Eversource 1999 Annual Report Download - page 46

At December 31,
Pension Benefits Postretirement Benefits
(Millions of Dollars) 1999 1998 1999 1998
Change in benefit obligation
Benefit obligation at beginning of year $(1,479.2) $(1,392.8) $(305.2) $(286.0)
Service cost (43.7) (37.4) (7.6) (6.6)
Interest cost (106.3) (96.8) (21.8) (20.9)
Plan amendment (79.6) ———
Transfers —8.5 ——
Actuarial gain/(loss) 133.8 (37.7) (1.3) (16.1)
Benefits paid 78.3 77.0 28.9 24.4
Settlements (19.9) —0.2 —
Benefit obligation at end of year $(1,516.6) $(1,479.2) $(306.8) $(305.2)
Change in plan assets
Fair value of plan assets at beginning of year $ 2,098.0 $ 1,919.4 $ 151.2 $ 129.4
Actual return on plan assets 310.5 264.7 18.7 17.4
Employer contribution ——29.7 28.8
Benefits paid (78.3) (77.0) (28.9) (24.4)
Transfers —(9.1) ——
Fair value of plan assets at end of year $ 2,330.2 $ 2,098.0 $ 170.7 $ 151.2
Funded status at December 31 $ 813.6 $ 618.8 $(136.1) $(154.0)
Unrecognized transition (asset)/obligation (7.4) (9.0) 196.6 211.9
Unrecognized prior service cost 99.2 27.6 ——
Unrecognized net gain (904.7) (670.4) (60.4) (57.9)
Prepaid/(accrued) benefit cost $ 0.7 $ (33.0) $ 0.1 $—
Future minimum rental payments, excluding annual nuclear
fuel lease payments and executory costs, such as property taxes,
state use taxes, insurance and maintenance, under long-term
noncancelable leases, as of December 31, 1999 are:
(Millions of Dollars)
Capital Operating
Year Leases Leases
2000 $ 7.4 $ 24.4
2001 4.9 22.6
2002 3.1 19.0
2003 3.1 15.5
2004 3.0 13.6
After 2004 30.6 26.9
Future minimum lease payments 52.1 $122.0
Less amount representing interest 27.8
Present value of future
minimum lease payments
for other than nuclear fuel 24.3
Present value of future
nuclear fuel lease payments 157.0
Present value of future
minimum lease payments $181.3
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5. EMPLOYEE BENEFITS
A. PENSION BENEFITS AND POSTRETIREMENT BENEFITS
OTHER THAN PENSIONS
The NU system companies participate in a uniform noncon-
tributory defined benefit retirement plan covering substantially
all regular NU system employees. Benefits are based on years
of service and the employees’ highest eligible compensation during
60 consecutive months of employment. The total pension credit,
part of which was credited to utility plant, was $54.4 million
in 1999, $44.1 million in 1998 and $22.5 million in 1997.
Currently, the NU system companies annually fund an amount
at least equal to that which will satisfy the requirements of the
Employee Retirement Income Security Act and Internal Revenue
Code (the Code).
The NU system companies also provide certain health care
benefits, primarily medical and dental, and life insurance benefits
through a benefit plan to retired employees. These benefits are
available for employees retiring from the NU system who have
met specified service requirements. For current employees and
certain retirees, the total benefit is limited to two times the 1993
per retiree health care cost. These costs are charged to expense
over the future estimated work life of the employee. The NU
system companies annually fund postretirement costs through
external trusts with amounts that have been rate-recovered and
which also are tax deductible under the Code.
Pension and trust assets are invested primarily in domestic
and international equity securities and bonds.
The following table represents information on the plans’
benefit obligation, fair value of plan assets, and the respective
plans’ funded status: