Amtrak 2015 Annual Report Download - page 51

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
12. Postretirement Employee Benefits (continued)
49
Pension
Benefits Other
Benefits
Year ending September 30,
2016 $ 22,263 $ 63,463
2017 23,887 67,647
2018 25,329 71,653
2019 26,565 72,272
2020 27,518 71,354
2021-2025 146,482 321,855
Contributions
In FY2016, Amtrak expects to contribute $14.0 million to the defined benefit plan and $63.6 million
towards other postretirement benefits.
Assumptions
Weighted-average assumptions used to determine benefit obligations as of September 30, 2015 and 2014 are
as follows:
Pension Benefits Other Benefits
2015 2014 2015 2014
Discount rate 4.43 % 4.57 % 3.99-4.17 %4.57 %
Rate of compensation increase *4.20 N/A N/A
* As a result of the March 18, 2015 amendment, no additional benefit is earned for service or pay after June 30, 2015.
Accordingly, there is no longer the need to assume any future compensation increase.
Weighted-average assumptions used to determine net periodic benefit cost for the years ended September
30, 2015 and 2014 are as follows:
Pension Benefits Other Benefits
2015 2014 2015 2014
Discount rate 4.08-4.57 % 5.18 % 4.24-4.57 % 5.18 %
Expected long-term return on assets 7.25 7.50 N/A N/A
Rate of compensation increase 4.20 % 4.20 % N/A N/A
Assumed health care cost trend rates are as follows:
September 30,
2015 2014
Health care cost trend rate assumed for next year 7.50-8.50 % 7.75-8.75 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 %
Year that the rate reaches the ultimate trend rate 2029 2029