Exelon 2015 Annual Report Download - page 378

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
The following assumptions were used to determine the net periodic benefit costs for all the plans for the years ended December 31, 2015,
2014 and 2013:
Pension Benefits Other Postretirement Benefits
2015 2014 2013 2015 2014 2013
Discount rate 3.94% 4.80% 3.92% 3.92% 4.90% 4.00%
Expected return on plan
assets 7.00% 7.00% 7.50% 6.50% 6.59% 6.45%
Rate of compensation
increase
Mortality table
RP-2000
table
projected to
2012 with
improvement
scale AA,
with
Scale BB-2D
improvements
(adjusted)
RP-2000
table with
Scale AA
improvements
RP-2000
table with
Scale AA
improvements
RP-2000
table
projected to
2012 with
improvement
scale AA,
with
Scale BB-2D
improvements
(adjusted)
RP-2000
table with
Scale AA
improvements
RP-2000
table with
Scale AA
improvements
Health care cost trend on
covered charges
N/A N/A N/A
6.00%
decreasing to
ultimate trend
of 5.00% in
2017
6.00%
decreasing to
ultimate trend
of 5.00% in
2017
6.50%
decreasing to
ultimate trend
of 5.00% in
2017
(a) The discount rates above represent the initial discount rates used to establish the majority of Exelon’s pension and other postretirement benefits costs for the year ended
December 31, 2015. Discount rates for CENG’s legacy pension and OPEB plans ranged from 3.68%-4.14% and 4.32%-4.43%, respectively.
(b) The discount rates above represent the initial discount rates used to establish the majority of Exelon’s pension and other postretirement benefits costs for the year ended
December 31, 2014. Certain of the other postretirement benefit plans were remeasured as of April 30, 2014 using an expected long-term rate of return on plan assets of 6.59%
and a discount rate of 4.30%. Costs of the year ended December 31, 2014 reflect the impact of this remeasurement. On April 1, 2014, Generation assumed operational control of
CENG’s nuclear fleet. As a result, Exelon became the sponsor of CENG’s legacy pension and OPEB plans effective July 14, 2014; discount rates for those plans, impacting 2014
costs, ranged from 3.60%-4.30% and 4.09%-4.55%, respectively. See Note 5—Investment in Constellation Energy Nuclear Group, LLC for further information.
(c) The discount rates above represent the initial discounts rates used to establish Exelon’s pension and other postretirement benefits costs for the year ended December 31, 2013.
Certain of the benefit plans were remeasured during the year using discount rates of 4.21% and 4.66% for pension and other postretirement benefits, respectively. Costs for the
year ended December 31, 2013 reflect the impact of these remeasurements.
(d) Not applicable to pension and other postretirement benefit plans that do not have plan assets.
(e) 3.25% through 2019 and 3.75% thereafter.
(f) 3.25% through 2018 and 3.75% thereafter.
(g) 3.25% through 2017 and 3.75% thereafter.
371
(a) (b) (c) (a) (b) (c)
(d) (d) (d) (d) (d) (d)
(e) (f) (g) (e) (f) (g)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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