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 for the periods indicated:



	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2017			2016			2017			2016
Interest cost	$	232		$	343		$	694		$	1,030
Expected return on plan assets	(264		)	(438		)	(792		)	(1,316		)
Amortization of net actuarial loss	298			353			894			1,061
Net periodic cost	$	266		$	258		$	796		$	775

Our bank also established Supplemental Executive Retirement Plans ("SERPs"), which provide certain (current and former) officers of our bank with supplemental retirement benefits. We have not entered into a SERP since December 31, 2008.

In the second quarter of 2017, the Company settled a portion of the SERP obligation of a former executive. As a result of the settlement, the Company remeasured the related SERP obligation and net periodic benefit cost and recognized a pro-rata net actuarial loss of $0.1 million in SERP expense and other comprehensive income.

The following table sets forth the components of net periodic benefit cost for the SERPs for the periods indicated:



	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2017		2016		2017		2016
Interest cost	$	107	$	117	$	322	$	350
Amortization of net actuarial loss	26		13		77		38
Amortization of net transition obligation	4		4		13		12
Amortization of prior service cost	5		4		13		14
Settlement	—		—		138		—
Net periodic cost	$	142	$	138	$	563	$	414