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PENSION PLAN AND OTHER BENEFIT PLANS
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
PENSION PLAN AND OTHER BENEFIT PLANS PENSION PLAN AND OTHER BENEFIT PLANS
Pension Plan

The Corporation has a noncontributory defined benefit pension plan covering certain employees. The plan's defined benefit formula generally based payments to retired employees upon their length of service multiplied by a percentage of the average monthly pay over the last five years of employment.

New employees hired on or after July 10, 2010 were not eligible to participate in the plan, however, existing participants at that time continued to accrue benefits. On October 20, 2016, the Corporation amended its noncontributory defined benefit pension plan (“pension plan”) to freeze future retirement benefits after December 31, 2016. Beginning on January 1, 2017, both the pay-based and service-based component of the formula used to determine retirement benefits in the pension plan were frozen so that participants will no longer earn further retirement benefits.

The Corporation uses a December 31 measurement date for its pension plan.

The following table presents (1) changes in the plan's projected benefit obligation and plan assets, and (2) the plan's funded status as of December 31, 2024 and 2023 (in thousands):

Change in projected benefit obligation:20242023
Benefit obligation at beginning of year$31,023 $30,506 
Service cost— — 
Interest cost1,531 1,605 
Actuarial (gain) loss(1,133)1,098 
Curtailments— — 
Settlements— — 
Benefits paid(2,252)(2,186)
Benefit obligation at end of year$29,169 $31,023 

Change in plan assets:20242023
Fair value of plan assets at beginning of year$46,950 $44,656 
Actual return on plan assets3,409 4,480 
Employer contributions— — 
Settlements— — 
Benefits paid(2,252)(2,186)
Fair value of plan assets at end of year$48,107 $46,950 
Funded status$18,938 $15,927 

Amount recognized in accumulated other comprehensive income (loss) as of December 31, 2024 and 2023 consist of the following (in thousands):
 20242023
Net actuarial loss$1,936 $3,961 
Prior service cost— — 
Total before tax effects$1,936 $3,961 

The accumulated benefit obligation as of December 31, 2024 and 2023 was $29.2 million and $31.0 million, respectively.

Actuarial gains in the Projected Benefit Obligation (PBO) in 2024 were primarily the result of the increase in discount rate. The increase in discount rate caused the PBO to decrease by $1.5 million. Other sources of gain/loss such as plan experience, updated census data and minor adjustments to actuarial assumptions generated a combined loss of approximately 1.3% of expected year end obligations.
The principal actuarial assumptions used in determining the projected benefit obligation as of December 31, 2024 and 2023 were as follows:
 20242023
Discount rate5.63 %5.07 %
Assumed rate of future compensation increaseN/AN/A
Weighted-average interest crediting rateN/AN/A

Components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) in 2024 and 2023 consist of the following (in thousands):

Net periodic benefit cost20242023
Service cost, benefits earned during the year$— $— 
Interest cost on projected benefit obligation1,531 1,605 
Expected return on plan assets(2,517)(2,391)
Amortization of net loss— 36 
Amortization of  prior service cost— — 
Recognized (gain) loss due to settlements— — 
Net periodic cost (benefit)$(986)$(750)

Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):20242023
Net actuarial (gain) loss$(2,025)$(990)
Recognized loss— (37)
Amortization of prior service cost— — 
Total recognized in other comprehensive income (loss) (before tax effect)$(2,025)$(1,027)
Total recognized in net (benefit) cost and other comprehensive income (loss) (before tax effect)$(3,011)$(1,777)

During 2024, the plan's total unrecognized net loss decreased by $2.0 million. The variance between the actual and expected return on plan assets during 2024 decreased the total unrecognized net loss by $0.9 million. Because the total unrecognized net gain or loss is less than the greater of 10% of the projected benefit obligation or 10% of the plan assets, no amortization is necessary. As of January 1, 2024, the average expected future life expectancy of plan participants was 21.7 years. Actual results for 2025 will depend on the 2025 actuarial valuation of the plan.

