Note 17.Pension Plan

The following table sets forth our pension plan’s funded status and amounts recognized in our consolidated balance sheets within other liabilities:


	For the years ended December 31,
(In thousands)	2016		2015
Change in benefit obligation
Benefit obligation at beginning of year	$	15,024	$	15,438
Service cost		49		64
Interest cost		560		565
Benefits paid		(1,004)		(971)
Actuarial (gain) loss		634		(72)
Benefits obligation at end of year	$	15,263	$	15,024
Amounts recognized in accumulated other comprehensive income (loss)
Unrecognized actuarial loss		4,138		3,677
AOCI related to pension plan	$	4,138	$	3,677

We plan to fund a substantial portion of the pension plan obligations through existing Company owned life insurance policies. The accumulated benefit obligation at December 31, 2016 and 2015 was $15.2 million and $14.9 million, respectively.

The table below reflects the assumptions used to determine the benefit obligations:
	As of December 31,
	2016		2015
Discount rate	3.70	%	3.81	%
Rate of compensation increase	4.00	%	4.00	%

The table below reflects the assumptions used to determine the net periodic pension cost:


	As of December 31,
	2016		2015
Discount rate	3.70	%	3.81	%
Rate of compensation increase	4.00	%	4.00	%

Net periodic defined benefit pension expense for the years ended December 31, 2016 and 2015 included the following components:


	For the year ended
	December 31,
(In thousands)	2016		2015
Service cost	$	49	$	64
Interest cost		560		565
Amortization of prior service cost		—		90
Amortization of actuarial loss		173		185
Net periodic benefit cost	$	782	$	904

Benefit payments to be made from the Non-qualified Pension Plan are as follows:


		As of December 31, 2016
		Non-Qualified
(In thousands)		Pension Plans
2017	$	1,005
2018		1,015
2019		1,029
2020		1,098
2021		1,153
Next five years thereafter		5,821

A substantial portion of the benefit payments are expected to be made from insurance policies owned by the Company. The cash surrender value for these policies was approximately $4.7 million and $3.8 million as of December 31, 2016 and 2015, respectively.

Defined Contribution Plan

We have a capital accumulation and salary reduction plan under Section 401(k) of the Internal Revenue Code of 1986, as amended. Under the plan, all employees are eligible to contribute up to the maximum allowed by IRS regulation, with the Company matching dollar for dollar of any contribution up to 5%, which is subject to a $2,500 per employee annual limit. The 401(k) matching contribution was $135 thousand and $134 thousand for 2016 and 2015, respectively.