Note 8. Pension

The components of pension expense for the periods presented are as follows:



	Three Months Ended March 31
(Dollars in thousands)	2015		2014
Components of net periodic cost:
Service cost	$	100	$	86
Interest cost		178		197
Expected return on plan assets		(296)		(290)
Recognized net actuarial loss		131		82
Net period cost	$	113	$	75

The Bank expects its pension expense to increase to approximately $387 thousand in 2015 compared to $276 thousand in 2014.

In October, 2014, the Society of Actuaries released new mortality tables for pension plans. The new tables are expected to raise the assumed life of plan participants due to refinements in age and gender distribution of participants. This change is expected to result in higher pension contribution requirements, lower balance sheet funded status, pricier lump-sum payouts, and higher PBGC variable rate premiums. The Bank has not adopted the new mortality tables. If the tables had been adopted at year-end 2014, it is estimated that the new tables would reduce the funded status by $1.6 million and increase the 2015 pension expense by $272 thousand over the current 2015 estimate. The Bank is still in the process of reviewing the effect of the new tables and is also watching the IRS for its decision on adoption of the new table. Therefore an adoption date for the new tables has not been determined.