Quarterly report pursuant to Section 13 or 15(d)

BENEFIT PLANS

v3.7.0.1
BENEFIT PLANS
 3 Months Ended
Mar. 31, 2017
Compensation and Retirement Disclosure [Abstract]  
BENEFIT PLANS
. BENEFIT PLANS
Huntington sponsors a non-contributory defined benefit pension plan covering substantially all employees hired or rehired prior to January 1, 2010. The plan, which was modified in 2013 and no longer accrues service benefits to participants, provides benefits based upon length of service and compensation levels. The funding policy of Huntington is to contribute an annual amount that is at least equal to the minimum funding requirements but not more than the amount deductible under the Internal Revenue Code. There is no required minimum contribution for 2017.
In addition, Huntington has an unfunded defined benefit post-retirement plan that provides certain healthcare and life insurance benefits to retired employees who have attained the age of 55 and have at least 10 years of vesting service under this plan. For additional information on benefit plans, see the Benefit Plan footnote in our 2016 Form 10-K.
As part of the FirstMerit acquisition, Huntington agreed to assume and honor all FirstMerit benefit plans. The FirstMerit Pension Plan was frozen for nonvested employees and closed to new entrants after December 31, 2006. Effective December 31, 2012, the FirstMerit Pension Plan was frozen for vested employees. Additionally, FirstMerit had a post-retirement benefit plan which provided medical and life insurance for retired employees.
The following table shows the components of net periodic (benefit) cost for all plans:
 
Pension Benefits
 
Post Retirement Benefits
 
Three Months Ended March 31,
 
Three Months Ended March 31,
(dollar amounts in thousands)
2017
 
 
2016
 
2017
 
 
2016
Service cost
$
640

 
 
$
1,025

 
$
22

 
 
$
—

Interest cost
7,477

 
 
6,748

 
99

 
 
55

Expected return on plan assets
(13,803
)
 
 
(10,223
)
 
—

 
 
—

Amortization of prior service cost
—

 
 
—

 
(492
)
 
 
(492
)
Amortization of (gain) loss
1,747

 
 
1,864

 
(55
)
 
 
(72
)
Settlements
2,500

 
 
3,400

 
—

 
 
—

Net periodic (benefit) cost
$
(1,439
)
(1
)
 
$
2,814

 
$
(426
)
(1
)
 
$
(509
)

(1)
Includes expense associated with FirstMerit plans.
Huntington has a defined contribution plan that is available to eligible employees. Huntington matches participant contributions, up to the first 4% of base pay contributed to the defined contribution plan. For 2016, a discretionary profit-sharing contribution equal to 1% of eligible participants’ 2016 base pay was awarded during the 2017 first quarter. Huntington's expense related to the defined contribution plans during the first quarter 2017 and 2016 was $11 million and $8 million, respectively.