Entergy 2009 Annual Report Download - page 131

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Entergy Corporation and Subsidiaries
Notes to Financial Statements
127
Contributions
Entergy currently expects to contribute approximately $270 million to its pension plans and approximately
$76 million to other postretirement plans in 2010. The expected 2010 pension and other postretirement plan
contributions of the Registrant Subsidiaries are shown below. The required pension contributions will not be known
with more certainty until the January 1, 2010 valuations are completed by April 1, 2010. Also, guidance pursuant to
the Pension Protection Act of 2006 rules, effective for the 2008 plan year and beyond, continues to evolve, be
interpreted through technical corrections bills, and discussed within the industry and congressional lawmakers. Any
changes to the Pension Protection Act as a result of these discussions and efforts may affect the level of Entergy's and
each of the Registrant Subsidiaries’ pension contributions in the future.
Actuarial Assumptions
The assumed health care cost trend rate used in measuring the APBO of Entergy was 7.5% for 2010,
gradually decreasing each successive year until it reaches 4.75% in 2016 and beyond. The assumed health care cost
trend rate used in measuring the Net Other Postretirement Benefit Cost of Entergy was 8.5% for 2009, gradually
decreasing each successive year until it reaches 4.75% in 2016 and beyond. A one percentage point change in the
assumed health care cost trend rate for 2009 would have the following effects:
1 Percentage Point Increase 1 Percentage Point Decrease
2009
Impact on the
APBO
Impact on the
sum of service
costs and
interest cost
Impact on the
APBO
Impact on the
sum of service
costs and
interest cost
Increase /(Decrease)
(In Thousands)
Entergy Corporation and its
subsidiaries $138,924 $16,804 ($123,118) ($14,399)
The significant actuarial assumptions used in determining the pension PBO and the other postretirement
benefit APBO as of December 31, 2009, and 2008 were as follows:
2009 2008
Weighted-average discount rate:
Qualified pension 6.10% - 6.30% 6.75%
Other postretirement 6.10% 6.70%
Non-qualified pension 5.40% 6.75%
Weighted-average rate of increase
in future compensation levels 4.23% 4.23%
129