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Retirement Benefit Plans
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Retirement Benefit Plans Retirement Benefit Plans
Defined Benefit Pension and Postretirement Benefit Plans
Webster Bank had offered a qualified noncontributory defined benefit pension plan and a SERP to eligible employees and key executives who met certain age and service requirements. Both the pension plan and the SERP were frozen effective December 31, 2007. Only those employees who were hired prior to January 1, 2007 and who became participants of the plans prior to January 1, 2008 have accrued benefits under the plans. Webster Bank also provides for other post-employment medical and life insurance benefits (OPEB) to certain retired employees. The plans' measurement date coincides with Webster's December 31 fiscal year end.
The following table summarizes the changes in the benefit obligation, fair value of plan assets, and funded status of the defined benefit pension and postretirement benefit plans at December 31:
  
Pension PlanSERPOPEB
(In thousands)202120202021202020212020
Change in benefit obligation:
Beginning balance$266,414 $241,404 $2,046 $1,935 $1,998 $2,399 
Interest cost4,663 6,511 30 46 19 46 
Actuarial (gain) loss(11,131)27,376 (77)194 32 (307)
Benefits paid(9,683)(8,877)(126)(129)(145)(140)
Ending balance250,263 266,414 1,873 2,046 1,904 1,998 
Change in plan assets:
Beginning balance266,268 239,621 — — — — 
Actual return on plan assets15,261 35,524 — — — — 
Employer contributions— — 126 129 145 140 
Benefits paid(9,683)(8,877)(126)(129)(145)(140)
Ending balance271,846 266,268 — — — — 
Funded status (1)
$21,583 $(146)$(1,873)$(2,046)$(1,904)$(1,998)
(1)The overfunded (underfunded) status of each plan is respectively included in accrued interest receivable and other assets or accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets, as applicable.
The following table summarizes the weighted-average assumptions used to determine the benefit obligation at December 31:
  
Pension PlanSERPOPEB
  
202120202021202020212020
Discount rate2.65 %2.29 %2.45 %1.91 %1.99 %1.40 %
Assumed healthcare cost trend raten/an/an/an/a6.25 %6.50 %
The following table summarizes the amounts recorded in accumulated other comprehensive (loss) income that have not yet been recognized in net periodic benefit (income) cost at December 31:
  
Pension PlanSERPOPEB
(In thousands)202120202021202020212020
Net actuarial loss (gain)$41,792 $57,902 $658 $773 $(620)$(690)
Deferred tax benefit (expense)8,636 12,881 136 172 (128)(153)
Net amount recorded in (AOCL) AOCI$33,156 $45,021 $522 $601 $(492)$(537)
The following table summarizes the components of net periodic benefit (income) cost for the years ended December 31:
Pension PlanSERPOPEB
(In thousands)202120202019202120202019202120202019
Interest cost4,663 6,511 7,941 30 46 65 19 46 85 
Expected return on plan assets(14,385)(13,522)(11,436)— — — — — — 
Amortization of actuarial (gain) loss4,102 4,027 5,705 38 23 14 (38)(74)(13)
Net periodic benefit (income) cost (1)
$(5,620)$(2,984)$2,210 $68 $69 $79 $(19)$(28)$72 
(1)Net periodic benefit (income) cost is included in other non-interest expense on the accompanying Consolidated Statements of Income.
The following table summarizes the weighted-average assumptions used to determine net periodic benefit (income) cost for the years ended December 31:
  
