For measurement purposes, a 9 percent annual rate increase in the per capita cost of covered health care benefits was assumed for 1999. The rate was assumed to decrease gradually to 6 percent in 2002 and remain at that level thereafter.

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan. A one-percentage point change in assumed health care cost trend rates would have the following effects:

The Corporation has elected to amortize the transition obligation for both the pension and post-retirement plans by charges to income over a twenty year period on a straight-line basis.

Accumulated Benefit Obligation for the Corporation’s pension plan were ($65,804), ($63,211) and ($55,386) for the periods ended December 31, 1999, 1998 and 1997, respectively.

The Corporation maintains a savings plan under Section 401(K) of the Internal Revenue Code, covering substantially all full-time and part-time employees after six months of continuous employment. Under the plan, employees contributions are partially matched by the Corporation. Such matching becomes vested when the employee reaches five years of credited services. Total savings plan expenses were $2,780, $2,586 and $2,375 for 1999, 1998 and 1997, respectively. The former CoBancorp employees now working for the Corporation were merged into the 401(K) plan during 1998 and the former Security First employees working for the Corporation were merged into FirstMerit’s 401(K) plan effective January 1, 1999.