Retirement Plans and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2011

Retirement Plans and Other Postretirement Benefits [Abstract]

Retirement Plans and Other Postretirement Benefits

Note 7. Retirement Plans and Other Postretirement Benefits

Substantially all employees who were hired before December 8, 2009 are covered by a noncontributory retirement plan. Effective December 31, 2009, the benefits under the noncontributory retirement plan, in its current form, were frozen and the plan was amended and converted to a cash balance plan, with participants not losing any pension benefits already earned in the plan. Prior to the cash balance plan conversion effective December 31, 2009, the plan provided benefits based on a formula of each participant’s final average pay. Future benefits under the cash balance plan accrue by crediting participants annually with an amount equal to a percentage of earnings in that year based on years of credited service as defined in the plan. Additionally, employees hired on or after December 8, 2009 are not eligible to participate in the noncontributory retirement plan. The Corporation also provides supplemental executive retirement benefits, a portion of which is in excess of limits imposed on qualified plans by federal tax law. These plans are non-qualified benefit plans. Information on these plans are aggregated and reported under “Retirement Plans” within this footnote.

The Corporation also provides certain postretirement healthcare and life insurance benefits for retired employees. Information on these benefits is reported under “Other Postretirement Benefits” within this footnote.

The Corporation sponsors a Supplemental Non-Qualified Pension Plan (SNQPP) which was established in 1981 for employees who have served for several years, with ability and distinction, in one of the primary policy-making senior level positions, with the understanding that the future growth and continued success of the Corporation’s business may well reflect the continued services to be rendered by these employees and the Corporation’s desire to be reasonably assured that these employees will continue to serve and realizing that if these employees would enter into competition with the Corporation, it would suffer severe financial loss. The SNQPP was established prior to the existence of a 401(k) Deferred Savings Plan, the Employee Stock Purchase Plan and the Long-Term Incentive Plans and therefore is not actively offered to new participants.

Information with respect to the Retirement and Supplemental Retirement Plans and Other Postretirement Benefits follows:

Components of net periodic benefit cost were as follows:

	For the Three Months Ended September 30,
	2011			2010			2011			2010
							Other Post Retirement
(Dollars in thousands)	Retirement Plans						Benefits
Service cost	$	138		$	91		$	16		$	19
Interest cost		431			426			29			26
Expected return on plan assets		(474	)		(418	)		—			—
Amortization of net loss		185			169			(5	)		2
Amortization (accretion) of prior service cost		12			12			(6	)		(5	)
Accretion of transition asset		(71	)		(70	)		—			—
Net periodic cost	$	221		$	210		$	34		$	42

	For the Nine Months Ended September 30,
	2011			2010			2011			2010
							Other Post Retirement
(Dollars in thousands)	Retirement Plans						Benefits
Service cost	$	416		$	273		$	49		$	57
Interest cost		1,294			1,282			88			79
Expected return on plan assets		(1,422	)		(1,253	)		—			—
Amortization of net loss		549			506			12			9
Amortization (accretion) of prior service cost		36			36			(16	)		(15	)
Accretion of transition asset		(212	)		(212	)		—			—
Net periodic cost	$	661		$	632		$	133		$	130

The Corporation previously disclosed in its financial statements for the year ended December 31, 2010, that it expected to make contributions of $54 thousand to its qualified and non-qualified retirement plans and $97 thousand to its other postretirement benefit plans in 2011. During the nine months ended September 30, 2011, the Corporation contributed $30 thousand and $60 thousand to its qualified and non-qualified retirement plans and other postretirement plans, respectively. As of September 30, 2011, $1.1 million has been paid to participants from the qualified and non-qualified retirement plans and $60 thousand has been paid to participants from the other postretirement plans.