(8)	Defined Benefit Plans

Mid Penn has an unfunded noncontributory defined benefit retirement plan for directors. The plan provides defined benefits based on years of service. Mid Penn also sponsors a defined benefit health care plan that provides post-retirement medical benefits and life insurance to qualifying full-time employees. These health care and life insurance plans are noncontributory and each plan uses a December 31 measurement date.

As a result of the acquisition of Scottdale on January 8, 2018, Mid Penn has assumed a noncontributory defined benefit pension plan covering certain former employees of Scottdale. Mid Penn estimates it will contribute $600,000 to the defined benefit pension plan in 2018. A December 31 measurement date for the plan is used.

The components of net periodic benefit costs from these defined benefit plans are as follows:

	Three Months Ended June 30,
(Dollars in thousands)	Pension Benefits					Other Benefits
	2018			2017		2018			2017
Service cost	$	153		$	9	$	1		$	1
Interest cost		205			11		5			5
Expected return on plan assets		(211	)		-		-			-
Amortization (accretion) of prior service cost		4			4		(5	)		(6	)
Settlement gain		(380	)		-		-			-
Net periodic benefit (income) expense	$	(229	)	$	24	$	1		$	-

	Six Months Ended June 30,
(Dollars in thousands)	Pension Benefits					Other Benefits
	2018			2017		2018			2017
Service cost	$	161		$	18	$	2		$	2
Interest cost		215			22		9			10
Expected return on plan assets		(211	)		-		-			-
Amortization (accretion) of prior service cost		8			7		(10	)		(12	)
Settlement gain		(380	)		-		-			-
Net periodic benefit (income) expense	$	(207	)	$	47	$	1		$	-