Components of Periodic Benefit Costs

The Bank has a defined benefit pension plan (the "Pension Plan") covering its full-time employees who satisfy the Pension Plan's 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. In addition to the Pension Plan, certain health care and life insurance benefits are made available to retirement employees.

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).

Management continually reviews the Company's benefit programs to determine how our programs compare to the marketplace and our peers. Based on the most recent review of the pension plan, the Company has made changes to the existing benefit formula as it relates to the Cost of Living Adjustment ("COLA"). This change, which became effective July 1, 2018, affects employees hired prior to July 1, 2005. The COLA cap was reduced on future benefits from 3% to 1% with all benefits earned to date remaining the same. The decision was also made that, effective October, 1, 2018, the Pension Plan would be closed to employees hired on and after that date. To continue to offer a competitive retirement program, for all employees hired on and after October 1, 2018, the Company will make a matching contribution, not to exceed 4.5% on participant deferrals into the Company's 401(k) plan.

Net periodic benefit cost (income) for pension benefits and other benefits for the three and nine months ended September 30, 2018 and 2017 includes the following components:



	For the Three Months Ended September 30,
	Pension						RIM				Post-retirement
	2018			2017			2018		2017		2018			2017
	(In thousands)
Service cost	$	1,780		$	1,905		$	61	$	59	$	93		$	35
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 benefit cost (income)	$	(199	)	$	564		$	275	$	279	$	333		$	268



	For the Nine Months Ended September 30,
	Pension						RIM				Post-retirement
	2018			2017			2018		2017		2018			2017
	(In thousands)
Service cost	$	5,340		$	5,715		$	183	$	177	$	279		$	105
Interest cost	6,387			6,333			333		321		615			558
Expected return on plan assets	(14,445		)	(18,606		)	—		—		—			—
Amortization:
Prior service cost	—			—			—		—		(102		)	(102		)
Net loss	2,121			8,250			309		339		207			243
Net periodic benefit cost (income)	$	(597	)	$	1,692		$	825	$	837	$	999		$	804

The net periodic benefit cost (income) for pension benefits and other benefits at September 30, 2018 were calculated using the December 31, 2017 third party actuarial valuation reports. For September 30, 2017, the September 30, 2017 third party actuarial valuation reports were utilized to calculate net periodic benefit cost for pension benefits.