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RETIREMENT PLANS
 3 Months Ended
Dec. 31, 2014
RETIREMENT PLANS  
RETIREMENT PLANS

 

 

 

 

8.RETIREMENT PLANS

 

Barnwell sponsors a noncontributory defined benefit pension plan (“Pension Plan”) covering substantially all of its U.S. employees. Additionally, Barnwell sponsors a Supplemental Employee Retirement Plan (“SERP”), a noncontributory supplemental retirement benefit plan which covers certain current and former employees of Barnwell for amounts exceeding the limits allowed under the Pension Plan, and a postretirement medical insurance benefits plan (“Postretirement Medical”) covering eligible U.S. employees.

 

The following table details the components of net periodic benefit cost for Barnwell’s retirement plans:

 

 

 

Pension Plan

 

SERP

 

Postretirement Medical

 

 

 

Three months ended December 31,

 

 

 

2014

 

2013

 

2014

 

2013

 

2014

 

2013

 

Service cost

 

 

$
51,000

 

 

 

$
59,000

 

 

 

$
15,000

 

 

 

$
12,000

 

 

 

$

-     

 

 

 

$
3,000

 

Interest cost

 

 

 
87,000

 

 

 

 
85,000

 

 

 

 
18,000

 

 

 

 
16,000

 

 

 

 
13,000

 

 

 

 
13,000

 

Expected return on plan assets

 

 

 
(125,000

)

 

 

 
(105,000

)

 

 

 

-     

 

 

 

 

-     

 

 

 

 

-     

 

 

 

 

-     

 

Amortization of prior service cost (credit)

 

 

 
1,000

 

 

 

 
1,000

 

 

 

 
(1,000

)

 

 

 
(1,000

)

 

 

 

-     

 

 

 

 
3,000

 

Amortization of net actuarial loss (gain)

 

 

 
21,000

 

 

 

 
9,000

 

 

 

 
6,000

 

 

 

 
1,000

 

 

 

 
(1,000

)

 

 

 
(5,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net periodic benefit cost

 

 

$
35,000

 

 

 

$
49,000

 

 

 

$
38,000

 

 

 

$
28,000

 

 

 

$
12,000

 

 

 

$
14,000

 

 

Barnwell contributed $250,000 to the Pension Plan during the three months ended December 31, 2014 and does not expect to make any further contributions during the remainder of fiscal 2015. The SERP and Postretirement Medical plans are unfunded, and Barnwell funds benefits when payments are made. Barnwell does not expect to make any benefit payments under the Postretirement Medical plan during fiscal 2015 and expected payments under the SERP for fiscal 2015 are not material. Fluctuations in actual equity market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefits costs and contributions in future periods.