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Defined Benefit and Other Postretirement Benefits
9 Months Ended
Sep. 30, 2019
Compensation And Retirement Disclosure [Abstract]  
Defined Benefit and Other Postretirement Benefits

Note 11 – Defined Benefit and Other Postretirement Benefits

Qualified Pension Plan

Trustmark maintains a noncontributory tax-qualified defined benefit pension plan titled the Trustmark Corporation Pension Plan for Certain Employees of Acquired Financial Institutions (the Continuing Plan) to satisfy commitments made by Trustmark to associates covered through plans obtained in acquisitions.

 

The following table presents information regarding the net periodic benefit cost for the Continuing Plan for the periods presented ($ in thousands):

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Service cost

 

$

53

 

 

$

69

 

 

$

159

 

 

$

208

 

Interest cost

 

 

90

 

 

 

83

 

 

 

270

 

 

 

249

 

Expected return on plan assets

 

 

(51

)

 

 

(57

)

 

 

(152

)

 

 

(171

)

Recognized net loss due to lump sum settlements

 

 

47

 

 

 

41

 

 

 

141

 

 

 

121

 

Recognized net actuarial loss

 

 

92

 

 

 

143

 

 

 

278

 

 

 

428

 

Net periodic benefit cost

 

$

231

 

 

$

279

 

 

$

696

 

 

$

835

 

 

For the plan year ending December 31, 2019, Trustmark’s minimum required contribution to the Continuing Plan is $160 thousand; however, Management and the Board of Directors of Trustmark will monitor the Continuing Plan throughout 2019 to determine any additional funding requirements by the plan’s measurement date, which is December 31.

Supplemental Retirement Plans

Trustmark maintains a nonqualified supplemental retirement plan covering key executive officers and senior officers as well as directors who have elected to defer fees.  The plan provides for retirement and/or death benefits based on a participant’s covered salary or deferred fees.  Although plan benefits may be paid from Trustmark’s general assets, Trustmark has purchased life insurance contracts on the participants covered under the plan, which may be used to fund future benefit payments under the plan.  The measurement date for the plan is December 31.  As a result of mergers prior to 2014, Trustmark became the administrator of small nonqualified supplemental retirement plans, for which the plan benefits were frozen prior to the merger date.

The following table presents information regarding the net periodic benefit cost for Trustmark’s nonqualified supplemental retirement plans for the periods presented ($ in thousands):

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Service cost

 

$

27

 

 

$

29

 

 

$

82

 

 

$

87

 

Interest cost

 

 

502

 

 

 

457

 

 

 

1,544

 

 

 

1,409

 

Amortization of prior service cost

 

 

62

 

 

 

63

 

 

 

187

 

 

 

188

 

Recognized net actuarial loss

 

 

155

 

 

 

218

 

 

 

471

 

 

 

664

 

Net periodic benefit cost

 

$

746

 

 

$

767

 

 

$

2,284

 

 

$

2,348