Postretirement Benefits

6 Months Ended

Jun. 30, 2011

Postretirement Benefits

Postretirement Benefits

Note 10.   Postretirement Benefits

The liabilities for the plans described in this note are presented in total for all employees of the Erie Insurance Group.  The gross liability for the pension plans is presented in the Consolidated Statements of Financial Position as part of other liabilities.  A portion of annual expenses related to the pension plans is allocated to related entities within the Erie Insurance Group.

We offer a noncontributory defined benefit pension plan that covers substantially all employees.  This is the largest benefit plan we offer.  We also offer an unfunded supplemental retirement plan (SERP) for certain members of executive and senior management of the Erie Insurance Group.  The components of net periodic benefit cost for our pension benefits are:

(in millions)	Three months ended June 30,		Six months ended June 30,
	2011	2010	2011	2010
Service cost	$ 5	$ 4	$  9	$  8
Interest cost	5	5	11	10
Expected return on plan assets	(6)	(7)	(13)	(13)
Amortization of prior service cost	0	0	0	0
Amortization of actuarial loss	1	1	3	2
Net periodic benefit cost	$ 5	$ 3	$  10	$  7