Defined Benefit Plans

9 Months Ended

Sep. 30, 2020

Defined Benefit Plans And Other Postretirement Benefit Plans Disclosures [Abstract]

Defined Benefit Plans

(11) Defined Benefit Plans

Mid Penn has an unfunded noncontributory defined benefit retirement plan for directors.  The plan provides defined benefits based on years of service.  Mid Penn also sponsors a defined benefit healthcare plan that provides post-retirement medical benefits and life insurance to qualifying full-time employees.  These healthcare and life insurance plans are noncontributory and each plan uses a December 31 measurement date.  

As a result of the acquisition of Scottdale, Mid Penn has assumed a noncontributory defined benefit pension plan covering certain former employees of Scottdale.  Mid Penn contributed $200,000 to the defined benefit pension plan during the three and nine months ended September 30, 2020.  A December 31 measurement date for the plan is used.

The components of net periodic benefit costs from these defined benefit plans are as follows:

	Three Months Ended September 30,
(Dollars in thousands)	Pension Benefits						Other Benefits
	2020			2019			2020			2019
Service cost	$	32		$	36		$	1		$	-
Interest cost		53			65			3			5
Expected return on plan assets		(68	)		(63	)		—			—
Accretion of prior service cost		—			—			(5	)		(5	)
Amortization of net gain		—			(15	)		(1	)		(1	)
Settlement loss (gain)		—			—			—			—
Net periodic benefit expense (income)	$	17		$	23		$	(2	)	$	(1	)
	Nine Months Ended September 30,
(Dollars in thousands)	Pension Benefits						Other Benefits
	2020			2019			2020			2019
Service cost	$	96		$	107		$	2		$	2
Interest cost		158			194			9			13
Expected return on plan assets		(205	)		(190	)		—			—
Accretion of prior service cost		—			—			(15	)		(15	)
Amortization of net gain		—			(44	)		(1	)		(3	)
Settlement loss (gain)		22			(37	)		—			—
Net periodic benefit expense (income)	$	71		$	30		$	(5	)	$	(3	)

Service costs are reported as a component of salaries and employee benefits on the Consolidated Statements of Income, while interest costs, expected return on plan assets, amortization (accretion) of prior service cost, and amortization of (gain) loss are reported as a component of other income.