Net periodic benefit cost (credit) included in compensation and employee benefits expense consists of the following:  Pension Plan Postretirement Plan Year Ended December 31, Year Ended December 31, (In thousands) 2002 2001 2000 2002 2001 2000 Service cost . . . . . . . . . . . . . . . . . . . $ 3,547 $ 2,969  $ 3,248  $ 48 $ 49 $ 56 Interest cost . . . . . . . . . . . . . . . . . . 2,857 2,480 2,431 685  547 523 Expected return on plan assets . . . . . (7,683) (7,156) (6,207) – – – Amortization of transition obligation – – – 210 209 209 Amortization of prior service cost . . . (1,056) (1,057) (1,057) – – – Recognized actuarial gain . . . . . . . . . (387) (1,810) (915) 38 (3) (22) Net periodic benefit cost (credit) . . $(2,722) $(4,574) $(2,500) $981  $ 802 $ 766 The discount rate and rate of increase in future compensation used to measure the benefit obligation and the expected long-term rate of return on plan assets were as follows:  Pension Plan Postretirement Plan Year Ended December 31, Year Ended December 31, 2002 2001 2000 2002 2001 2000 Discount rate . . . . . . . . . . . . . . . . . . . . . 6.50% 7.50% 7.50% 6.50% 7.50% 7.50% Rate of increase in future compensation . . 4.50  4.50 5.00 N.A. N.A. N.A. Expected long-term rate of return  on plan assets . . . . . . . . . . . . . . . . . . 8.50  10.00 10.00 N.A. N.A. N.A. N.A. Not applicable. The Pension Plan’s assets consist primarily of listed stocks and bonds. At December 31, 2002 and 2001, the Pension Plan’s assets included 28,400 and 246,000 shares of TCF common stock with a market value of $1.2 million and $11.8 million, respectively. For active participants of the Postretirement Plan, a 12% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2003. This rate is assumed to decrease gradually to 5% by 2009 and remain at that level thereafter.  Assumed health care cost trend rates have an effect on the amounts reported for the Postretirement Plan. A one-percentage-point change in assumed health care cost trend rates would have the following effects: 1-Percentage- 1-Percentage- (In thousands) Point Increase Point Decrease Effect on total of service and interest cost components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16 $ 15 Effect on postretirement benefits obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 556 503 Employee Stock Purchase Plan The TCF Employees Stock Purchase Plan generally allows participants to make contributions by salary deduction of up to 50% of their salary on a tax-deferred basis. TCF matches the contributions of all employees at the rate of 50 cents per dollar, with a maximum employer contribution of 3% of the employee’s salary. Employee contributions vest immediately while the Company’s matching contributions are subject to a graduated vesting schedule based on an employee’s years of vesting service over five years. Employee contributions and matching contributions are invested in TCF stock. Employees age 50 and over may invest all or a portion of their account balance in various mutual funds. The Company’s matching contributions are expensed when made. At December 31, 2002, the assets in the plan totaled $183.4 million and included $179.3 million invested in TCF common stock. Additionally, as of December 31, 2002, $69.7 million of plan assets were eligible for diversification under plan provisions. TCF’s con- tributions to the plan were $3.6 million, $3 million and $2.7 mil- lion in 2002, 2001 and 2000, respectively. page 67