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Pension and Postretirement Benefit Plans
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Pension and Postretirement Benefit Plans Pension and Postretirement Benefit Plans
 
A. General Overview – The Corporation sponsors two non-qualified defined-benefit supplemental executive retirement plans (“SERP I” and “SERP II”) which are restricted to certain senior officers of the Corporation and a postretirement benefit plan (“PRBP”) that covers certain retired employees and a group of current employees.
 
Effective March 31, 2008, the Corporation amended SERP I to freeze further increases in the defined benefit amounts to all participants. Effective March 31, 2013, the Corporation curtailed SERP II, as further increases to the defined benefit amounts to over 20% of the participants were frozen. The PRBP was closed to new participants in 1994. In 2007, the Corporation amended the PRBP to allow for settlement of obligations to certain current and retired employees. Certain retired participant obligations were settled in 2007 and current employee obligations were settled in 2008.
 
The following table provides information with respect to our SERP and PRBP, including benefit obligations and funded status, net periodic pension costs, plan assets, cash flows, amortization information and other accounting items.

 B. Actuarial Assumptions used to determine benefit obligations as of December 31 of the years indicated:
 SERP I and SERP IIPRBP
 2020201920202019
Discount rate2.00 %2.80 %0.95 %2.20 %
Rate of increase for future compensationN/AN/AN/AN/A
Expected long-term rate of return on plan assetsN/AN/AN/AN/A
C. Changes in Benefit Obligations and Plan Assets: 
 SERP I & SERP IIPRBP
(dollars in thousands)2020201920202019
Change in benefit obligations
Benefit obligation at January 1
$5,158 $4,687 $235 $241 
Service cost— — — — 
Interest cost140 179 5 8 
Plan participants contribution— — 36 38 
Actuarial loss439 595 4 40 
Settlements— — — — 
Benefits paid(347)(303)(80)(92)
Benefit obligation at December 31
$5,390 $5,158 $200 $235 
Change in plan assets
Fair value of plan assets at January 1
$— $— $— $— 
Actual return on plan assets— — — — 
Settlements— — — — 
Excess assets transferred to defined contribution plan— — — — 
Employer contribution347 303 44 54 
Plan participants’ contribution— — 36 38 
Benefits paid(347)(303)(80)(92)
Fair value of plan assets at December 31
$— $— $— $— 
Funded status at year end (plan assets less benefit obligations)$(5,390)$(5,158)$(200)$(235)
 
 For the Year Ended December 31,
 SERP I & SERP IIPRBP
Amounts included in the Consolidated Balance Sheet as Other liabilities and accumulated other comprehensive income including the following:2020201920202019
Accrued liability$(2,998)$(3,112)$(84)$(99)
Net actuarial loss(2,392)(2,046)(116)(136)
Prior service cost— — — — 
Unrecognized net initial obligation— — — — 
Net included in Other liabilities in the Consolidated Balance Sheets$(5,390)$(5,158)$(200)$(235)

D. The following tables provide the components of net periodic pension costs for the periods indicated:
SERP I and SERP II Periodic Pension CostFor the Year Ended December 31,
(dollars in thousands)202020192018
Service cost$— $— $— 
Interest cost140 179 160 
Amortization of prior service cost— — — 
Recognition of net actuarial loss94 62 70 
Net periodic pension cost$234 $241 $230 
 
PRBP Net Periodic Pension Cost
For the Year Ended December 31,
(dollars in thousands)202020192018
Service cost$— $— $— 
Interest cost5 8 9 
Amortization of prior service cost— — — 
Recognition of net actuarial loss24 17 30 
Net periodic pension cost$29 $25 $39 
 For the Year Ended December 31,
Discount Rate Used in the Calculation of Periodic Pension Costs202020192018
SERP I and SERP II2.80 %3.95 %3.30 %
PRBP2.20 %3.45 %2.75 %
 
E. Plan Assets:

The PRBP, SERP I and SERP II are unfunded plans and, as such, have no related plan assets.
 
F. Cash Flows
 
The following benefit payments, which reflect expected future service, are expected to be paid over the next ten years:
 
(dollars in thousands)SERP I & SERP IIPRBP
Fiscal year ending  
2021$342 $43 
2022338 35 
2023346 29 
2024354 24 
2025347 19 
2026 - 20301,565 46 

G. Other Pension and Post Retirement Benefit Information
 
In 2005, the Corporation placed a cap on the future annual benefit payable through the PRBP. This cap is equal to 120% of the 2005 annual benefit.
 
H. Expected Contribution to be Paid in the Next Fiscal Year
 
The 2021 expected contribution for the SERP I and SERP II is $342 thousand.
 
I. Actuarial Losses
 
As indicated in section C of this footnote, the Corporation’s pension plans had cumulative actuarial losses as of December 31, 2020 that will result in an increase in the Corporation’s future pension expense because such losses at each measurement date exceed 10% of the greater of the projected benefit obligation or the market-related value of the plan assets. In accordance with GAAP, net unrecognized gains or losses that exceed that threshold are required to be amortized over the expected service period of active employees, and are included as a component of net pension cost. Amortization of these net actuarial losses has the effect of increasing the Corporation’s pension costs as shown on the table in section D of this footnote.