Eversource 2003 Annual Report Download - page 67

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65
The following table represents information on the plans’ benefit obligation, fair value of plan assets, and the respective plans’ funded status:
At December 31,
Pension Benefits Postretirement Benefits
(Millions of Dollars) 2003 2002 2003 2002
Change in benefit obligation
Benefit obligation at beginning of year $(1,789.8) $(1,687.6) $(397.8) $(400.0)
Service cost (35.1) (37.2) (5.3) (6.2)
Interest cost (117.0) (119.8) (26.8) (29.2)
Medicare impact ——19.5 —
Plan amendment —(11.4) —34.2
Actuarial loss (102.9) (117.7) (34.8) (44.0)
Benefits paid — excluding lump sum payments 99.6 97.3 40.2 44.0
Benefits paid — lump sum payments 3.9 50.2 ——
Curtailments and settlements —44.5 —3.4
Special termination benefits —(8.1) ——
Benefit obligation at end of year $(1,941.3) $(1,789.8) $(405.0) $(397.8)
Change in plan assets
Fair value of plan assets at beginning of year $ 1,632.3 $ 1,990.4 $ 147.7 $ 171.0
Actual return on plan assets 416.3 (213.1) 35.4 (14.4)
Employer contribution ——35.1 35.1
Plan asset transfer in —2.5 ——
Benefits paid — excluding lump sum payments (99.6) (97.3) (40.2) (44.0)
Benefits paid — lump sum payments (3.9) (50.2) ——
Fair value of plan assets at end of year $ 1,945.1 $ 1,632.3 $ 178.0 $ 147.7
Funded status at December 31 $ 3.8 $ (157.5) $(227.0) $(250.1)
Unrecognized transition (asset)/obligation (1.1) (2.6) 106.6 118.5
Unrecognized prior service cost 63.5 70.1 (5.5) (5.9)
Unrecognized net loss/(gain) 294.5 418.9 113.6 124.8
Prepaid/(accrued) benefit cost $ 360.7 $ 328.9 $ (12.3) $ (12.7)
The accumulated benefit obligation for the Plan was $1.7 billion and $1.6 billion at December 31, 2003 and 2002, respectively.
The following actuarial assumptions were used in calculating the plans’ year end funded status:
At December 31,
Pension Benefits Postretirement Benefits
Balance Sheets 2003 2002 2003 2002
Discount rate 6.25% 6.75% 6.25% 6.75%
Compensation/progression rate 3.75% 4.00% N/A N/A
Health care cost trend rate N/A N/A 9.00% 10.00%