Allegheny Power 2010 Annual Report Download - page 84

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69
Obligations and Funded Status Pension Benefits Other Benefits
As of December 31 2010 2009 2010 2009
(In millions)
Change in benefit obligation
Benefit obligation as of January 1 $ 5,392 $ 4,700 $ 823 $ 1,189
Service cost 99 91 10 12
Interest cost 314 317 45 64
Plan participants' contributions - - 30 29
Plan amendments 16 6 - (408)
Special termination benefits - - - 13
Medicare retiree drug subsidy - - 7 20
A
ctuarial (gain) loss 343 648 56 23
Benefits paid (306) (370) (110) (119)
Benefit obligation as of December 31 $ 5,858 $ 5,392 $ 861 $ 823
Change in fair value of plan assets
Fair value of plan assets as of January 1 $ 4,399 $ 3,752 $ 467 $ 440
A
ctual return on plan assets 440 508 52 62
Company contributions 11 509 59 55
Plan participants' contributions - - 30 29
Benefits paid (306) (370) (110) (119)
Fair value of plan assets as of December 31 $ 4,544 $ 4,399 $ 498 $ 467
Funded Status
Qualified plan $ (1,076) $ (787)
Non-qualified plans (238) (206)
Funded Status $ (1,314) $ (993) $ (363) $ (356)
Accumulated benefit obligation $ 5,469 $ 5,036
Amounts Recognized on the Balance Sheet
Current liabilities $ (11) $ (10) $ - $ -
Noncurrent liabilities (1,303) (983) (363) (356)
Net liability as of December 31 $ (1,314) $ (993) $ (363) $ (356)
Amounts Recognized in
Accumulated Other Comprehensive Income
Prior service cost (credit) $ 76 $ 67 $ (952) $ (1,145)
A
ctuarial loss 2,554 2,486 718 756
Net amount recognized $ 2,630 $ 2,553 $ (234) $ (389)
Assumptions Used to Determine Benefit
Obligations as of December 31
Discount rate 5.50 % 6.00 % 5.00 % 5.75 %
Rate of compensation increase 5.20 % 5.20 %
Allocation of Plan Assets
As of December 31
Equity securities 28 % 39 % 47 % 51 %
Bonds 50 49 45 46
A
bsolute return strategies 11 - 3 -
Real estate 6 6 2 1
Private equities 4 5 1 1
Cash 1 1 2 1
Total 100 % 100 % 100 % 100 %