Retirement and Deferred Compensation Plans

12 Months Ended

Dec. 31, 2013

Retirement And Deferred Compensation Plans

Retirement and Deferred Compensation Plans

NOTE 15 Retirement and Deferred Compensation Plans

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, 2013, 2012, and 2011 was $446, $509, and $470, 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 until retirement or separation from service. 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 with interest payable at a fixed interest rate ranging from 7% to 8%. PSB is accruing this liability over the participant’s remaining periods of service. The liability outstanding under the agreements was $3,155 and $2,855 at December 31, 2013 and 2012, respectively. The amount charged to operations was $270, $301, and $232 for 2013, 2012, and 2011, respectively.