Pension and Postretirement Benefits

9 Months Ended

Sep. 30, 2024

Retirement Benefits [Abstract]

Pension and Postretirement Benefits

Note 5: Pension and Postretirement Benefits

The Company has a noncontributory defined benefit pension plan covering most employees. The plan provides defined benefits based on years of service and final average salary. On May 14, 2012, the Company informed its employees of its decision to freeze participation and benefit accruals under the plan, primarily to reduce some of the volatility in earnings that can accompany the maintenance of a defined benefit plan. The plan was frozen on June 30, 2012.

Compensation earned by employees up to June 30, 2012 is used for purposes of calculating benefits under the plan but there are no future benefit accruals after this date. Participants as of June 30, 2012 will continue to earn vesting credit with respect to their frozen accrued benefits as they continue to work. In addition, the Company provides certain health and life insurance benefits for a limited number of eligible retired employees. The healthcare plan is contributory with participants’ contributions adjusted annually; the life insurance plan is noncontributory. Employees with less than 14 years of service as of January 1, 1995, are not eligible for the health and life insurance retirement benefits.

The composition of net periodic pension plan and postretirement plan costs for the indicated periods is as follows:

	Pension Benefits						Postretirement Benefits						Pension Benefits						Postretirement Benefits
	For the three months ended September 30,												For the nine months ended September 30,
(In thousands)	2024			2023			2024			2023			2024			2023			2024			2023
Service cost	$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-
Interest cost		139			140			2			3			417			421			5			6
Expected return on plan assets		(253	)		(241	)		-			-			(760	)		(724	)		-			-
Amortization of prior service credits		-			-			(1	)		(1	)		-			-			(3	)		(3	)
Amortization of net losses		39			57			(1	)		(1	)		116			170			(3	)		(3	)
Net periodic benefit plan (benefit) cost	$	(75	)	$	(44	)	$	-		$	1		$	(227	)	$	(133	)	$	(1	)	$	-

The Company will evaluate the need for further contributions to the defined benefit pension plan during 2024. The prepaid pension asset of $7.9 million and $7.5 million as of September 30, 2024 and December 31, 2023 respectively, is recorded in other assets on the consolidated statements of condition.