Eversource 2012 Annual Report Download - page 112

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The following actuarial assumptions were used in calculating the Pension and SERP Plans' year end funded status:
Pension and SERP
As of December 31,
2012
2011
NUSCO Pension and SERP Plans
Discount Rate
4.24
%
5.03
%
Compensation/Progression Rate 3.50
% 3.50
%
NSTAR Pension and SERP Plans
Discount Rate
4.13
%
4.52
%
Compensation/Progression Rate 4.00
% 4.00
%
Pension and SERP Expense: For the NUSCO Plans, NU allocates net periodic pension expense to its subsidiaries based on the actual
participant demographic data for each subsidiary's participants. Benefit payments to participants and contributions are also tracked for
each subsidiary. The actual investment return in the trust each year is allocated to each of the subsidiaries annually in proportion to the
investment return expected to be earned during the year. For the NSTAR Pension Plan, the net periodic pension expense recorded at
NSTAR Electric represents the full cost of the plan and then a portion of the costs are allocated to affiliated companies based on
participant demographic data. The components of net periodic benefit expense, the portion of pension amounts capitalized related to
employees working on capital projects, and intercompany allocations not included in the net periodic benefit expense amounts for the
Pension and SERP Plans were as follows:
Pension and SERP
For the Year Ended December 31, 2012
NSTAR
(Millions of Dollars)
NU
CL&P
Electric
(1)
PSNH
WMECO
Service Cost
$
84.3
$
21.8
$
30.3
$
11.8
$
4.1
Interest Cost
198.3
51.2
58.9
24.4
10.5
Expected Return on Plan Assets
(220.9)
(70.6)
(65.6)
(28.2)
(16.4)
Actuarial Loss 172.4
49.6
63.1
16.2
10.7
Prior Service Cost/(Credit)
7.9
3.6
(0.6)
1.5
0.8
Total Net Periodic Benefit Expense $ 242.0
$ 55.6
$ 86.1
$ 25.7
$ 9.7
Curtailments and Settlements
$
2.2
$
-
$
-
$
-
$
-
Related Intercompany Allocations
N/A
$
42.8
$
(12.3)
$
10.1
$
8.1
Capitalized Pension Expense $ 70.6
$ 26.8
$ 30.7
$ 7.9
$ 5.1
Pension and SERP
For the Year Ended December 31, 2011
NSTAR
(Millions of Dollars)
NU
CL&P
Electric (1)
PSNH
WMECO
Service Cost
$
55.4
$
19.5
$
26.0
$
10.6
$
3.9
Interest Cost
153.3
51.9
61.0
24.4
10.7
Expected Return on Plan Assets
(170.8)
(76.6)
(71.4)
(19.8)
(17.7)
Actuarial Loss
84.2
33.4
48.6
10.7
7.1
Prior Service Cost/(Credit) 9.7
4.2
(0.7)
1.8
0.9
Total Net Periodic Benefit Expense
$
131.8
$
32.4
$
63.5
$
27.7
$
4.9
Related Intercompany Allocations
N/A
$
34.1
$
(10.2)
$
7.6
$
6.2
Capitalized Pension Expense
$
29.7
$
16.6
$
19.8
$
7.6
$
2.7
Pension and SERP
For the Year Ended December 31, 2010
NSTAR
(Millions of Dollars)
NU
CL&P
Electric (1)
PSNH
WMECO
Service Cost
$
51.0
$
17.6
$
23.6
$
10.0
$
3.5
Interest Cost
152.6
52.2
61.8
24.1
10.7
Expected Return on Plan Assets
(182.6)
(85.8)
(62.8)
(14.7)
(19.5)
Actuarial Loss
53.5
20.7
50.4
7.2
4.3
Prior Service Cost/(Credit)
9.9
4.2
(0.7)
1.8
0.9
Total Net Periodic Benefit Expense/(Income) $ 84.4
$ 8.9
$ 72.3
$ 28.4
$ (0.1)
Related Intercompany Allocations N/A
$ 25.2
$ (11.6)
$ 6.0
$ 4.5
Capitalized Pension Expense $ 16.9
$ 3.8
$ 24.5
$ 6.9
$ -
(1)
NSTAR Electric amounts are included in NU consolidated from the date of the merger, April 10, 2012, through December 31, 2012.
NSTAR Electric amounts are not included in NU consolidated for the years ended December 31, 2011 and 2010. NSTAR Electric's
allocated expense associated with the NSTAR SERP was $3.6 million, $4.4 million and $3.9 million for the years ended December
31,
2012, 2011 and 2010, respectively, and are not included in the NSTAR Electric amounts in the tables above.