Eversource 2013 Annual Report Download - page 107

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The following is a summary of the changes in plan assets and benefit obligations recognized in Regulatory Assets and OCI as well as
amounts in Regulatory Assets and OCI reclassified as net periodic benefit (expense)/income during the years presented:
Amounts Reclassified To/From
Regulatory Assets
OCI
(Millions of Dollars)
For the Years Ended December 31,
NU PBOP Plans (1)
2013
2012
2013
2012
Actuarial Gains Arising During the Year
$
(262.0)
$
(108.6)
$
(1.9)
$
(1.8)
Actuarial Losses Reclassified as Net Periodic Benefit Expense
(24.9)
(34.9)
(1.1)
(1.1)
Prior Service Credit Reclassified as Net Periodic Benefit Income
2.1
1.4
-
-
Transition Obligation Reclassified as Net Periodic Benefit Expense
-
(11.9)
-
(0.2)
(1) The NU amounts include the NSTAR PBOP Plan beginning April 10, 2012.
The following is a summary of the remaining Regulatory Assets and Accumulated Other Comprehensive Loss amounts that have not
been recognized as components of net periodic benefit expense as of December 31, 2013 and 2012, and the amounts that are
expected to be recognized as components in 2014:
Regulatory Assets as of
Expected
AOCI as of
Expected
(Millions of Dollars)
December 31,
2014
December 31,
2014
NU PBOP Plans
2013
2012
Expense
2013
2012
Expense
Actuarial Loss
$
89.2
$
376.1
$
11.4
$
6.2
$
9.2
$
0.7
Prior Service Credit
(4.6)
(6.7)
(2.8)
-
-
-
The health care cost trend rate assumption used to calculate the 2013 PBOP expense amounts was 7 percent for the NUSCO PBOP
Plan, subsequently decreasing by 50 basis points per year to an ultimate rate of 5 percent in 2017, and 7.10 percent for the NSTAR
PBOP Plan, subsequently decreasing to an ultimate rate of 4.5 percent in 2024. As of December 31, 2013, the health care cost trend
rate assumption used to determine the NUSCO and NSTAR PBOP Plans’ year end funded status is 7 percent, subsequently
decreasing to an ultimate rate of 4.5 percent in 2024.
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The effect of
changing the assumed health care cost trend rate by one percentage point for the year ended December 31, 2013 would have the
following effects:
(Millions of Dollars)
One Percentage
One Percentage
NU PBOP Plans
Point Increase
Point Decrease
Effect on Postretirement Benefit Obligation
$
85.8
$
(70.4)
Effect on Total Service and Interest Cost Components
7.1
(5.5)
Estimated Future Benefit Payments: The following benefit payments, which reflect expected future service, are expected to be paid by
the Pension, SERP and PBOP Plans:
(Millions of Dollars)
Pension
NU
and SERP
PBOP
2014
$
263.3
$
61.6
2015
273.3
63.3
2016
282.9
64.5
2017
287.4
65.6
2018
299.4
66.6
2019-2023
1,617.0
344.4
NSTAR Pension Plan
2014
$
88.0
N/A
2015
90.6
N/A
2016
88.4
N/A
2017
88.5
N/A
2018
90.0
N/A
2019-2023
449.2
N/A
Contributions: NU’s policy is to annually fund the NUSCO and NSTAR Pension Plans in an amount at least equal to an amount that will
satisfy federal requirements. NU contributed $202.7 million to the NUSCO Pension Plan in 2013, of which $108.3 million was
contributed by PSNH. NSTAR Electric contributed $82 million to the NSTAR Pension Plan in 2013. Based on the current status of the
NUSCO Pension Plan, NU expects to make a contribution of $68.6 million in 2014. NSTAR Electric expects to make a contribution of
$3 million in 2014 to the NSTAR Pension Plan.
For the PBOP Plans, it is NU’s policy to annually fund the NUSCO PBOP Plans in an amount equal to the PBOP Plans' postretirement
benefit cost, excluding curtailment and termination benefits, and the NSTAR PBOP Plan in an amount that approximates annual benefit
payments. NU contributed $57.6 million to the PBOP Plans in 2013 and expects to make $39.7 million in contributions in 2014.