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Note 13 - Retirement Plans
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Compensation and Employee Benefit Plans [Text Block]

NOTE 13 – RETIREMENT PLANS

 

LCNB participates in a noncontributory defined benefit multi-employer retirement plan that covers substantially all regular full-time employees hired before January 1, 2009. Employees hired before this date who received a benefit reduction under certain amendments to the defined benefit retirement plan receive an automatic contribution of 5% or 7% of their annual compensation, depending on the sum of an employee's age and vesting service, into their defined contribution plans (401(k) plans), regardless of the contributions made by the employees.  These contributions are made annually and these employees do not receive any employer matches to their 401(k) contributions.

 

Employees hired on or after January 1, 2009 receive a 50% employer match on their contributions into the 401(k) plan, up to a maximum LCNB contribution of 3% of each individual employee's annual compensation.

 

 

Funding and administrative costs of the qualified noncontributory defined benefit retirement plan and 401(k) plan charged to pension and other employee benefits in the consolidated condensed statements of income for the three and nine-month period ended  September 30, 2024 and 2023 were as follows (in thousands):

 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

 
  

2024

  

2023

  

2024

  

2023

 

Qualified noncontributory defined benefit retirement plan

 $350   267   1,004   944 

401(k) plan

  210   164   630   529 

 

Certain highly compensated former employees participate in a nonqualified defined benefit retirement plan.  The nonqualified plan ensures that participants receive the full amount of benefits to which they would have been entitled under the noncontributory defined benefit retirement plan in the absence of limits on benefit levels imposed by certain sections of the Internal Revenue Code. This plan is limited to the original participants and no new participants have been added.

 

The net periodic pension cost of the nonqualified defined benefit retirement plan consists solely of interest cost of $18,000 and $54,000 for the three and nine months ended September 30, 2024, respectively, and $19,000 and $57,000 for the three and nine months ended September 30, 2023, respectively.