13	Benefit Plans

The Hudson Valley Bank Employees’ Defined Contribution Pension Plan covers substantially all employees. Pension costs charged to current operations included 5.0 percent of each participant’s earnings in 2013 and 2012. Pension costs charged to operating expenses totaled $914, $1,219 and $1,265 in 2013, 2012 and 2011, respectively.

The Hudson Valley Bank Employees’ Savings Plan covers substantially all employees. The Company matches 25 percent of employee contributions annually, up to 4 percent of base salary. Savings Plan costs charged to expense totaled approximately $176, $180 and $168 in 2013, 2012 and 2011, respectively.

The Company’s matching contribution under the Employees’ Savings Plan as well as its contribution to the Defined Contribution Pension Plan is in the form of cash. Neither plan holds any shares of the Company’s stock.

Additional retirement benefits are provided to certain officers and directors of HVB pursuant to unfunded supplemental plans. Costs for the supplemental pension plans totaled $1,944, $1,586 and $1,397 in 2013, 2012 and 2011, respectively. The Company uses a December 31 measurement date for the supplemental plans and makes contributions to the plans only as benefit payments become due.

The following tables set forth the status of the Company’s supplemental plans as of December 31:


	2013			2012			2011
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	14,038		$	12,688		$	11,414
Service cost		521			506			429
Interest cost		673			642			638
Amendments		—			—			—
Actuarial loss		33			895			819
Benefits paid		(900	)		(693	)		(612	)

Benefit obligation at end of year	$	14,365		$	14,038		$	12,688

Change in plan assets:
Fair value of plan assets at beginning of year
Actual return on assets		—			—			—
Employer contribution	$	900		$	693		$	612
Benefits paid		(900	)		(693	)		(612	)

Fair value of plan assets at end of year		—			—			—

Funded status at year end	$	(14,365	)	$	(14,038	)	$	(12,688	)

Amounts recognized in accumulated other comprehensive income at December 31 consist of:


	2013		2012			2011
	(In thousands)
Net actuarial loss	$	1,738	$	2,671		$	2,447
Prior service cost		—		(216	)		(449	)

	$	1,738	$	2,455		$	1,998

The accumulated benefit obligation was $13,704 and $13,360 at December 31, 2013 and 2012, respectively.

The following table consists of the weighted average assumptions and components of net periodic benefit cost and other amounts recognized in other comprehensive income for the years indicated:


	2013			2012			2011
	(Dollars in thousands)
Weighted Average Assumptions:
Discount rate		3.95	%		3.50	%		4.50	%
Expected return on plan assets		—			—			—
Rate of compensation increase		3.00	%		3.00	%		3.00	%

Components of net periodic benefit cost and other amounts recognized in other comprehensive income:
Service cost	$	521		$	506		$	429
Interest cost		673			642			638
Expected return on plan assets		—			—			—
Amortization of transition obligation		—			—			—
Amortization of prior service cost		(216	)		(233	)		(233	)
Amortization of net loss		966			671			557

Net periodic benefit cost		1,944			1,586			1,391

Net (gain) loss		(933	)		224			262
Amortization of prior service cost		216			233			233

Total recognized in other comprehensive income		(717	)		457			495

Total recognized in net periodic benefit cost and other comprehensive income	$	1,227		$	2,043		$	1,886

The estimated net loss and prior service costs that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2014 are $752 and $0, respectively.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the years indicated:


Year	Pension Benefit
	(In thousands)
2014	$	1,067
2015		1,362
2016		1,221
2017		1,181
2018		1,198
Years 2019-2023		6,169