The Corporation has a noncontributory defined benefit retirement plan (the Retirement Account Plan (“RAP”)) covering substantially all full-time employees. The benefits are based primarily on years of service and the employee's compensation paid. Employees of acquired entities generally participate in the RAP after consummation of the business combinations. Any retirement plans of acquired entities are typically merged into the RAP after completion of the mergers, and credit is usually given to employees for years of service at the acquired institution for vesting and eligibility purposes. In connection with the First Federal acquisition in October 2004, the Corporation assumed the First Federal pension plan (the "First Federal Plan"). The First Federal Plan was frozen on December 31, 2004, and qualified participants in the First Federal Plan became eligible to participate in the RAP as of January 1, 2005. Additional discussion and information on the RAP and the First Federal Plan are collectively referred to below as the "Pension Plan."

The Corporation also provides healthcare access for eligible retired employees in its Postretirement Plan (the “Postretirement Plan”). Retirees who are at least 55 years of age with 5 years of service are eligible to participate in the Postretirement Plan. The Corporation has no plan assets attributable to the Postretirement Plan. The Corporation reserves the right to terminate or make changes to the Postretirement Plan at any time.

The funded status and amounts recognized in the 2014 and 2013 consolidated balance sheets, as measured on December 31, 2014 and 2013, respectively, for the Pension and Postretirement Plans were as follows.

		Pension		Postretirement		Pension		Postretirement
		Plan		Plan		Plan		Plan
		2014		2014		2013		2013
		($ in Thousands)
Change in Fair Value of Plan Assets
Fair value of plan assets at beginning of year		$	282,000	$	-	$	224,426	$	-
Actual return on plan assets			15,255		-		42,400		-
Employer contributions			21,000		343		28,000		351
Gross benefits paid			(14,759)		(343)		(12,826)		(351)
	Fair value of plan assets at end of year *	$	303,496	$	-	$	282,000	$	-
Change in Benefit Obligation
Net benefit obligation at beginning of year		$	154,624	$	3,288	$	159,748	$	3,935
Service cost			11,058		-		12,078		-
Interest cost			7,132		150		6,237		142
Actuarial (gain) loss			13,278		483		(10,613)		(438)
Gross benefits paid			(14,759)		(343)		(12,826)		(351)
	Net benefit obligation at end of year *	$	171,333	$	3,578	$	154,624	$	3,288
Funded (unfunded) status		$	132,163	$	(3,578)	$	127,376	$	(3,288)
Noncurrent assets		$	132,163	$	-	$	127,376	$	-
Current liabilities			-		(330)		-		(343)
Noncurrent liabilities			-		(3,248)		-		(2,945)
Asset (Liability) Recognized in the Consolidated Balance Sheets		$	132,163	$	(3,578)	$	127,376	$	(3,288)

* The fair value of the plan assets represented 177% and 182% of the net benefit obligation of the pension plan at December 31, 2014 and 2013, respectively.

Amounts recognized in accumulated other comprehensive income (loss), net of tax, as of December 31, 2014 and 2013 follow.

		Pension		Postretirement		Pension		Postretirement
		Plan		Plan		Plan		Plan
		2014		2014		2013		2013
		($ in Thousands)
Prior service cost		$	153	$	-	$	188	$	-
Net actuarial (gain) loss			23,124		84		12,894		(235)
Amount not yet recognized in net periodic benefit cost, but
	recognized in accumulated other comprehensive income	$	23,277	$	84	$	13,082	$	(235)

Other changes in plan assets and benefit obligations recognized in other comprehensive income (“OCI”), net of tax, in 2014 and 2013 were as follows.

		Pension Plan		Postretirement Plan		Pension Plan		Postretirement Plan
		2014		2014		2013		2013
		($ in Thousands)
Net gain (loss)		$	(17,945)	$	(483)	$	35,366	$	438
Amortization of prior service cost			58		-		72		-
Amortization of actuarial gain (loss)			1,384		(35)		4,344		-
Income tax (expense) benefit			6,308		199		(15,394)		(168)
	Total Recognized in OCI	$	(10,195)	$	(319)	$	24,388	$	270

The components of net periodic benefit cost for the Pension and Postretirement Plans for 2014, 2013, and 2012 were as follows.

		Pension		Postretirement		Pension		Postretirement		Pension		Postretirement
		Plan		Plan		Plan		Plan		Plan		Plan
		2014		2014		2013		2013		2012		2012
						($ in Thousands)
Service cost		$	11,058	$	-	$	12,078	$	-	$	10,287	$	-
Interest cost			7,132		150		6,237		142		6,547		182
Expected return on plan assets			(19,922)		-		(17,647)		-		(14,713)		-
Amortization of:
	Prior service cost		58		-		72		-		72		170
	Actuarial (gain) loss		1,384		(35)		4,344		-		2,708		-
Settlement charge			-		-		-		-		408		-
Total net pension cost		$	(290)	$	115	$	5,084	$	142	$	5,309	$	352

As of December 31, 2014, the estimated actuarial losses and prior service cost that will be amortized during 2015 from accumulated other comprehensive income into net periodic benefit cost for the Pension Plan are $2.1 million and $0.1 million, respectively.

