Retirement Plans

9 Months Ended

Sep. 30, 2019

LCNB participates in a noncontributory defined benefit multi-employer retirement plan that covers substantially all regular full-time employees hired before January 1, 2009. Employees hired before this date who received a benefit reduction under certain amendments to the defined benefit retirement plan receive an automatic contribution of 5% or 7% of their annual compensation, depending on the sum of an employee's age and vesting service, into their defined contribution plans (401(k) plans), regardless of the contributions made by the employees. These contributions are made annually and these employees do not receive any employer matches to their 401(k) contributions.

Employees hired on or after January 1, 2009 receive a 50% employer match on their contributions into the 401(k) plan, up to a maximum LCNB contribution of 3% of each individual employee's annual compensation.

Funding and administrative costs of the qualified noncontributory defined benefit retirement plan and 401(k) plan charged to pension and other employee benefits in the consolidated condensed statements of income for the three and nine-month periods ended September 30, 2019 and 2018 are as follows (in thousands):



	Three Months Ended September 30,			Nine Months Ended September 30,
	2019		2018	2019	2018
Qualified noncontributory defined benefit retirement plan	$	215	279	730	804
401(k) plan	131		119	395	336

Certain highly compensated former employees participate in a nonqualified defined benefit retirement plan. The nonqualified plan ensures that participants receive the full amount of benefits to which they would have been entitled under the noncontributory defined benefit retirement plan in the absence of limits on benefit levels imposed by certain sections of the Internal Revenue Code. This plan is limited to the original participants and no new participants have been added.

The components of net periodic pension cost of the nonqualified defined benefit retirement plan for the three and nine months ended September 30, 2019 and 2018 are summarized as follows (in thousands):



	Three Months Ended September 30,			Nine Months Ended September 30,
	2019		2018	2019	2018
Service cost	$	—	—	—	—
Interest cost	20		17	57	51
Amortization of unrecognized net loss	—		4	—	12
Net periodic pension cost	$	20	21	57	63

Amounts recognized in accumulated other comprehensive income (loss), net of tax, at September 30, 2019 and December 31, 2018 for the nonqualified defined benefit retirement plan consists of (in thousands):

September 30, 2019

December 31, 2018

Net actuarial loss

Past service cost

Total recognized, net of tax