Dominion Power 2003 Annual Report Download - page 85

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83.Dominion 2003
The following tables summarize the changes in Dominion’s pension and other postretirement benefit plan obligations and plan assets
and a statement of the plans’ funded status:
Pension Benefits Other Postretirement Benefits
Year Ended December 31, 2003 2002 2003 2002
(millions)
Expected benefit obligation at beginning of year $2,801 $2,593 $1,119 $ 996
Other gain (2)
———
Acquired businesses
—
1
—
3
Change in benefit obligation:
Actual benefit obligation at beginning of year 2,799 2,594 1,119 999
Service cost 86 77 55 44
Interest cost 182 177 79 68
Benefits paid (158) (148) (60) (58)
Actuarial loss during the year 199 89 228 84
Actuarial gain related to Medicare Part D
——
(70)
—
Plan amendments 212
—
(18)
Expected benefit obligation at end of year 3,110 2,801 1,351 1,119
Change in plan assets:
Fair value of plan assets at beginning of year 3,074 3,352 443 446
Actual return on plan assets 627 (241) 89 (31)
Contributions 192 111 87 60
Benefits paid from plan assets (159) (148) (32) (32)
Fair value of plan assets at end of year 3,734 3,074 587 443
Funded status 624 273 (764) (676)
Unrecognized net actuarial loss 1,244 1,374 392 308
Unrecognized prior service cost 18 14 44
Unrecognized net transition (asset) obligation
—
(1) 82 93
Prepaid (accrued) benefit cost $1,886 $1,660 $ (286) $(271)
Amounts recognized in the consolidated balance sheets at December 31:
Prepaid pension cost $1,939 $1,710
——
Accrued benefit liability (86) (84) (286) $(271)
Intangible asset 910
——
Accumulated other comprehensive loss 24 24
——
Net amount recognized $1,886 $1,660 $ (286) $(271)
The accumulated benefit obligation for all defined benefit pen-
sion plans was $2.7 billion and $2.4 billion at December 31,
2003 and 2002, respectively. Under its funding policies, Domin-
ion evaluates plan funding requirements annually, usually in the
third quarter after receiving updated plan information from its
actuary. Based on the funded status of each plan and other fac-
tors, the amount of contributions, if any, is determined at that time.
Dominion has nonqualified pension and supplemental pen-
sion plans that do not have “plan assets” as defined by generally
accepted accounting principles. The total projected benefit oblig-
ation for these plans was $99 million and $97 million at Decem-
ber 31, 2003 and 2002, respectively, and is included in the table
above. The total accumulated benefit obligation for these plans
was $90 million and $88 million at December 31, 2003 and
2002, respectively. The additional minimum liability recognized
relating to these plans was $34 million at December 31, 2003
and 2002.