15. PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS

Central Pacific Bank has a defined benefit retirement plan (the "Pension Plan") which covers certain eligible employees. The plan was curtailed effective December 31, 2002, and accordingly, plan benefits were fixed as of that date. The following table sets forth the components of net periodic benefit cost for the Pension Plan for the periods indicated:



	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2018			2017			2018			2017
Interest cost	$	167		$	233		$	398		$	462
Expected return on plan assets	(345		)	(264		)	(604		)	(528		)
Amortization of net actuarial loss	192			300			490			596
Net periodic cost	$	14		$	269		$	284		$	530

Our bank also established Supplemental Executive Retirement Plans ("SERPs"), which provide certain (current and former) officers of our bank with supplemental retirement benefits. We have not entered into a SERP since December 31, 2008.

In the second quarter of 2017, the Company settled a portion of the SERP obligation of a former executive. As a result of the settlement, the Company remeasured the related SERP obligation and net periodic benefit cost and recognized a pro-rata net actuarial loss of $0.1 million in SERP expense and other comprehensive income.

The following table sets forth the components of net periodic benefit cost for the SERPs for the periods indicated:



	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2018		2017		2018		2017
Interest cost	$	98	$	100	$	195	$	215
Amortization of net actuarial loss	43		25		86		51
Amortization of net transition obligation	4		5		9		9
Amortization of prior service cost	4		4		9		8
Settlement	—		138		—		138
Net periodic cost	$	149	$	272	$	299	$	421

All components of net periodic benefit cost are included in salaries and employee benefits in the Company's consolidated statements of income.