Pension And Other Post-Retirement Benefits

9 Months Ended

Sep. 30, 2020

Pension And Other Post-Retirement Benefits

Tredegar sponsors a noncontributory defined benefit (pension) plan covering certain current and former U.S. employees. The plan for salaried and hourly employees currently in effect is based on a formula using the participant’s years of service and compensation or using the participant’s years of service and a dollar amount. The plan is closed to new participants and pay for active plan participants for benefit calculations was frozen as of December 31, 2007. As of January 31, 2018, the plan no longer accrued benefits associated with crediting employees for service, thereby freezing all future benefits under the plan.

The components of net periodic benefit cost for the pension and other postretirement benefit programs reflected in the consolidated statements of income for the three and nine month periods ended September 30, 2020 and 2019, are shown below:


	Pension Benefits				Other Post-Retirement Benefits
	Three Months Ended September 30,				Three Months Ended September 30,
(In thousands)	2020		2019		2020		2019
Service cost	$	—	$	—	$	9	$	9
Interest cost	2,535		3,067		60		72
Expected return on plan assets	(2,804)		(3,404)		—		—
Amortization of prior service costs, (gains) losses and net transition asset	3,814		2,729		(47)		(58)
Net periodic benefit cost	$	3,545	$	2,392	$	22	$	23

	Pension Benefits				Other Post-Retirement Benefits
	Nine Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2020		2019		2020		2019
Service cost	$	—	$	—	$	28	$	25
Interest cost	7,605		9,202		180		218
Expected return on plan assets	(8,412)		(10,212)		—		—
Amortization of prior service costs, (gains) losses and net transition asset	11,441		8,188		(141)		(173)
Net periodic benefit cost	$	10,634	$	7,178	$	67	$	70

Pension and other postretirement liabilities were $105.3 million and $108.1 million at September 30, 2020 and December 31, 2019, respectively ($0.7 million included in “Accrued expenses” at September 30, 2020 and December 31, 2019, with the remainder included in “Pension and other postretirement benefit obligations, net” in the consolidated balance sheets). The Company’s total required pension contributions for 2020 are expected to be $12.3 million; however, pursuant to the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), the Company has elected as of September 30, 2020, to defer payment of $7.9 million of contributions until January 1, 2021. A $1.8 million pension plan contribution was made in January 2020 prior to the enactment of the CARES Act.

Tredegar funds its other postretirement benefits on a claims-made basis; for 2020, the Company anticipates the amount will be consistent with amounts paid for the year ended December 31, 2019, or approximately $0.3 million.