Retirement Plans

9 Months Ended

Sep. 30, 2019

TCF maintains four Legacy TCF employee benefit plans: (i) the TCF 401K Plan (the "TCF 401K"), (ii) the TCF 401k Supplemental Plan (the "Legacy TCF Supplemental Plan"), (iii) the TCF Cash Balance Pension Plan (the "Legacy TCF Pension Plan"), a defined benefit pension plan, and (iv) the TCF Postretirement Plan (the "Legacy TCF Postretirement Plan"), a postretirement benefit plan, each of which were discussed in Legacy TCF's Annual Report on Form 10-K for the year ended December 31, 2018.

TCF also maintains the Chemical employee benefit plans that existed before the Merger: (i) the Chemical Financial Corporation Nonqualified Postretirement Benefit Plan (the "Chemical Postretirement Benefit Plan"), a postretirement benefit plan, and (ii) the Chemical Financial Corporation 401k Savings Plan (the "Chemical 401k").

In addition, Chemical has a pension plan, the Chemical Pension Plan, which is a qualified defined-benefit, noncontributory pension plan. However, the termination of the Chemical Pension Plan was approved effective August 31, 2019. The discount rate was adjusted to 3.48% based on the remeasurement of the Chemical Pension Plan required due to the Merger and the termination. At the time of the Merger, as a result the pending termination, TCF recognized a prepaid asset representing the funded status of the Chemical Pension Plan, net of estimated settlement costs, and the balance previously in accumulated other comprehensive income was eliminated. The purchase accounting adjustment, as a result of the Merger, was reported in goodwill. The Chemical Pension Plan was fully funded as of September 30, 2019.

The Chemical Postretirement Benefit Plan provides medical and dental benefits, upon retirement, to a limited number of active and retired employees. The majority of the retirees are required to make contributions toward the cost of their benefits based on their years of credited service and age at retirement. Covered employees include those who were at least age 50 as of January 1, 2012, that retire at age 60 or older, have at least twenty-five years of service with Chemical and are participants in the active employee group health insurance plan. Eligible employees may also cover their spouse until age 65 as long as the spouse is not offered health insurance coverage through his or her employer. Employees and their spouses eligible to participate in the Chemical Postretirement Benefit Plan are required to make contributions toward the cost of their benefits upon retirement, with the contribution levels designed to cover the projected overall cost of these benefits over the long-term. Retiree contributions are generally adjusted annually. The accounting for these postretirement benefits anticipates changes in future cost-sharing features such as retiree contributions, deductibles, copayments and coinsurance. The benefits can be amended, modified or terminated by us at any time.

The Chemical 401k is available to all former Chemical employees that continue to be employed following the Merger Date, and provides tax deferred salary deductions and alternative investment options. We provide a safe harbor matching contribution of the participants elective deferrals up to a maximum of 6.0% of eligible compensation up to the maximum amount allowed under the Internal Revenue Code. The Chemical 401k provides the option to invest in TCF Financial common stock.

The Board of Directors approved the termination of the Legacy TCF Pension Plan effective November 1, 2019. The Legacy TCF Pension Plan was fully funded as of September 30, 2019. The weighted-average interest crediting rate was 2.24% as of September 30, 2019. TCF does not consolidate the assets and liabilities associated with the Legacy TCF Pension Plan.

The net periodic benefit plan (income) cost for defined benefit pension plans and postretirement benefit plans were as follows:



	Defined Benefit Pension Plans
	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2019			2018			2019			2018
Interest cost	$	1,046		$	246		$	1,574		$	738
Service cost	—			—			—			—
Contractual termination cost	—			—			—			—
Return on plan assets	(949		)	(133		)	(1,223		)	(397		)
Amortization of prior service credit	—			—			—			—
Amortization of unrecognized net loss	—			—			—			—
Recognized actuarial (gain) loss	—			—			—			—
Net periodic benefit plan (income) cost	$	97		$	113		$	351		$	341



	Postretirement Benefit Plans
	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2019			2018			2019			2018
Interest cost	$	41		$	28		$	101		$	83
Service cost	—			—			—			—
Recognized actuarial (gain) loss	—			—			—			—
Amortization of prior service cost	(11		)	(12		)	(35		)	(35		)
Amortization of unrecognized net loss	—			—			—			—
Net periodic benefit plan (income) cost	$	30		$	16		$	66		$	48

TCF made no cash contributions to the defined benefit pension plans during the three and nine months ended September 30, 2019 and 2018. TCF contributed $0.1 million and $0.3 million to the Legacy TCF Postretirement Plan during the three and nine months ended September 30, 2019, and $0.1 million and $0.3 million during the same periods in 2018.

The TCF match under both the Legacy TCF 401k and the Chemical 401k was $4.3 million and $11.4 million for the three and nine months ended September 30, 2019, and $2.5 million and $9.7 million during the same periods in 2018.