BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2017

Funded Status of Plans Reconciled with Amounts Reported in Consolidated Statements of Condition

Using a measurement date of December 31, the following table shows the funded status of the Company's plans reconciled with amounts reported in the Company's consolidated statements of condition:

	Pension Benefits						Post-retirement Benefits
(000's omitted)	2017			2016			2017			2016
Change in benefit obligation:
Benefit obligation at the beginning of year	$	127,084		$	127,134		$	1,806		$	1,918
Service cost		4,181			4,106			0			0
Interest cost		5,717			5,624			76			82
Plan amendment / acquisition		11,646			22			0			0
Participant contributions		0			0			467			516
Deferred actuarial loss/(gain)		8,978			(1,628	)		245			174
Benefits paid		(10,156	)		(8,174	)		(809	)		(884	)
Benefit obligation at end of year		147,450			127,084			1,785			1,806
Change in plan assets:
Fair value of plan assets at beginning of year		180,400			172,026			0			0
Actual return of plan assets		22,954			14,402			0			0
Participant contributions		0			0			467			516
Employer contributions		9,839			2,146			342			368
Plan acquisition		14,070			0			0			0
Benefits paid		(10,156	)		(8,174	)		(809	)		(884	)
Fair value of plan assets at end of year		217,107			180,400			0			0
Over/(Under) funded status at year end	$	69,657		$	53,316		$	(1,785	)	$	(1,806	)

Amounts recognized in the consolidated statement of condition were:
Other assets	$	81,000		$	64,709		$	0		$	0
Other liabilities		(11,343	)		(11,393	)		(1,785	)		(1,806	)
Amounts recognized in accumulated other comprehensive income (loss) (“AOCI”) were:
Net loss	$	26,935		$	28,323		$	420		$	183
Net prior service cost (credit)		2,944			2,264			(1,622	)		(1,801	)
Pre-tax AOCI		29,879			30,587			(1,202	)		(1,618	)
Taxes		(7,340	)		(11,622	)		296			614
AOCI at year end	$	22,539		$	18,965		$	(906	)	$	(1,004	)

Amounts Recognized in Accumulated Other Comprehensive Income, Net of Tax

Amounts recognized in accumulated other comprehensive income, net of tax, for the year ended December 31, are as follows:

	Pension Benefits						Post-retirement Benefits
(000's omitted)	2017			2016			2017		2016
Prior service cost/(credit)	$	424		$	(26	)	$	111	$	110
Net (gain) loss		(851	)		(3,517	)		148		111
Total	$	(427	)	$	(3,543	)	$	259	$	221

Estimated Costs, Net of Tax, That Will Be Amortized from Accumulated Other Comprehensive (Income) Loss into Net Periodic (Income) Cost over Next Fiscal Year

The estimated costs, net of tax, that will be amortized from accumulated other comprehensive (income) loss into net periodic (income) cost over the next fiscal year are as follows:

(000's omitted)	Pension Benefits			Post-retirement Benefits
Prior service credit	$	(330	)	$	(179	)
Net loss		1,054			18
Total	$	724		$	(161	)

Weighted Average Assumptions Used To Determine Benefit Obligations

The weighted-average assumptions used to determine the benefit obligations as of December 31 are as follows:

	Pension Benefits						Post-retirement Benefits
	2017			2016			2017			2016
Discount rate		4.00	%		4.50	%		4.00	%		4.40	%
Expected return on plan assets		7.00	%		7.00	%		N/A			N/A
Rate of compensation increase		3.50	%		3.50	%		N/A			N/A

Net Periodic Benefit Cost

The net periodic benefit cost as of December 31 is as follows:

	Pension Benefits									Post-retirement Benefits
(000's omitted)	2017			2016			2015			2017			2016			2015
Service cost	$	4,181		$	4,106		$	3,324		$	0		$	0		$	0
Interest cost		5,717			5,624			5,506			76			82			87
Expected return on plan assets		(13,354	)		(11,842	)		(12,169	)		0			0			0
Plan amendment		0			20			0			0			0			0
Amortization of unrecognized net loss/(gain)		767			1,508			1,466			8			(5	)		(13	)
Amortization of prior service cost		55			43			8			(179	)		(179	)		(179	)
Net periodic (benefit)	$	(2,634	)	$	(541	)	$	(1,865	)	$	(95	)	$	(102	)	$	(105	)

Weighted-Average Assumptions Used to Determine Benefit Obligations and Net Periodic Pension Cost

The weighted-average assumptions used to determine the net periodic pension cost for the years ended December 31 are as follows:

	Pension Benefits									Post-retirement Benefits
	2017			2016			2015			2017			2016			2015
Discount rate		4.40	%		4.70	%		4.50	%		4.40	%		4.70	%		4.50	%
Expected return on plan assets		7.00	%		7.00	%		7.00	%		N/A			N/A			N/A
Rate of compensation increase		3.50	%		3.50	%		3.50	%		N/A			N/A			N/A

Amount of Expected Benefit Payments

The amount of benefit payments that are expected to be paid over the next ten years are as follows:

(000's omitted)	Pension Benefits		Post-retirement Benefits
2018	$	8,702	$	145
2019		9,163		142
2020		9,404		139
2021		9,943		136
2022		10,378		133
2023-2027		56,064		618

Fair Value of Defined Benefit Plan Assets by Asset Category

The fair values of the Company’s defined benefit pension plan assets at December 31, 2017 by asset category are as follows:

Asset category (000’s omitted)	Quoted Prices in Active Markets for Identical Assets Level 1		Significant Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total

Money Market Accounts	$	0	$	10,381	$	0	$	10,381
Equity securities:
U.S. large-cap		53,154		0		0		53,154
U.S mid/small cap		26,309		0		0		26,309
CBU stock		8,344		0		0		8,344
International		47,723		0		0		47,723
		135,530		0		0		135,530

Fixed income securities:
Government securities		13,929		9,686		0		23,615
Investment grade bonds		19,278		0		0		19,278
High yield^(a)		16,297		0		0		16,297
		49,504		9,686		0		59,190

Other investments ^(b)		11,302		73		0		11,375

Total ^(c)	$	196,336	$	20,140	$	0	$	216,476

The fair values of the Company’s defined benefit pension plan assets at December 31, 2016 by asset category are as follows:

Asset category (000’s omitted)	Quoted Prices in Active Markets for Identical Assets Level 1		Significant Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total

Money Market Accounts	$	103	$	8,048	$	0	$	8,151
Equity securities:
U.S. large-cap		43,235		0		0		43,235
U.S mid/small cap		19,032		0		0		19,032
CBU stock		7,417		0		0		7,417
International		27,064		0		0		27,064
		96,748		0		0		96,748

Fixed income securities:
Government securities		25,375		5,863		0		31,238
Investment grade bonds		15,253		0		0		15,253
High yield^(a)		16,615		0		0		16,615
		57,243		5,863		0		63,106

Other investments ^(b)		12,023		58		0		12,081

Total ^(c)	$	166,117	$	13,969	$	0	$	180,086

(a)	This category is exchange-traded funds representing a diversified index of high yield corporate bonds.
(b)	This category is comprised of exchange-traded funds and mutual funds holding non-traditional investment classes including private equity funds and alternative exchange funds.
(c)	Excludes dividends and interest receivable totaling $0.6 million and $0.3 million at December 31, 2017 and 2016, respectively.