UNITED BANCORP INC OH

Pension and Other Postretirement Benefit Plans

The Company has a noncontributory defined benefit pension plan covering all employees who meet the eligibility requirements. The Company’s funding policy is to make the minimum annual contribution that is required by applicable regulations, plus such amounts as the Company may determine to be appropriate from time to time. The Company expects to contribute $672,000 to the plan in 2024.

The Company has certain agreements which provide for a fixed number of payments once the individual reaches normal retirement age. At December 31, 2023, the present value of these future payments was approximately $383,000.

The Company uses a December 31st measurement date for the plan. Information about the plan’s funded status and pension cost follows:

Amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic benefit cost consist of:

The estimated net loss and prior service credit for the defined benefit pension plan that will be amortized from accumulated other comprehensive loss as a credit into net periodic benefit cost over the next fiscal year is approximately $89,000. The accumulated benefit obligation for the defined benefit pension plan was $4.7 million and $4.4 million at December 31, 2023 and 2022, respectively.

Information for the pension plan with respect to accumulated benefit obligation and plan assets is as follows:

Significant assumptions include:

The Company has estimated the long-term rate of return on plan assets based primarily on historical returns on plan assets, adjusted for changes in target portfolio allocations and recent changes in long-term interest rates based on publicly available information.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as of December 31, 2023:

Plan assets are held by an outside trustee which invests the plan assets in accordance with the provisions of the plan agreement. All equity and fixed income investments are held in various mutual funds with quoted market prices. Mutual fund equity securities primarily include investment funds that are comprised of large-cap, mid-cap and international companies. Fixed income mutual funds primarily include investments in corporate bonds, mortgage-backed securities and U.S. Treasuries. Other types of investments include a prime money market fund.

The asset allocation strategy of the plan is designed to allow flexibility in the determination of the appropriate investment allocations between equity and fixed income investments. This strategy is designed to help achieve the actuarial long term rate on plan assets of 7.0%. The target asset allocation percentages for both 2023 and 2022 are as follows:

At December 31, 2023 and 2022, the fair value of plan assets as a percentage of the total was invested in the following: