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Employee Benefit Plans
 6 Months Ended
Jun. 30, 2020
Retirement Benefits [Abstract]  
Employee Benefit Plans
16. EMPLOYEE BENEFIT PLANS
United has a defined benefit retirement plan covering qualified 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. No discretionary contributions were made during the first six months of 2020 and 2019.
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, 2019 are unrecognized actuarial losses of $60,894 ($46,706 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, 2020 is $5,802 ($4,450 net of tax).
Net periodic pension cost for the three and six months ended June 30, 2020 and 2019 included the following components
:
 
 
  
Three Months Ended

June 30
 
  
Six Months Ended

June 30
 
 
  
2020
 
  
2019
 
  
2020
 
  
2019
 
Service cost
  
$
 715
 
  
$
 561
 
  
$
 1,430
 
  
$
 1,116
 
Interest cost
  
 
1,286
 
 
 
1,459
 
 
 
2,573
 
 
 
2,901
 
Expected return on plan assets
  
 
(2,630
) 
 
 
(2,356
) 
 
 
(5,259
) 
 
 
(4,686
) 
Recognized net actuarial loss
  
 
1,442
 
 
 
1,184
 
 
 
2,884
 
 
 
2,355
 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net periodic pension cost
  
$
813
 
 
$
848
 
 
$
1,628
 
 
$
1,686
 
  
 
 
    
 
 
    
 
 
    
 
 
  
Weighted-Average Assumptions:
  
 
 
 
Discount rate
  
 
3.42
% 
 
 
4.52
% 
 
 
3.42
% 
 
 
4.52
% 
Expected return on assets
  
 
6.75
% 
 
 
7.00
% 
 
 
6.75
% 
 
 
7.00
% 
Rate of
c
ompensation
i
ncrease (prior to age 40)
  
 
5.00
% 
 
 
n/a
 
 
 
5.00
% 
 
 
n/a
 
Rate of
c
ompensation
i
ncrease (ages
40-54)
  
 
4.00
% 
 
 
n/a
 
 
 
4.00
% 
 
 
n/a
 
Rate of compensation increase (prior to age 45)
  
 
n/a
 
 
 
3.50
% 
 
 
n/a
 
 
 
3.50
% 
Rate of compensation increase
 
(otherwise)
  
 
3.50
% 
 
 
3.00
% 
 
 
3.50
% 
 
 
3.00
%