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Retirement Plans
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Retirement Plans Retirement Plans The Corporation's retirement plans include qualified defined benefit pension plans, nonqualified postretirement benefit plans, 401(k) savings plans and nonqualified supplemental retirement plans. The TCF 401K Plan (the "TCF 401K") is a qualified postretirement benefit plan that provides the option to invest in TCF common stock. The TCF 401K Supplemental Plan (the "TCF SERP") and the TCF Financial Corporation Deferred Compensation Plan (the "TCF Deferred Compensation Plan") are both nonqualified supplemental retirement plans. The TCF Cash Balance Pension Plan (the "Legacy TCF Pension Plan") and the Chemical Financial Corporation Employees' Pension Plan ("Chemical Pension Plan") are both qualified benefit pension plans (collectively, the "Pension Plans"), which previously provided for postretirement pension benefits for eligible participants. The TCF Postretirement Plan (the "TCF Postretirement Plan") and the Chemical Financial Corporation Nonqualified Postretirement Benefit Plan (the "Chemical Postretirement Benefit Plan" and together with the TCF Postretirement Plan, the "Postretirement Plans") are both nonqualified postretirement benefit plans.
Qualified Defined Benefit Pension Plans

The Board of Directors of Legacy TCF approved the termination of the Legacy TCF Pension Plan effective November 1, 2019. The weighted-average interest crediting rate was 3.00% for 2019. All participants have had their benefits paid in full. During 2020, distributions were made to all participants electing a lump sum payment. Due to the TCF Pension Plan’s funding level, assets were liquidated and additional funding was made for the annuity purchase in 2020. The weighted-average interest crediting rate was 2.05% at liquidation. The Corporation does not consolidate the assets and liabilities associated with the Legacy TCF Pension Plan.

The Board of Directors terminated the Chemical Pension Plan effective August 31, 2019. The discount rate was adjusted to 3.48% based on the remeasurement of the Chemical Pension Plan required due to the TCF/Chemical Merger and the termination. At the time of the TCF/Chemical Merger, as a result of the termination, the Corporation recognized a prepaid asset representing the funded status of the Chemical Pension Plan, net of estimated settlement costs, and the balance previously recorded in accumulated other comprehensive income was eliminated. The purchase accounting adjustment, as a result of the TCF/Chemical Merger, was reported in goodwill. The Chemical Pension Plan was fully funded as of December 31, 2020. During 2020, distributions were made to all participants electing a lump-sum payment. Plan assets remaining following the lump sum distribution and annuity purchase completed in 2020 will be liquidated and/or transferred to a qualified retirement plan over the next several months.

Nonqualified Postretirement Benefit Plans

The Legacy TCF Postretirement Plan provides health care benefits to eligible retired employees who retired prior to December 31, 2009. Effective January 1, 2000, the Legacy TCF modified the TCF Postretirement Plan for employees not yet eligible for benefits under the Postretirement Plan by eliminating the company subsidy. The provisions for full-time and retired employees then eligible for these benefits were not changed. The TCF Postretirement Plan is not funded.

The Chemical Postretirement Benefit Plan provides medical and dental benefits, upon retirement, to a limited number of active and retired employees. The majority of the retirees are required to make contributions toward the cost of their benefits based on their years of credited service and age at retirement. Covered employees include those who were at least age 50 as of January 1, 2012, that retire at age 60 or older, have at least 25 years of service with Chemical and are participants in the active employee group health insurance plan. Eligible employees may also cover their spouse until age 65 as long as the spouse is not offered health insurance coverage through his or her employer. Employees and their spouses eligible to participate in the Chemical Postretirement Benefit Plan are required to make contributions toward the cost of their benefits upon retirement, with the contribution levels designed to cover the projected overall cost of these benefits over the long-term. Retiree contributions are generally adjusted annually. The accounting for these postretirement benefits anticipates changes in future cost-sharing features such as retiree contributions, deductibles, copayments and coinsurance. The benefits can be amended, modified or terminated by the Corporation at any time.

