Retirement Plans

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 components of net periodic benefit cost for the Pension and Postretirement Plans for the three months ended March 31, 2015 and 2014, respectively, and for the full year 2014 were as follows.



	Three Months Ended March 31,						Year Ended December 31,
	2015			2014			2014
	($ in Thousands)
Components of Net Periodic Benefit Cost
Pension Plan:
Service cost	$	3,063		$	2,975		$	11,058
Interest cost	1,642			1,790			7,132
Expected return on plan assets	(5,350		)	(4,855		)	(19,922		)
Amortization of prior service cost	13			15			58
Amortization of actuarial loss	532			325			1,384
Total net periodic benefit cost	$	(100	)	$	250		$	(290	)
Postretirement Plan:
Interest cost	$	35		$	39		$	150
Amortization of actuarial gain	—			(9		)	(35		)
Total net periodic benefit cost	$	35		$	30		$	115

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 regularly reviews the funding of its Pension Plan.