14. Employee Benefit Plans

The Corporation sponsors a contributory defined contribution Section 401(k) plan in which substantially all employees participate. The plan permits employees to make pre-tax contributions which are matched by the Corporation at 100% for every 1% contributed up to 3% then 50% for every 1% contributed up to the next 2% in total of the employee’s compensation. The Corporation’s matching contribution and related expenses were $802, $652 and $508 in 2017, 2016, and 2015, respectively. Profit sharing contributions to this plan, based on current year compensation, are 6.0% of total compensation plus 5.7% of the compensation in excess of $127. The Corporation recognized profit sharing expense of $1,755, $1,276 and $868 in 2017, 2016, and 2015 respectively.

The Corporation has adopted a non-qualified supplemental executive retirement plan (“SERP”) for certain executives to compensate those executive participants in the Corporation’s retirement plan whose benefits are limited by compensation limitations under current tax law. The SERP is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the SERP are payable from the general assets of the Corporation. At December 31, 2017 and 2016, obligations of $5,349 and $4,958, respectively, were included in other liabilities for this plan. Expenses related to this plan were $648 in 2017, $550 in 2016 and $608 in 2015.

The Corporation has established a Survivor Benefit Plan for the benefit of outside directors. The purpose of the plan is to provide life insurance benefits to beneficiaries of the Corporation’s directors who at the time of their death are participants in the plan. The plan is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the plan are payable from the general assets of the Corporation. At December 31, 2017 and 2016, obligations of $1,264 and $1,175, respectively, were included in other liabilities for this plan. Expenses related to this plan were $89 in 2017, $33 in 2016 and $155 in 2015.

The Corporation has an unfunded post retirement benefits plan which provides certain health care benefits for retired employees who have reached the age of 60 and retired with 30 years of service. The plan was amended in 2013 to include only employees hired prior to January 1, 2000. Benefits are provided for these retired employees and their qualifying dependents from the age of 60 through the age of 65.

The following table sets forth the change in the benefit obligation of the plan as of and for the years ended December 31, 2017, 2016, and 2015:


	2017			2016			2015
Benefit obligation at beginning of year	$	3,409		$	3,066		$	2,744
Interest cost		114			108			90
Service cost		103			103			96
Actual claims		(78	)		(151	)		(109	)
Actuarial (gain) loss		(808	)		283			245


Benefit obligation at end of year	$	2,740		$	3,409		$	3,066

Amounts recognized in accumulated other comprehensive income at December 31, 2017 and 2016 consist of:


	2017			2016
Net actuarial loss	$	(871	)	$	(1,871	)
Tax effect		183			654

	$	(688	)	$	(1,217	)

The accumulated benefit obligation was $2,740 and $3,409 at December 31, 2017 and 2016, respectively.

The following table sets forth the components of net periodic benefit cost and other amounts recognized in other comprehensive income:


	2017			2016			2015
Service cost	$	103		$	103		$	96
Interest cost		114			108			90
Net amortization of transition obligation and actuarial loss		192			184			173

Net periodic benefit cost		409			395			359


Net (gain) loss		(808	)		282			311
Amortization of loss		(192	)		(184	)		(173	)

Total recognized in other comprehensive income		(1,000	)		98			138

Total recognized in net periodic benefit cost and other comprehensive income	$	(591	)	$	493		$	497

The estimated net loss that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $84.

The weighted average discount rate used to calculate net periodic benefit cost was 3.49% in 2017, 3.67% in 2016, and 3.42% in 2015. The weighted average rate used to calculate accrued benefit obligations was 3.13% in 2017, 3.49% in 2016, and 3.67% in 2015. The health care cost trend rate used to measure the expected costs of benefits is 5.0% for 2018 and thereafter. A one percent increase in the health care trend rates would result in an increase of $267 in the benefit obligation as of December 31, 2017, and would increase the service and interest costs by $19 in future periods. A similar one percent decrease in health care trend rates would result in a decrease of $218 and $15 in the benefit obligation and services and interest costs, respectively, at December 31, 2017.