PG&E 2012 Annual Report Download - page 99
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 12: EMPLOYEE BENEFIT PLANS
PG&E Corporation and the Utility provide a non-contributory defined benefit pension plan for eligible
employees, as well as contributory postretirement medical plans for retirees and their eligible dependents, and non-
contributory postretirement life insurance plans for eligible employees and retirees. The trusts underlying certain of
these plans are qualified trusts under the Internal Revenue Code of 1986, as amended (‘‘Code’’). 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’s minimum funding requirements related to its pension plans was zero.
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 2012 and 2011:
Pension Benefits
2012 2011
(in millions)
Change in plan assets:
Fair value of plan assets at January 1 ...................... $ 10,993 $ 10,250
Actual return on plan assets .............................. 1,488 1,016
Company contributions ................................. 282 230
Benefits and expenses paid .............................. (622) (503)
Fair value of plan assets at December 31 .................... $ 12,141 $ 10,993
Change in benefit obligation:
Projected benefit obligation at January 1 .................... $ 14,000 $ 12,071
Service cost for benefits earned ........................... 396 320
Interest cost ......................................... 658 660
Actuarial loss ........................................ 1,099 1,450
Plan amendments ..................................... 9 —
Transitional costs ...................................... 1 2
Benefits and expenses paid .............................. (622) (503)
Projected benefit obligation at December 31(1) ................. $ 15,541 $ 14,000
Funded status:
Current liability ....................................... $ (6) $ (5)
Noncurrent liability .................................... (3,394) (3,002)
Accrued benefit cost at December 31 ....................... $ (3,400) $ (3,007)
(1) PG&E Corporation’s accumulated benefit obligation was $13,778 million and $12,285 million at December 31, 2012 and 2011,
respectively.
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