PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS

6 Months Ended

Jun. 30, 2015

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,
	2015			2014			2015			2014
	(Dollars in thousands)						(Dollars in thousands)

Interest cost	$	348		$	366		$	696		$	732
Expected return on assets	(472		)	(524		)	(944		)	(1,048		)
Amortization of net actuarial losses	393			304			786			608
Net periodic cost	$	269		$	146		$	538		$	292

Our bank also established Supplemental Executive Retirement Plans (“SERPs”), which provide certain (current and former) 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,
	2015		2014		2015		2014
	(Dollars in thousands)

Interest cost	$	110	$	113	$	220	$	226
Amortization of net transition obligation	4		4		8		8
Amortization of prior service cost	5		5		10		10
Amortization of net actuarial losses	28		1		55		2
Net periodic cost	$	147	$	123	$	293	$	246