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Pension Plans
 3 Months Ended
Mar. 31, 2012
Pension Plans  
Pension Plans

Note 12 – Pension Plans

 

The Company sponsors two defined benefit pension plans – a qualified retirement plan (the “Pension Plan”) which is generally available to all employees, and a Supplemental Executive Retirement Plan (the “SERP”), which is for the benefit of certain senior management executives of the Company.

 

The Company recorded pension expense totaling $1,039,000 and $832,000 for the three months ended March 31, 2012 and 2011, respectively, related to the Pension Plan and the SERP. The following table contains the components of the pension expense.

 

   For the Three Months Ended March 31, 
($ in thousands)   2012   2011   2012   2011   2012 Total   2011 Total 
   Pension Plan   Pension Plan   SERP   SERP   Both Plans   Both Plans 
Service cost – benefits earned during the period  $604    478    94    115    698    593 
Interest cost   436    432    87    102    523    534 
Expected return on plan assets   (492)   (444)   ─    ─    (492)   (444)
Amortization of transition obligation   1    1    ─    ─    1    1 
Amortization of net (gain)/loss   267    114    34    26    301    140 
Amortization of prior service cost   3    3    5    5    8    8 
       Net periodic pension cost  $819    584    220    248    1,039    832 

 

The Company’s contributions to the Pension Plan are based on computations by independent actuarial consultants and are intended to provide the Company with the maximum deduction for income tax purposes. The contributions are invested to provide for benefits under the Pension Plan. The Company expects that it will contribute $2,500,000 to the Pension Plan in 2012.

 

The Company’s funding policy with respect to the SERP is to fund the related benefits from the operating cash flow of the Company.