Pension and SERP Plans
 9 Months Ended
Sep. 30, 2012
Pension and SERP Plans [Abstract]  
Pension and SERP Plans

Note 12 - Pension and SERP Plans

 

            The following table presents the components of the net periodic pension plan cost for First United Corporation’s Defined Benefit Pension Plan and the Bank’s Supplemental Executive Retirement Plan (“SERP”) for the periods indicated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension

For the nine months ended

For the three months ended

 

September 30,

September 30,

(In thousands)

2012

2011

2012

2011

Service cost

$
0 

$
0 

$
0 

$
0 

Interest cost

 
1,035 

 
1,072 

 
344 

 
412 

Expected return on assets

 
(1,659)

 
(1,669)

 
(552)

 
(549)

Amortization of transition asset

 
(30)

 
(30)

 
(10)

 
(10)

Recognized net actuarial loss

 
285 

 
209 

 
95 

 
9 

Amortization of prior service cost

 
9 

 
9 

 
3 

 
5 

Net pension credit included in employee benefits

$
(360)

$
(409)

$
(120)

$
(133)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SERP

For the nine months ended

For the three months ended

 

September 30,

September 30,

(In thousands)

2012

2011

2012

2011

Service cost

$
90 

$
119 

$
30 

$
39 

Interest cost

 
189 

 
171 

 
63 

 
57 

Amortization of recognized loss

 
9 

 
0 

 
3 

 
0 

Amortization of prior service cost

 
93 

 
95 

 
31 

 
32 

Net pension expense included in employee benefits

$
381 

$
385 

$
127 

$
128 

 

            Effective April 30, 2010, the Pension Plan was amended, resulting in a “soft freeze”.  The effects of the amendment were to prohibit new entrants into the plan and to cease crediting additional years of service after that date.

 

The Corporation does not intend to contribute to the Pension Plan in 2012 based upon its fully funded status and an evaluation of the future benefits provided under the Pension Plan.  The Corporation expects to fund the annual projected benefit payments for the SERP from operations.