Defined Benefit Pension Plans Washington Trust maintains a qualified pension plan for the benefit of certain eligible employees who were hired prior to October 1, 2007. Washington Trust also has non-qualified retirement plans to provide supplemental retirement benefits to certain employees, as defined in the plans. The defined benefit pension plans were previously amended to freeze benefit accruals after a 10-year transition period ending in December 2023.
The qualified pension plan is funded on a current basis, in compliance with the requirements of ERISA.
The following table presents components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss), on a pre-tax basis: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | Qualified Pension Plan | | Non-Qualified Retirement Plans | | Three Months | | Nine Months | | Three Months | | Nine Months | Periods ended September 30, | 2019 | 2018 | | 2019 | 2018 | | 2019 | 2018 | | 2019 | 2018 | Net Periodic Benefit Cost: | | | | | | | | | | | | Service cost (1) |
| $510 |
|
| $561 |
| |
| $1,528 |
|
| $1,683 |
| |
| $31 |
|
| $27 |
| |
| $94 |
|
| $81 |
| Interest cost (2) | 741 |
| 679 |
| | 2,225 |
| 2,036 |
| | 140 |
| 119 |
| | 422 |
| 356 |
| Expected return on plan assets (2) | (1,124 | ) | (1,318 | ) | | (3,371 | ) | (3,954 | ) | | — |
| — |
| | — |
| — |
| Amortization of prior service credit (2) | (4 | ) | (6 | ) | | (12 | ) | (17 | ) | | — |
| — |
| | — |
| — |
| Recognized net actuarial loss (2) | 198 |
| 374 |
| | 594 |
| 1,122 |
| | 104 |
| 103 |
| | 307 |
| 308 |
| Net periodic benefit cost |
| $321 |
|
| $290 |
| |
| $964 |
|
| $870 |
| |
| $275 |
|
| $249 |
| |
| $823 |
|
| $745 |
|
| | (1) | Included in salaries and employee benefits expense in the Unaudited Consolidated Statements of Income. |
| | (2) | Included in other expenses in the Unaudited Consolidated Statements of Income. |
The following table presents the measurement date and weighted-average assumptions used to determine net periodic benefit cost: | | | | | | | | | | Qualified Pension Plan | | Non-Qualified Retirement Plans | For the nine months ended September 30, | 2019 | | 2018 | | 2019 | | 2018 | Measurement date | Dec 31, 2018 | | Dec 31, 2017 | | Dec 31, 2018 | | Dec 31, 2017 | Equivalent single discount rate for benefit obligations | 4.38% | | 3.69% | | 4.28% | | 3.58% | Equivalent single discount rate for service cost | 4.44 | | 3.76 | | 4.48 | | 3.79 | Equivalent single discount rate for interest cost | 4.12 | | 3.42 | | 3.98 | | 3.22 | Expected long-term return on plan assets | 5.75 | | 6.75 | | N/A | | N/A | Rate of compensation increase | 3.75 | | 3.75 | | 3.75 | | 3.75 |
|