Retirement Plans

9 Months Ended

Sep. 30, 2017

LCNB participates in a noncontributory defined benefit multi-employer retirement plan that covers substantially all regular full-time employees hired before January 1, 2009. Employees hired before this date who received a benefit reduction under certain amendments to the defined benefit retirement plan receive an automatic contribution of 5% or 7% of their annual compensation, depending on the sum of an employee's age and vesting service, into their defined contribution plans (401(k) plans), regardless of the contributions made by the employees. These contributions are made annually and these employees do not receive any employer matches to their 401(k) contributions.

Employees hired on or after January 1, 2009 receive a 50% employer match on their contributions into the 401(k) plan, up to a maximum LCNB contribution of 3% of each individual employee's annual compensation.

Funding and administrative costs of the qualified noncontributory defined benefit retirement plan and 401(k) plan charged to pension and other employee benefits in the consolidated condensed statements of income for the three and nine-month periods ended September 30, 2017 and 2016 are as follows (in thousands):



	For the Three Months Ended September 30,			For the Nine Months Ended September 30,
	2017		2016	2017		2016
Qualified noncontributory defined benefit retirement plan	$	267	272	$	789	$	712
401(k) plan	102		81	298		241

Certain highly compensated employees participate in a nonqualified defined benefit retirement plan. The nonqualified plan ensures that participants receive the full amount of benefits to which they would have been entitled under the noncontributory defined benefit retirement plan in the absence of limits on benefit levels imposed by certain sections of the Internal Revenue Code.

The components of net periodic pension cost of the nonqualified defined benefit retirement plan for the three and nine months ended September 30, 2017 and 2016 are summarized as follows (in thousands):



	Three Months Ended September 30,			Nine Months Ended September 30,
	2017		2016	2017		2016
Service cost	$	—	10	$	—	$	30
Interest cost	17		20	51		58
Amortization of unrecognized net loss	—		42	—		126
Net periodic pension cost	$	17	72	$	51	$	214

Amounts recognized in accumulated other comprehensive income (loss), net of tax, at September 30, 2017 and December 31, 2016 for the nonqualified defined benefit retirement plan consists of (in thousands):



	September 30, 2017			December 31, 2016
Net actuarial (gain) loss	$	(16	)	$	(16	)
Past service cost	—			—
Total recognized in accumulated other comprehensive income (loss), net of tax	$	(16	)	$	(16	)