Retirement Plans and Other Postretirement Benefits

12 Months Ended

Dec. 31, 2012

Retirement Plans And Other Postretirement Benefits

Retirement Plans and Other Postretirement Benefits

NOTE 15 Retirement Plans and Other Postretirement Benefits

PSB has established a 401(k) profit sharing plan for its employees. PSB matches 100% of employees’ salary deferrals up to the first 1% of pay deferred and 50% of salary deferrals of the next 5% of pay deferrals, for a maximum match of 3.5% of salary. PSB also may declare a discretionary profit sharing contribution. The expense recognized for contributions to the plan for the years ended December 31, 2012, 2011, and 2010 was $509, $470, and $446, respectively.

PSB maintains deferred compensation agreements with certain executives and directors. PSB matches 20% of the amount of employees' salary deferrals up to the first 15% of pay deferred. PSB directors may elect to defer earned directors’ fees into a separate deferred directors’ fees plan. No PSB match is made on deferred directors’ fees. Cumulative deferred balances earn a crediting rate generally equal to 100% of PSB’s return on average equity subject to a maximum crediting rate of 15% per year. The agreements provide for benefits to be paid in a lump sum at retirement or in monthly installments for a period up to 15 years following each participant’s normal retirement date. PSB is accruing this liability over the participant’s remaining periods of service. The liability outstanding under the agreements was $2,855 and $2,378 at December 31, 2012 and 2011, respectively. The amount charged to operations was $301, $232, and $215 for 2012, 2011, and 2010, respectively.

PSB maintains an unfunded, postretirement health care benefit plan for certain currently retired bank officers and their spouses. Benefits were earned by these participants prior to their retirement and prior to curtailments of the plan during 2003 and 2005. Under the plan, PSB pays 30% to 50% of health insurance premiums depending on years of service at retirement. Plan benefits for these retired officers and spouses continue until the officer’s death. No current employees are eligible for benefits under this plan. At December 31, 2012, there were two retirees receiving benefits. The liability for future postretirement health care benefits was $39 and $78 at December 31, 2012 and 2011, respectively. Postretirement health care benefit plan (income) expense was ($34), ($25), and $0 in 2012, 2011, and 2010, respectively.