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Defined Benefit Post-Retirement Plans
 9 Months Ended
Sep. 30, 2020
Defined Benefit Post-Retirement Plans [Abstract]  
Defined Benefit Post-Retirement Plans
7.
Defined Benefit Post-Retirement Plans

The Company has a qualified, noncontributory, defined benefit pension plan (“the Plan”) covering substantially all of its employees at September 30, 2020. Benefits paid from the plan are based on age, years of service, compensation and social security benefits and are determined in accordance with defined formulas. The Company’s policy is to fund the Plan in accordance with Employee Retirement Income Security Act of 1974 standards. Assets of the Plan are invested in publicly traded stocks and mutual funds.

In addition to the Plan, the Company provides supplemental employee retirement plans to certain current and former executives. The Company also assumed supplemental retirement plans for former executives of Alliance Financial Corporation (“Alliance”) when the Company acquired Alliance.

These supplemental employee retirement plans and the Plan are collectively referred to herein as “Pension Benefits”.

In addition, the Company provides certain health care benefits for retired employees. Benefits were accrued over the employees’ active service period. Only employees that were employed by the Company on or before January 1, 2000 are eligible to receive post-retirement health care benefits. In addition, the Company assumed post-retirement medical life insurance benefits for certain Alliance employees, retirees and their spouses, if applicable, in the Alliance acquisition. These post-retirement benefits are referred to herein as “Other Benefits”.

The Company made no voluntary contributions to the pension and other benefits plans during the three and nine months ended September 30, 2020 and 2019.

The components of expense for Pension Benefits and Other Benefits are set forth below:

  
Pension Benefits
    
Other Benefits
  
   
Three Months Ended
September 30,
    
Three Months Ended
September 30,
  
(In thousands)
  
2020
    
2019
    
2020
    
2019
  
Components of net periodic (benefit) cost:
                        
Service cost
  
$
446
    
$
431
    
$
2
    
$
1
  
Interest cost
    
809
      
986
      
55
      
67
  
Expected return on plan assets
    
(2,105
)
    
(1,869
)
    
-
      
-
  
Net amortization
    
368
      
658
      
13
      
14
  
Total net periodic (benefit) cost
  
$
(482
)
  
$
206
    
$
70
    
$
82
  

 
Pension Benefits
    
Other Benefits
  
   
Nine Months Ended
September 30,
    
Nine Months Ended
September 30,
  
(In thousands)
  
2020
    
2019
    
2020
    
2019
  
Components of net periodic (benefit) cost:
                        
Service cost
  
$
1,338
    
$
1,301
    
$
6
    
$
5
  
Interest cost
    
2,427
      
2,948
      
165
      
229
  
Expected return on plan assets
    
(6,315
)
    
(5,615
)
    
-
      
-
  
Net amortization
    
1,104
      
1,936
      
39
      
49
  
Total net periodic (benefit) cost
  
$
(1,446
)
  
$
570
    
$
210
    
$
283
  

The service cost component of the net periodic (benefit) cost is included in Salaries and Employee Benefits and the interest cost, expected return on plan assets and net amortization components are included in Other Noninterest Expense on the unaudited interim consolidated statements of income.