14. Employee Benefit Plans

The Corporation sponsors a contributory defined contribution Section 401(k) plan in which substantially all employees participate. The plan permits employees to make pre-tax contributions which are matched by the Corporation at 100% for every 1% contributed up to three percent then 50% for every 1% contributed up to the next four percent in total of the employee’s compensation. The Corporation’s matching contribution and related expenses were $620, $431, and $397 in 2014, 2013, and 2012, respectively. Profit sharing contributions to this plan, based on current year compensation, are 6 percent of total compensation plus 5.7 percent of the compensation in excess of $117. The Corporation recognized profit sharing expense of $1,044, $855, and $783 in 2014, 2013, and 2012 respectively.

The Corporation has adopted a non-qualified supplemental executive retirement plan (“SERP”) for certain executives to compensate those executive participants in the Corporation’s retirement plan whose benefits are limited by compensation limitations under current tax law. The SERP is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the SERP are payable from the general assets of the Corporation. At December 31, 2014 and 2013, obligations of $4,316 and $4,120, respectively, were included in other liabilities for this plan. Expenses related to this plan were $454 in 2014, $541 in 2013, and $728 in 2012.

The Corporation has established a Survivor Benefit Plan for the benefit of outside directors. The purpose of the plan is to provide life insurance benefits to beneficiaries of the Corporation’s directors who at the time of their death are participants in the plan. The plan is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the plan are payable from the general assets of the Corporation. At December 31, 2014 and 2013, obligations of $987 and $932, respectively, were included in other liabilities for this plan. Expenses related to this plan were $55 in 2014, $119 in 2013, and $127 in 2012.

The Corporation has an unfunded post retirement benefits plan which provides certain health care benefits for retired employees who have reached the age of 60 and retired with 30 years of service. The plan was amended in 2013 to include only employees hired prior to January 1, 2000. Benefits are provided for these retired employees and their qualifying dependents from the age of 60 through the age of 65.

The following table sets forth the change in the benefit obligation of the plan as of and for the years ended December 31, 2014, 2013, and 2012:


	2014			2013			2012
Benefit obligation at beginning of year	$	2,485		$	2,224		$	1,674
Interest cost		102			84			69
Service cost		84			125			88
Actual claims		(108	)		(167	)		(184	)
Plan amendment		0			(602	)		0
Actuarial loss		181			821			577


Benefit obligation at end of year	$	2,744		$	2,485		$	2,224

Amounts recognized in accumulated other comprehensive income at December 31, 2014 and 2013 consist of:


	2014			2013
Net actuarial loss	$	(1,699	)	$	(1,667	)
Tax effect		595			583

	$	(1,104	)	$	(1,084	)

The accumulated benefit obligation was $2,744 and $2,485 at December 31, 2014 and 2013, respectively.

The following table sets forth the components of net periodic benefit cost and other amounts recognized in other comprehensive income:


	2014			2013			2012
Service cost	$	84		$	125		$	88
Interest cost		102			84			69
Net amortization of transition obligation and actuarial loss		149			61			41

Net periodic benefit cost		335			270			198


Net loss		181			821			578

Plan amendment		0			(602	)		0
Amortization of loss		(149	)		(54	)		(34	)
Amortization of transition obligation		0			(7	)		(7	)

Total recognized in other comprehensive income		32			158			537

Total recognized in net periodic benefit cost and other comprehensive income	$	367		$	428		$	735

The estimated net loss that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $173.

The weighted average discount rate used to calculate net periodic benefit cost was 4.31% in 2014, 3.88% in 2013, and 4.29% in 2012. The weighted average rate used to calculate accrued benefit obligations was 3.42% in 2014, 4.31% in 2013, and 3.88% in 2012. The health care cost trend rate used to measure the expected costs of benefits is 5.0% for 2015 and thereafter. A one percent increase in the health care trend rates would result in an increase of $273 in the benefit obligation as of December 31, 2014, and would increase the service and interest costs by $21 in future periods. A similar one percent decrease in health care trend rates would result in a decrease of $242 and $19 in the benefit obligation and services and interest costs, respectively, at December 31, 2014.