefit:
Service cost	$	-	$	-	$	-	$	-
Interest cost		23		22		69		68
Amortization of prior service cost		-		-		-		-
Amortization of prior gain		(59)		(131)		(177)		(392)
Net periodic income	$	(36)	$	(109)	$	(108)	$	(324)

2013 Contributions

In 2013, there is no minimum funding requirement for the Company’s defined benefit plan. The following table discloses the minimum funding requirements, contributions made and expected full year contributions for the Company’s plans.

	Defined Benefit Pension Plans
	Defined		Supplemental		Other
	Benefit		Defined Benefit		Postretirement
	Plan		Plans		Benefits

Minimum funding requirement for 2013	$	-		N/A		N/A
Contributions made in the nine months
ended September 30, 2013		3,103	$	986	$	406
Expected contributions (approximations)
for the year ended December 31, 2013
as of the time of :
This Form 10-Q (1)		3,103		1,320		480
2012 Form 10-K (2)		2,500		1,320		480

N/A -	Not applicable.
(1)	HMEC’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013.

(2)	HMEC’s Annual Report on Form 10-K for the year ended December 31, 2012, specifically “Notes to Consolidated Financial Statements — Note 9 — Pension Plans and Other Postretirement Benefits”.