Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

The Company provides a contributory trusteed 401(k) deferred compensation and profit sharing plan, which covers substantially all employees. The Company agrees to match certain employee contributions under the 401(k) portion of the plan, while profit sharing contributions are discretionary and are subject to determination by the Board of Directors. Company contributions were $1,755, $1,438, and $1,328 for 2019, 2018, and 2017, respectively.

The Company self-insures employee health benefits. Stop loss insurance covers annual losses exceeding $175 per covered family as well as an aggregating specific deductible of $300 for the Company. Management’s policy is to establish a reserve for claims not submitted by a charge to earnings based on prior experience. Charges to earnings were $5,495, $3,724, and $4,192 for 2019, 2018, and 2017, respectively.

The Company maintains deferred compensation plans for the benefit of certain directors and officers. Under the plans, the Company agrees in return for the directors and officers deferring the receipt of a portion of their current compensation, to pay a retirement benefit computed as the amount of the compensation deferred plus accrued interest at a variable rate. Accrued benefits payable totaled $2,043 and $2,046 at December 31, 2019 and 2018. Deferred compensation expense was $243, $324, and $187 for 2019, 2018, and 2017, respectively. In conjunction with the plans, the Company purchased life insurance on certain directors and officers.

Postretirement Medical and Life Benefit Plan

The Company has an unfunded postretirement benefit plan covering substantially all of its employees. The medical plan is contributory with the participants’ contributions adjusted annually; the life insurance plans are noncontributory.



Changes in Accumulated Postretirement Benefit Obligations:	2019			2018
Obligation at the Beginning of Year	$	1,154		$	1,061
Unrecognized Loss (Gain)	296			74

Components of Net Periodic Postretirement Benefit Cost
Service Cost	83			69
Interest Cost	43			34

Net Expected Benefit Payments	(92		)	(84		)
Amendments	14			—
Obligation at End of Year	$	1,498		$	1,154



Components of Postretirement Benefit Expense:	2019		2018		2017
Service Cost	$	83	$	69	$	50
Interest Cost	43		34		29
Amortization of Unrecognized Net (Gain) Loss	37		32		8
Net Postretirement Benefit Expense	163		135		87

Net Gain (Loss) During Period Recognized in Other Comprehensive Income (Loss)	273		41		218

Total Recognized in Net Postretirement Benefit Expense and Other Comprehensive Income	$	436	$	176	$	305



Assumptions Used to Determine Net Periodic Cost and Benefit Obligations:	2019		2018		2017
Discount Rate	2.81	%	3.91	%	3.35	%



Assumed Health Care Cost Trend Rates at Year-end:	2019		2018
Health Care Cost Trend Rate Assumed for Next Year	8.00	%	8.00	%
Rate that the Cost Trend Rate Gradually Declines to	4.50	%	5.00	%
Year that the Rate Reaches the Rate it is Assumed to Remain at	2026		2024

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan. A one-percentage-point change in assumed health care cost trend rates would have the following effects as of December 31, 2019:



	One-Percentage-Point Increase		One-Percentage-Point Decrease
Effect on Total of Service and Interest Cost	$	12	$	(11	)
Effect on Postretirement Benefit Obligation	$	101	$	(90	)

Contributions

The Company expects to contribute $96 to its postretirement medical and life insurance plan in 2020.

Estimated Future Benefits

The following postretirement benefit payments, which reflect expected future service, are expected to be paid:



2020	$	96
2021	111
2022	113
2023	130
2024	116
2025-2029	726

Multi-Employer Pension Plan

Through the acquisition of River Valley Bancorp, the Company acquired a participation in a multi-employer defined benefit pension plan. Effective December 31, 2015, the plan was frozen. Pension expense was approximately $84 and $72 during 2019 and 2018, respectively. Specific plan asset and accumulated benefit information for the Company's portion of the fund is not available. Under the Employee Retirement Income and Security Act of 1974 ("ERISA"), a contributor to a multi-employer pension plan may be liable in the event of complete or partial withdrawal for the benefit payments guaranteed under ERISA, but currently there is no intention to withdraw.

The Company participates in the Pentegra Defined Benefit Plan for Financial Institutions (the "Pentegra DB Plan"), a tax-qualified defined-benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under ERISA and the Internal Revenue Code. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan.

The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413(c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the Pentegra DB Plan, contributions made by a participating employer may be used to provide benefits to participants of other participating employers.

Total contributions made to the Pentegra DB Plan, as reported on Form 5500, equal $164,570 and $367,119 for the plan years ended June 30, 2018 and 2017, respectively. The Company's contributions to the Pentegra DB Plan for the fiscal year ending December 31, 2019 were not more than 5% of total contributions to the Pentegra DB Plan for the year ending June 30, 2018.