5. Defined Benefit Post-Retirement Plans

The Company has a qualified, noncontributory, defined benefit pension plan (“the Plan”) covering substantially all of its employees at September 30, 2018. Benefits paid from the plan are based on age, years of service, compensation, social security benefits and are determined in accordance with defined formulas. The Company’s policy is to fund the Plan in accordance with Employee Retirement Income Security Act of 1974 standards. Assets of the Plan are invested in publicly traded stocks and mutual funds.

In addition to the Plan, the Company also provides supplemental employee retirement plans to certain current and former executives. The Company also assumed supplemental retirement plans for certain current and former executives of Alliance Financial Corporation (“Alliance”) when the Company acquired Alliance.

These supplemental employee retirement plans and the Plan are collectively referred to herein as “Pension Benefits.”

In addition, the Company provides certain health care benefits for retired employees. Benefits are accrued over the employees’ active service period. Only employees that were employed by the Company on or before January 1, 2000 are eligible to receive post-retirement health care benefits. In addition, the Company assumed post-retirement medical life insurance benefits for certain Alliance employees, retirees and their spouses, if applicable, in the Alliance acquisition. These post-retirement benefits are referred to herein as “Other Benefits.”

The Company made no voluntary contributions to the pension and other benefits plans during the three and nine months ended September 30, 2018 and 2017.

The components of expense for Pension Benefits and Other Benefits are set forth below:

	Pension Benefits						Other Benefits
	Three months ended September 30,						Three months ended September 30,
(In thousands)	2018			2017			2018		2017
Components of net periodic (benefit) cost
Service cost	$	415		$	329		$	3	$	3
Interest cost		912			1,043			82		88
Expected return on plan assets		(2,119	)		(1,976	)		-		-
Net amortization		242			454			44		26
Total net periodic (benefit) cost	$	(550	)	$	(150	)	$	129	$	117

	Pension Benefits						Other Benefits
	Nine months ended September 30,						Nine months ended September 30,
(In thousands)	2018			2017			2018		2017
Components of net periodic (benefit) cost
Service cost	$	1,256		$	1,133		$	8	$	9
Interest cost		2,752			3,127			245		259
Expected return on plan assets		(6,364	)		(5,946	)		-		-
Net amortization		745			1,284			131		66
Total net periodic (benefit) cost	$	(1,611	)	$	(402	)	$	384	$	334

The service cost component of the net periodic (benefit) cost is included in Salaries and Employee Benefits and the interest cost, expected return on plan assets and net amortization components are including in Other Noninterest Expense on the unaudited interim consolidated statements of income.