Note 10 – Pension and Supplemental Executive Retirement Plans

The Company participates in a trusteed pension plan known as the Allegheny Group Retirement Plan covering virtually all full-time employees. Benefits are based on years of service and the employee's compensation. Accruals under the Plan were frozen as of May 31, 2014. Freezing the plan resulted in a re-measurement of the pension obligations and plan assets as of the freeze date. The pension obligation was re-measured using the discount rate based on the Citigroup Above Median Pension Discount Curve in effect on May 31, 2014 of 4.46%.

Information pertaining to the activity in the Company’s defined benefit plan, using the latest available actuarial valuations with a measurement date of March 31, 2018 and 2017 is as follows:



(Dollars in thousands)	Three Months Ended March 31, 2018			Three Months Ended March 31, 2017
Service cost	$	—		$	—
Interest cost	88			90
Expected Return on Plan Assets	(93		)	(86		)
Amortization of Net Actuarial Loss	77			60
Amortization of Prior Service Cost	—			—
Net Periodic Benefit Cost	$	72		$	64
Contributions Paid	$	79		$	58

On June 19, 2017, the Company and MVB Mortgage approved a Supplemental Executive Retirement Plan (“SERP”), pursuant to which the Chief Executive Officer of MVB Mortgage is entitled to receive certain supplemental nonqualified retirement benefits. The SERP took effect on December 31, 2017. If executive completes three years of continuous employment with MVB Mortgage prior to retirement date (which shall be no earlier than the date he attains age 55) he will, upon retirement, be entitled to receive $1.8 million payable in 180 equal consecutive installments of $10 thousand. The liability is calculated by discounting the anticipated future cash flows at 4.0%. The liability accrued for this obligation was $95 thousand and $1 thousand as of March 31, 2018 and December 31, 2017, respectively. Service cost was $94 thousand for the three months ended March 31, 2018.