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Pension and Other Postretirement Employee Benefits
 6 Months Ended
Jun. 30, 2021
General Discussion Of Pension And Other Postretirement Benefits [Abstract]  
Pension and Other Postretirement Employee Benefits

NOTE 11. PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFITS

The following table details the components of net periodic cost (benefit) of our pension plans and other postretirement employee benefits (OPEB):

 

 

 

Three Months Ended June 30,

 

 

 

Pension

 

 

OPEB

 

(in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Service cost

 

$

2,045

 

 

$

2,176

 

 

$

168

 

 

$

112

 

Interest cost

 

 

2,633

 

 

 

2,568

 

 

 

317

 

 

 

376

 

Expected return on plan assets

 

 

(3,525

)

 

 

(3,151

)

 

 

—

 

 

 

—

 

Amortization of prior service cost (credit)

 

 

21

 

 

 

28

 

 

 

(298

)

 

 

(319

)

Amortization of actuarial loss

 

 

3,578

 

 

 

3,559

 

 

 

545

 

 

 

417

 

Total net periodic cost

 

$

4,752

 

 

$

5,180

 

 

$

732

 

 

$

586

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

Pension

 

 

OPEB

 

(in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Service cost

 

$

4,090

 

 

$

4,466

 

 

$

336

 

 

$

254

 

Interest cost

 

 

5,266

 

 

 

6,132

 

 

 

634

 

 

 

751

 

Expected return on plan assets

 

 

(7,050

)

 

 

(7,737

)

 

 

—

 

 

 

—

 

Amortization of prior service cost (credit)

 

 

42

 

 

 

56

 

 

 

(596

)

 

 

(638

)

Amortization of actuarial loss

 

 

7,299

 

 

 

7,713

 

 

 

1,090

 

 

 

836

 

Net periodic cost before pension settlement charge

 

 

9,647

 

 

 

10,630

 

 

 

1,464

 

 

 

1,203

 

Pension settlement charge

 

 

—

 

 

 

42,988

 

 

 

—

 

 

 

—

 

Net periodic cost

 

$

9,647

 

 

$

53,618

 

 

$

1,464

 

 

$

1,203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

During the six months ended June 30, 2021 and 2020, funding of pension and other postretirement employee benefit plans was $3.8 million and $2.8 million, respectively.

Pension Annuitization

In February 2020, we purchased a group annuity contract from an insurance company to transfer $101.1 million of our outstanding pension benefit obligation related to our qualified pension plans to the insurance company. This transaction was funded with plan assets. As a result of the transaction, the insurance company assumed responsibility for annuity administration and benefit payments to select retirees, with no change to their monthly retirement benefit payment amounts. The settlement triggered a remeasurement of plan assets and liabilities resulting in a reduction in the funded status of our qualified pension plans of approximately $26.2 million during the first quarter of 2020. In connection with this transaction we recorded a non-cash pretax settlement charge of $43.0 million during the first quarter of 2020 in non-operating expense, net, as a result of accelerating the recognition of actuarial losses included in accumulated other comprehensive loss that would have been recognized in future periods.