RETIREMENT AND PENSION PLANS

3 Months Ended

Mar. 31, 2012

11. RETIREMENT AND PENSION PLANS

The Company has a defined benefit pension plan (the “Retirement Plan”) that is noncontributory and covers unionized employees at its Pekin, Illinois facility who fulfill minimum age and service requirements. Benefits are based on a prescribed formula based upon the employee’s years of service. On October 29, 2010, the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industry and Service Workers International Union, Local 7-662 (the “Union”) ratified a new collective bargaining agreement with the Company for its hourly production workers in Pekin, Illinois. This new agreement was effective November 1, 2010. The agreement states that, among other things, employees hired after November 1, 2010 will not be eligible to participate in the Retirement Plan. The Company uses a December 31 measurement date for its Retirement Plan.

A summary of the components of net periodic pension cost for the Retirement Plan is as follows:

	Three Months Ended March 31,			Three Months Ended March 31,
	2012			2011
	(In thousands)
Service cost	$	120		$	95
Interest cost	143			138
Expected return on plan assets	(207		)	(202		)
Amortization of net actuarial loss	42			—
Net periodic pension cost	$	98		$	31

AVENTINE RENEWABLE ENERGY HOLDINGS INC 10-Q