Components of Periodic Benefit Costs

The Bank has a defined benefit pension plan (the "Pension Plan") covering its full-time employees who satisfy the eligibility requirements. The benefits are based on years of service and the employee's compensation during the last five years of employment. Costs of the Pension Plan, based on the actuarial computations of the current future benefits for employees, are recognized to expense and are funded in part based on the maximum amount that can be deducted for federal income tax purposes. The Pension Plan’s assets are primarily invested in fixed debt and equity securities managed by Aon Hewitt.

In addition to the Pension Plan, certain health care and life insurance benefits are made available to retirement employees (the "Post-retirement Plan").

The Bank has a retirement income maintenance plan (the "RIM Plan"). The RIM Plan is a non-qualified defined benefit plan which provides benefits to all employees of the Bank if their benefits under the Pension Plan are limited by the Internal Revenue Code Sections 415 and 401(a)(17).

Net periodic benefit cost (income) for pension benefits and other benefits for the three months ended December 31, 2017 and 2016 includes the following components:



	Pension						RIM				Post-retirement
	December 31, 2017			December 31, 2016			December 31, 2017		December 31, 2016		December 31, 2017			December 31, 2016
	(In thousands)
Service cost	$	1,780		$	1,905		$	61	$	59	$	93		$	118
Interest cost	2,129			2,111			111		107		205			186
Expected return on plan assets	(4,815		)	(6,202		)	—		—		—			—
Amortization:
Prior service cost	—			—			—		—		(34		)	(34		)
Net loss	707			2,750			103		113		69			81
Net periodic cost (income)	$	(199	)	$	564		$	275	$	279	$	333		$	351

The net periodic benefit cost (income) for pension benefits and other benefits at December 31, 2017 were calculated using the December 31, 2017 third party actuarial valuation reports. For the three months ended December 31, 2017, the $9.1 million change in the funded status before tax of the Company's benefit plans is primarily attributed to a decline in the discount rate used to present value our pension benefit obligations. For December 31, 2016, the September 30, 2016 third party actuarial valuation reports were utilized as a proxy to calculate the net periodic benefit cost for pension benefits.