16. Employee benefit plans:

The Company sponsors a separate ESOP and Retirement Profit Sharing 401(k) Plan. The Company also maintains SERPs and an employees’ pension plan, which is currently frozen.

Under the ESOP, amounts voted by the Company’s board of directors are paid into the ESOP and each participant is credited with an amount in proportion to their annual compensation. All contributions to the ESOP are invested in or will be invested primarily in Company stock. Distribution of a participant’s ESOP account occurs upon retirement, death or termination in accordance with the plan provisions.

Under the Retirement Profit Sharing Plan, amounts approved by the board of directors have been paid into a fund and each participant was credited with an amount in proportion to their annual compensation. Upon retirement, death or termination, each participant is paid the total amount of their credits in the fund in one of a number of optional ways in accordance with the plan provisions. Eligible participants may elect deferrals of up to the maximum amounts permitted by law.

The Company contributed $357, $197 and $185 to the ESOP in 2019, 2018 and 2017. In addition, the Company contribution of $1,047, $1,047 and $923 to the Retirement Profit Sharing Plan in 2019, 2018 and 2017, was comprised of a safe harbor contribution of $627, $578 and $509 and a discretionary match of $512, $469 and $414.

The Company established a SERP Plan to replace certain 401(k) plan benefits lost due to compensation limits imposed on qualified plans by federal tax law. The annual benefit is a maximum of 6% of the executive compensation in excess of Federal limits. The total liability associated with this plan was $133 and $116 at December 31, 2019 and 2018, respectively. The expense associated with the plan was $17, $20 and $20 for 2019, 2018 and 2017 respectively.

The Company has SERPs for the benefit of certain officers. At December 31, 2019 and 2018, other liabilities include $2,077 and $1,845 accrued under the Plans. Compensation expense includes approximately $360, $335 and $314 relating to these SERPs for the years ended December 31, 2019, 2018 and 2017, respectively.

Under the Employees’ Pension Plan, currently under curtailment, amounts computed on an actuarial basis were being paid by the Company into a trust fund. The plan provided for fixed benefits payable for life upon retirement at the age of 65, based on length of service and compensation levels as defined in the plan. As of June 22, 2008 no further benefits are being accrued in this plan. Plan assets of the trust fund are invested and administered by the Trust Department of the Company.

Information related to the Employees’ Pension Plan is as follows:



	Pension Benefits
December 31	2019		2018
Change in benefit obligation:
Benefit obligation, beginning	$	16,338	$	16,935
Interest cost		639		623
Change in experience gain		96		135
Change in actuarial assumptions loss (gain)		1,221		(546)
Benefits paid		(803)		(809)
Benefit obligation, ending		17,491		16,338
Change in plan assets:
Fair value of plan assets, beginning		14,919		13,264
Actual return on plan assets		2,814		(236)
Employer contributions				2,700
Benefits paid		(803)		(809)
Fair value of plan assets, ending		16,930		14,919
Funded status at end of year	$	(561)	$	(1,419)

The Society of Actuaries released new mortality tables in 2019 and 2018 which the Company utilized in its pension plan remeasurements at December 31, 2019 and 2018. The change in mortality assumption, coupled with changes in the discount rate, resulted in an increase to the benefit obligation of $1,221 in 2019 and a decrease of $546 in 2018.

Amounts recognized in the consolidated balance sheets are as follows:



	Pension Benefits
December 31	2019		2018

Liabilities	$	561	$	1,419
Amounts recognized in the accumulated other comprehensive loss consist of:
Net actuarial gain		(6,579)		(7,218)
Deferred taxes		1,382		1,516

Net amount recognized	$	(5,197)	$	(5,702)

The accumulated benefit obligation for the defined benefit pension plan was $17,491 and $16,338 at December 31, 2019 and 2018, respectively.

Components of net periodic pension income and other amounts recognized in other comprehensive loss are as follows:


	Pension Benefits
Years Ended December 31,	2019		2018		2017
Net periodic pension income:
Interest cost	$	639	$	623	$	650
Expected return on plan assets		(1,084)		(960)		(915)
Amortization of unrecognized net loss		227		194		195
Net periodic pension income:		(218)		(143)		(70)
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net loss (gain)		639		(590)		318
Deferred tax		(134)		124		(67)
Total recognized in other comprehensive loss		505		(466)		251
Total recognized in net period pension cost and other comprehensive loss	$	287	$	(609)	$	181

The estimated net loss for the defined benefit pension plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is $201.

Weighted-average assumptions used to determine benefit obligations and related expenses were as follows:



	Pension Benefits
December 31,	2019		2018		2017
Discount rate:
Obligation	3.25	%	4.00	%	3.75	%
Expense	4.00		3.75		4.00
Expected long-term return on plan assets	7.50	%	7.50	%	7.50	%

The expected long-term return on plan assets was determined using average historical returns of the Company’s plan assets.

The Company’s pension plan weighted-average asset allocations at December 31, 2019 and 2018, by asset category are as follows:


December 31,	2019		2018
Asset Category:
Cash and cash equivalents	6.2	%	5.0	%
Equity securities	61.9		56.2
Corporate bonds	20.6		23.6
U.S. government securities	11.3		15.2
	100.0	%	100.0	%

Fair value measurement of pension plan assets at December 31, 2019 and 2018 is as follows:


			Quoted Prices in
			Active Markets		Significant		Significant
			for Identical		Observable		Observable
			Assets		Inputs		Inputs
December 31, 2019	Total		(Level 1)		(Level 2)		(Level 3)
Cash	$	1,053	$	1,053			$
Equity securities:
U.S. large cap		9,663		9,663
International		817		817
Fixed income securities:
U.S. Treasuries		202			$	202
U.S. government agencies		1,713				1,713
Corporate bonds		3,482				3,482
Total	$	16,930	$	11,533	$	5,397	$


			Quoted Prices in
			Active Markets		Significant		Significant
			for Identical		Observable		Observable
			Assets		Inputs		Inputs
December 31, 2018	Total		(Level 1)		(Level 2)		(Level 3)
Cash	$	743	$	743			$
Equity securities:
U.S. large cap		7,687		7,687
International		694		694
Fixed income securities:
U.S. Treasuries		192			$	192
U.S. government agencies		2,085				2,085
Corporate bonds		3,518				3,518
Total	$	14,919	$	9,124	$	5,795	$

The Company investment policies and strategies with respect to the pension plan include: (i) the Trust and Investment Division’s equity philosophy is large-cap core with a value bias. We invest in individual high-grade common stocks that are selected from our approved list; (ii) diversification is maintained by having no more than 20% in any industry sector and no individual equity representing more than 10% of the portfolio; and (iii) the fixed income style is conservative but also responsive to the various needs of our individual clients. Fixed income securities consist of U.S. Government Agencies or corporate bonds rated “A” or better. The Company targets the following allocation percentages: (i) cash equivalents 10%; (ii) fixed income 40% ; and (iii) equities 50%.

There is no Company stock included in equity securities at December 31, 2019 or 2018. The Company has not determined the amount of the expected contribution to the Employees’ Pension Plan for 2020.

The following benefit payments are expected to be paid in the next five years and in the aggregate for the five years thereafter:


	Pension Benefits
2020	$	867
2021		867
2022		904
2023		919
2024		969
Thereafter		5,071