ComEd 2015 Annual Report Download - page 373

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
Exelon’s traditional and cash balance pension plans are intended to be tax-qualified defined benefit plans. Substantially all non-union
employees and electing union employees hired on or after January 1, 2001 participate in cash balance pension plans. Effective January 1, 2009,
substantially all newly-hired union-represented employees participate in cash balance pension plans. Exelon has elected that the trusts underlying
these plans be treated under the IRC as qualified trusts. If certain conditions are met, Exelon can deduct payments made to the qualified trusts,
subject to certain IRC limitations.
Benefit Obligations, Plan Assets and Funded Status
Exelon recognizes the overfunded or underfunded status of defined benefit pension and OPEB plans as an asset or liability on its balance
sheet, with offsetting entries to Accumulated OCI and regulatory assets (liabilities), in accordance with the applicable authoritative guidance. The
measurement date for the plans is December 31.
During the first quarter of 2015, Exelon received an updated valuation of its pension and other postretirement benefit obligations to reflect
actual census data as of January 1, 2015. This valuation resulted in an increase to the pension obligation of $45 million and an increase to the
other postretirement benefit obligation of $57 million. Additionally, Accumulated other comprehensive loss (AOCL) increased by approximately $27
million (after tax), regulatory assets increased by approximately $48 million, and regulatory liabilities decreased by approximately $11 million.
The following table provides a rollforward of the changes in the benefit obligations and plan assets for the most recent two years for all plans
combined:
Pension Benefits
Other
Postretirement Benefits
2015 2014 2015 2014
Change in benefit obligation:
Net benefit obligation at beginning of year $ 18,256 $ 15,459 $ 4,197 $ 4,451
Service cost 326 293 119 117
Interest cost 710 749 167 186
Plan participants’ contributions — — 42 42
Actuarial (gain) loss (582) 2,095 (341) 502
Plan amendments — — (23) (1,012)
Acquisitions/divestitures — 594 — 142
Curtailments — (8) — —
Settlements (34) (30) — —
Gross benefits paid (923) (896) (223) (231)
Net benefit obligation at end of year $ 17,753 $ 18,256 $ 3,938 $ 4,197
Pension Benefits
Other
Postretirement Benefits
2015 2014 2015 2014
Change in plan assets:
Fair value of net plan assets at beginning of year $ 14,874 $ 13,571 $ 2,430 $ 2,238
Actual return on plan assets (32) 1,443 4 90
Employer contributions 462 332 40 291
Plan participants’ contributions — — 42 42
Gross benefits paid (923) (896) (223) (231)
Acquisitions/divestitures — 454 — —
Settlements (34) (30) — —
Fair value of net plan assets at end of year $ 14,347 $ 14,874 $ 2,293 $ 2,430
366
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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