9.	Pension and Employee Benefit Plans

We sponsor a non-contributory defined benefit pension plan for certain union employees, and a postretirement health care plan for office employees retiring before January 1, 1990. The health care plan allows retirees who have attained the age of 65 to elect the type of coverage desired. The unfunded liability for these two plans was $3,075 as of December 31, 2012, the most recent actuarial valuation date.

In connection with the acquisition of Met-Pro Technologies LLC on August 27, 2013, the Company assumed a liability for two frozen defined benefit pension plans covering eligible employees of Met-Pro in the United States. Such defined benefit pension plans have been frozen regarding the accrual of future benefits for all eligible employees since December 31, 2008. The unfunded liability for these two plans was $5,709 as of August 27, 2013, the most recent actuarial valuation date.

The unfunded liability of the plans is included in the “Other Liabilities” on our condensed consolidated balance sheets. The plans are funded in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974. The net periodic pension expense and expected contributions related to such plans are included in the disclosure contained herein.

Retirement and health care plan expense is based on valuations performed by the Company’s independent actuaries as of the beginning of each fiscal year. The components of the expense consisted of the following:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(dollars in thousands)	2013			2012			2013			2012
Pension plan:
Service cost	$	32		$	15		$	66		$	45
Interest cost		166			82			322			246
Expected return on plan assets		(214	)		(94	)		(418	)		(282	)
Amortization of net actuarial loss		130			83			314			249

Net periodic benefit cost	$	114		$	86		$	284		$	258

Health care plan:
Interest cost	$	1		$	1		$	3		$	3
Amortization of gain		(4	)		(2	)		(12	)		(6	)

Net periodic benefit gain	$	(3	)	$	(1	)	$	(9	)	$	(2	)

For the nine months ended September 30, 2013, we made contributions to our defined benefit plans totaling $157. We anticipate contributing $303 to fund the pension plan and $4 for the retiree health care plan during the remainder of fiscal of 2013.