The principal actuarial assumptions used in determining the net periodic benefit cost for the years ended December 31, 2024, 2023 were as follows:
 20242023
Discount rate5.07 %5.42 %
Expected return on assets5.50 %5.50 %
Assumed rate of future compensation increaseN/AN/A
Weighted-average interest crediting rateN/AN/A
The discount rate was determined by projecting the plan's expected future benefit payments as defined for the projected benefit obligation, discounting those expected payments using a theoretical zero-coupon spot yield curve derived from a universe of high-quality bonds as of the measurement date, and solving for he single equivalent discount rate that resulted in the same projected benefit obligation. A 1% increase/(decrease) in the discount rate would have increased/(decreased) the net pension cost for 2024 by $142,000/$(48,000) and (decreased)/increased the year-end projected benefit obligation by $(2.4)/$2.8 million. The change in unrecognized net gain/loss is one measure of the degree to which important assumptions have coincided with actual experience. During 2024 the unrecognized net loss decreased by 6.5% of the December 31, 2023 projected benefit obligation.
The Corporation changes important assumptions whenever conditions warrant changes. As of December 31, 2024 and December 31, 2023, the Corporation used the Society of Actuaries PRI-2012 Private Retirement Plans Mortality Table with Mortality Improvement Scale MP-2021 as a basis for the Plan's valuation. The discount rate is evaluated at least annually and the expected long-term return on plan assets will typically be revised every three to five years, or as conditions warrant. 
The Corporation's overall investment strategy is to achieve a mix of investments that protects the value of plan assets while facilitating near-term benefit payments with a diversification of asset types. The target allocations for plan assets are shown in the table below. Equity securities primarily include investments in common or preferred shares of both U.S. and international companies. Debt securities include U.S. Treasury and Government bonds as well as U.S. Corporate bonds. Other investments may consist of mutual funds, money market funds and cash & cash equivalents. While no significant changes in the asset allocations are expected during 2025, the Corporation may make changes at any time.

The expected return on plan assets was determined based on a CAPM using historical and expected future returns of the various asset classes, reflecting the target allocations described below.
Asset ClassTarget Allocation 2024Percentage of Plan Assets as of December 31,Expected Long-Term Rate of Return
  20242023 
Large cap domestic equities
0% - 30%
15 %41 %12.1 %
Mid-cap domestic equities
0% - 6%
— %2 %— %
Small-cap domestic equities
0% - 5%
— %1 %— %
International equities
0% - 6%
— %3 %— %
Emerging market equities
0% - 5%
— %— %— %
Intermediate fixed income
60% - 100%
69 %37 %2.7 %
Alternative assets
0% - 15%
— %— %— %
Cash
0% - 25%
16 %16 %1.4 %
Total 100 %100 % 

The investment policy of the plan is to provide for stability in the value of plan assets and current income production without undue exposure to risk. The Corporation maintains an Investment Policy Statement (IPS) that guides the investment allocation in the plan. The IPS describes the target asset allocation positions as shown in the table above.
The Corporation has appointed an Employee Pension and Profit Sharing Committee to manage the general philosophy, objectives and process of the plan. The Employee Pension and Profit Sharing Committee meets with the Investment Manager periodically to review the plan's performance and to ensure that the current investment allocation is within the guidelines set forth in the IPS. Only the Employee Pension and Profit Sharing Committee, in consultation with the Investment Manager, can make adjustments to maintain target ranges and for any permanent changes to the IPS. Quarterly, the Board of Directors' Trust and Employee Benefits Committee reviews the performance of the plan with the Investment Manager.
As of December 31, 2024 and 2023, the Corporation's pension plan did not hold any direct investment in the Corporation's common stock.
The Corporation used the following methods and significant assumptions to estimate the fair value of each type of financial instrument held by the pension plan:
Fair value is the exchange price that would be received for an asset in the principal or most advantageous market for the asset in an orderly transaction between market participants on the measurement date. The fair value hierarchy described below requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3).
Discounted cash flows are calculated using spread and optionality. During times when trading is more liquid, broker quotes are used (if available) to validate the model. Rating agency and industry research reports as well as defaults and deferrals on individual securities are reviewed and incorporated into the calculations.
The fair value of the plan assets as of December 31, 2024 and 2023, by asset class are as follows (in thousands):
Fair Value Measurement as of December 31, 2024 Using
Plan AssetsCarrying ValueQuoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Cash$7,577 $7,577 $— $— 
Equity securities:    
U.S. companies— — — — 
Mutual funds38,620 38,620 — — 
Debt securities:    
U.S. Treasuries/Government bonds1,910 1,910 — — 
U.S. Corporate bonds— — — — 
Total plan assets$48,107 $48,107 $— $— 

