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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Employee benefits charged to operating expenses are summarized in the table below. Substantially all of the Company’s employees are covered by a defined contribution (401(k)) plan, under which the Company makes matching contributions.

(In thousands)202320222021
Payroll taxes$31,507 $29,580 $28,084 
Medical plans36,277 31,004 31,131 
401(k) plan19,216 18,590 17,237 
Pension plans499 516 388 
Other3,587 3,097 1,170 
Total employee benefits
$91,086 $82,787 $78,010 

A portion of the Company’s employees are covered by a noncontributory defined benefit pension plan, however, participation in the pension plan is not available to employees hired after June 30, 2003. All participants are fully vested in their benefit payable upon normal retirement date, which is based on years of participation and compensation. Since January 2011, all benefits accrued under the pension plan have been frozen. However, the accounts continue to accrue interest at a stated annual rate. Certain key executives also participate in a supplemental executive retirement plan (the CERP) that the Company funds only as retirement benefits are disbursed. The CERP carries no segregated assets. The CERP continues to provide credits based on hypothetical contributions in excess of those permitted under the 401(k) plan. In the tables presented below, the pension plan and the CERP are presented on a combined basis.

Under the Company’s funding policy for the defined benefit pension plan, contributions are made to a trust as necessary to satisfy the statutory minimum required contribution as defined by the Pension Protection Act, which is intended to provide for current service accruals and for any unfunded accrued actuarial liabilities over a reasonable period. To the extent that these requirements are fully covered by assets in the trust, a contribution might not be made in a particular year. No contributions to the defined benefit plan were made in 2023, 2022 or 2021. The minimum required contribution for 2024 is expected to be zero. The Company does not expect to make any further contributions in 2024 other than the necessary funding contributions to the CERP. Distributions under the CERP were $806 thousand, $14 thousand and $14 thousand during 2023, 2022 and 2021, respectively.
The following items are components of the net pension cost for the years ended December 31, 2023, 2022 and 2021.

(In thousands)202320222021
Service cost$499 $516 $388 
Interest cost on projected benefit obligation4,615 2,725 2,169 
Expected return on plan assets(4,051)(4,515)(4,532)
Amortization of prior service cost(271)(271)(271)
Amortization of unrecognized net (gain) loss1,464 1,717 2,578 
Net periodic pension cost$2,256 $172 $332 
The following table sets forth the pension plans’ funded status, using valuation dates of December 31, 2023 and 2022.

(In thousands)
20232022
Change in projected benefit obligation
Projected benefit obligation at prior valuation date
$95,842 $121,738 
Service cost
499 516
Interest cost
4,615 2,725 
Benefits paid
(7,667)(6,933)
Actuarial (gain) loss
660 (22,204)
Projected benefit obligation at valuation date
93,949 95,842 
Change in plan assets
Fair value of plan assets at prior valuation date
88,396 109,807 
Actual return on plan assets
8,307 (14,492)
Employer contributions
806 14 
Benefits paid
(7,667)(6,933)
Fair value of plan assets at valuation date
89,842 88,396 
Funded status and net amount recognized at valuation date
$(4,107)$(7,446)
The unfunded pension benefit obligation decreased $3.3 million from the prior year primarily due to the plan assets earning $4.3 million more than expected. This decrease was slightly offset by a decrease in the discount rate from 5.19% to 4.98%.

The accumulated benefit obligation, which represents the liability of a plan using only benefits as of the measurement date, was $93.9 million and $95.8 million for the combined plans on December 31, 2023 and 2022, respectively.
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) at December 31, 2023 and 2022 are shown below, including amounts recognized in other comprehensive income during the periods. All amounts are shown on a pre-tax basis.

(In thousands)20232022
Prior service credit (cost)$181 $452 
Accumulated gain (loss)(18,304)(23,363)
Accumulated other comprehensive income (loss)
(18,123)(22,911)
Cumulative employer contributions in excess of net periodic benefit cost14,016 15,465 
Net amount recognized as an accrued benefit liability on the December 31 balance sheet
$(4,107)$(7,446)
Net gain (loss) arising during period
3,594 3,197 
Amortization of net (gain) loss
1,464 1,717 
Amortization of prior service cost
(271)(271)
Total recognized in other comprehensive income (loss)
$4,787 $4,643 
Total income (expense) recognized in net periodic pension cost and other comprehensive income
$2,531 $4,471 

The following assumptions, on a weighted average basis, were used in accounting for the plans.

