Eversource 2008 Annual Report Download - page 70

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The estimates of the above amounts that are expected to be recognized as portions of
net periodic benefit expense in 2009 are as follows:
Estimated Expense in 2009
(Millions of Dollars) Pension SERP PBOP
Transition obligation $ 0.3 $ - $11.3
Prior service cost 9.5 0.1 0.3
Net actuarial loss 20.6 0.5 9.8
Total $30.4 $0.6 $21.4
The following is a summary of amounts recorded in accumulated other comprehensive
income, as a result of SFAS No.158 at December 31, 2008 and 2007 and the changes in
those amounts recorded to other comprehensive income:
At December 31,
Pension SERP PBOP
(Millions of Dollars) 2008 2007 2008 2007 2008 2007
Transition obligation
at beginning of year $ - $ - $ - $ - $1.2 $1.5
Amounts reclassified
as net periodic
benefit expense - - - - (0.3 ) (0.3 )
Transition obligation
at end of year $ - $ - $ - $ - $0.9 $1.2
Prior service cost at
beginning of year $ 2.7 $ 0.6 $ - $ - $ - $ -
Amounts reclassified
as net periodic
benefit expense (0.3 ) (0.2 ) - - - -
Prior service (credit)/cost
arising during the year (0.3 ) 2.3 - - - -
Prior service cost at end
of year $ 2.1 $ 2.7 $ - $ - $ - $ -
Net actuarial
(gains)/losses at
beginning of year $(17.4 ) $ 2.6 $0.2 $0.3 $5.5 $5.5
Amounts reclassified as
net periodic benefit
income/(expense) 0.9 (0.2 ) - - (0.2 ) (0.3 )
Actuarial losses/(gains)
arising during the year 58.9 (19.8 ) (0.1 ) (0.1 ) 3.5 0.3
Actuarial losses/(gains)
at end of year $ 42.4 $(17.4 ) $0.1 $0.2 $8.8 $5.5
Total Pension, SERP and
PBOP in accumulated
other comprehensive
income $44.5 $(14.7 ) $0.1 $0.2 $9.7 $6.7
The estimates of the above amounts that are expected to be recognized as portions of
net periodic benefit expense in 2009 are as follows:
Estimated Expense in 2009
(Millions of Dollars) Pension SERP PBOP
Transition obligation $ - $- $0.2
Prior service cost 0.3 - -
Net actuarial loss - - 0.2
Total $0.3 $- $0.4
For further information, see Note 13, “Accumulated Other Comprehensive Income/
(Loss),” to the consolidated financial statements.
The following actuarial assumptions were used in calculating the plans’ year end funded
status:
At December 31,
Pension Benefits Postretirement
and SERP Benefits
Balance Sheets 2008 2007 2008 2007
Discount rate 6.89% 6.60% 6.90% 6.35%
Compensation/progression rate 4.00% 4.00% N/A N/A
Health care cost trend rate N/A N/A 8.00% 8.50%
The components of net periodic benefit expense/(income) are as follows:
For the Years Ended December 31,
Postretirement
Pension Benefits SERP Benefits Benefits
(Millions of Dollars) 2008 2007 2006 2008 2007 2006 2008 2007 2006
Service cost $43.9 $47.0 $49.4 $0.7 $0.8 $1.1 $ 7.1 $ 7.4 $ 8.3
Interest cost 144.0 136.4 129.7 2.0 1.9 1.9 28.3 25.7 27.3
Expected return on
plan assets (200.2) (195.2) (174.0) - - - (21.1) (18.2) (14.0)
Net transition obligation
cost/(asset) 0.2 0.2 (0.1) - - - 11.6 11.6 11.6
Prior service cost/(credit) 9.9 8.9 6.6 0.1 0.2 0.2 (0.3) (0.3) (0.3)
Actuarial loss 4.6 20.1 41.1 0.3 0.7 0.9 10.6 12.2 17.8
Net periodic expense - before
curtailments and termination
(benefits)/expense 2.4 17.4 52.7 3.1 3.6 4.1 36.2 38.4 50.7
Curtailment benefits - - (4.8) - - - - - (2.2)
Termination
(benefits)/expense - (0.3) 2.3 - - - - - 0.3
Total curtailments and
termination benefits - (0.3) (2.5) - - - - - (1.9)
Total - net periodic expense $ 2.4 $17.1 $50.2 $3.1 $3.6 $4.1 $36.2 $38.4 $48.8
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