XML 16 R12.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Post retirement Benefits
 6 Months Ended
Jun. 30, 2011
Post retirement Benefits [Abstract]  
Post retirement Benefits
5. Post retirement Benefits
The components of expense for Core Molding Technologies’ post retirement benefits plans for the three and six months ended June 30, 2011 and 2010 are as follows:
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2011     2010     2011     2010  
Pension expense:
                               
Defined contribution plan contributions
  $ 124,675     $ 111,021     $ 290,498     $ 221,737  
Multi-employer plan contributions
    110,216       86,496       203,729       209,057  
 
                       
Total pension expense
    234,891       197,517       494,227       430,794  
 
                       
 
                               
Health and life insurance:
                               
Service cost
    —       87,000       —       180,000  
Interest cost
    132,750       269,000       265,500       538,000  
Amortization of prior service costs
    (124,000 )     —       (248,000 )     —  
Amortization of net loss
    54,750       29,000       109,500       58,000  
 
                       
Net periodic benefit cost
    63,500       385,000       127,000       776,000  
 
                       
 
                               
Total post retirement benefits expense
  $ 298,391     $ 582,517     $ 621,227     $ 1,206,794  
 
                       
The Company made payments of $617,883 to pension plans and $255,635 for post retirement healthcare and life insurance during the six months ended June 30, 2011. For the remainder of 2011 the Company expects to make approximately $325,000 of pension plan payments, of which $48,310 was accrued at June 30, 2011. The Company also expects to make approximately $677,365 of post retirement healthcare and life insurance payments for the remainder of 2011, all of which are accrued at June 30, 2011.
On August 7, 2010, the Company entered into a new collective bargaining agreement with employees represented by the International Association of Machinists and Aerospace Workers at the Company’s Columbus, Ohio production facility. As part of the new agreement, the post retirement health and life insurance benefits for all current and future represented employees who were not retired as of August 7, 2010 were eliminated in exchange for a one-time cash payment of $1,257,000. Individuals who retired prior to August 7, 2010 remain eligible for post retirement health and life insurance benefits.
The elimination of post retirement health and life insurance benefits described above resulted in a reduction of the Company’s post retirement benefits liability of approximately $10,282,000 in 2010. This reduction in post retirement benefits liability was treated as a negative plan amendment and is being amortized as a reduction to net periodic benefit cost over approximately twenty years, the remaining life expectancy of the remaining participants in the plan. This negative plan amendment will result in net periodic benefit cost reductions of approximately $496,000 per year in 2011 and each year thereafter during the amortization period, and lower interest costs associated with the reduced post retirement benefits liability. The plan was re-measured using a discount rate of 5.1% at the time of the negative plan amendment.