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PENSION AND POSTRETIREMENT PLANS
6 Months Ended
Jun. 30, 2012
Postemployment Benefits [Abstract]  
Pension And Postretirement Plans
PENSION AND POSTRETIREMENT PLANS

The Company’s defined contribution retirement plan (the “401K Plan”) covers substantially all employees. All employees eligible for the 401K Plan receive a minimum 3% non-elective contribution concurrent with each payroll period. The 401K Plan also permits discretionary contributions by the Company of 1% to 3% of pay for eligible employees based on years of service with the Company. The cost of this plan was $11.8 and $10.7 for the three months ended June 30, 2012 and 2011, respectively, and $24.3 and $22.4 for the six months ended June 30, 2012 and 2011, respectively.

The Company also maintains a frozen defined benefit retirement plan (the “Company Plan”), that as of December 31, 2009, covered substantially all employees. The benefits to be paid under the Company Plan are based on years of credited service through December 31, 2009 and ongoing interest credits. Effective January 1, 2010, the Company Plan was closed to new participants. The Company’s policy is to fund the Company Plan with at least the minimum amount required by applicable regulations.

The Company maintains a second unfunded, non-contributory, non-qualified defined benefit retirement plan (the “PEP”), that as of December 31, 2009, covered substantially all of its senior management group. The PEP supplements the Company Plan and was closed to new participants effective January 1, 2010.

     The effect on operations for the Company Plan and the PEP is summarized as follows:

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2012
 
2011
 
2012
 
2011
Service cost for benefits earned
$
0.6

 
$
0.7

 
$
1.2

 
$
1.3

Interest cost on benefit obligation
3.7

 
4.2

 
7.4

 
8.6

Expected return on plan assets
(4.2
)
 
(4.8
)
 
(8.6
)
 
(9.3
)
Net amortization and deferral
2.9

 
2.0

 
6.0

 
3.7

Defined benefit plan costs
$
3.0

 
$
2.1

 
$
6.0

 
$
4.3


 
During the six months ended June 30, 2012, the Company contributed $4.5 to its defined benefit retirement plan.

The Company assumed obligations under a subsidiary’s post-retirement medical plan. Coverage under this plan is restricted to a limited number of existing employees of the subsidiary. This plan is unfunded and the Company’s policy is to fund benefits as claims are incurred. The effect on operations of the post-retirement medical plan is shown in the following table:

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2012
 
2011
 
2012
 
2011
Service cost for benefits earned
$
0.1

 
$
0.1

 
$
0.2

 
$
0.2

Interest cost on benefit obligation
0.6

 
0.5

 
1.2

 
1.1

Net amortization and deferral

 

 

 

Postretirement medical plan costs
$
0.7

 
$
0.6

 
$
1.4

 
$
1.3