Eversource 2012 Annual Report Download - page 113

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100
The following actuarial assumptions were used to calculate Pension and SERP expense amounts:
Pension and SERP
For the Years Ended December 31,
NUSCO Pension and SERP Plans
2012
2011
2010
Discount Rate
5.03
%
5.57
%
5.98
%
Expected Long-Term Rate of Return 8.25
% 8.25
% 8.75
%
Compensation/Progression Rate
3.50
%
3.50
%
4.00
%
NSTAR Pension and SERP Plans
Discount Rate
4.52
%
5.30
%
5.85
%
Expected Long-Term Rate of Return
7.30
% 8.00
% 8.00
%
Compensation/Progression Rate
4.00
%
4.00
%
4.00
%
The following is a summary of the changes in plan assets and benefit obligations recognized in Regulatory Assets and OCI as well as
amounts in Regulatory Assets and OCI reclassified as net periodic benefit expense during the years presented:
Amounts Reclassified To/From
Regulatory Assets
OCI
(Millions of Dollars)
For the Years Ended December 31,
NU Pension and SERP Plans (1)
2012
2011
2012
2011
Actuarial Losses Arising During the Year $
245.7
$
334.8
$
19.1
$
23.0
Actuarial Losses Reclassified as Net Periodic Benefit Expense
(164.6)
(79.4)
(7.8)
(4.8)
Prior Service Cost Reclassified as Net Periodic Benefit Expense
(7.7)
(9.4)
(0.2)
(0.3)
The following is a summary of the remaining Regulatory Assets and Accumulated Other Comprehensive Loss amounts that have not been
recognized as components of net periodic benefit expense as of December 31, 2012 and 2011, and the amounts that are expected to be
recognized as components in 2013:
Regulatory Assets as of
Expected
AOCI as of
Expected
(Millions of Dollars)
December 31,
2013
December 31,
2013
NU Pension and SERP Plans (1)
2012
2011
Expense
2012
2011
Expense
Actuarial Loss $
1,973.8
$
1,126.1
$ 200.8
$ 81.5
$ 70.2
$ 9.3
Prior Service Cost
21.2
29.3
3.9
1.2
1.4
0.2
(1) The NU consolidated amounts reflect the NSTAR Pension and SERP Plans from the date of the merger, April 10, 2012, through
December 31, 2012.
NSTAR Electric continues to maintain reporting requirements as an SEC registrant. Included in the amounts above as of December 31,
2012 are $724 million of unrecognized actuarial losses included in Regulatory Assets for NSTAR Electric. For the year ended
December 31, 2012, NSTAR Electric reclassified $62.8 million of actuarial losses and $0.6 million of prior service credit as net periodic
benefit expense and $4.6 million of actuarial losses arose during the year. As of December 31, 2011, NSTAR Electric had $782.3
million of unrecognized actuarial losses and $0.6 million of prior service credit included in Regulatory Assets. For the year ended
December 31, 2011, NSTAR Electric reclassified $48.4 million of actuarial losses and $0.7 million of prior service credit as net periodic
benefit expense and $212 million of actuarial losses arose during the year.
PBOP Plans: The NUSCO Plans are accounted for under the multiple-employer basis while the NSTAR Plan is accounted for under
the multi-employer basis. Accordingly, the funded status of the NUSCO PBOP Plans is allocated to its subsidiaries, including CL&P,
PSNH and WMECO, while the NSTAR PBOP Plan is not reflected on the SEC registrant NSTAR Electric’s balance sheet.
NU annually funds postretirement costs through tax deductible contributions to external trusts.