		Pension Plan		Postretirement Plan		Pension Plan		Postretirement Plan
		2014		2014		2013		2013
Weighted average assumptions used to determine
	benefit obligations:
Discount rate		4.00	%	4.00	%	4.80	%	4.80	%
Rate of increase in compensation levels		4.00		N/A		4.00		N/A
Weighted average assumptions used to determine net
	periodic benefit costs:
Discount rate		4.80	%	4.80	%	4.00	%	4.00	%
Rate of increase in compensation levels		4.00		N/A		4.00		N/A
Expected long-term rate of return on plan assets		7.50		N/A		7.50		N/A

The overall expected long-term rates of return on the Pension Plan assets were 7.50% at December 31, 2014 and 2013. The expected long-term (more than 20 years) rate of return was estimated using market benchmarks for equities and bonds applied to the Pension Plan's anticipated asset allocations. The expected return on equities was computed utilizing a valuation framework, which projected future returns based on current equity valuations rather than historical returns. The actual rate of return for the Pension Plan assets was 5.89% and 18.54% for 2014 and 2013, respectively.

The Pension Plan's investments are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risks associated with certain investments and the level of uncertainty related to changes in the value of the investments, it is at least reasonably possible that changes in risks in the near term could materially affect the amounts reported. The investment objective for the Pension Plan is to maximize total return with a tolerance for average risk. The plan has a diversified portfolio designed to provide liquidity, current income, and growth of income and principal, with anticipated asset allocation ranges of: equity securities 50-70%, fixed income securities 30-50%, other cash equivalents 0-5%, and alternative securities 0-15%. Based on changes in economic and market conditions, the Corporation could be outside of the allocation ranges for brief periods of time. The asset allocation for the Pension Plan as of the December 31, 2014 and 2013 measurement dates, respectively, by asset category were as follows.

The Pension Plan assets include cash equivalents, such as money market accounts, mutual funds, and common / collective trust funds (which include investments in equity and bond securities). Money market accounts are stated at cost plus accrued interest, mutual funds are valued at quoted market prices and investments in common / collective trust funds are valued at the amount at which units in the funds can be withdrawn. Based on these inputs, the following table summarizes the fair value of the Pension Plan's investments as of December 31, 2014 and 2013.

				Fair Value Measurements Using
		December 31, 2014		Level 1		Level 2		Level 3
		($ in Thousands)
Pension Plan Investments:
Money market account		$	2,868	$	2,868	$	-	$	-
Mutual funds			185,483		185,483		-		-
Common /collective trust funds			115,145		-		115,145		-
	Total Pension Plan Investments	$	303,496	$	188,351	$	115,145	$	-

				Fair Value Measurements Using
		December 31, 2013		Level 1		Level 2		Level 3
		($ in Thousands)
Pension Plan Investments:
Money market account		$	7,127	$	7,127	$	-	$	-
Mutual funds			187,958		187,958		-		-
Common /collective trust funds			86,915		-		86,915		-
	Total Pension Plan Investments	$	282,000	$	195,085	$	86,915	$	$ -

The Corporation's funding policy is to pay at least the minimum amount required by the funding requirements of federal law and regulations, with consideration given to the maximum funding amounts allowed. The Corporation contributed $21 million and $28 million to its Pension Plan during 2014 and 2013, respectively. The Corporation regularly reviews the funding of its Pension Plan.

The projected benefit payments for the Pension and Postretirement Plans at December 31, 2014, reflecting expected future services, were as follows. The projected benefit payments were calculated using the same assumptions as those used to calculate the benefit obligations listed above.

The health care trend rate is an assumption as to how much the Postretirement Plan's medical costs will increase each year in the future. The health care trend rate assumption for pre-65 coverage is 9.0% for 2014, and 0.5% lower in each succeeding year, to an ultimate rate of 5% for 2022 and future years. The health care trend rate assumption for post-65 coverage is 8.5% for 2014, and 0.5% lower in each succeeding year, to an ultimate rate of 5% for 2021 and future years.

A one percentage point change in the assumed health care cost trend rate would have the following effect.

The Corporation also has a 401(k) and Employee Stock Ownership Plan (the “401(k) plan”). The Corporation's contribution is determined by the Compensation and Benefits Committee of the Board of Directors. Total expense related to contributions to the 401(k) plan was $10 million, $11 million, and $10 million in 2014, 2013, and 2012, respectively.