401(k) Savings Plans

Effective December 31, 2019, the Chemical Financial Corporation 401K Savings Plan merged with and into the TCF 401K. All participant balances remaining were transferred into the TCF 401K on December 31, 2019. The TCF 401K, a qualified postretirement benefit and employee stock ownership plan, allows participants to make contributions of up to 50% of their covered compensation on a tax-deferred and/or after-tax basis, subject to the annual covered compensation limitation imposed by the Internal Revenue Service ("IRS"). TCF matches the contributions of all participants at the rate of $1 per dollar for employees with 180 days or more of service up to a maximum company contribution of 5 percent of the employee's covered compensation per pay period subject to the annual covered compensation limitation imposed by the IRS. Employee contributions and matching contributions vest immediately.
Employees have the opportunity to diversify and invest their account balance, including matching contributions, in various mutual funds or TCF common stock. At December 31, 2020, the fair value of the assets in the TCF 401K totaled $593.5 million and included $146.8 million invested in TCF common stock. Dividends on TCF common shares held in the 401K reduce retained earnings and the shares are considered outstanding for computing earnings per share. The Corporation's matching contributions are expensed when earned. The Corporation's contributions to the TCF 401K were $20.8 million for 2020, compared to $16.4 million and $12.3 million for 2019 and 2018, respectively.

Nonqualified Supplemental Retirement Plans

The Legacy TCF Supplemental Plan, a nonqualified plan, allows certain employees to contribute up to 50% of their salary and bonus. The Corporation's matching contributions to this plan totaled $0.5 million, $1.2 million and $1.3 million for 2020, 2019 and 2018, respectively. The Corporation made no other contributions to this plan, other than payment of administrative expenses. The amounts deferred under this plan are invested in TCF common stock or mutual funds. At December 31, 2020 and 2019, the fair value of the assets in the plan totaled $69.5 million and $69.7 million, respectively, and included $21.5 million and $27.6 million, respectively, invested in TCF common stock. The plan's assets invested in TCF common stock are held in trust and included in Other equity. See "Note 17. Equity" for further information on Other equity.

Benefit Obligations and Plan Expenses

The measurement of the benefit obligation, prepaid pension asset, pension liability and annual pension expense involves actuarial valuation methods and the use of actuarial and economic assumptions. Due to the long-term nature of the Pension Plans' obligation, actual results may differ significantly from the actuarial-based estimates. Differences between estimates and actual experience are recorded in the year they arise. The Corporation closely monitors all assumptions and updates them annually. The Corporation does not consolidate the assets and liabilities associated with the Pension Plans. The information set forth in the following tables is based on current actuarial reports.
The following schedule sets forth the changes in the benefit obligation and plan assets of the Corporation's plans:
Pension PlansPostretirement Benefit Plans
At or For the Year Ended December 31,
(In thousands)2020201920202019
Benefit obligation:
Benefit obligation, beginning of year$165,976 $28,330 $5,276 $3,320 
Benefit obligation acquired in TCF/Chemical Merger— 136,587 — 2,271 
Service cost— — 1 1 
Interest cost3,785 3,013 143 149 
Net actuarial (gain) loss782 3,831 295 (19)
Plan amendment(1)
— — (449)— 
Benefits paid(170,543)(5,785)(460)(446)
Benefit obligations, end of year— 165,976 4,806 5,276 
Fair value of plan assets:
Fair value of plan assets, beginning of year169,484 32,844 — — 
Fair value of plan assets acquired in TCF/Chemical Merger— 141,746 — — 
Actual gain on plan assets(2)
12,551 333 — — 
Benefits paid(170,543)(5,439)(460)(377)
Employer contributions2,423 — 460 377 
Fair value of plan assets, end of year13,915 169,484 — — 
Funded status of plan, end of period$13,915 $3,508 $(4,806)$(5,276)
Accumulated benefit obligation$— $165,976 $— $— 
Amounts recognized in the Consolidated Statements of Financial Condition:
Prepaid (accrued) benefit cost, end of period$— $3,508 $(4,806)$(5,276)
Prior service cost included in accumulated other comprehensive income (loss)$— $— $(504)$(101)
(1)The Legacy TCF Postretirement Plan was updated to move a fully insured medical program through Medicare Advantage and a prior service credit has been established.
(2)Includes $8.5 million net gain as a result of the Pension Plans mark to market adjustment and a net pension settlement gain, included in other noninterest expense in the Consolidated Statements of Income during 2020.

