Company: ISBA
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0000842517-25-000053
Chunk: 120

Company: ISABELLA BANK CORP
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 120
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 benefit obligation, ending balance$6,403 $6,628 20242023Change in accrued pension benefit costsAccrued benefit cost, beginning balance$438 $(314)Contributions— — Net periodic benefit (cost) credit82 (95)Net change in unrecognized actuarial loss and prior service cost380 847 Prepaid (accrued) pension liability, ending balance$900 $438 The funded status of the plan is recorded in our consolidated balance sheets.  We adjust the funded status in a prepaid account and the underfunded status in a liability account to reflect the current funded status of the plan.  Any gains or losses that arise during the year but are not recognized as components of net periodic benefit cost are recognized as a component of other comprehensive income (loss).The components of net periodic benefit cost are as follows for the years ended December 31:202420232022Interest cost on benefit obligation$294 $317 $224 Expected return on plan assets(402)(371)(490)Amortization of unrecognized actuarial net loss26 149 216 Settlement loss— — 109 Net periodic benefit cost (credit)$(82)$95 $59 Settlement losses during 2022 were recognized in connection with lump-sum benefit distributions.  Many plan participants elect to receive their retirement benefit payments in the form of lump-sum settlements.  Pro rata settlement losses, which can occasionally occur as a result of these lump-sum distributions, are recognized only in years when the total of such distributions exceed the sum of the service and interest expense components of net periodic benefit cost.

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The components of accumulated other comprehensive income are as follows for the years ended December 31:202420232022Transition (asset) obligation$— $— $— Net (gain) loss502 882 1,729 Past service (credit) cost— — — Accumulated other comprehensive income$502 $882 $1,729 The actuarial assumptions used in determining the benefit obligation are as follows for the years ended December 31:202420232022Discount rate5.32 %4.69 %4.88 %Expected long-term rate of return on plan assets6.00 %6.00 %6.00 %The actuarial weighted average assumptions used in determining the net periodic pension costs are as follows for the years ended December