Eversource 2002 Annual Report Download - page 53

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51
The following table represents information on the plans’benefit obligation, fair value of plan assets, and the respective plans’ funded status:
At December 31,
Pension Benefits Postretirement Benefits
(Millions of Dollars) 2002 2001 2002 2001
Change in benefit obligation
Benefit obligation at beginning of year $(1,687.6) $(1,670.9) $(400.0) $(335.3)
Service cost (37.2) (35.7) (6.2) (6.2)
Interest cost (119.8) (119.7) (29.2) (27.2)
Plan amendment (11.4) —34.2 —
Actuarial loss (117.7) (72.1) (44.0) (76.2)
Benefits paid – excluding lump sum payments 97.3 94.5 44.0 38.0
Benefits paid – lump sum payments 50.2 133.8 ——
Curtailments and settlements 44.5 75.8 3.4 6.9
Special termination benefits (8.1) (93.3) ——
Benefit obligation at end of year $(1,789.8) $(1,687.6) $(397.8) $(400.0)
Change in plan assets
Fair value of plan assets at beginning of year $1,990.4 $2,319.4 $171.1 $197.6
Actual return on plan assets (213.1) (100.7) (14.4) (17.1)
Employer contribution ——35.0 28.6
Plan asset transfer in 2.5 ———
Benefits paid – excluding lump sum payments (97.3) (94.5) (44.0) (38.0)
Benefits paid – lump sum payments (50.2) (133.8) ——
Fair value of plan assets at end of year $ 1,632.3 $1,990.4 $147.7 $171.1
Funded status at December 31 $(157.5) $302.8 $(250.1) $(228.9)
Unrecognized transition (asset)/obligation (2.6) (3.6) 118.5 159.1
Unrecognized prior service cost 70.1 72.8 (5.9) —
Unrecognized net loss/(gain) 418.9 (139.6) 124.8 55.4
Prepaid/(accrued) benefit cost $328.9 $232.4 $(12.7) $(14.4)
The following actuarial assumptions were used in calculating the plans’year end funded status:
At December 31,
Pension Benefits Postretirement Benefits
2002 2001 2002 2001
Discount rate 6.75% 7.25% 6.75% 7.25%
Compensation/progression rate 4.00% 4.25% 4.00% 4.25%
Health care cost trend rate (a) N/A N/A 10.00% 11.00%
(a) The annual per capita cost of covered health care benefits was assumed to decrease to 5.00 percent by 2007.