Postretirement Benefit Plan

3 Months Ended

Mar. 31, 2021

Postretirement Benefit Plan

Postretirement Benefit Plan

6.            Postretirement Benefit Plan

The Company provides certain postretirement health and life insurance benefits for the Company’s Chief Executive Officer and President, and a former executive of the Company (the Plan).  Upon retirement and after attaining at least the age of 65, the Company will pay the annual cost of health insurance coverage and provide life insurance offered at the time of retirement.  The Plan also provides a benefit to reimburse the participants of certain out-of-pocket medical or health related expenses.  The retirees’ insurance benefits cease upon the death of the retired executive. The Plan is unfunded and the actuarially determined future accumulated postretirement benefit obligation at March 31, 2021 and December 31, 2020 was approximately $2,534,000 and $2,529,000, respectively and has been accrued and reflected in Post Retirement Obligation in the accompanying balance sheets.

Benefit cost for the three months ended March 31, 2021 and 2020 totaled $46,000 and $99,000, respectively.