Note 10 - Pension and Other Post-Retirement Benefit Plans

The Corporation has three defined benefit pension plans: the qualified defined-benefit plan (the “QDBP”) which covers all employees over age 20 1/2 who meet certain service requirements, and two non-qualified defined-benefit pension plans (“SERP I” and “SERP II”) which are restricted to certain senior officers of the Corporation.

SERP I provides each participant with the equivalent pension benefit provided by the QDBP on any compensation and bonus deferrals that exceed the IRS limit applicable to the QDBP.

On February 12, 2008, the Corporation amended the QDBP and SERP I to freeze further increases in the defined-benefit amounts to all participants, effective March 31, 2008.

On April 1, 2008, the Corporation added SERP II, a non-qualified defined-benefit plan which was restricted to certain senior officers of the Corporation. Effective January 1, 2013, the Corporation has curtailed SERP II, as further increases to the defined-benefit amounts to over 20% of the participants have been frozen. As a result of the curtailment, the Corporation recorded a $690 thousand gain which represents the reversal of previous amounts that had been expensed in anticipation of future service of the curtailed participants. The benefit obligation related to the SERP I and SERP II plans as of March 31, 2013 decreased by $2.3 million from the balance at December 31, 2012 as a result of the curtailment.

On June 28, 2013, the Corporation adopted the Bryn Mawr Bank Corporation Executive Deferred Compensation Plan (“SERP III”), a non-qualified defined-contribution plan which was restricted to certain senior officers of the Corporation. SERP III was retroactively effective January 1, 2013. The intended purpose of SERP III is to provide deferred compensation to a select group of employees.

The Corporation also has a postretirement benefit plan (“PRBP”) that covers certain retired employees and a group of current employees. 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 tables provide details of the components of the net periodic benefits cost (benefit) for the three and nine months ended September 30, 2013 and 2012:


	Three Months Ended September 30,
	SERP I and SERP II				QDBP						PRBP
(dollars in thousands)	2013		2012		2013			2012			2013		2012
Service cost	$	18	$	67	$	—		$	—		$	—	$	—
Interest cost		40		61		371			394			8		9
Expected return on plan assets		—		—		(745	)		(701	)		—		—
Amortization of transition obligation		—		—		—			—			—		7
Amortization of prior service costs		3		21		—			—			—		—
Amortization of net loss		13		22		431			447			19		19
Gain on curtailment		—		—		—			—			—		—

Net periodic benefit cost	$	74	$	171	$	57		$	140		$	27	$	35


	Nine Months Ended September 30,
	SERP I and SERP II					QDBP						PRBP
(dollars in thousands)	2013			2012		2013			2012			2013		2012
Service cost	$	54		$	201	$	—		$	—		$	—	$	—
Interest cost		119			183		1,114			1,183			22		27
Expected return on plan assets		—			—		(2,236	)		(2,103	)		—		—
Amortization of transition obligation		—			—		—			—			—		20
Amortization of prior service costs		10			62		—			—			—		—
Amortization of net loss		39			68		1,293			1,340			58		58
Gain on curtailment		(690	)		—		—			—			—		—

Net periodic benefit cost	$	(468	)	$	514	$	171		$	420		$	80	$	105

QDBP: No contributions to the QDBP were made for the three and nine months ended September 30, 2013.

SERP I and SERP II: The Corporation accrued $36 thousand and $109 thousand during the three and nine months ended September 30, 2013, respectively, and is expected to accrue an additional $36 thousand to the SERP I and SERP II plans for the remaining three months of 2013.

SERP III: The Corporation accrued $22 thousand and $66 thousand during the three and nine months ended September 30, 2013, respectively, to SERP III and is expected to accrue an additional $ 22 thousand for the remaining three months of 2013.

PRBP: In 2005, the Corporation capped the maximum annual payment under the PRBP at 120% of the 2005 benefit. This maximum was reached in 2008 and the cap is not expected to be increased above this level.