NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (In thousands, except per share amounts) The Company has agreements with certain retirees of acquired companies to pay monthly retirement benefits through fiscal 2020.  The Company provides health care benefits to eligible retired associates who pay the Company a specified monthly premium. Premium payments are based upon current insurance rates for the type of coverage provided and are adjusted annually. Certain monthly health care premium payments are partially subsidized by the Company. Additionally, in conjunction with a  fiscal 1998 acquisition, the Company assumed the obligation for a postretirement medical benefit plan which provides health  care benefits to eligible retired associates at no cost to the individual.  The Company uses a June 30 measurement date for all plans.  The following table sets forth the changes in benefit obligations and plan assets during the year and the funded status for the  postemployment plans at June 30: Pension Benefits  Retiree Health Care Benefits  2012  2011  2012  2011.  Change in benefit obligation:  Benefit obligation at beginning of the year  $  53,490  $  51,114  $  4,667  $  4,593  Service cost  289  460  30  39  Interest cost  2,047  2,232  237  235  Plan participants ’  contributions  — — 47  37  Benefits paid  (4,144)  (1,856)  (256)  (227)  Amendments  150  151  — — Actuarial loss (gain) during year  4,179  1,389  423  (10)  Curtailment  (8,860)  — — — Benefit obligation at end of year  $  47,151  $  53,490  $  5,148  $  4,667  Change in plan assets:  Fair value of plan assets at beginning of year  $  6,056  $  5,229  $ — $  — Actual (loss) gain on plan assets  (30)  984  — — Employer contributions  4,557  1,699  209  190  Plan participants ’  contributions  — — 47  37  Benefits paid  (4,144)  (1,856)  (256)  (227)  Fair value of plan assets at end of year  $  6,439  $  6,056  $  — $  — Funded status at end of year  $  (40,712)  $  (47,434)  $  (5,148)  $  (4,667)  The amounts recognized in the consolidated balance sheets and in accumulated other comprehensive income (loss) for the  postemployment plans were as follows: Pension Benefits  Retiree Health Care Benefits  June 30,  2012  2011  2012  2011.  Amounts recognized in the consolidated balance sheets:  Other current liabilities  $  6,018  $  4,151  $  220  $  220  Postemployment benefits  34,694  43,283  4,928  4,447  Net amount recognized  40,712  $  47,434  $  5,148  $  4,667  Amounts recognized in accumulated other comprehensive income (loss):  Net actuarial (loss) gain  (10,112)  $  (15,012)  $  398  $  892  Prior service cost  (279)  (3,808)  (135)  (274)  Total amounts recognized in accumulated other comprehensive income (loss) (10,391  )  $  (18,820)  $ 263 $  618  32 Applied Industrial Technologies, Inc. and Subsidiaries SalaryContinuationBenefits  RetireeHealthCareBenefits 