The Company has a noncontributory defined-benefit pension plan (the “Plan”), which covers eligible employees. Effective December 31, 2016, the Plan was closed to all new participants. The Company accrues and makes contributions designed to fund normal service costs on a current basis using the projected unit credit with service proration method to amortize prior service costs arising from improvements in pension benefits and qualifying service prior to the establishment of the Plan over a period of approximately 30 years.

A summary of the activity in the Plan’s projected benefit obligation, assets, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows:

(In thousands)	2019			2018
Projected benefit obligation:
Balance, January 1	$	96,401		$	98,790
Service cost		3,554			4,017
Interest cost		4,103			3,703
Actuarial loss (gain)		18,334			(7,768	)
Benefits paid		(2,565	)		(2,341	)
Balance, December 31	$	119,827		$	96,401
Plan assets:
Fair value, January 1	$	74,580		$	81,427
Actual return		15,719			(4,506	)
Employer contribution		6,900			—
Benefits paid		(2,565	)		(2,341	)
Fair value, December 31	$	94,634		$	74,580
Funded status:
Accrued pension liability	$	(25,192	)	$	(21,821	)

The following represent the major assumptions used to determine the projected benefit obligation of the Plan. For 2019 and 2018, the Plan’s expected benefit cash flows were discounted using the FTSE Above Median Double-A Curve while in 2017, the Plan’s expected benefit cash flows were discounted using the Citibank Above Median Curve. For 2019, the Pri-2012 Mortality Table and MP-2019 Mortality Improvement Scale were used. For 2018, the RP-2014 Mortality Table and the MP-2018 Mortality Improvement Scale were used. For 2017, the RP-2014 Mortality Table and MP-2017 Mortality Improvement Scale were used.

	2019		2018		2017
Weighted average discount rate	3.30	%	4.30	%	3.75	%
Rate of increase in compensation levels	(a)		(a)		(a)

(a)	6.0% graded down to 3.25% over the first seven years of service.

The accumulated benefit obligation was $103,736,000 and $83,724,000 as of December 31, 2019 and 2018, respectively. During 2019, the Company made a contribution of $6,900,000 to the Plan. The Company has not determined if it will make a contribution to the Plan in 2020. The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the Plan:

	Amount
2020	$	3,098,000
2021		3,367,000
2022		3,766,000
2023		4,196,000
2024		4,488,000
2025-2029		27,343,000

The Plan’s pension cost included the following components:

	For the Year Ended December 31,
(In thousands)	2019			2018			2017
Service cost – benefits earned during the year	$	3,555		$	4,017		$	3,733
Interest cost on projected benefit obligations		4,103			3,703			3,621
Expected return on plan assets		(4,753	)		(5,202	)		(4,681	)
Net amortization and deferral		1,559			1,522			1,382
Net periodic pension cost	$	4,464		$	4,040		$	4,055

The following represent the major assumptions used to determine the net pension cost of the Plan:

	2019		2018		2017
Weighted average discount rate	4.30	%	3.75	%	4.25	%
Rate of increase in compensation levels	(a	)	(a	)	(a	)
Expected long-term rate of return on assets	6.50	%	6.50	%	6.50	%

(a)	6.0% graded down to 3.25% over the first seven years of service

Table of Contents

For 2019, the RP-2014 Mortality Table and the MP-2018 Mortality Improvement Table were used. For 2018, the RP-2014 Mortality Table and the MP-2017 Mortality Improvement Table were used. For 2017, the RP-2014 Mortality Table and the MP-2016 Mortality Improvement Table were used.

The investment objective for the Plan is to maximize total return with a tolerance for average risk. Asset allocation is a balance between fixed income and equity investments, with a target allocation of approximately 51% fixed income, 19% U.S. equity and 30% non-U.S. equity. Due to volatility in the market, this target allocation is not always desirable and asset allocations can fluctuate between acceptable ranges. The fixed income component is invested in pooled investment grade securities. The equity components are invested in pooled large cap, small/mid cap and non-U.S. stocks. The expected one-year nominal returns and annual standard deviations are shown by asset class below:

Asset Class	% of Total Portfolio		One-Year Nominal Return		Annual Standard Deviation
Core Fixed Income	51	%	3.78	%	3.90	%
Large Cap U.S. Equities	14	%	6.55	%	15.30	%
Small Cap U.S. Equities	5	%	7.58	%	19.00	%
International (Developed)	25	%	7.86	%	17.22	%
International (Emerging)	5	%	10.24	%	25.05	%

Applying appropriate correlation factors between each of the asset classes the long-term rate of return on assets is estimated to be 6.50%.

