14. EMPLOYEE BENEFIT PLANS

United has a defined benefit retirement plan covering a majority of all employees. Pension benefits are based on years of service and the average of the employee’s highest five consecutive plan years of basic compensation paid during the ten plan years preceding the date of determination. Contributions are intended to provide not only for benefits attributed to service to date, but also for those expected to be earned in the future. During the first quarter of 2018, United made a discretionary contribution of $7,000 to the Plan.

In September of 2007, after a recommendation by United’s Pension Committee and approval by United’s Board of Directors, the United Bankshares, Inc. Pension Plan (the Plan) was amended to change the participation rules. The decision to change the participation rules for the Plan followed current industry trends, as many large and medium size companies had taken similar steps. The amendment provides that employees hired on or after October 1, 2007, will not be eligible to participate in the Plan. However, new employees will be eligible to participate in United’s Savings and Stock Investment 401(k) plan. This change had no impact on current employees hired prior to October 1, 2007 as they will continue to participate in the Plan, with no change in benefit provisions, and will continue to be eligible to participate in United’s Savings and Stock Investment 401(k) plan.

Included in accumulated other comprehensive income at December 31, 2017 are unrecognized actuarial losses of $56,222 ($35,420 net of tax) that have not yet been recognized in net periodic pension cost. The amortization of this item expected to be recognized in net periodic pension cost during the fiscal year ended December 31, 2018 is $4,653 ($2,932 net of tax).

Net periodic pension cost for the three and six months ended June 30, 2018 and 2017 included the following components:


	Three Months Ended June 30						Six Months Ended June 30
	2018			2017			2018			2017
Service cost	$	666		$	569		$	1,324		$	1,131
Interest cost		1,308			1,279			2,603			2,544
Expected return on plan assets		(2,551	)		(2,049	)		(5,073	)		(4,076	)
Recognized net actuarial loss		1,162			1,100			2,311			2,187

Net periodic pension (benefit) cost	$	585		$	899		$	1,165		$	1,786

Weighted-Average Assumptions:
Discount rate		3.83	%		4.49	%		3.83	%		4.49	%
Expected return on assets		7.00	%		7.00	%		7.00	%		7.00	%
Rate of compensation increase (prior to age 45)		3.50	%		3.50	%		3.50	%		3.50	%
Rate of compensation increase		3.00	%		3.00	%		3.00	%		3.00	%