ComEd 2001 Annual Report Download - page 79

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77
Pension Benefits Other Postretirement Benefits
2001 2000 1999 2001 2000 1999
Weighted-average assumptions
as of December 31,
Discount rate 7.35% 7.60% 8.00% 7.35% 7.60% 8.00%
Expected return on plan assets 9.50% 9.50% 9.50% 9.50% 8.00% 8.00%
Rate of compensation increase 4.00% 4.30% 5.00% 4.00% 4.30% 5.00%
Health care cost trend on
covered charges N/A N/A N/A 10.00% 7.00% 8.00%
decreasing decreasing decreasing
to ultimate to ultimate to ultimate
trend of 4.5% trend of 5.0% trend of 5.0%
in 2008 in 2005 in 2006
Pension Benefits Other Postretirement Benefits
2001 2000 1999 2001 2000 1999
Components of net periodic
benefit cost (benefit):
Service cost $ 94 $ 39 $ 29 $ 42 $ 24 $ 19
Interest cost 498 219 154 161 83 57
Expected return on assets (625) (316) (222) (99) (34) (16)
Amortization of:
Transition obligation (asset) (4) (4) (4) 10 12 12
Prior service cost 9 7 5 (9) – –
Actuarial (gain) loss (25) (26) (8) 1 – –
Curtailment charge (credit) (12) (12) – 9 24 –
Settlement charge (credit) (9) (16) – – – –
Net periodic benefit cost (benefit) $(74) $ (109) $ (46) 115 $ 109 $ 72
Special accounting costs $ 48 $ 217 $ – 3 $ 48 $ –
Sensitivity of retiree welfare results
Effect of a one percentage point increase in assumed health care cost trend
on total service and interest cost components $ 33
on postretirement benefit obligation $276
Effect of a one percentage point decrease in assumed health care cost trend
on total service and interest cost components $ (28)
on postretirement benefit obligation $(239)
Prior service cost is amortized on a straight-line basis over the average remaining service period of employees expected
to receive benefits under the plans.
Special accounting costs of $48 million in 2001 represent accelerated separation and enhancement benefits provided to PECO
employees expected to be terminated as a result of the Merger.Special accounting costs in 2000 of $217 million represented PECO’s
accelerated separation and enhancement benefits of $96 million and ComEd’s accelerated liability increase of $121 million inclusive
of $96 million for separation benefits and $25 million for plan enhancements.