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RETIREMENT PLAN BENEFIT LIABILITY
 9 Months Ended
Sep. 30, 2024
Retirement Benefits [Abstract]  
RETIREMENT PLAN BENEFIT LIABILITY

17. RETIREMENT PLAN BENEFIT LIABILITY:

On March 18, 2010, the Human Capital Committee and the Board of Directors of the Company approved and adopted the Universal Display Corporation Supplemental Executive Retirement Plan (SERP). The SERP is currently unfunded and includes salary and bonus as part of the plan. The purpose of the SERP is to provide certain of the Company’s key employees with supplemental pension benefits following a cessation of their employment and to encourage their continued employment with the Company. As of September 30, 2024, there were seven participants in the SERP. In December 2022, one of the participants retired and monthly SERP benefit payments commenced in January 2023. The total SERP benefit payments for the nine months ended September 30, 2024 were $1.5 million.

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 (in thousands):

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Service cost

 

$

211

 

 

$

238

 

 

$

626

 

 

$

713

 

Interest cost

 

 

710

 

 

 

725

 

 

 

1,931

 

 

 

2,174

 

Curtailment charge

 

 

—

 

 

 

—

 

 

 

312

 

 

 

—

 

Amortization of prior service cost

 

 

6

 

 

 

203

 

 

 

27

 

 

 

611

 

Amortization of loss

 

 

—

 

 

 

120

 

 

 

—

 

 

 

360

 

Total net periodic benefit cost

 

$

927

 

 

$

1,286

 

 

$

2,896

 

 

$

3,858