In the Bank implemented a retirement plan that included both a money purchase pension plan, as well as a voluntary profit sharing plan for all employees who meet certain age and length of service eligibility requirements. In the Bank amended its retirement plan to freeze the money purchase plan and retain the plan. To ensure that the plan meets the Safe Harbor provisions of the applicable sections of the Internal Revenue Code, the Bank contributes an amount equal to of the employee’s base salary to the plan for all eligible employees who contribute at least of their salary. In addition, an employee contribute from to percent of his or her base salary, up to a maximum of in In and the Bank made a matching contribution of on the of employee deferrals and on the next of deferrals. Depending on the Bank’s profitability, an additional profit sharing contribution be made by the Bank to the plan. There were profit sharing contributions in and The total retirement plan expense was for the year ended for the year ended and for the year ended

 

The Bank has a postretirement benefit plan that generally provides for the continuation of medical premium payments for all employees hired before who retire from the Bank at age or older, upon meeting certain length of service eligibility requirements. The Bank does not fund its postretirement benefit obligation. Rather, payments are made as costs are incurred by covered retirees. The amount of benefits paid under the postretirement benefit plan was in in and in The amount of insurance premium paid by the Bank for retirees is capped at of the cost of the premium as of

A reconciliation of the accumulated postretirement benefit obligation (“APBO”) to the amounts recorded in the consolidated balance sheets in Interest Payable and Other Liabilities at is as follows omitted):

 

 

 

The APBO as of and was calculated using an assumed discount rates of in both years. Based on the provisions of the plan, the Bank’s expense is capped at of the expense, with all expenses above the cap incurred by the retiree. The expense reached the cap in and accordingly the impact of an increase in health care costs on the APBO was not calculated.

 

The Bank Owned Life Insurance policies fund a Death Benefit Only (DBO) obligation that the Bank has with of its active directors, retired directors, active executives, and retired executives. The DBO plan, which replaced previous split dollar agreements, provides a taxable death benefit. The benefit for directors is grossed up to provide a net benefit to each director’s beneficiaries based on that director’s length of service on the board. The directors’ net death benefits are for director service of less than years, for service up to years, for service up to years, and for director service of years or more. The active directors who participate in the DBO plan have all waived the postretirement benefit. The executives’ beneficiaries will receive a grossed up benefit that will provide a net benefit equal to times the executive’s base salary if death occurs during employment and a postretirement benefit equal to the executive’s final annual salary rate at the time of retirement if death occurs after retirement.

 

Information for the postretirement death benefits and health care benefits is as follows as of the measurement date

 

 

Amounts recognized in other liabilities as of consist of

 

 

Amounts recognized in accumulated other comprehensive income as of consist of

 

 

The projected payments under each postretirement plan for the next years are as follows: