Pension Benefits |
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| Pension Benefits | 15. Pension Benefits The Company has a noncontributory defined benefit pension plan covering certain employees who work at least 1,000 hours per year. The participants have a vested interest in their accrued benefit after full years of service. The benefits of the plan are based upon the employee’s years of service and average annual earnings for the highest five consecutive calendar years during the final ten-year period of employment. Plan assets are primarily debt securities (including U.S. Treasury and Agency securities and corporate bonds), listed common stocks (including shares of AmeriServ Financial, Inc. common stock which is limited to 5% of the plan’s assets), mutual funds, and short-term cash equivalent instruments. The net periodic pension benefit for the three and six months ended June 30, 2026 and 2025 was as follows (in thousands):
The service cost component of net periodic pension benefit is included in salaries and employee benefits and all other components of net periodic pension benefit are included in other expense on the Consolidated Statements of Operations. The accrued pension obligation, which had a positive (debit) balance of $37.7 million and $36.1 million, was reclassified to other assets on the Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025, respectively. The balance of the accrued pension obligation continues to be a positive value as a result of the strong return on plan assets and the revaluation of the obligation. The Company implemented a soft freeze of its defined benefit pension plan to provide that non-union employees hired on or after January 1, 2013 and union employees hired on or after January 1, 2014 are not eligible to participate in the pension plan. Instead, such employees are eligible to participate in a qualified 401(k) plan. This change was made to help reduce pension costs in future periods. |
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