Retirement Plans

6 Months Ended

Jun. 30, 2021

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 six-month period ended June 30, 2021 and 2020 were as follows (in thousands):


	Three Months Ended June 30,			Six Months Ended June 30,
	2021		2020	2021	2020
Qualified noncontributory defined benefit retirement plan	$	282	271	561	541
401(k) plan	152		147	312	312

Certain highly compensated former 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. This plan is limited to the original participants and no new participants have been added.

The components of net periodic pension cost of the nonqualified defined benefit retirement plan for the three and six months ended June 30, 2021 and 2020 are summarized as follows (in thousands):


	Three Months Ended June 30,			Six Months Ended June 30,
	2021		2020	2021	2020

Interest cost	$	13	16	26	32
Amortization of unrecognized net loss	2		—	4	—

Net periodic pension cost	$	15	16	30	32

Amounts recognized in accumulated other comprehensive income, net of tax, at June 30, 2021 and December 31, 2020 for the nonqualified defined benefit retirement plan consists of (in thousands):


	June 30, 2021		December 31, 2020
Net actuarial loss	$	303	306
Past service cost	—		—
Total recognized, net of tax	$	303	306