14. PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS

Central Pacific Bank has a defined benefit retirement plan (the “Pension Plan”) which covers certain eligible employees. The plan was curtailed effective December 31, 2002, and accordingly, plan benefits were fixed as of that date. The following table sets forth the components of net periodic benefit cost for the Pension Plan:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
	(Dollars in thousands)

Interest cost	$	348		$	398		$	1,044		$	1,194
Expected return on assets	(470		)	(447		)	(1,410		)	(1,341		)
Amortization of unrecognized loss	599			581			1,797			1,743
Net periodic cost	$	477		$	532		$	1,431		$	1,596

Our bank also established Supplemental Executive Retirement Plans (“SERPs”), which provide certain officers of our bank with supplemental retirement benefits. The following table sets forth the components of net periodic benefit cost for the SERPs:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013		2012			2013		2012
	(Dollars in thousands)

Service cost	$	—	$	—		$	—	$	—
Interest cost	103		107			309		321
Amortization of unrecognized transition obligation	4		4			12		12
Amortization of prior service cost	5		5			15		15
Amortization of unrecognized (gain) loss	18		(1		)	54		(3		)
Net periodic cost	$	130	$	115		$	390	$	345