Weighted-average rate assumptions of the Corporation's plans follow:
 Legacy TCF Pension PlanChemical Pension PlanLegacy TCF Postretirement PlanChemical Postretirement Plan
(In thousands)202020192018202020192018202020192018202020192018
Discount rate used in determining benefit obligation -December 31
N/A2.17 %3.95 %N/A2.54 %— %1.57 %2.70 %3.85 %2.14 %3.14 %— %
Discount rate used in determining expense
2.17 %3.95 3.30 2.54 %3.48 — 2.70 3.85 3.15 3.14 3.11 — 
Expected long-term return on Pension Plan Assets
0.50 1.75 1.50 2.543.48 — N/AN/AN/AN/AN/AN/A
Health care cost trend rate assumed for next year
— — — — — — 5.34 5.45 5.6 6.75 — — 
Final health care cost trend rate
— — — — — — 4.50 4.50 4.5 4.75 — — 
Year that final health care trend rate is reached
— — — — — — 2038203820382028— — 
N/A Not Applicable.
The net periodic benefit plan (income) cost included in other noninterest expense for the Corporation's plans was as follows for the years ended December 31:
 Pension PlansPostretirement Plans
(In thousands)202020192018202020192018
Interest cost$3,785 $3,013 $983 $143 $149 $110 
Service cost— — — 1 1 — 
Return on plan assets(12,551)(333)607 — — — 
Recognized actuarial loss (gain)782 3,831 (630)295 (19)(115)
Amortization of prior service cost— — — (46)(46)(46)
Net periodic benefit plan (income) cost$(7,984)$6,511 $960 $393 $85 $(51)

The Corporation is eligible to contribute up to $10.0 million to the Pension Plans until the 2020 federal income tax return extended due date under various IRS funding methods. The Corporation made a $2.4 million cash contribution to the Legacy TCF Pension Plan in 2020, compared to none in 2019 and 2018, respectively. The Corporation made no cash contributions to the Chemical Pension Plan in 2020 and 2019. As a result of the Pension Plan terminations, the Corporation will not make any further contributions.

The Corporation contributed $264 thousand, $377 thousand and $392 thousand to the TCF Postretirement Plan in 2020, 2019 and 2018, respectively and no contributions were made to the Chemical Postretirement Benefit Plan in 2020 and 2019. The Corporation expects to contribute $332 thousand to the Postretirement Plans in 2021. The Corporation currently has no plans to pre-fund the Postretirement Plans in 2021.

The Pension Plans have been fully terminated and no longer have estimated future benefit payments. The following schedule presents estimated future benefit payments for the next 10 years under the Corporation's Postretirement Plans for retirees already receiving benefits and future retirees, assuming they retire and begin receiving unreduced benefits as soon as they are eligible:
(In thousands)Postretirement Plans
2021$591 
2022550 
2023510 
2024462 
2025428 
2026 - 20291,574 
Total$4,115 

