DIRECTORS RETIREMENT PLAN

The Company provides a retirement plan that directors appointed to the board prior to 2009 who completed five years of service may retire and receive benefit payments ranging from $5,000 through $17,500 per annum, depending upon years of credited service, for a period of ten years. This plan is unfunded. The following tables present the status of the plan and the components of net periodic plan cost for the years then ended. The measurement date for the accumulated benefit obligation is December 31 of the years presented.



	December 31,
	2018			2017
	(in thousands)
Accrued plan cost included in other liabilities	$	604		$	673
Amount not recognized as component of net postretirement benefit cost
Recognized in accumulated other comprehensive income
Net actuarial gain	$	(29	)	$	28
Unrecognized prior service cost	—			—
Amounts not recognized as a component of net postretirement benefit (benefit)	$	(29	)	$	28



	Years Ended December 31,
	2018		2017		2016
	(in thousands)
Net periodic plan cost included the following components:
Service cost	$	15	$	21	$	19
Interest cost	20		23		26
Amortization of prior service cost	—		3		12
	$	35	$	47	$	57

A discount rate of 3.97%, 3.30% and 3.68% was assumed in the plan valuation for 2018, 2017 and 2016, respectively. As the benefit amount is not dependent upon compensation levels, a rate of increase in compensation assumption was not utilized in the plan valuation.

The directors' retirement plan holds no plan assets. The benefits expected to be paid in each of the next five years and in aggregate for the five years thereafter are as follows (in thousands):



2019	$	57
2020	63
2021	37
2022	38
2023	38
2024-2028	235

The Company expects its contribution to the directors' retirement plan to be $57,000 in 2019.

There is no expected amount to be recognized in accumulated other comprehensive income as a component of net periodic benefit cost in 2019.