14. EMPLOYEE BENEFIT PLANS

United has a defined benefit retirement plan covering a majority of all employees. Pension benefits are based on years of service and the average of the employee’s highest five consecutive plan years of basic compensation paid during the ten plan years preceding the date of determination. Contributions are intended to provide not only for benefits attributed to service to date, but also for those expected to be earned in the future.

In September of 2007, after a recommendation by United’s Pension Committee and approval by United’s Board of Directors, the United Bankshares, Inc. Pension Plan (the Plan) was amended to change the participation rules. The decision to change the participation rules for the Plan followed current industry trends, as many large and medium size companies had taken similar steps. The amendment provides that employees hired on or after October 1, 2007, will not be eligible to participate in the Plan. However, new employees will continue to be eligible to participate in United’s Savings and Stock Investment 401(k) plan. This change had no impact on current employees hired prior to October 1, 2007 as they will continue to participate in the Plan, with no change in benefit provisions, and will continue to be eligible to participate in United’s Savings and Stock Investment 401(k) plan.

Included in accumulated other comprehensive income at December 31, 2012 are the following amounts that have not yet been recognized in net periodic pension cost: unrecognized prior service costs of $3 ($2 net of tax) and unrecognized actuarial losses of $56,921 ($36,999 net of tax). The amortization of these items expected to be recognized in net periodic pension cost during the fiscal year ended December 31, 2013 is $1 ($1 net of tax), and $4,693 ($3,050 net of tax), respectively.

Net periodic pension cost for the three and nine months ended September 30, 2013 and 2012 included the following components:


	Three Months Ended September 30						Nine Months Ended September 30
	2013			2012			2013			2012
Service cost	$	777		$	704		$	2,304		$	2,096
Interest cost		1,235			1,213			3,665			3,613
Expected return on plan assets		(2,097	)		(2,011	)		(6,223	)		(5,989	)
Amortization of transition asset		0			0			0			0
Recognized net actuarial loss		1,184			1,037			3,515			3,089
Amortization of prior service cost		1			1			1			1

Net periodic pension (benefit) cost	$	1,100		$	944		$	3,262		$	2,810


Weighted-Average Assumptions:
Discount rate		4.40	%		5.15	%		4.40	%		5.15	%
Expected return on assets		8.00	%		8.00	%		8.00	%		8.00	%
Rate of compensation increase (prior to age 45)		3.75	%		3.75	%		3.75	%		3.75	%
Rate of compensation increase		2.75	%		2.75	%		2.75	%		2.75	%