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99
using the net asset value provided by the partnerships, which are based on discounted cash flows of the underlying investments, real
estate appraisals or market approaches to the valuation of the underlying investments. These investments are classified as Level 3
due to redemption restrictions.
Fair Value Measurements Using Significant Unobservable Inputs (Level 3): The following tables present changes for the Level 3
category of Pension and PBOP Plan assets:
Pension Plan
As of December 31, 2010
(Millions of Dollars)
United States
Equity
Private
Equity
Fixed
Income
Real Estate
and Other
Assets
Hedge
Funds Total
Balance as of January 1, 2010 $ 252.1 $ 193.8 $ 174.0 $ 38.5 $ 231.2 $ 889.6
A
ctual Return on Plan Assets:
Relating to Assets Still Held as of
Year End 13.9 10.9 21.0 0.5 15.9 62.2
Relating to Assets Distributed During
the Year - - - 0.5 - 0.5
Purchases, Sales and Settlements - 24.8 52.6 4.2 - 81.6
Balance as of December 31, 2010 $ 266.0 $ 229.5 $ 247.6 $ 43.7 $ 247.1 $ 1,033.9
Pension Plan
As of December 31, 2009
(Millions of Dollars)
United States
Equity
Private
Equity
Fixed
Income
Real Estate
and Other
Assets
Hedge
Funds Total
Balance as of January 1, 2009 $ 333.3 $ 175.2 $ 227.5 $ 58.2 $ - $ 794.2
A
ctual Return/(Loss) on Plan Assets:
Relating to Assets Still Held as of
Year End 68.8 11.0 49.8 (26.1) 6.2 109.7
Relating to Assets Distributed During
the Year - (3.9) - - - (3.9)
Purchases, Sales and Settlements (15.0) 11.5 (13.3) 6.4 - (10.4)
Transfer Between Asset Categories (135.0) - (90.0) - 225.0 -
Balance as of December 31, 2009 $ 252.1 $ 193.8 $ 174.0 $ 38.5 $ 231.2 $ 889.6
PBOP Plan
As of December 31,
2010 2009
(Millions of Dollars)
United States
Equity
Private
Equity
Fixed
Income
Hedge
Funds Total
Fixed
Income
Balance as of Beginning of Year $ - $ - $ 24.6 $ - $ 24.6 $ 18.9
A
ctual Return/(Loss) on Plan Assets:
Relating to Assets Still Held at Year End 0.5 - 3.2 0.4 4.1 -
Relating to Assets Sold During the Year - - - - - 4.5
Purchases, Sales and Settlements 9.6 0.3 (4.4) 16.0 21.5 1.2
Balance as of End of Year $ 10.1 $ 0.3 $ 23.4 $ 16.4 $ 50.2 $ 24.6
Estimated Future Benefit Payments: The following benefit payments, which reflect expected future service, are expected to be
paid/(received) for the Pension, SERP and PBOP Plans:
NU
(Millions of Dollars)
Pension
Benefits
SERP
Benefits
PBOP
Benefits
Government
Benefits
2011 $ 132.9 $ 2.9 $ 40.8 $ (4.1)
2012 137.8 3.2 41.3 (4.4)
2013 143.4 3.3 41.8 (4.8)
2014 149.7 3.4 42.3 (5.1)
2015 155.7 3.4 42.7 (5.5)
2016-2020 886.8 18.6 216.4 (31.8)
The government benefits represent amounts expected to be received from the federal government for the Medicare prescription drug
benefit under the PBOP Plan related to the corresponding year's benefit payments.
Contributions: Currently, NU's policy is to annually fund the Pension Plan in an amount at least equal to an amount that will satisfy the
requirements of ERISA and the Internal Revenue Code. Due to the underfunded balance as of January 1, 2009, PSNH made a
contribution of $45 million to the plan in the third quarter of 2010. Due to the underfunded balance as of January 1, 2010, NU is
required to make an additional contribution to the Pension Plan of approximately $145 million in 2011, which will be made in quarterly
installments, to meet current minimum funding requirements.