PG&E 2010 Annual Report Download - page 101

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NOTE 12: EMPLOYEE BENEFIT
PLANS
PG&E Corporation and the Utility provide a
non-contributory defined benefit pension plan for eligible
employees and retirees (referred to collectively as
“pension benefits”), contributory postretirement medical
plans for eligible employees and retirees and their eligible
dependents, and non-contributory postretirement life
insurance plans for eligible employees and retirees
(referred to collectively as “other benefits”). PG&E
Corporation and the Utility have elected that certain of
the trusts underlying these plans be treated under the
Code as qualified trusts. If certain conditions are met,
PG&E Corporation and the Utility can deduct payments
made to the qualified trusts, subject to certain Code
limitations. PG&E Corporation and the Utility use a
December 31 measurement date for all plans.
PG&E Corporation’s and the Utility’s funding policy is
to contribute tax-deductible amounts, consistent with
applicable regulatory decisions and federal minimum
funding requirements. Based upon current assumptions
and available information, the Utility has not identified
any minimum funding requirements related to its pension
plans.
CHANGE IN PLAN ASSETS, BENEFIT OBLIGATIONS, AND FUNDED STATUS
The following tables show the reconciliation of changes in plan assets, benefit obligations, and the plans’ aggregate
funded status for pension benefits and other benefits for PG&E Corporation during 2010 and 2009:
PensionBenefits
(in millions) 2010 2009
Change in plan assets:
Fair value of plan assets at January 1 $ 9,330 $ 8,066
Actual return on plan assets 1,235 1,523
Company contributions 162 187
Benefits and expenses paid (477) (446)
Fair value of plan assets at December 31 $ 10,250 $ 9,330
Change in benefit obligation:
Projected benefit obligation at January 1 $ 10,766 $ 9,767
Service cost for benefits earned 253 227
Interest cost 645 624
Actuarial loss 856 494
Plan amendments (1) 71
Transitional costs 43
Benefits paid (452) (420)
Projected benefit obligation at December 31 (1) $ 12,071 $ 10,766
Funded status:
Current liability $ (5) $ (5)
Noncurrent liability (1,816) (1,431)
Accrued benefit cost at December 31 $ (1,821) $ (1,436)
(1) PG&E Corporation’s accumulated benefit obligation was $10,653 million and $9,527 million at December 31, 2010 and 2009, respectively.
97