Dominion Power 2005 Annual Report Download - page 84

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Notes to Consolidated Financial Statements, Continued
82 Dominion 2005
The following table summarizes the changes in our pension and other postretirement benefit plan obligations and plan assets and includes
a statement of the plans’ funded status:
Pension Benefits Other Postretirement Benefits
Year Ended December 31, 2005 2004 2005 2004
(millions)
Change in benefit obligation:
Benefit obligation at beginning of year $3,410 $3,110 $1,381 $1,351
Acquisitions 15
—
44
—
Service cost 110 97 64 63
Interest cost 201 190 83 83
Benefits paid (142) (143) (67) (68)
Actuarial loss during the year 231 143 143 11
Plan amendments 913 (26) (59)
Benefit obligation at end of year 3,834 3,410 1,622 1,381
Change in plan assets:
Fair value of plan assets at beginning of year 4,049 3,734 697 587
Acquisitions 15
—
10
—
Actual return on plan assets 433 453 51 60
Contributions 5572 85
Benefits paid from plan assets (142) (143) (36) (35)
Fair value of plan assets at end of year 4,360 4,049 794 697
Funded status 526 639 (828) (684)
Unrecognized net actuarial loss 1,288 1,225 491 366
Unrecognized prior service cost (credit) 34 28 (32) (7)
Unrecognized net transition obligation
——
23 27
Prepaid (accrued) benefit cost $1,848 $1,892 $ (346) $ (298)
Amounts recognized in the Consolidated Balance Sheets at December 31:
Prepaid pension cost $1,915 $1,947
——
Accrued benefit liability (115) (94) $ (346) $ (298)
Intangible asset 31 15
——
Accumulated other comprehensive loss 17 24
——
Net amount recognized $1,848 $1,892 $ (346) $ (298)
The accumulated benefit obligation for all of our defined benefit
pension plans was $3.3 billion and $3.0 billion at December 31,
2005 and 2004, respectively. Under our funding policies, we evalu-
ate plan funding requirements annually, usually in the fourth quar-
ter after receiving updated plan information from our actuary.
Based on the funded status of each plan and other factors, we
determine the amount of contributions for the current year, if any,
at that time.
Included above are nonqualified and supplemental pension
plans that do not have “plan assets” as defined by generally
accepted accounting principles. The total projected benefit obliga-
tion for these plans was $134 million and $112 million at Decem-
ber 31, 2005 and 2004, respectively. The total accumulated
benefit obligation for these plans was $118 million and $97 million
at December 31, 2005 and 2004, respectively. Because the accu-
mulated benefit obligation relating to these plans is in excess of the
fair value of plan assets, we recognized an additional minimum
liability of $48 million and $39 million at December 31, 2005 and
2004, respectively.
The following benefit payments, which reflect expected future
service, as appropriate, are expected to be paid:
Other
Pension Postretirement
Benefits Benefits
(millions)
2006 $ 188 $ 74
2007 161 80
2008 161 86
2009 167 91
2010 196 97
2011–2015 1,176 580