Employee Benefits

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Employee Benefits

Note 7. Employee Benefits

The Company provides pension benefits to its employees under a noncontributory defined benefit pension plan, the “Defined Benefit Pension Plan”, which is funded on a current basis in compliance with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”) and recognizes costs over the estimated employee service period.

The Company also has the Century Bancorp, Inc. Supplemental Executive Retirement and Insurance Plan (the “Supplemental Plan”) which is limited to certain officers and employees of the Company. The Supplemental Plan is accrued on a current basis and recognizes costs over the estimated employee service period.

Executive officers of the Company and its subsidiaries who have at least one year of service may participate in the Supplemental Plan. The Supplemental Plan is voluntary, and participants are required to contribute to its cost. Life insurance policies, which are owned by the Company, are purchased covering the lives of each participant.

Components of Net Periodic Benefit Cost for the Three Months Ended September 30,

	Pension Benefits				Supplemental Insurance/ Retirement Plan
	2021		2020		2021		2020
	(in thousands)
Service cost		$ 379		$344		$ 363		$ 353
Interest		434		450		434		466
Expected return on plan assets		(1,062)		(952)		—		—
Recognized prior service cost (benefit)				—		54		29
Recognized net actuarial losses		241		261		269		211
Net periodic benefit (credit) cost		$ (8)		$103		$1,120		$1,059

	Pension Benefits				Supplemental Insurance/ Retirement Plan
	2021		2020		2021		2020
	(in thousands)
Service cost		$1,137		$1,032		$1,089		$1,059
Interest		1,302		1,350		1,302		1,398
Expected return on plan assets		(3,186)		(2,856)		—		—
Recognized prior service cost (benefit)		—		—		162		87
Recognized net actuarial losses		723		783		807		633
Net periodic benefit (credit) cost		$ (24)		$ 309		$3,360		$3,177

Components of Net Periodic Benefit Cost for the Nine Months Ended September 30,

Approximately $1,110,000 and $1,395,000 of costs other than service costs, from the table above, are included in other expenses with the remaining cost included in salaries and employee benefits, for the nine months ended September 30, 2021 and 2020, respectively.

Contributions

The Company has contributed $1,302,000 to the Defined Benefit Pension Plan in 2021.