Fair Value Measurement as of December 31, 2023 Using
Plan AssetsCarrying ValueQuoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Cash$7,503 $7,503 $— $— 
Equity securities:    
U.S. companies19,374 19,374 — — 
Mutual funds17,905 17,905 — — 
Debt securities:    
U.S. Treasuries/Government bonds1,920 1,920 — — 
U.S. Corporate bonds248 248 — — 
Total plan assets$46,950 $46,950 $— $— 

The following table presents the estimated benefit payments for each of the next five years and the aggregate amount expected to be paid in years six through ten for the pension plan (in thousands):
Calendar YearFuture Expected Benefit Payments
2025$2,415 
2026$2,418 
2027$2,418 
2028$2,381 
2029$2,355 
2030-2034$11,220 

The Corporation does not expect to contribute to the plan during 2025. Funding requirements for subsequent years are uncertain and will significantly depend on changes in assumptions used to calculate plan funding levels, the actual return on plan assets, changes in the employee groups covered by the plan, and any legislative or regulatory changes affecting plan funding requirements. For tax planning, financial planning, cash flow management or cost reduction purposes the Corporation may increase, accelerate, decrease or delay contributions to the plan to the extent permitted by law.
Defined Contribution Profit Sharing, Savings and Investment Plan

On October 20, 2016, the Bank amended its defined contribution profit sharing, savings, and investment plan for all active participants to supersede the current contribution formula used by the Plan, which included eliminating the 1000 hours of service requirement to participate in employer contributions. Beginning on January 1, 2017, the Bank began contributing a non-discretionary 3% of gross annual wages for each participant, regardless of the participant’s deferral, and eliminated discretionary contributions for participants hired prior to July 1, 2010. Additionally, beginning January 1, 2017 the Bank began contributing a 50% match up to 6% of gross annual wages.
Expense related to these plans totaled $1.6 million and $1.4 million for the years ended December 31, 2024 and 2023, respectively. The plan's assets as of December 31, 2024 and 2023 include 112,006 and 124,214 shares, respectively, of Chemung Financial Corporation common stock, as well as other common and preferred stocks, U.S. Government securities, corporate bonds and notes, and mutual funds.

Defined Benefit Health Care Plan

On October 20, 2016, the Corporation amended its defined benefit health care plan to not allow any new retirees into the plan, effective January 1, 2017. The effects of this freeze are reflected in the defined benefit health care plan disclosures as of December 31, 2017.
The Corporation uses a December 31 measurement date for its defined benefit health care plan.

The following table presents (1) changes in the plan's accumulated postretirement benefit obligation and (2) the plan's funded status as of December 31, 2024 and 2023 (in thousands):
Changes in accumulated postretirement benefit obligation:20242023
Accumulated postretirement benefit obligation - beginning of year$76 $95 
Service cost— — 
Interest cost5 5 
Participant contributions17 18 
Amendments— — 
Actuarial (gain) loss40 3 
Benefits paid(51)(45)
Accumulated postretirement benefit obligation at end of year$87 $76 

Change in plan assets:20242023
Fair value of plan assets at beginning of year$— $— 
Employer contribution34 27 
Plan participants’ contributions17 18 
Benefits paid(51)(45)
Fair value of plan assets at end of year$— $— 
Unfunded status$(87)$(76)
Amount recognized in accumulated other comprehensive income (loss) as of December 31, 2024 and 2023 consist of the following (in thousands):
 20242023
Net actuarial loss$123 $102 
Prior service credit— — 
Total before tax effects$123 $102 

