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SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
 6 Months Ended
Jun. 30, 2013
Compensation and Retirement Disclosure [Abstract]  
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

On March 18, 2010, the Compensation Committee and the Board approved and adopted the Universal Display Corporation Supplemental Executive Retirement Plan (SERP), effective as of April 1, 2010.  The purpose of the SERP, which is unfunded, is to provide certain executive officers of the Company with supplemental pension benefits following a cessation of their employment. As of June 30, 2013, there were five participants in the SERP.  The SERP benefit is based on a percentage of the participant’s annual base salary and the number of years of service.

The Company records amounts relating to the SERP based on calculations that incorporate various actuarial and other assumptions, including discount rates, rate of compensation increases, retirement dates and life expectancies. The net periodic costs are recognized as employees render the services necessary to earn the SERP benefits.
 





The components of net periodic pension cost were as follows for the three months ended June 30, (in thousands):
 
2013
 
2012
Service cost
$
161

 
$
144

Interest cost
86

 
96

Amortization of prior service cost
146

 
146

Amortization of actuarial loss
24

 
3

Total net periodic benefit cost
$
417

 
$
389


The components of net periodic pension cost were as follows for the six months ended June 30, (in thousands):
 
2013
 
2012
Service cost
$
323

 
$
288

Interest cost
172

 
192

Amortization of prior service cost
292

 
292

Amortization of actuarial loss
47

 
5

Total net periodic benefit cost
$
834

 
$
777