PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS

6 Months Ended

Jun. 30, 2014

PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS

PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS

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						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
	(Dollars in thousands)

Interest cost	$	366		$	348		$	732		$	696
Expected return on assets	(524		)	(470		)	(1,048		)	(940		)
Amortization of net actuarial losses	304			599			608			1,198
Net periodic cost	$	146		$	477		$	292		$	954

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				Six Months Ended
	June 30,				June 30,
	2014		2013		2014				2013
	(Dollars in thousands)

Interest cost	$	113	$	103		$	226	$		206
Amortization of net transition obligation	4		4			8		8
Amortization of prior service cost	5		5			10		10
Amortization of net actuarial losses	1		18			2		36
Net periodic cost	$	123	$	130		$	246	$		260