Weighted-average assumption for disclosure as of December 31:20242023
Discount rate
5.63%
5.07%
Assumed rate of future compensation increaseN/AN/A
Health care cost trend: Initial (Pre-65/Post 65)
7.50% / 6.50%
8.00% / 7.00%
Health care cost trend: Ultimate (Pre-65/Post 65)
4.75% / 4.75%
4.75% / 4.75%
Year ultimate cost trend reached2033 / 20322033 / 2032

The components of net periodic postretirement benefit cost for the years ended December 31, 2024 and 2023 are as follows (in thousands):
Net periodic cost (benefit)20242023
Service cost$— $— 
Interest cost5 5 
Expected return on plan assets— — 
Amortization of prior service benefit— — 
Recognized actuarial loss19 19 
Recognized prior service benefit due to curtailments— — 
Net periodic postretirement cost (benefit)$24 $24 

Other changes in plan assets and benefit obligations
  recognized  in other comprehensive income (loss):		20242023
Net actuarial (gain) loss$40 $3 
Recognized actuarial loss(19)(19)
Prior service credit— — 
Amortization of prior service benefit— — 
Total recognized in other comprehensive income (loss)(before tax effect)$21 $(16)
Total recognized in net benefit cost and other comprehensive income (loss) (before tax effect)$45 $8 

Actuarial loss for 2024 is primarily the net impact of an increase in discount rate, which decreased the Accumulated Postretirement Benefit Obligation (APBO) by $2 thousand, and the reflection of updated data and claims experience, which increased the APBO by $43 thousand. All other sources of gain or loss had a combined net impact of less than $1 thousand.

During 2024 the plan's total unrecognized net loss increased by $21 thousand. Because the total unrecognized net gain or loss in the plan exceeds 10% of the accumulated postretirement benefit obligation, the excess will be amortized over the average future life expectancy of all plan participants. As of January 1, 2024, the average future life expectancy of all plan participants was 6 years. Actual results for 2025 will depend on the 2025 actuarial valuation of the plan.
The change in unrecognized gain/loss is one measure of the degree to which important assumptions have coincided with actual experience. During 2024, the unrecognized net loss increased by 27% of the December 31, 2023 accumulated postretirement benefit obligation. The Corporation changes important assumptions whenever changing conditions warrant. The discount rate and per capita costs are typically changed at least annually. Other material assumptions include rates of participant mortality and rates of increase in medical costs.
Weighted-average assumptions for net periodic cost as of December 31:20242023
Discount rate
5.07%
5.42%
Expected return on plan assetsN/AN/A
Assumed rate of future compensation increaseN/AN/A
Health care cost trend: Initial
7.75% / 6.75%
8.00% / 7.00%
Health care cost tread: Ultimate
4.75% / 4.75%
4.75% / 4.75%
Year ultimate reached2033 / 20322033 / 2032

The following table presents the estimated benefit payments for each of the next five years and the aggregate amount expected to be paid in years six through ten (in thousands):
Calendar YearFuture Estimated Benefit Payments
2025$15 
2026$14 
2027$13 
2028$12 
2029$11 
2030-2034$36 

The Corporation’s policy is to contribute the amount required to fund postretirement benefits as they become due to retirees. The amount expected to be required in contributions to the plan during 2025 is $15 thousand.

Executive Supplemental Pension Plan

The Corporation also sponsors an Executive Supplemental Pension Plan for certain former executive officers to restore certain pension benefits that may be reduced due to limitations under the Internal Revenue Code. The benefits under this plan are unfunded as of December 31, 2024 and 2023.

The Corporation uses a December 31 measurement date for its Executive Supplemental Pension Plan.

