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10.RETIREMENT PLANS
 6 Months Ended
Jun. 30, 2011
Pension and Other Postretirement Benefits Disclosure [Text Block]
10. 
RETIREMENT PLANS

We sponsor a noncontributory defined benefit pension plan covering non-union workers in our Ohio and Puerto Rico operations.  Benefits under the non-union plan are based upon years of service and highest compensation levels as defined.  On December 31, 2005, we froze the noncontributory defined benefit pension plan for all non-U.S. territorial employees.

Net pension cost of the Company’s plan is as follows:

   
(Unaudited)
   
(Unaudited)
 
   
Three Months Ended
   
Six Months Ended
 
   
June 30,
   
June 30,
 
   
2011
   
2010
   
2011
   
2010
 
                         
Service cost
  $ 30,840     $ 19,977     $ 61,680     $ 39,954  
Interest
    156,330       161,677       312,660       323,354  
Expected return on assets
    (156,591 )     (133,054 )     (313,182 )     (266,108 )
Amortization of unrecognized net gain or loss
    54,763       71,853       109,526       143,706  
Amortization of unrecognized transition obligation
    -       -       -       -  
Amortization of unrecognized prior service cost
    18,801       18,098       37,602       36,196  
Net pension cost
  $ 104,143     $ 138,551     $ 208,286     $ 277,102  

Our unrecognized benefit obligations existing at the date of transition for the non-union plan are being amortized over 21 years.  Actuarial assumptions used in the accounting for the plan were as follows:

   
2011
   
2010
 
             
Discount rate
    5.51 %     5.91 %
                 
Average rate of increase in compensation levels
    3.0 %     3.0 %
                 
Expected long-term rate of return on plan assets
    8.0 %     8.0 %

Our desired investment result is a long-term rate of return on assets that is at least 8%.  The target rate of return for the plan has been based upon the assumption that returns will approximate the long-term rates of return experienced for each asset class in our investment policy.  Our investment guidelines are based upon an investment horizon of greater than five years, so that interim fluctuations should be viewed with appropriate perspective.  Similarly, the plan’s strategic asset allocation is based on this long-term perspective.