7. COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS

The components of net company-sponsored benefit cost for the 13-week periods presented are as follows. The caption “Pension Benefits” in the table below includes both the company-sponsored qualified pension plan (Retirement Plan) and the Supplemental Executive Retirement Plan (SERP).



	Pension Benefits				Other Postretirement Plans
	Mar. 30, 2013		Mar. 31, 2012		Mar. 30, 2013		Mar. 31, 2012
	(In thousands)
Service cost	$	17,399	$	27,055	$	135	$	114
Interest cost		36,805		36,878		154		158
Expected return on plan assets		(42,801)		(40,401)		-		-
Amortization of prior service cost		3,083		1,202		42		53
Amortization of actuarial loss (gain)		17,637		15,042		(51)		(82)
Amortization of transition obligation		-		-		35		39
Net periodic benefit cost	$	32,123	$	39,776	$	315	$	282

The components of net company-sponsored benefit cost for the 39-week periods are as follows:



	Pension Benefits				Other Postretirement Plans
	Mar. 30, 2013		Mar. 31, 2012		Mar. 30, 2013		Mar. 31, 2012
	(In thousands)
Service cost	$	52,768	$	81,166	$	406	$	342
Interest cost		111,758		110,635		461		474
Expected return on plan assets		(128,402)		(121,204)		-		-
Amortization of prior service cost		6,817		3,604		126		161
Recognized net actuarial loss (gain)		54,987		45,125		(152)		(248)
Amortization of transition obligation		-		-		106		115
Curtailment loss		8,293		-		-		-
Net periodic benefit cost	$	106,221	$	119,326	$	947	$	844

At the end of fiscal 2012, Sysco approved a plan to freeze future benefit accruals under the Retirement Plan as of December 31, 2012 for all United States-based salaried and non-union hourly employees. Effective January 1, 2013, these employees are eligible for additional contributions under the company’s defined contribution 401(k) plan. The measurements for the Retirement Plan at June 30, 2012 and the resulting expense for fiscal 2013 included the impact of the freeze.

In November 2012, Sysco approved a plan to restructure its executive nonqualified retirement program including the SERP. Future benefit accruals will have frozen under this plan by June 29, 2013 for all participants. As a result of this change, the liabilities of this plan were remeasured using a discount rate of 3.96%. A curtailment gain of $73.0 million was recognized as a component of actuarial losses (net of tax) within other comprehensive income with an offsetting reduction to benefits obligations to accumulated benefits. Further, an $8.3 million loss was recognized in the income statement arising from the write-off of prior service costs. In addition to the plan freeze, participants will be fully vested in their frozen benefits on their date of freeze. This resulted in an increase in the benefit obligation of $48.6 million which was reflected as unrecognized prior service cost in other comprehensive income. This amount will amortize into pension expense over the next seven years. The SERP benefit obligation resulting after these changes on the date of the approved plan was $486.6 million.

Sysco’s contributions to its company-sponsored defined benefit plans were $17.5 million and $16.7 million during the 39-week periods ended March 30, 2013 and March 31, 2012, respectively.