NOTE G – Pension Plans

We have a defined benefit pension plan covering substantially all employees hired on or before December 31, 2005. The pension plan was closed to any employee hired after that date. The benefits are based on years of service and the employee's final average compensation. Effective January 1, 2007, no new benefits are earned under this plan for additional years of service after December 31, 2006.

On May 13, 2014 this plan was terminated effective July 20, 2014. The termination process is expected to take 12 to 18 months with the settlement of most of the plan's obligations by the end of 2014.

We also have a non-qualified, non-contributory supplemental executive retirement plan (SERP) for employees whose retirement benefits are reduced due to their annual compensation levels. The SERP limits the total amount of annual retirement benefits that may be paid to a participant in the SERP from all sources (Retirement Plan, Social Security and the SERP) to $125,000. The SERP is not funded so we pay benefits directly to participants.

Net pension costs included the following components (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013

Service cost-benefits earned during period	$	31		$	27		$	62		$	54
Interest cost on projected benefit obligations		954			877			1,908			1,754
Expected return on plan assets		(1,214	)		(1,243	)		(2,428	)		(2,486	)
Amortization of prior service costs		52			52			104			104
Amortization of actuarial loss		79			428			158			856

Net pension costs	$	(98	)	$	141		$	(196	)	$	282