Eversource 2009 Annual Report Download - page 149

FS-64
Fair Value Measurements Using Significant Unobservable Inputs (Level 3): The following tables present changes for the year ended
December 31, 2009 in the Level 3 category of Pension and PBOP Plan assets:
Pension Plan
(Millions of Dollars)
United
States
Equity
Private
Equity
Fixed
Income
Real Estate
and Other
Assets
Hedge
Funds Total
Balance as of December 31, 2008 $ 333.3 $ 175.2 $ 227.5 $ 58.2 $ - $ 794.2
Actual return/(loss) on plan assets:
Relating to assets still held at
year end 68.8 11.0 49.8 (26.1) 6.2 109.7
Relating to assets distributed during
year end - (3.9) - - - (3.9)
Purchases, sales and settlements (15.0) 11.5 (13.3) 6.4 - (10.4)
Transfer between asset categories (135.0) - (90.0) - 225.0 -
Balance as of December 31, 2009 $ 252.1 $ 193.8 $ 174.0 $ 38.5 $ 231.2 $ 889.6
PBOP Plan
(Millions of Dollars) Fixed Income
Balance as of December 31, 2008 $ 18.9
Actual return on plan assets:
Relating to assets sold during reporting period 4.5
Purchases, sales and settlements 1.2
Balance as of December 31, 2009 $ 24.6
Estimated Future Benefit Payments: The following benefit payments, which reflect expected future service, are expected to be
paid/(received) for the Pension, SERP and PBOP Plans (millions of dollars):
Pension
Benefits
SERP
Benefits
PBOP
Benefits
Government
Benefits
NU
2010 $ 135.2 $ 2.9 $ 41.4 $ (3.4)
2011 139.5 3.1 41.8 (3.7)
2012 144.4 3.2 41.9 (4.0)
2013 150.5 3.3 42.2 (4.3)
2014 156.8 3.4 42.5 (4.6)
2015-2019 900.6 18.2 215.2 (26.5)
The government benefits represent amounts expected to be received from the federal government for the Medicare prescription drug
benefit under the PBOP Plan related to the corresponding year's benefit payments.
Contributions: Currently, NU's policy is to annually fund the Pension Plan in an amount at least equal to an amount that will satisfy the
requirements of the ERISA and Internal Revenue Code. NU's Pension Plan has historically been well funded, and a contribution has
not been required to be made to the plan since 1991. Due to the underfunded balance as of January 1, 2009, NU is required to make a
contribution to the Pension Plan of approximately $45 million in 2010 and a potential contribution of approximately $200 million in 2011
to meet current minimum funding requirements.
For the PBOP Plan, it is currently NU's policy to annually fund an amount equal to the PBOP Plan's postretirement benefit cost,
excluding curtailment and termination benefits. NU contributed $37.2 million for the year ended December 31, 2009 to fund the PBOP
Plan and expects to make $41.2 million in contributions to the PBOP Plan in 2010. NU makes an additional contribution to the PBOP
Plan for the amounts received from the federal Medicare subsidy. This amount was $3.7 million in 2009 and is estimated to be $3.5
million in 2010.
B. Defined Contribution Plans
NU maintains a 401(k) Savings Plan for substantially all NU employees, including CL&P, PSNH and WMECO employees. This savings
plan provides for employee contributions up to specified limits. NU matches employee contributions up to a maximum of three percent
of eligible compensation with one percent in cash and two percent in NU common shares allocated from the Employee Stock Ownership
Plan (ESOP). The 401(k) matching contributions of cash and NU common shares made by NU were $12.2 million ($3.9 million for
CL&P, $2.3 million for PSNH and $0.7 million for WMECO) in 2009, $12 million ($4 million for CL&P, $2.3 million for PSNH and $0.7
million for WMECO) in 2008, and $10.7 million ($3.6 million for CL&P, $2.2 million for PSNH and $0.7 million for WMECO) in 2007.
Effective on January 1, 2006, all newly hired, non-bargaining unit employees, and effective on January 1, 2007 or as subject to
collective bargaining agreements, certain newly hired bargaining unit employees participate in a new program under the 401(k) Savings
Plan called the K-Vantage benefit. These employees are not eligible to participate in the Pension Plan. In addition, participants in the
Pension Plan as of January 1, 2006 were given the opportunity to choose to become a participant in the K-Vantage benefit beginning in
2007, in which case their benefit under the Pension Plan would be frozen. NU makes contributions to the K-Vantage benefit based on a
percentage of participants' eligible compensation, as defined by the benefit document. The contributions made by NU were $2.6 million
($240 thousand for CL&P, $337 thousand for PSNH and $40 thousand for WMECO) in 2009, $2 million ($173 thousand for CL&P, $276