UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

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                                    FORM 8-K
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                                 CURRENT REPORT
                       PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

       DATE OF REPORT (date of earliest event reported): October 27, 2005

                   INTERCHANGE FINANCIAL SERVICES CORPORATION
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             (Exact name of registrant as specified in its charter)

                                   New Jersey
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                 (State or Other Jurisdiction of Incorporation)

           1-10518                                       22-2553159
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   (Commission File Number)                (I.R.S. Employer Identification No.)

         Park 80 West/Plaza Two, Saddle Brook, New Jersey      07663
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            (Address of principal executive offices)         (Zip Code)

                                 (201) 703-2265
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              (Registrant's telephone number, including area code)

                                 Not Applicable
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          (Former name or former address, if changed since last report)


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        Exchange Act (17 CFR 240.13e-4(c))





Item 1.02.   Termination of a Material Definitive Agreement

     On October  27,  2005,  the Board of  Directors  of  Interchange  Bank (the
"Bank"), a wholly-owned subsidiary of Interchange Financial Services Corporation
(the  "Company"),  adopted a resolution to "freeze" all future benefit  accruals
under the  Interchange  Bank Pension Plan, a  non-contributory  defined  benefit
pension  plan,  effective  December 31, 2005.  The purpose of the "freeze" is to
afford  us  flexibility  in  the  retirement  benefits  that  we  provide  while
preserving  all retirement  plan  participants'  earned and vested  benefits and
managing the increasing  costs  associated with the retirement plan. The Company
anticipates  recognizing a one-time  pre-tax gain of approximately $1 million in
connection  with the freezing of the retirement  plan  primarily  based upon the
difference between the projected benefit obligation and the accumulated  benefit
obligation.  In 2006 it is anticipated that the freezing of the benefit accruals
will  result in annual  pre-tax  service  cost  savings  of  approximately  $500
thousand.

     The Board also  authorized the 'freeze' of all future  benefit  accruals in
the Interchange  Financial Services Corporation  Directors'  Retirement Plan and
the defined  benefit portion of the Interchange  Bank  Supplemental  Executives'
Retirement Plan.

     In  addition,  the Board  approved  amending the  Interchange  Bank Capital
Investment  Plan,  a 401(k) plan  available to all  employees  who are age 21 or
older. The amendment to the 401(k) plan will increase the fixed  contribution to
employees to 2% from 1%. The fixed contribution is made in the form of shares of
Company stock based upon an employee's  base salary.  In 2006 it is  anticipated
that the annual pre-tax cost of the increase in the fixed  contribution  will be
approximately  $140 thousand.  The (i) estimated  pre-tax  one-time  gain,  (ii)
savings for the freezing of the plans,  and (iii) cost for the increase in fixed
contributions  are only  estimates and are subject to change based upon a number
of factors including, but not limited to, the number of employees, base salaries
and actuarial assumptions.





                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

Date: November 2, 2005               Interchange Financial Services Corporation

                                     By: /s/ Charles T. Field
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                                     Name: Charles T. Field
                                     Title: SVP & Chief Financial Officer