Company: ISBA
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0000842517-25-000053
Chunk: 121

Company: ISABELLA BANK CORP
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 121
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 31:202420232022Discount rate4.69 %4.88 %2.43 %Expected long-term rate of return on plan assets6.00 %6.00 %6.00 %As a result of the curtailment of the Plan, there is no rate of compensation increase considered in the above assumptions.The expected long-term rate of return is an estimate of anticipated future long-term rates of return on plan assets as measured on a market value basis.  Factors considered in arriving at this assumption include:•Historical long-term rates of return for broad asset classes.•Actual past rates of return achieved by the plan.•The general mix of assets held by the plan.•The stated investment policy for the plan.The selected rate of return is net of anticipated investment related expenses.Pension Plan AssetsOur overall investment strategy is to moderately grow the portfolio by investing 50% of the portfolio in equity securities and 50% in fixed income securities.  This strategy is designed to generate a long-term rate of return of 6.00%.  Equity securities primarily consist of the S&P 500 Index with a smaller allocation to the Small Cap and International Index.  Fixed income securities are invested in the Bond Market Index.  The plan has appropriate assets invested in short-term investments to meet near term benefit payments.The asset mix and the sector weighting of the investments are determined by our benefits committee, which is comprised of members of our management.  To manage the plan, we retain a third party investment advisor to conduct consultations.  We review the performance of the advisor at least annually.The fair values of our pension plan assets by asset category were as follows as of December 31: 20242023Total(Level 2)Total(Level 2)Short-term investments$234 $234 $103 $103 Common collective trustsFixed income3,322 3,322 3,273 3,273 Equity investments3,747 3,747 3,690 3,690 Total$7,303 $7,303 $7,066 $7,066 

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The following is a description of the valuation methodologies used for assets measured at fair value.  There have been no changes in the methodologies used at December 31, 2024 and 2023:•Short-term investments: Shares of a money market portfolio valued at amortized cost, which approximates fair value.•Common collective trusts: These investments are public