202320222021
Determination of benefit obligation at year end:
Effective discount rate on benefit obligations4.98 %5.19 %2.58 %
Assumed cash balance interest crediting rate5.00 %5.00 %5.00 %
Determination of net periodic benefit cost for year ended:
Effective discount rate on benefit obligations5.19 %2.64 %2.25 %
Effective rate for interest cost on benefit obligations5.09 %2.15 %1.63 %
Long-term rate of return on assets4.75 %4.25 %4.25 %
Assumed cash balance interest crediting rate5.00 %5.00 %5.00 %
The following table shows the fair values of the Company’s pension plan assets by asset category at December 31, 2023 and 2022. Information about the valuation techniques and inputs used to measure fair value are provided in Note 17 on Fair Value Measurements.

Fair Value Measurements
(In thousands)
Total Fair Value
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
December 31, 2023
Assets:
U.S. government obligations$14,041 $14,041 $— $— 
Government-sponsored enterprise obligations (a)
1,039 — 1,039 — 
State and municipal obligations3,740 — 3,740 — 
Agency mortgage-backed securities (b)
2,230 — 2,230 — 
Non-agency mortgage-backed securities2,271 — 2,271 — 
Asset-backed securities5,687 — 5,687 — 
Corporate bonds (c)
48,534 — 48,534 — 
Equity securities and mutual funds: (d)
Mutual funds4,443 4,443 — — 
Common stocks5,809 5,809 — — 
International developed markets funds1,809 1,809 — — 
Emerging markets funds239 239 — — 
Total
$89,842 $26,341 $63,501 $— 
December 31, 2022
Assets:
U.S. government obligations
$9,960 $9,960 $— $— 
Government-sponsored enterprise obligations (a)
1,022 — 1,022 — 
State and municipal obligations
6,840 — 6,840 — 
Agency mortgage-backed securities (b)
2,871 — 2,871 — 
Non-agency mortgage-backed securities
2,527 — 2,527 — 
Asset-backed securities
6,768 — 6,768 — 
Corporate bonds (c)
35,234 — 35,234 — 
Equity securities and mutual funds: (d)
Mutual funds4,395 4,395 — — 
Common stocks15,868 15,868 — — 
International developed markets funds2,604 2,604 — — 
Emerging markets funds307 307 — — 
Total
$88,396 $33,134 $55,262 $— 
(a)    This category represents bonds (excluding mortgage-backed securities) issued by agencies such as the Government National Mortgage Association, the Federal Home Loan Mortgage Corp and the Federal National Mortgage Association.
(b)    This category represents mortgage-backed securities issued by the agencies mentioned in (a).
(c)    This category represents investment grade bonds issued in the U.S., primarily by domestic issuers, representing diverse industries.
(d)    This category represents investments in individual common stocks and equity funds. These holdings are diversified, largely across the technology services, financial services, electronic technology, healthcare technology, and retail trade industries.

The investment policy of the pension plan is designed for growth in principal, within limits designed to safeguard against significant losses within the portfolio. The policy sets guidelines, which may change from time to time, regarding the types and percentages of investments held. Currently, the policy includes guidelines such as holding bonds rated investment grade or better and prohibiting investment in Company stock. The plan does not utilize derivatives. Management believes there are no significant concentrations of risk within the plan asset portfolio at December 31, 2023. Under the current policy, the long-term investment target mix for the plan is 10% equity securities and 90% fixed income securities. The Company regularly reviews its policies on investment mix and may make changes depending on economic conditions and perceived investment risk.
The assumed overall expected long-term rate of return on pension plan assets used in calculating 2023 pension plan expense was 4.75%. Determination of the plan’s expected rate of return is based upon historical and anticipated returns of the asset classes invested in by the pension plan and the allocation strategy currently in place among those classes. The rate used in plan calculations may be adjusted by management for current trends in the economic environment. The 10-year annualized return for the Company’s pension plan was 4.9%. During 2023, the plan’s assets gained 10.3% of their value, compared to a loss of 12.0% in 2022. Returns for any plan year may be affected by changes in the stock market and interest rates. The Company expects to incur pension expense of $1.7 million in 2024, compared to $2.3 million in 2023.

The following future benefit payments are expected to be paid:

(In thousands)
2024$7,883 
20257,859 
20267,734 
20277,618 
20287,434 
2029 - 203333,673