Defined Pension Plans

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Defined Pension Plans

Note 9 – Defined Pension Plans

The Company has a noncontributory defined-benefit pension plan (the “Plan”), which covers eligible employees. Effective December 31, 2016, the Plan was closed to all new participants. Additionally, the Plan’s benefits were frozen for all remaining participants as of February 28, 2021. The Company accrues and makes contributions designed to fund normal service costs on a current basis using the projected unit credit with service proration method to amortize prior service costs arising from improvements in pension benefits and qualifying service prior to the establishment of the plan over a period of approximately 30 years. Disclosure information is based on a measurement date of December 31 of the corresponding year. The following table represents the components of the net periodic pension costs:

(In thousands)	Estimated 2021		Actual 2020
Service cost – benefits earned during the year	$	963	$	4,329
Interest cost on projected benefit obligations		3,069		3,908
Expected return on plan assets		(6,299)		(6,049)
Net amortization		360		1,946
Net periodic pension (benefit) cost	$	(1,907)	$	4,134

The Company recorded a net periodic benefit of $691,000 and $418,000 for the three and six month periods ended June 30, 2021, respectively as compared to net periodic pension cost of $1,027,000 and $2,056,000 for the three and six month periods ended June 30, 2020, respectively. Pension costs decreased in 2021 due to the Plan being frozen as of February 28, 2021. The Company has not made a contribution to the plan during the six-month period ended June 30, 2021 and is evaluating the amount of additional contributions, if any, in the remainder of 2021.

In addition to the above funded benefit plan, the Company has an unfunded supplemental executive retirement plan which covers key executives of the Company. This is a noncontributory plan in which the Company and its subsidiaries make accruals designed to fund normal service costs on a current basis using the same method and criteria as its defined benefit plan. The following table represents the components of the net periodic pension costs for 2020 and an estimate for 2021:

(In thousands)	Estimated 2021		Actual 2020
Service cost – benefits earned during the year	$	147	$	121
Interest cost on projected benefit obligation		291		347
Net amortization		203		112
Net periodic pension cost	$	641	$	580

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Supplemental executive retirement plan costs recorded to expense were $161,000 and $145,000 for the three-month periods ended June 30, 2021 and 2020, respectively. Supplemental executive retirement plan costs recorded to expense were $321,000 and $290,000 for the six-month periods ended June 30, 2021 and 2020, respectively.