Employee Benefit Plans

6 Months Ended

Jun. 30, 2011

Employee Benefit Plans

Employee Benefit Plans

(7.) EMPLOYEE BENEFIT PLANS

Defined Benefit Pension Plan

The Company participates in The New York State Bankers Retirement System (the "System"), a defined benefit pension plan covering substantially all employees, subject to the limitations related to the plan closure effective December 31, 2006.  The benefits are based on years of service and the employee's highest average compensation during five consecutive years of employment.  The defined benefit plan was closed to new participants effective December 31, 2006.  Only employees hired on or before December 31, 2006 and who met participation requirements on or before January 1, 2008 are eligible to receive benefits.

The components of the Company's net periodic benefit expense for its pension plan were as follows (in thousands):

	Three months ended				Six months ended
	June 30,				June 30,
	2011		2010		2011		2010
Service cost	$	439	$	408	$	878	$	816
Interest cost on projected benefit obligation		506		484		1,013		967
Expected return on plan assets		(663)		(611)		(1,326)		(1,222)
Amortization of unrecognized prior service cost		5		3		9		6
Amortization of unrecognized loss		152		114		304		229
Net periodic pension cost	$	439	$	398	$	878	$	796

The Company's funding policy is to contribute, at a minimum, an actuarially determined amount that will satisfy the minimum funding requirements determined under the appropriate sections of Internal Revenue Code.  In December 2010, the Company contributed $4.3 million to the pension plan for fiscal year 2011, which exceeded the minimum required contribution of $1.5 million.