Atmos Energy 1998 Annual Report Download - page 44

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1998 1997
Weighted average assumptions
for end of year disclosure:
Discount rate 7.0% 7.5%
Rate of compensation increase 4.0% 4.0%
Expected return on plan assets 5.3% 5.3%
Initial trend rate 9.0% 7.5%
Ultimate trend rate 4.5% 5.0%
Number of years from initial
to ultimate trend 6 3
Net periodic pension cost for the combined postretirement
benefit plans for 1998,1997 and 1996 included the following
components:
1998 1997 1996
(In thousands)
Components of net periodic
pension cost:
Service cost $ 1,659 $ 1,772 $ 1,622
Interest cost 3,810 3,467 3,260
Expected return on assets (235) (225) (196)
Amortization of:
Transition obligation/(asset) 1,862 1,994 1,994
Prior service cost 269 202 –
Actuarial (gain)/loss (58) 4 98
Net periodic pension cost 7,307 7,214 6,778
Curtailment (gain)/ loss and
special termination benefits 5,915 3,043 –
Total pension cost accruals $13,222 $10,257 $ 6,778
for these benefits if they reach retirement age while working for
the Company and attain certain specified years of service.
Although specific terms of the two plans are different, participant
contributions are required under these plans.
Effective January 1,1999, the United Cities plan will provide
benefits to future retirees that are essentially the same as provided
to other Atmos employees. The obligations as of September 30,
1998 anticipate this plan change.
The following table sets forth the combined total for the two
postretirement plans other than pensions:
1998 1997
(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year $ 53,295 $ 46,801
Service cost 1,659 1,734
Interest cost 3,809 3,208
Plan participants’ contributions 382 275
Curtailments/Special termination benefits 2,125 2,292
Plan amendments 1,888 2,427
Actuarial (gain)/loss 6,210 135
Benefits paid (4,874) (3,577)
Benefit obligation at end of year 64,494 53,295
Change in plan assets:
Fair value of plan assets at beginning of year 5,614 4,642
Actual return on plan assets 295 249
Employer contribution 4,963 4,024
Plan participants’ contribution 382 276
Benefits paid (4,874) (3,577)
Fair value of plan assets at end of year 6,380 5,614
Funded status (58,114) (47,681)
Unrecognized transition obligation 23,243 30,131
Unrecognized prior service cost 3,614 2,125
Unrecognized net loss 8,571 996
Accrued pension cost
(net amount recognized) $(22,686) $(14,429)
40 ATMOS ENERGY CORPORATION