Pension Plan Assets

TCF's Pension Plan investment policy permits investments in cash, money market mutual funds, direct fixed income securities to include U.S. Treasury securities and U.S. Government-sponsored enterprises, and indirect fixed income investment securities made in fund form (mutual fund or institutional fund) where the fund invests in fixed income securities in investment grade corporate credits, non-investment grade floating-rate bank loans and non-investment grade bonds.
Prior to the termination, the assets of the Chemical Pension Plan were historically invested by the Wealth Management department of Chemical Bank. Previously, the Chemical Pension Plan's primary investment objective was long-term growth coupled with income. In consideration of the Chemical Pension Plan's fiduciary responsibilities, emphasis was placed on quality investments with sufficient liquidity to meet benefit payments and plan expenses, as well as providing the flexibility to manage the investments to accommodate current economic and financial market conditions. Prior to the termination, to meet the Chemical Pension Plan's long-term objective within the constraints of prudent management, target ranges were set for the three primary asset classes: an equity securities range from 40.0% to 70.0%, a debt securities range from 20.0% to 60.0%, and a cash and cash equivalents and other range from 0.0% to 10.0%. Modest asset positions outside of these targeted ranges did occur due to the repositioning of assets within industries or other activity in the financial markets. Equity securities were primarily comprised of both individual securities and equity-based mutual funds, invested in either domestic or international markets. The stocks were diversified among the major economic sectors of the market and were selected based on balance sheet strength, expected earnings growth, the management team and position within their industries, among other characteristics. Debt securities were comprised of U.S. dollar denominated bonds issued by the U.S. Treasury, U.S. government sponsored agencies and investment grade bonds issued by corporations. The notes and bonds purchased were primarily rated "A" or better by the major bond rating companies from diverse industries.

Prior to the termination, the Pension Plans' assets were measured at fair value on a recurring basis and grouped in three levels, based on the markets in which the assets are traded and the degree and reliability of estimates and assumptions used to determine fair value. Mutual funds, U.S. Treasury Bills, equity securities and interest-bearing cash were categorized as Level 1. The fair value of Level 1 assets is based on quotes from independent asset pricing services based on active markets. Mortgage-backed securities and U.S. Treasury and government sponsored enterprises and notes were categorized as Level 2. The fair value of level 2 assets is based on prices obtained from independent pricing sources that were based on observable transactions of similar instruments, but not quoted markets. At December 31, 2020 and 2019, there were no assets categorized as Level 3. The fair value of the collective investment fund was based on the net asset value ("NAV") of units as a practical expedient, and therefore the asset was not classified in the fair value hierarchy.

The following schedule sets forth the fair value of the Pension Plans' assets and the level of valuation inputs used to value those assets at December 31, 2020 and 2019.
At December 31, 2020
(In thousands)Level 1Level 2Level 3Total
Cash$12,515 $— $— $12,515 
Total investments at fair value$12,515 $— $— $12,515 
At December 31, 2019
(In thousands)Level 1Level 2Level 3Total
Cash$3,579 $— $— $3,579 
Debt Securities:
U.S. Treasury and government sponsored agency bonds and notes— 86,952 — 86,952 
Mutual funds(1)
69,845 — — 69,845 
Corporate bonds— 6,718 — 6,718 
Mortgage-backed securities— 2,346 — 2,346 
Other775 — — 775 
Total investments at fair value$74,199 $96,016 $— $170,215 
(1)Comprised primarily of money market mutual funds, fixed-income bonds issued by the U.S. Treasury and government sponsored agencies and bonds of U.S. and foreign issuers from diverse industries.

At December 31, 2019, the Pension Plans did not hold any shares of the Corporation's common stock.
Accumulated Other Comprehensive Loss

The following sets forth the changes in accumulated other comprehensive income (loss), before tax, related to the Corporation's Postretirement Plans:
At or For the Year Ended December 31,
Postretirement Plans
(In thousands)202020192018
Accumulated other comprehensive income (loss) before tax, beginning of period$(101)$(147)$(193)
Amortization of prior service credit (recognized in net periodic benefit cost)46 46 46 
Plan amendment(449)— — 
Accumulated other comprehensive income (loss) before tax, end of period$(504)$(101)$(147)
The Pension Plans do not have any accumulated other comprehensive income (loss).