Pension and Other Postretirement Benefit Plans

3 Months Ended

Dec. 27, 2019

Pension and Other Postretirement Benefit Plans

The following table presents the components of net periodic benefit cost recognized in earnings during the three months ended December 27, 2019 and December 28, 2018 (in thousands):


	Three Months Ended
	December 27, 2019		December 28, 2018
Component:
Service cost	$	1,465	$	2,489
Interest cost	13,031		15,142
Expected return on plan assets	(27,665)		(24,837)
Amortization of previously unrecognized items	3,110		2,400
Plan Amendment and settlement loss (gain)	2,651		1,363
	$	(7,408)	$	(3,443)

The service cost component of net periodic pension expense is presented in the same line item as other compensation costs (direct cost of contracts and selling, general and administrative expenses) and the other components of net periodic pension expense are presented in miscellaneous income (expense), net on the Consolidated Statements of Earnings. In the first quarter of fiscal 2019, the Company elected to discontinue the CH2M Hill Retiree Medical Plan and the OMI Retiree Medical Plan, effective December 31, 2018. Lump sum payments were made to certain participants in the first quarter of fiscal 2019, resulting in a partial plan settlement and related settlement gain of $2.2 million. In the first quarter of fiscal 2020, the Company incurred a settlement loss on one of its U.S. defined benefit plans of approximately $2.7 million.

On January 1, 2019, the CH2M Hill Pension Plan and the CH2M Hill IDC Pension Plan merged into the Company's Sverdrup Pension Plan. The newly combined plan is called the Jacobs Consolidated Pension Plan.

The following table presents certain information regarding the Company’s cash contributions to our pension plans for fiscal 2020 (in thousands):


Cash contributions made during the first three months of fiscal 2020	$	6,613
Cash contributions projected for the remainder of fiscal 2020	19,983
Total	$	26,596