CenterPoint Energy 2015 Annual Report Download - page 98

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Thefollowingtablesummarizeschangesinthebenefitobligation,planassets,theamountsrecognizedinconsolidatedbalancesheetsandthekeyassumptions
of CenterPoint Energy’s pension, including benefit restoration, and postretirement plans. The measurement dates for plan assets and obligations were
December31,2015and2014.
December 31,
2015
2014
Pension
Benefits
Post-retirement
Benefits
Pension
Benefits
Post-retirement
Benefits
(in millions, except for actuarial assumptions)
Change in Benefit Obligation
Benefitobligation,beginningofyear $ 2,403
$ 529
$ 2,153
$ 476
Servicecost 41
2
42
2
Interestcost 93
20
100
22
Participantcontributions —
8
—
7
Benefitspaid (234)
(32)
(156)
(32)
Actuarial(gain)loss (115)
(87)
264
52
Medicarereimbursement —
2
—
3
Planamendment —
(10)
—
1
Settlement 5
—
—
—
Curtailment —
—
—
(2)
Benefitobligation,endofyear 2,193
432
2,403
529
Change in Plan Assets
Fairvalueofplanassets,beginningofyear 1,925
141
1,803
140
Employercontributions 66
18
97
18
Participantcontributions —
8
—
7
Benefitspaid (234)
(32)
(156)
(32)
Actualinvestmentreturn(loss) (78)
1
181
8
Fairvalueofplanassets,endofyear 1,679
136
1,925
141
Fundedstatus,endofyear $ (514)
$ (296)
$ (478)
$ (388)
Amounts Recognized in Balance Sheets
Currentliabilities-other $(8)
$(8)
$ (31)
$(9)
Otherliabilities-benefitobligations (506)
(288)
(447)
(379)
Netliability,endofyear $ (514)
$ (296)
$ (478)
$ (388)
Actuarial Assumptions
Discountrate 4.40%
4.35%
4.05%
3.90%
Expectedreturnonplanassets 6.25
4.80
6.50
5.20
Rateofincreaseincompensationlevels 4.15
—
4.00
—
Healthcarecosttrendrateassumedforthenextyear-Pre-65 —
6.00
—
7.25
Healthcarecosttrendrateassumedforthenextyear-Post-65 —
5.50
—
8.50
Prescriptiondrugcosttrendrateassumedforthenextyear —
11.00
—
6.50
Ratetowhichthecosttrendrateisassumedtodecline(theultimatetrendrate) —
5.00
—
5.00
Yearthatthehealthcareratereachestheultimatetrendrate —
2024
—
2024
Yearthattheprescriptiondrugratereachestheultimatetrendrate —
2024
—
2024
The accumulated benefit obligation for all defined benefit pension plans was $2,157 million and $2,371 million as of December 31, 2015 and 2014 ,
respectively.
TheexpectedrateofreturnassumptionwasdevelopedusingthetargetedassetallocationofCenterPointEnergy’splansandtheexpectedreturnforeachasset
class.
92