RETIREMENT PLAN BENEFIT LIABILITY

9 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

RETIREMENT PLAN BENEFIT LIABILITY

RETIREMENT PLAN BENEFIT LIABILITY:

On March 18, 2010, the Human Capital Committee and the Board of Directors of the Company approved and adopted the Universal Display Corporation Supplemental Executive Retirement Plan (SERP). The SERP is currently unfunded and includes salary and bonus as part of the plan. The purpose of the SERP is to provide certain of the Company’s key employees with supplemental pension benefits following a cessation of their employment and to encourage their continued employment with the Company. As of September 30, 2023, there were eight participants in the SERP. In December 2022, one of the participants retired and monthly SERP benefit payments commenced in January 2023. The total SERP benefit payments for the nine months ended September 30, 2023 were $1.5 million.

The Company records amounts relating to the SERP based on calculations that incorporate various actuarial and other assumptions, including discount rates, rate of compensation increases, retirement dates and life expectancies. The net periodic costs are recognized as employees render the services necessary to earn the SERP benefits.

The components of net periodic pension cost were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Service cost	$	238	$	282	$	713	$	1,005
Interest cost		725		346		2,174		1,038
Amortization of prior service cost		203		280		611		839
Amortization of loss		120		372		360		1,116
Total net periodic benefit cost	$	1,286	$	1,280	$	3,858	$	3,998