7. PENSION AND RETIREMENT BENEFIT PLANS
|9 Months Ended|
Sep. 30, 2015
|Compensation and Retirement Disclosure [Abstract]|
|7. PENSION AND RETIREMENT BENEFIT PLANS||
The Company, through its acquisition of Aventine, has assumed a defined benefit pension plan (the Pension Plan) and a health care and life insurance plan (the Postretirement Plan).
The Pension Plan is noncontributory, and covers unionized employees at the Companys Pekin, Illinois facility, who fulfill minimum age and service requirements. Benefits are based on a prescribed formula based upon the employees years of service. The Pension Plan, part of a collective bargaining agreement, covers only Union employees hired after November 1, 2010. The Company uses a December 31 measurement date for its Pension Plan. The Companys funding policy is to make the minimum annual contributions that are required by applicable regulations. As of September 30, 2015, the Pension Plans accumulated projected benefit obligation was $18.0 million, with a fair value of plan assets of $13.2 million. The underfunded amount of $4.8 million is recorded on the Companys consolidated balance sheet in other noncurrent liabilities. For the three months ended September 30, 2015, the Pension Plans net periodic expense was $24,000, comprised of $169,000 in interest cost and $106,000 in service cost, partially offset by a $251,000 expected return on plan assets. The Company expects approximately $0.5 million to be paid out of the Pension Plan for the remainder of 2015.
The Postretirement Plan provides postretirement medical benefits and life insurance to certain grandfathered unionized employees. Employees hired after December 31, 2000 are not eligible to participate in the Postretirement Plan. The Postretirement Plan is contributory, with contributions required at the same rate as active employees. Benefit eligibility under the plan reduces at age 65 from a defined benefit to a defined collar cap based upon years of service. As of September 30, 2015, the Postretirement Plans accumulated projected benefit obligation was $3.7 million and is recorded on the Companys consolidated balance sheet in other noncurrent liabilities. The Companys funding policy is to make the minimum annual contributions that are required by applicable regulations. For the three months ended September 30, 2015, the Postretirement Plans net periodic expense was $49,000, comprised of $33,000 of interest cost and $16,000 of service cost. The Company expects approximately $0.1 million to be paid out of the Postretirement Plan for the remainder of 2015.
The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans.
No definition available.