Postretirement Benefits

9 Months Ended

Sep. 30, 2025

Retirement Benefits [Abstract]

Postretirement Benefits

Postretirement Benefits

Pension plans

Our pension plans consist of a noncontributory defined benefit pension plan covering substantially all employees and an unfunded supplemental employee retirement plan ("SERP") for certain members of executive and senior management. The pension plan provides benefits to covered individuals satisfying certain age and service requirements. The defined benefit pension plan and SERP each provide benefits through a final average earnings formula.

Although we are the sponsor of these postretirement plans and record the funded status of these plans, there are reimbursements between us and the Exchange and its insurance subsidiaries for their allocated share of pension income or cost. These reimbursements represent pension benefits for employees performing administrative services and an allocated share of plan (income) cost for employees in departments that support the administrative functions. For the nine months ended September 30, 2025, the Exchange and its insurance subsidiaries reimbursed us for approximately 62% of the annual defined benefit pension cost and 35% of the annual SERP cost. For our funded pension plan, amounts are settled in cash for the portion of pension (income) cost allocated to the Exchange and its insurance subsidiaries. For our unfunded SERP, we pay the obligations when due and amounts are settled in cash between entities when there is a payout.

Our defined benefit pension plan funding policy is generally to contribute an amount equal to the greater of the target normal cost for the plan year, or the amount necessary to fund the plan to 100%. Accordingly, we made a $39 million contribution in January 2025. The funded pension plan is presented separately from the unfunded plan as a non-current asset on the Consolidated Statements of Financial Position.

Pension plan cost (income) includes the following components:

	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2025		2024		2025		2024
Service cost for benefits earned	$	8,866	$	8,628	$	26,590	$	25,920
Interest cost on benefit obligation	14,688		13,195		44,039		39,503
Expected return on plan assets	(20,069)		(20,199)		(60,207)		(60,595)
Prior service cost amortization	422		413		1,266		1,199
Net actuarial gain amortization	(633)		(1,695)		(1,942)		(5,180)
Settlement gain (1)	(62)		(59)		(539)		(1,338)
Pension plan cost (income) (2)	$	3,212	$	283	$	9,207	$	(491)

(1)Settlement accounting was required due to lump sum payments made under the SERP to former officers in 2025 and 2024.

(2)Pension plan cost (income) represents total plan cost (income) before reimbursements between Indemnity and the Exchange and its insurance subsidiaries. The components of pension plan cost (income) other than the service cost components are included in the line item "Other income" in the Consolidated Statements of Operations, net of reimbursements between Indemnity and the Exchange and its insurance subsidiaries.