ComEd 2015 Annual Report Download - page 380

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
certain funding levels to avoid benefit restrictions (such as an inability to pay lump sums or to accrue benefits prospectively), and at-risk status
(which triggers higher minimum contribution requirements and participant notification). Additionally, the projected contribution reflects a funding
strategy of contributing the greater of $250 million until the qualified plans are fully funded on an ABO basis, and the minimum amounts under
ERISA to avoid benefit restrictions and at-risk status. This level funding strategy helps minimize volatility of future period required pension
contributions.
Exelon plans to contribute $250 million to its qualified pension plans in 2016, of which Generation, ComEd, PECO, and BGE will contribute
$134 million, $30 million, $28 million, and $31 million, respectively. Exelon’s and Generation’s expected qualified pension plan contributions above
include $25 million related to the legacy CENG plans that will be funded by CENG as provided in an EMA between Exelon and CENG.
Unlike the qualified pension plans, Exelon’s non-qualified pension plans are not funded. Exelon plans to make non-qualified pension plan
benefit payments of $21 million in 2016, of which Generation, ComEd, PECO, and BGE will make payments of $9 million, $2 million, $1 million
and $1 million, respectively.
Unlike the qualified pension plans, other postretirement plans are not subject to statutory minimum contribution requirements. Exelon’s
management has historically considered several factors in determining the level of contributions to its other postretirement benefit plans, including
levels of benefit claims paid and regulatory implications (amounts deemed prudent to meet regulatory expectations and best assure continued rate
recovery). In 2016, Exelon anticipates funding its other postretirement benefit plans based on the funding considerations discussed above, with the
exception of those plans which remain unfunded. Exelon expects to make other postretirement benefit plan contributions, including benefit
payments related to unfunded plans, of approximately $35 million in 2016, of which Generation, ComEd, PECO, and BGE expect to contribute $13
million, $3 million, $1 million, and $18 million, respectively.
Estimated Future Benefit Payments
Estimated future benefit payments to participants in all of the pension plans and postretirement benefit plans at December 31, 2015 were:
Pension
Benefits
Other
Postretirement
Benefits
2016 $ 1,153 $ 217
2017 997 223
2018 1,009 228
2019 1,036 235
2020 1,071 244
2021 through 2025 5,923 1,341
Total estimated future benefit payments through 2025 $11,189 $ 2,488
Allocation to Exelon Subsidiaries
Generation, ComEd, PECO, and BGE account for their participation in Exelon’s pension and other postretirement benefit plans by applying
multi-employer accounting. Employee-related assets and
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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