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Defined Benefit Pension Plans
 9 Months Ended
Sep. 30, 2013
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Defined Benefit Pension Plans
Defined Benefit Pension Plans
The Corporation maintains a tax-qualified defined benefit pension plan for the benefit of certain eligible employees who were hired prior to October 1, 2007. The Corporation also has non-qualified retirement plans to provide supplemental retirement benefits to certain employees, as defined in the plans.  The supplemental retirement plans provide eligible participants with an additional retirement benefit.

Effective September 19, 2013, the Corporation amended its defined benefit pension plans to freeze benefit accruals after a ten-year transition period ending in December 2023. Due to the amendment, a remeasurement of the value of pension plan liabilities was conducted and, as a result, pension plan liabilities were reduced by $17.5 million and the accumulated other comprehensive income component of shareholders' equity was increased by $11.2 million, after tax. The remeasurement impact also reflected an increase in the discount rates used to measure the present value of pension plan liabilities as a result of an increase in market rates of interest and continued asset performance.

The pension plan is funded on a current basis, in compliance with the requirements of ERISA.

The composition of net periodic benefit cost was as follows for the periods indicated:
(Dollars in thousands)
Qualified Pension Plan
 
Non-Qualified Retirement Plans
 
Three months
 
Nine months
 
Three months
 
Nine months
Periods ended September 30,
2013
 
2012
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Service cost

$710

 

$644

 

$2,171

 

$1,931

 

$48

 

$38

 

$147

 

$113

Interest cost
722

 
705

 
2,160

 
2,117

 
116

 
126

 
346

 
378

Expected return on plan assets
(931
)
 
(746
)
 
(2,780
)
 
(2,239
)
 
—

 
—

 
—

 
—

Amortization of prior service cost
17

 
(8
)
 
—

 
(25
)
 
—

 
(1
)
 
—

 
(1
)
Recognized net actuarial loss
354

 
246

 
1,182

 
737

 
47

 
29

 
145

 
88

Curtailment
(61
)
 
—

 
(61
)
 
—

 
(2
)
 
—

 
(2
)
 
—

Net periodic benefit cost

$811

 

$841

 

$2,672

 

$2,521

 

$209

 

$192

 

$636

 

$578