Eversource 2009 Annual Report Download - page 146

FS-61
The following actuarial assumptions were used in calculating the plans' year end funded status:
As of December 31,
Pension Benefits and SERP PBOP Benefits
Balance Sheets 2009 2008 2009 2008
Discount rate 5.98 % 6.89 % 5.73 % 6.90 %
Compensation/progression rate 4.00 % 4.00 % N/A N/A
Health care cost trend rate N/A N/A 7.50 % 8.00 %
The components of net periodic benefit expense/(income) are as follows:
For the Years Ended December 31,
NU Pension Benefits SERP Benefits PBOP Benefits
(Millions of Dollars) 2009 2008 2007 2009 2008 2007 2009 2008 2007
Service cost $ 45.0 $ 43.9 $ 47.0 $ 0.8 $ 0.7 $ 0.8 $ 7.2 $ 7.1 $ 7.4
Interest cost 153.4 144.0 136.4 2.3 2.0 1.9 29.1 28.3 25.7
Expected return on plan assets (189.4) (200.2) (195.2) - - - (20.9) (21.1) (18.2)
Net transition obligation cost 0.3 0.2 0.2 - - - 11.6 11.6 11.6
Prior service cost/(credit) 9.8 9.9 8.9 0.1 0.1 0.2 (0.3) (0.3) (0.3)
Actuarial loss 20.6 4.6 20.1 0.4 0.3 0.7 10.5 10.6 12.2
Net periodic expense - before
termination benefits 39.7 2.4 17.4 3.6 3.1 3.6 37.2 36.2 38.4
Termination benefits - - (0.3) - - - - - -
Total - net periodic expense $ 39.7 $ 2.4 $ 17.1 $ 3.6 $ 3.1 $ 3.6 $ 37.2 $ 36.2 $ 38.4
For the Years Ended December 31,
CL&P Pension Benefits SERP Benefits PBOP Benefits
(Millions of Dollars) 2009 2008 2007 2009 2008 2007 2009 2008 2007
Service cost $ 16.0 $ 15.4 $ 16.2 $ - $ - $ - $ 2.2 $ 2.2 $ 2.3
Interest cost 54.3 51.4 48.8 0.2 0.2 0.1 11.5 11.3 10.2
Expected return on plan assets (89.0) (93.4) (90.7) - - - (8.3) (8.4) (7.2)
Net transition obligation cost - - - - - - 6.1 6.1 6.1
Prior service cost 4.2 4.2 3.8 - - 0.1 - - -
Actuarial loss 8.8 1.1 6.3 0.1 0.1 0.1 4.0 4.5 4.7
Total - net periodic (income)/expense $ (5.7) $ (21.3) $ (15.6) $ 0.3 $ 0.3 $ 0.3 $ 15.5 $ 15.7 $ 16.1
For the Years Ended December 31,
PSNH Pension Benefits SERP Benefits PBOP Benefits
(Millions of Dollars) 2009 2008 2007 2009 2008 2007 2009 2008 2007
Service cost $ 8.8 $ 9.2 $ 9.6 $ 0.1 $ - $ - $ 1.5 $ 1.7 $ 1.7
Interest cost 24.3 23.2 21.7 0.1 0.1 0.1 5.4 5.2 4.8
Expected return on plan assets (15.0) (17.9) (17.8) - - - (4.1) (4.0) (3.4)
Net transition obligation cost 0.3 0.3 0.3 - - - 2.5 2.5 2.5
Prior service cost 1.8 1.9 1.7 - - - - - -
Actuarial loss 3.1 1.4 4.0 0.1 0.1 0.3 1.7 1.7 2.3
Total - net periodic expense $ 23.3 $ 18.1 $ 19.5 $ 0.3 $ 0.2 $ 0.4 $ 7.0 $ 7.1 $ 7.9
For the Years Ended December 31,
WMECO Pension Benefits SERP Benefits PBOP Benefits
(Millions of Dollars) 2009 2008 2007 2009 2008 2007 2009 2008 2007
Service cost $ 3.3 $ 3.2 $ 3.2 $ - $ - $ - $ 0.5 $ 0.5 $ 0.5
Interest cost 11.1 10.4 9.8 - 0.1 0.1 2.5 2.4 2.2
Expected return on plan assets (20.0) (20.7) (20.0) - - - (2.0) (2.1) (1.8)
Net transition obligation cost - - - - - - 1.3 1.4 1.4
Prior service cost 0.9 0.9 0.9 - - - - - -
Actuarial loss 1.8 0.1 1.1 - - - 0.4 0.6 0.7
Total - net periodic (income)/expense $ (2.9) $ (6.1) $ (5.0) $ - $ 0.1 $ 0.1 $ 2.7 $ 2.8 $ 3.0
Not included in the Pension Plan, PBOP Plan and SERP amounts above for CL&P, PSNH and WMECO are related intercompany
allocations as follows:
For the Years Ended December 31,
CL&P PSNH WMECO
(Millions of Dollars) 2009 2008 2007 2009 2008 2007 2009 2008 2007
Pension Benefits $ 14.5 $ 8.9 $ 9.3 $ 3.1 $ 2.0 $ 1.6 $ 2.4 $ 1.5 $ 1.6
PBOP Benefits 7.3 6.7 7.4 1.7 1.5 1.3 1.1 1.1 1.2
SERP Benefits 1.8 1.6 1.9 0.5 0.4 0.4 0.3 0.2 0.3