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RETIREMENT PLANS
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
RETIREMENT PLANS RETIREMENT PLANS
The Company had been a participant in the Pentegra Defined Benefit Plan for Financial Institutions (the “Pentegra DB Plan”), a tax-qualified defined benefit pension plan. Effective January 1, 2020, this plan was frozen to all existing plan participants, eliminating all future benefit accruals. The Company elected to withdraw from the Pentegra DB Plan in August 2021, and recognized an $11.2 million expense associated with the exit from the plan. The withdrawal was completed on December 1, 2021.

The Company has a savings plan under Section 401(k) of the Internal Revenue Code, which covers substantially all employees upon employment who have attained the age of 18. Under the plan, employee contributions are partially matched by the Company at its sole discretion. Company contributions for the years ended December 31, 2021 and 2020 were $701 thousand and $670 thousand, respectively.

The Company provides certain health insurance benefits for retired employees and directors meeting plan eligibility requirements. Effective January 1, 2019 the employee postretirement health benefit plan was curtailed, leaving only 13 retired participants and beneficiaries remaining in the plan. Active participants who met certain requirements received payments in lieu of future benefits. The plans are unfunded as of December 31, 2021 and 2020, and the obligation is included in other liabilities as an accrued postretirement benefit cost.

The Company maintains an Executive Supplemental Income Retirement Plan (“SERP”) for certain employees and a Director Retirement Plan (“DRP”). As the SERP and DRP plans are unfunded, there are no plan assets associated with these plans.
The following table sets forth the change in benefit obligation, change in plan assets and a reconciliation of the unfunded status and the assumptions used in determining the net periodic cost included in the accompanying consolidated financial statements for the Company’s post retirement plans. The measurement date for the post retirement plans were December 31 for each year presented.

SERP and DRPPost Retirement
2021202020212020
(In thousands)
Change in benefit obligation:
Projected benefit obligation at beginning of year$4,102 $3,760 $1,881 $1,946 
Service cost201 146 1 1 
Interest cost79 98 38 54 
Actuarial (gain) loss(100)448 (215)(9)
Benefits paid(341)(350)(92)(111)
Projected benefit obligation at end of year3,941 4,102 1,613 1,881 
Reconciliation of plan assets:
Fair value of plan assets at beginning of year— — — — 
Actual return on plan assets— — — — 
Employer contributions341 350 92 111 
Benefits and Settlements paid(341)(350)(92)(111)
Fair value of plan assets at end of year— — — — 
Unfunded status$3,941 $4,102 $1,613 $1,881 


Amounts recognized in accumulated other comprehensive income at December 31, ignoring tax effects, consist of:

SERP and DRPPost Retirement
2021202020212020
(In thousands)
Unrecognized net actuarial loss (gain)$1,073 $1,317 $(189)$23 
Unrecognized prior service cost333 402 — — 
Total accumulated other comprehensive loss (gain)$1,406 $1,719 $(189)$23 
The weighted average assumptions used in the determination of benefit obligations as of December 31 were as follows:
SERP and DRPPost Retirement
2021202020212020
Discount rate2.31 %1.85 %2.53 %2.10 %
Rate of compensation increase*6.25 %6.25 %N/AN/A
*Rate of compensation increase applicable to DRP only.
The weighted-average assumptions used in the determination of net periodic benefit cost were as follows:
SERP and DRPPost Retirement
2021202020212020
Discount rate1.82 %2.21 %2.18 %2.53 %
Expected rate of return on plan assetsN/AN/AN/AN/A
Rate of compensation increase*6.25 %6.25 %N/AN/A
*Rate of compensation increase applicable to DRP only.

The components of net periodic benefit cost and other amounts recognized in other comprehensive income were as follows for the years ended December 31, 2021 and 2020:

SERP and DRPPost Retirement
2021202020212020
(In thousands)
Service cost$201 $146 $1 $1 
Interest cost79 98 38 54 
Amortization:
Past service liability— — — — 
Net loss (gain)213 190 (3)(1)
Net periodic benefit cost$493 $434 $36 $54 

The components of net periodic benefit cost other than the service cost component are included in “other non-interest expense” in the Statement of Operations. The estimated net loss and prior service cost for the post-retirement plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2022 are $124 thousand and $69 thousand, respectively.

The benefits expected to be paid in each of the next five years and the aggregate for the five years thereafter are as follows:
SERP and DRPPost- Retirement
(In thousands)
2022$331 $98 
2023311 88 
2024286 89 
2025289 90 
2026268 90 
Years 2027 - 20311,161 445