The following table presents Executive Supplemental Pension plan status as of December 31, 2024 and 2023 (in thousands):
Change in projected benefit obligation:20242023
Benefit obligation at beginning of year$924 $948 
Service cost— — 
Interest cost44 48 
Actuarial (gain) loss— 37 
Benefits paid(109)(109)
Projected benefit obligation at end of year$859 $924 

Changes in plan assets:20242023
Fair value of plan assets at beginning of year$— $— 
Employer contributions109 109 
Benefits paid(109)(109)
Fair value of plan assets at end of year$— $— 
Unfunded status$(859)$(924)
Amounts recognized in accumulated other comprehensive income (loss) as of December 31, 2024 and 2023 consist of the following (in thousands):
 20242023
Net actuarial loss$192 $202 
Prior service cost— — 
Total before tax effects$192 $202 

Accumulated benefit obligation was $0.9 million as of December 31, 2024 and 2023, respectively.

Weighted-average assumption for disclosure as of December 31:20242023
Discount rate5.63 %5.07 %
Assumed rate of future compensation increaseN/AN/A
Weighted-average interest crediting rateN/AN/A

The components of net periodic benefit cost for the years ended December 31, 2024 and 2023 are as follows (in thousands):
Net periodic benefit cost20242023
Service cost$— $— 
Interest cost44 48 
Recognized actuarial loss11 7 
Net periodic postretirement benefit cost$55 $55 

Other changes in plan assets and benefit obligation recognized in other comprehensive income (loss):20242023
Net actuarial (gain) loss$— $37 
Recognized actuarial loss(11)(7)
Total recognized in other comprehensive income (loss) (before tax effect)$(11)$30 
Total recognized in net benefit cost and other comprehensive income (loss) (before tax effect)$44 $85 

During 2024, there was a $30 thousand decrease in the projected benefit obligation as a result of the increase in discount rate. Offsetting this was a $30 thousand increase in PBO due to participant mortality (longevity) experience. There were no other significant sources of gain or loss during 2024.
During 2024, the plan's total unrecognized net loss decreased by $10 thousand. Because the total unrecognized net gain or loss exceeds the greater of 10% of the projected benefit obligation or 10% of the plan assets, the excess will be amortized over the average future life expectancy of all participants. As of January 1, 2025, the average future life expectancy of plan participants was 9.64 years.
Weighted-average assumptions for net periodic cost as of December 31:20242023
Discount rate5.07 %5.42 %
Expected asset returnN/AN/A
Assumed rate of future compensation increaseN/AN/A
Weighted-average interest crediting rateN/AN/A

The discount rate was determined by projecting the plan's expected future benefit payments as defined for the projected benefit obligation, discounting those expected payments using a theoretical zero-coupon spot yield curve derived from a universe of high-quality bonds as of the measurement date, and solving for the single equivalent discount rate that resulted in the same projected benefit obligation.
The change in unrecognized net gain or loss is one measure of the degree to which important assumptions have coincided with actual experience. During 2024 the unrecognized net loss decreased 1.1% of the December 31, 2023 projected benefit obligation.
The following table presents the estimated benefit payments for each of the next five years and the aggregate amount expected to be paid in years six through ten for the Supplemental Pension Plan (in thousands):
Calendar YearFuture Estimated Benefit Payments
2025$108 
2026$104 
2027$99 
2028$94 
2029$88 
2030-2034$354 

Contributions for an unfunded pension plan are equal to the benefit payments being made during the year. The Corporation expects to contribute $110 thousand to the plan during 2025.

Defined Contribution Supplemental Executive Retirement Plan

The Corporation also sponsors a Defined Contribution Supplemental Executive Retirement Plan for certain current executive officers, which was initiated in 2012. The plan is unfunded as of December 31, 2024 and is intended to provide nonqualified deferred compensation benefits payable at retirement, disability, death or certain other events. The accrued obligation for the plan as of December 31, 2024 and 2023 was $4.0 million and $3.4 million, respectively. A total of $0.7 million and $0.6 million was expensed during the years ended December 31, 2024 and 2023, respectively. In addition to each participant's account being credited with the annual company contribution, each account will receive a quarterly interest credit that will be calculated based upon the average yield on five year U.S. Treasury Notes.