Dominion Power 2000 Annual Report Download - page 61

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59
The Company has nonqualified pension plans which are reflected in
the table above. The projected benefit obligation for these plans
was $93 million at December 31, 2000. In addition, Dominion had
recognized a minimum liability associated with these plans of $42
million at December 31, 2000.
Significant assumptions used in determining net periodic
pension cost, the projected benefit obligation, and postretirement
benefit obligations were:
Pension Benefits Other Benefits
2000 1999 2000 1999
Discount rates 7.50% 7. 5 0% 7.50% 7.5 0 %
Expected return on plan assets 9.50% 9.50% 6.50% 9.00%
Rate of increase for compensation 5.00% 5.00% 5.00% 5.00%
Medical cost trend rate 9.00% 4.75%
Decreasing to
4.75% in 2005
and years
thereafter
Assumed health care cost trend rates have a significant effect on
the amounts reported for the health care plans. A one-percentage-
point change in assumed health care cost trend rates would have
the following effects:
Other Postretirement Beneļ¬ts
1-Percentage 1-Percentage
(millions) Point Increase Point Decrease
Effect on total of service and interest
cost components for 2000 $10 $ (8)
Effect on postretirement benefit
obligation at 12/31/00 $86 $(71)
(millions) Pension Benefits Other Benefits
Year ended December 31, 2000 1999 2000 1999
Change in plan assets:
Fair value of plan assets at beginning of year $1,305 $1,094 $ 272 $ 212
Acquisition of CNG 2,332 128
Actual return on plan assets 64 232 345
Contributions 34 22 45 16
Benefits paid from plan assets (141) (43) (20) (1)
Sale of VNG (37) (11)
Fair value of plan assets at end of year 3,557 1,305 417 272
Expected benefit obligation at beginning of year 1,097 1,126 401 377
Acquisition of CNG 1,002 297
Actuarial (gain) loss during prior period (13) 26
Actual benefit obligation at beginning of year 2,099 1,113 698 403
Extraordinary accounting charge 10
Service cost 65 40 30 17
Interest cost 161 76 52 28
Benefits paid (141) (43) (43) (18)
Actuarial (gain) loss during the year 112 (89) 82 (29)
ERP benefit costs 81 33
Sale of VNG (45) (20)
Change in APBO due to curtailment (20) (6)
Plan amendments (18) (27)
Expected benefit obligation at end of year 2,304 1,097 799 401
Funded status 1,253 208 (382) (129)
Unrecognized net actuarial (gain) loss 177 (177) 13 (45)
Unamortized prior service cost (1) 3(7)
Unrecognized net transition (asset) obligation (9) (12) 125 158
Prepaid (accrued) benefit costs $1,420 $22 $(251) $ (16)
Amounts recognized in the Consolidated Balance Sheets at December 31 consist of the following:
Prepaid benefit costs $1,455 $22
Accrued benefit costs (77) $(251) $ (16)
Intangible asset 14
Accumulated other comprehensive income 28
Net amount recognized $1,420 $22 $(251) $ (16)