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Pension and Other Postretirement Benefit Plans
 9 Months Ended
Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]  
Pension and Other Postretirement Benefit Plans
Pension and Other Postretirement Benefit Plans
The Corporation's retirement plans include a qualified pension plan, a nonqualified pension plan, a nonqualified postretirement benefit plan, a 401(k) savings plan, and a multi-employer defined benefit plan.
Qualified and Nonqualified Pension Plans and Nonqualified Postretirement Benefit Plans
The components of net periodic benefit cost for the Corporation’s qualified and nonqualified pension plans and nonqualified postretirement benefit plan are as follows:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(Dollars in thousands)
 
2016
 
2015
 
2016
 
2015
Defined Benefit Pension Plans
 
 
 
 
 
 
 
 
Service cost
 
$
279

 
$
273

 
$
834

 
$
818

Interest cost
 
1,357

 
1,331

 
4,072

 
3,995

Contractual termination cost
 
32

 
—

 
32

 
—

Expected return on plan assets
 
(2,141
)
 
(2,161
)
 
(6,422
)
 
(6,483
)
Amortization of prior service credit
 
—

 
(2
)
 
—

 
(4
)
Amortization of unrecognized net loss
 
585

 
1,057

 
1,729

 
3,169

Net periodic benefit cost
 
$
112

 
$
498

 
$
245

 
$
1,495

Postretirement Benefit Plan
 
 
 
 
 
 
 
 
Service cost
 
$
2

 
$
4

 
$
7

 
$
12

Interest cost
 
33

 
33

 
99

 
100

Amortization of prior service cost
 
29

 
32

 
88

 
97

Amortization of unrecognized net gain
 
(24
)
 
—

 
(75
)
 
(1
)
Net periodic benefit cost
 
$
40

 
$
69

 
$
119

 
$
208


The Corporation’s pension plan does not have a contribution requirement in 2016. The Corporation did not make a contribution to the pension plan during 2015. The discount rate used to compute the Corporation's pension plan expense for 2016 is 4.55%. The discount rate used to compare the Corporation's nonqualified pension plan for 2016 was 4.51%. Effective September 1, 2016, the discount rate was adjusted to 2.87% based on the remeasurement of the Plan required due to the merger with Talmer. The remeasurement resulted in the Corporation recognizing an additional $786 thousand of pension liability.
401(k) Savings Plan
401(k) Savings Plan expense for the Corporation’s match of participants’ base compensation contributions and a 4% of eligible pay contribution to certain employees who are not grandfathered under the pension plan was $1.7 million and $1.4 million for the three months ended September 30, 2016 and 2015, respectively, and $4.4 million and $3.8 million for the nine months ended September 30, 2016 and 2015, respectively.
Multi-Employer Defined Benefit Plan
In conjunction with the April 1, 2015 acquisition of Monarch, the Corporation acquired a participation in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra DB Plan), a qualified defined benefit pension plan. Employee benefits for Monarch employees under the Plan were frozen effective April 1, 2004. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code (IRC). The Pentegra DB Plan is a single plan under IRC Section 413(c) and, as a result, all of the plan's assets stand behind all of the plan's liabilities. Accordingly, contributions made by a participating employer may be used to provide benefits to participants of other participating employers. No contributions were made by the Corporation to the Pentegra DB Plan for the three and nine months ended September 30, 2016 and 2015.