PG&E 2014 Annual Report Download - page 116

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108
NOTE 11: EMPLOYEE BENEFIT PLANS
Pension Plan and Postretirement Benefits Other than Pensions (“PBOP”)
PG&E Corporation and the Utility sponsor a non-contributory defined benefit pension plan for eligible employees hired
before December 31, 2012 and a cash balance plan for those eligible employees hired after this date or who made a one-time
election to participate (“Pension Plan”). The trusts underlying certain of these plans are qualified trusts under the Internal Revenue
Code of 1986, as amended. If certain conditions are met, PG&E Corporation and the Utility can deduct payments made to the
qualified trusts, subject to certain limitations. 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 is zero.
PG&E Corporation and the Utility also sponsor contributory postretirement medical plans for retirees and their eligible
dependents, and non-contributory postretirement life insurance plans for eligible employees and retirees. PG&E Corporation and
the Utility use a fiscal year-end measurement date for all 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 2014 and 2013:
Pension Plan
(in millions)2014 2013
Change in plan assets:
Fair value of plan assets at beginning of year $ 12,527 $ 12,141
Actual return on plan assets 1,946 673
Company contributions 332 323
Benets and expenses paid (589) (610)
Fair value of plan assets at end of year $ 14,216 $ 12,527
Changeinbenetobligation:
Benetobligationatbeginningofyear $ 14,077 $ 15,541
Service cost for benets earned 383 468
Interest cost 695 627
Actuarial (gain) loss 2,131 (1,950)
Plan amendments (1) -
Transitional costs - 1
Benets and expenses paid (589) (610)
Benetobligationatendofyear(1) $ 16,696 $ 14,077
Funded Status:
Current liability $ (6) $ (6)
Noncurrent liability (2,474) (1,544)
Net liability at end of year $ (2,480) $ (1,550)
(1) PG&E Corporation’s accumulated benefit obligation was $14.9 billion and $12.6 billion at December 31, 2014 and 2013, respectively.