RETIREMENT PLANS

12 Months Ended

Dec. 31, 2014

RETIREMENT PLANS [Abstract]

RETIREMENT PLANS

NOTE J – RETIREMENT PLANS

The Corporation has a defined contribution pension plan (the plan) covering all employees aged 21 or older who work 1,000 or greater hours in a calendar year and have completed at least one full year of employment. The Corporation's employer contribution into the pension plan is 5.0% and additional compensation in excess of the Social Security wage base is also limited to 5.0%. In 2012, 2013, and 2014, all covered plan participants received the 5.0% pension contribution. Additionally, those employees with compensation in excess of the Social Security wage base received an additional 5.0% on compensation over the Social Security wage base.

For purposes of the defined contribution pension plan, covered compensation was limited to $260,000 in 2014, $255,000 in 2013, and $250,000 in 2012. Total expenses of the plan were $470,000, $422,000, and $393,000, for 2014, 2013, and 2012, respectively. The Corporation's pension plan is fully funded as all obligations are funded monthly.

The Corporation also provides an optional 401(K) plan, in which employees may elect to defer pre-tax salary dollars, subject to the maximum annual Internal Revenue Service contribution amounts. The contribution maximum for 2014 and 2013 was $17,500, compared to $17,000 for 2012 for persons under age 50, and was $23,000 in both 2014 and 2013, and $22,500 in 2012 for persons over age 50. The Corporation matches employee contributions into the 401(K) plan at a rate of 50% on the first 5.0% of employee contributions. In this manner, employees that contributed at least 5% of their pre-tax pay into the 401(K) plan would receive the equivalent of 7.5% of employer contributions, 5.0% in the pension plan and 2.5% in the 401(K) plan. The Corporation had a total expense of $219,000 in 2014, $186,000 in 2013, and $179,000 in 2012 in the form of matching 401(K) contributions to employees.