Pension PlanSERPOPEB
  
202120202019202120202019202120202019
Discount rate2.29 %3.07 %4.12 %1.91 %2.82 %3.95 %1.40 %2.50 %3.69 %
Expected long-term rate of return on
plan assets		5.50 %5.75 %6.00 %n/an/an/an/an/an/a
Assumed healthcare cost trend rate (1)
n/an/an/an/an/an/a6.50 %6.50 %6.50 %
(1)The assumed healthcare cost trend rate used to measure the expected cost of benefits covered by the OPEB for 2022 is 6.25%. The rate to which the healthcare cost trend rate is assumed to decline (ultimate trend rate) along with the year that the ultimate trend rate will be reached is 4.40% in 2030.
The discount rates used to determine the benefit obligation and net periodic benefit (income) cost for Webster's defined benefit pension and postretirement benefit plans were selected by reference to a high-quality bond yield curve, using a full yield curve approach, and matched to the timing and amount of each plan's expected benefit payments.
The following table summarizes amounts recognized in other comprehensive (loss) income, including reclassification adjustments, for the years ended December 31:
Pension PlanSERPOPEB
(In thousands)202120202019202120202019202120202019
Net actuarial (gain) loss$(12,008)$5,375 $(2,263)$(77)$194 $164 $33 $(307)$(103)
Amounts reclassified from
(AOCL) AOCI		(4,102)(4,027)(5,705)(38)(23)(14)38 74 13 
Total (gain) loss recognized in
(OCL) OCI		$(16,110)$1,348 $(7,968)$(115)$171 $150 $71 $(233)$(90)
At December 31, 2021, the expected future benefit payments for the defined benefit pension and postretirement benefits plans are as follows:
(In thousands)Pension PlanSERPOPEB
2022$9,969 $116 $270 
202310,345 117 247 
202410,787 128 224 
202511,207 126 201 
202611,587 124 179 
Thereafter62,419 581 609 
Asset Management
The pension plan invests primarily in common collective trusts and registered investment companies. However, the pension plan's investment policy guidelines also allow for the investment in cash and cash equivalents, fixed income securities, and equity securities. Common collective trusts and registered investment companies are both benchmarked against the Standard & Poor's 500 Index. Incremental benchmarks used to assess the common collective trusts include the S&P 400 Mid Cap Index, Russell 200 Index, MSCI ACWI ex U.S. Index, and the Barclay's Capital U.S. Long Credit Index. The standard deviation should not exceed that of the composite index. The pension plan's investment strategy and asset allocations are monitored by the Company's Retirement Plans Committee with the assistance of external investment advisors, and the investment portfolio is rebalanced, as appropriate. The target asset allocation percentages for the year ended December 31, 2021 were 64.5% fixed-income investments and 35.5% equity investments. The actual asset allocation percentages for the year ended December 31, 2021 were 63.6% fixed-income investments, 35.7% equity investments, and 0.7% cash and cash equivalents.
The overall investment objective of the pension plan is to maintain a diversified portfolio with a targeted expected long-term rate of return on plan assets of approximately 5.50%. The expected long-term rate of return on plans assets is the average rate of return expected to be realized on funds invested or expected to be invested to provide for the benefits included in the benefit obligation. The expected long-term rate of return on plans assets is established at the beginning of the year based upon historical and projected returns for each asset category. Depending on market conditions, the expected long-term rate of return on plan assets may exceed or fall short of the targeted percentage.
Fair Value Measurement
The following is a description of the valuation methodologies used for the pension plan's assets measured at fair value:
Common Collective Trusts. Common collective trusts are valued based on the NAV as reported by the trustee of the funds. The funds' underlying investments, which primarily comprise fixed-income debt securities and open-end mutual funds, are valued using quoted market prices in active markets or unobservable inputs for similar assets. Therefore, common collective trusts are classified as Level 2 within the fair value hierarchy. Transactions may occur daily within a trust. If a full redemption of the trust were to be initiated, the investment advisor reserves the right to temporarily delay withdrawals from the trust in order to ensure that the liquidation of securities is carried out in an orderly business manner.
Registered Investment Companies. Registered investment companies are valued at the daily closing price as reported by the funds. Registered investment companies held by the pension plan are quoted in an active market and are classified as Level 1 within the fair value hierarchy.
Cash and Cash Equivalents. Cash and cash equivalents are recorded at cost plus accrued interest, which approximates fair value given the short time frame to maturity, and are classified as Level 1 within the fair value hierarchy.
The following table sets forth by level within the fair value hierarchy the pension plan's assets at fair value:
At December 31,
  
20212020
(In thousands)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Common collective trusts— 230,923 — 230,923 — 225,762 — 225,762 
Registered investment companies$39,082 $— $— $39,082 $39,645 $— $— $39,645 
Cash and cash equivalents1,841 — — 1,841 861 — — 861 
Total pension plan assets$40,923 $230,923 $— $271,846 $40,506 $225,762 $— $266,268 
Multiple-Employer Defined Benefit Pension Plan
Webster Bank participates in a multi-employer plan that provides pension benefits to former employees of a bank acquired by the Company. Participation in the plan was frozen as of September 1, 2004. The plan maintains a single trust and does not segregate the assets or liabilities of its participating employers. Minimum required employer contributions are determined by an independent actuary and are calculated using a 7-year shortfall amortization factor. There are no collective bargaining agreements or other obligations requiring contributions to the plan, nor has a funding improvement plan been implemented.
The following table summarizes information related to Webster Bank's participation in the multi-employer plan:
(Dollars in thousands)Contributions
Years Ended December 31,		Funded Status
At December 31,
Plan NameEmployer Identification NumberPlan NumberSurcharge Imposed20212020201920212020
Pentegra Defined Benefit Plan
for Financial Institutions		13-5645888333No$692$998$863At least 80%At least 80%
Webster Bank's contributions to the multi-employer plan for the years ended December 31, 2021, 2020, and 2019 did not exceed more than 5% of total plan contributions for the plan years ended June 30, 2020, 2019, and 2018. The plan's Form 5500 was not available for the plan year ended June 30, 2021 as of the date Webster's Consolidated Financial Statements were issued. As of July 1, 2021, the date of the most recent actuarial valuation, the plan administrator confirmed that Webster Bank’s portion of the multi-employer plan was $0.5 million overfunded.
Webster Bank Retirement Savings Plan
Webster Bank sponsors a defined contribution postretirement benefit plan established under Section 401(k) of the Internal Revenue Code. Employees who have attained age 21 may elect to contribute up to 75% of their eligible compensation on either a pre-tax or post-tax basis. Webster Bank makes matching contributions equal to 100% of the first 2% and 50% of the next 6% of employees’ contributions after employees have completed one year of eligible service. If an employee fails to enroll in the plan within 90 days of hire, the employee will be automatically enrolled on a pre-tax basis with a deferral rate set at 3% of eligible compensation. Compensation and benefits expense included total employer contributions under the plan of $13.1 million, $13.8 million, and $13.2 million for the years ended December 31, 2021, 2020, and 2019, respectively