Defined Benefit Post-Retirement Plans

6 Months Ended

Jun. 30, 2022

Defined Benefit Post-Retirement Plans [Abstract]

Defined Benefit Post-Retirement Plans

6. Defined Benefit Post-Retirement Plans

The Company has a qualified, noncontributory, defined benefit pension plan (the “Plan”) covering substantially all of its employees at June 30, 2022. Benefits paid from the Plan are based on age, years of service, compensation and 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 provides supplemental employee retirement plans to certain current and former executives. The Company also assumed supplemental retirement plans for 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 were 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 six months ended June 30, 2022 and 2021.

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

	Pension Benefits						Other Benefits
	Three Months Ended June 30,						Three Months Ended June 30,
(In thousands)	2022			2021			2022		2021
Components of net periodic (benefit) cost:
Service cost	$	534		$	485		$	2	$	2
Interest cost		694			677			41		45
Expected return on plan assets		(2,228	)		(2,203	)		-		-
Net amortization		185			313			1		13
Total net periodic (benefit) cost	$	(815	)	$	(728	)	$	44	$	60

	Pension Benefits						Other Benefits
	Six Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2022			2021			2022		2021
Components of net periodic (benefit) cost:
Service cost	$	1,068		$	970		$	4	$	4
Interest cost		1,388			1,354			82		90
Expected return on plan assets		(4,456	)		(4,406	)		-		-
Net amortization		370			626			2		26
Total net periodic (benefit) cost	$	(1,630	)	$	(1,456	)	$	88	$	120

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 included in Other Noninterest Expense on the unaudited interim consolidated statements of income.