EMPLOYEE BENEFIT PLANS

401(k) and Profit Sharing Plan

The Company has a 401(k)/profit sharing plan and the majority of employees participate in the plan. Employees may contribute pre-tax contributions to the 401(k) plan up to the maximum amount allowed by federal tax laws. The Company makes matching contributions of up to 4% of an employee’s eligible compensation. The Company, at its discretion, may make profit sharing contributions to employees' 401(k) accounts in addition to its regular 401(k) plan matching contribution. For the year ended December 31, 2019, 2018 and 2017, these additional contributions totaled 3% of employee eligible compensation. For the year ended December 31, 2019, 2018 and 2017, expenses under the 401(k) and profit sharing plan totaled $2.4 million, $2.3 million, and $2.3 million, respectively.

SERP and Other Postretirement Benefit Plan

The Company sponsors unfunded, non-qualified SERPs for certain officers. These agreements are designed to make up the shortfall (when compared to a non-highly compensated employee) in replacing income at retirement due to IRS compensation and benefit limits under the 401(k) plan and Social Security. The SERP provides for a minimum 15-year guaranteed benefit for all vested participants.

The Company also provides medical and life insurance to certain eligible retired employees under the other postretirement benefit plan. This postretirement plan is a benefit only available to qualifying participants who were grandfathered.

The following table summarizes changes in the benefit obligation and plan assets for each postretirement benefit plan as of the dates indicated:



	SERP						Other Postretirement Benefits
	December 31,
(In thousands)	2019			2018			2019			2018
Benefit obligations:
Beginning of year	$	12,717		$	13,790		$	3,616		$	3,791
Service cost	395			446			48			46
Interest cost	523			488			148			132
Actuarial loss (gain)	1,524			(1,534		)	394			(209		)
Benefits paid	(477		)	(473		)	(157		)	(144		)
End of year	14,682			12,717			4,049			3,616
Fair value of plan assets:
Beginning of year	—			—			—			—
Employer contributions	477			473			157			144
Benefits paid	(477		)	(473		)	(157		)	(144		)
End of year	—			—			—			—
Unfunded status at end of year⁽¹⁾	$	14,682		$	12,717		$	4,049		$	3,616
Amounts recognized in AOCI, net of tax:
Net actuarial loss	$	2,864		$	1,859		$	738		$	449
Prior service credit	—			—			(132		)	(151		)
Total	$	2,864		$	1,859		$	606		$	298


(1)	Presented within other liabilities on the consolidated statements of condition.

The accumulated benefit obligation for the SERP at December 31, 2019 and 2018 was $14.2 million and $12.1 million, respectively.

For the year ending December 31, 2020, the estimated actuarial loss on the SERP that will be amortized from AOCI into net periodic benefit cost is $623,000. All prior service costs have been fully amortized.

For the year ending December 31, 2020, the estimated actuarial loss and prior service credit on other postretirement benefits that will be amortized from AOCI into net periodic benefit cost is $78,000 and $24,000, respectively.

The components of net periodic benefit cost and other amounts recognized in OCI, before taxes, were as follows for the year ended December 31:



	SERP									Other Postretirement Benefits
(In thousands)	2019			2018			2017			2019			2018			2017
Net periodic benefit cost:
Service cost⁽¹⁾	$	395		$	446		$	335		$	48		$	46		$	53
Interest cost⁽²⁾	523			488			452			148			132			144
Recognized net actuarial loss⁽²⁾	240			561			246			31			52			40
Amortization of prior service credit⁽²⁾	—			—			—			(24		)	(24		)	(24		)
Net periodic benefit cost	1,158			1,495			1,033			203			206			213
Changes in funded status recognized in OCI, before taxes:
Net actuarial loss (gain) arising during period	1,524			(1,534		)	1,955			394			(209		)	110
Reclassifications to net periodic benefit cost:
Amortization of net unrecognized actuarial loss	(240		)	(561		)	(246		)	(31		)	(52		)	(40		)
Amortization of prior service credit	—			—			—			24			24			24
Total recognized in OCI, before taxes	1,284			(2,095		)	1,709			387			(237		)	94
Total recognized in net periodic benefit cost and OCI, before taxes	$	2,442		$	(600	)	$	2,742		$	590		$	(31	)	$	307


(1)	Presented in salaries and employee benefits on the consolidated statements of income.


(2)	Presented in other expenses on the consolidated statements of income.

The following assumptions were used in determining benefit obligations and net period benefit costs:



	SERP						Other Postretirement Benefits
	2019		2018		2017		2019		2018		2017
Weighted-average assumptions as of end of year:
Discount rate for benefit obligation	3.2	%	4.2	%	3.6	%	3.2	%	4.2	%	3.6	%
Discount rate for net periodic benefit cost	4.2	%	3.6	%	4.0	%	4.2	%	3.6	%	4.0	%
Rate of compensation increase for benefit obligation	3.0	%	3.0	%	5.0	%	N/A		N/A		N/A
Rate of compensation increase for net periodic benefit cost	3.0	%	3.0	%	5.0	%	N/A		N/A		N/A
Health care cost trend rate assumed for future years	N/A		N/A		N/A		4.5% - 7.0%		5.0% - 6.0%		5.0% - 6.0%

A 1.0% increase or decrease in the assumed health care cost trend rate would not materially increase or decrease the Company's accumulated postretirement benefit obligation and the related service and interest cost as of December 31, 2019.

For the year ended December 31, 2020, the expected contribution is $486,000 for the SERP and $268,000 for the other postretirement benefits plan. The expected benefit payments for the next ten years are presented in the following table:



(In thousands)	SERP		Other Postretirement Benefits
2020	$	486	$	268
2021	536		265
2022	566		233
2023	526		219
2024	436		231
Next 5 years	2,141		1,084