A summary of the fair value measurements by type of asset is as follows:

	Fair Value Measurements as of December 31,
	2019						2018
(In thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)
Cash	$	462	$	462	$	—	$	423	$	423	$	—
Equity securities
U.S. Small/Mid Cap Growth		4,491		—		4,491		3,405		—		3,405
Non-U. S. Core		23,975		—		23,975		18,398		—		18,398
U.S. Large Cap Passive		13,523		—		13,523		10,471		—		10,471
Emerging Markets		4,559		—		4,559		3,217		—		3,217
Fixed Income
U.S. Core		27,046		—		27,046		10,609		—		10,609
U.S. Passive		15,255		—		15,255		23,827		—		23,827
Opportunistic		5,323		—		5,323		4,230		—		4,230
Total	$	94,634	$	462	$	94,172	$	74,580	$	423	$	74,157

Supplemental Executive Retirement Plan

The Company also has an unfunded supplemental executive retirement plan (“SERP”) which covers key executives of the Company whose benefits are limited by the Internal Revenue Service under the Company’s qualified retirement plan. The SERP is a noncontributory plan in which the Company’s subsidiaries make accruals designed to fund normal service costs on a current basis using the same method and criteria as the Plan.

A summary of the activity in the SERP’s projected benefit obligation and amounts recognized in the Company’s consolidated balance sheets is as follows:

	December 31,
(In thousands)	2019			2018
Benefit obligation:
Balance, January 1	$	10,097		$	10,094
Service cost		97			92
Interest cost		408			348
Benefits paid		(262	)		(260	)
Actuarial loss (gain)		1,372			(177	)
Balance, December 31	$	11,712		$	10,097

Table of Contents

The following represent the major assumptions used to determine the projected benefit obligation of the SERP. For 2019 and 2018, the SERP’s expected benefit cash flows were discounted using the FTSE Above Median Double-A Curve. For 2017, the Citigroup Above Median Curve was used.

	2019		2018		2017
Weighted average discount rate	3.00	%	4.10	%	3.50	%
Rate of increase in compensation levels	(a)		(a)		(a)

(a)	6.00% graded down to 3.25% over the first seven years of service.

The accumulated benefit obligation was $10,485,000 and $8,830,000 as of December 31, 2019 and 2018, respectively. Since this is an unfunded plan, there are no plan assets. Benefits paid were $262,000 in 2019, $260,000 in 2018, and $247,000 in 2017. Expected future benefits payable by the Company over the next ten years are as follows:

	Amount
2020	$	291,000
2021		344,000
2022		752,000
2023		829,000
2024		826,000
2025-2029		4,055,000

The SERP’s pension cost included the following components:

	For the Year Ended December 31,
(In thousands)	2019		2018		2017
Service cost – benefits earned during the year	$	97	$	92	$	143
Interest cost on projected benefit obligations		408		348		360
Net amortization and deferral		276		581		324
Net periodic pension cost	$	781	$	1,021	$	827

The pretax amounts in accumulated other comprehensive loss as of December 31 were as follows:

	The Plan				SERP
(In thousands)	2019		2018		2019		2018
Prior service cost	$	—	$	—	$	—	$	—
Net actuarial loss		29,387		23,580		2,724		1,629
Total	$	29,387	$	23,580	$	2,724	$	1,629

The estimated pretax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2019 expected to be recognized as components of net periodic benefit cost in 2020 for the Plan are $0 and $1,890,000, respectively. The estimated pretax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2019 expected to be recognized as components of net periodic benefit cost in 2020 for the SERP are $0 and $112,000, respectively.

The Company also maintains a noncontributory profit sharing program, which covers most of its employees. Employer contributions are calculated based upon formulas which relate to current operating results and other factors. Profit sharing expense recognized in personnel expense in the consolidated statements of income in 2019, 2018, and 2017 was $6,841,000, $6,810,000, and $5,799,000, respectively.

The Company also sponsors a defined contribution 401(k) plan to provide additional retirement benefits to substantially all employees. Contributions under the 401(k) plan for 2019, 2018 and 2017 were $1,378,000, $1,109,000, and $925,000, respectively.