CHFC 2017 Annual Report

Benefit Obligations and Plan Expenses The following schedule sets forth the changes in the projected benefit obligation and plan assets of the Corporation's Plans: Pension Plan Postretirement Plan SERP (Dollars in thousands) 2017 2016 2017 2016 2017 2016 Projected benefit obligation: Benefit obligation at beginning of year $ 123,968 $ 119,873 $ 2,601 $ 3,247 $ 2,567 $ 2,160 Service cost 639 1,041 5 9 61 77 Interest cost 4,966 5,335 94 132 69 92 Settlement and other charges (1) — — — — — (264) Net actuarial loss (gain) 10,131 2,684 10 (478) (274) 536 Benefits paid (6,432) (4,965) (198) (309) — (34) Curtailment (11,911) — — — — — Benefit obligation at end of year 121,361 123,968 2,512 2,601 2,423 2,567 Fair value of plan assets: Fair value of plan assets at beginning of year 132,751 126,930 — — — — Actual return on plan assets 19,582 10,786 — — — — Employer contributions — — 198 309 — — Benefits paid (6,432) (4,965) (198) (309) — — Fair value of plan assets at end of year 145,901 132,751 — — — — Funded (unfunded) status at December 31 $ 24,540 $ 8,783 $ (2,512) $ (2,601) $ (2,423) $ (2,567) Accumulated benefit obligation $ 121,361 $ 115,418 $ 2,512 $ 2,601 $ 2,423 $ 2,567 (1) The settlement and other charges relate to the change in control as a result of the merger with Talmer as of August 31, 2016. The Corporation did not make a contribution to the Pension Plan in either 2017 or 2016. The Corporation is not required to make a contribution to the Pension Plan in 2018. Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2017 148