NYCB 2017 Annual Report

121 Reflecting the sale of the mortgage banking business the total unpaid principal balance of loans serviced for others declined to $3.7 billion at December 31, 2017 from $25.1 billion at December 31, 2016. NOTE 12: EMPLOYEE BENEFITS Retirement Plan On April 1, 2002, three separate pension plans for employees of the former Queens County Savings Bank, the former CFS Bank, and the former Richmond County Savings Bank were merged and renamed the “New York Community Bancorp Retirement Plan” (the “Retirement Plan”). The pension plan for employees of the former Roslyn Savings Bank was merged into the Retirement Plan on September 30, 2004. The pension plan for employees of the former Atlantic Bank of New York was merged into the Retirement Plan on March 31, 2008. The Retirement Plan covers substantially all employees who had attained minimum age, service, and employment status requirements prior to the date when the individual plans were frozen by the banks of origin. Once frozen, the individual plans ceased to accrue additional benefits, service, and compensation factors, and became closed to employees who would otherwise have met eligibility requirements after the “freeze” date. The following table sets forth certain information regarding the Retirement Plan as of the dates indicated: December 31, (in thousands) 2017 2016 Change in Benefit Obligation: Benefit obligation at beginning of year $146,429 $146,618 Interest cost 5,616 5,881 Actuarial loss 8,267 611 Annuity payments (6,485) (6,473) Settlements (2,416) (208) Benefit obligation at end of year $151,411 $146,429 Change in Plan Assets: Fair value of assets at beginning of year $220,740 $211,888 Actual return on plan assets 22,297 15,533 Contributions -- -- Annuity payments (6,485) (6,473) Settlements (2,416) (208) Fair value of assets at end of year $234,136 $220,740 Funded status (included in “Other assets”) $ 82,725 $ 74,311 Changes recognized in other comprehensive income (loss) for the year ended December 31: Amortization of prior service cost $ -- $ -- Amortization of actuarial loss (8,209) (9,050) Net actuarial loss arising during the year 2,260 706 Total recognized in other comprehensive loss for the year (pre-tax) $ (5,949) $ (8,344) Accumulated other comprehensive loss (pre-tax) not yet recognized in net periodic benefit cost at December 31: Prior service cost $ -- $ -- Actuarial loss, net 73,591 79,541 Total accumulated other comprehensive loss (pre-tax) $73,591 $79,541 In 2018, an estimated $7.2 million of unrecognized net actuarial loss for the Retirement Plan will be amortized from AOCL into net periodic benefit cost. The comparable amount recognized as net periodic benefit cost in 2017 was $8.2 million. No prior service cost will be amortized in 2018 and none was amortized in 2017. The discount rates used to determine the benefit obligation at December 31, 2017 and 2016 were 3.4% and 3.9%, respectively. The discount rate reflects rates at which the benefit obligation could be effectively settled. To determine this rate, the Company considers rates of return on high-quality fixed-income investments that are currently available and are expected to be available during the period until the pension benefits are paid. The expected future payments are