Note 18 – Retirement Plans

We have an unfunded salary continuation plan covering certain directors, officers and other key members of management. We purchase life insurance policies on certain participants to provide, in part, for future liabilities. Cash surrender value of these policies, totaling $8.0 million for each of September 30, 2018 and December 31, 2017, are included in other non-current assets in the company’s condensed consolidated balance sheets. Subject to certain vesting requirements, the plan provides for a benefit based on final average compensation, which becomes payable on the employee’s death or upon attaining age 65, if retired. The plan was closed to new participants effective February 3, 2011. We have measured the plan assets and obligations of our salary continuation plan for all periods presented.

For the nine months ended September 30, 2018, payments to retirees or their beneficiaries totaled approximately $0.8 million. We presently anticipate benefit payments in 2018 to total approximately $1.4 million. The following table summarizes the components of net periodic pension cost for the three and nine-month periods ended September 30, 2018 and October 1, 2017.


	Three Months Ended				Nine Months Ended
	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
(Dollars in thousands)
Interest cost	$	272	$	298	$	815	$	894
Net amortization		109		67		328		201

Net periodic pension cost	$	381	$	365	$	1,143	$	1,095