Eversource 2015 Annual Report Download - page 92

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80
The following is a summary of the changes in plan assets and benefit obligations recognized in Regulatory Assets and Other Comprehensive Income
(OCI) as well as amounts in Regulatory Assets and OCI that were reclassified as net periodic benefit expense during the years presented:
Regulatory Assets
OCI
For the Years Ended December 31,
(Millions of Dollars) 2015
2014
2015
2014
Actuarial (Gains)/Losses Arising During the Year
$
(2.0)
$ 797.3
$
(6.2)
$
55.9
Actuarial Losses Reclassified as Net Periodic Benefit Expense (142.3)
(122.8) (6.2) (5.6)
Prior Service Cost Reclassified as Net Periodic Benefit Expense (3.5)
(4.2) (0.2) (0.2)
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, 2015 and 2014, as well as the amounts that are expected to be recognized as
components in 2016:
Regulatory Assets as of
Expected
AOCI as of
Expected
December 31,
2016
December 31,
2016
(Millions of Dollars)
2015
2014 Expense 2015
2014 Expense
Actuarial Loss
$ 1,667.6 $ 1,811.9 $
120.6 $
81.1
$
93.5 $
5.4
Prior Service Cost 9.7 13.2 3.4 0.6
0.8 0.2
PBOP Plan: On January 1, 2014, concurrent with the service company merger, the PBOP assets and liabilities of NSTAR Electric & Gas were
attributed by participant and transferred to the applicable operating company’s balance sheets. This change had no impact on the income statements
or net assets of NSTAR Electric or Eversource. The PBOP Plan is accounted for under the multiple-employer approach, with each operating
company’s balance sheet reflecting its share of the funded status of the plan. The following tables provide information on the PBOP Plan benefit
obligations, fair values of plan assets, and funded status:
PBOP
Eversource
As of December 31,
(Millions of Dollars)
2015
2014
Change in Benefit Obligation
Benefit Obligation as of Beginning of Year $
(1,147.9)
$
(1,038.0)
Service Cost
(16.3)
(12.5)
Interest Cost
(47.2)
(49.5)
Actuarial Gain/(Loss) 106.0
(95.5)
Benefits Paid 54.0
47.6
Benefit Obligation as of End of Year $
(1,051.4)
$
(1,147.9)
Change in Plan Assets
Fair Value of Plan Assets as of Beginning of Year $
862.6
$
826.5
Actual Return on Plan Assets
(4.3)
43.7
Employer Contributions 7.9
40.0
Benefits Paid
(54.0)
(47.6)
Fair Value of Plan Assets as of End of Year $
812.2
$
862.6
Funded Status as of December 31
st
$
(239.2)
$
(285.3)
PBOP
As of December 31,
2015
2014
NSTAR
NSTAR
(Millions of Dollars)
CL&P
Electric
PSNH
WMECO
CL&P
Electric
PSNH
WMECO
Change in Benefit Obligation
Benefit Obligation as of Beginning of Year $
(173.9)
$
(468.7)
$
(91.8)
$
(36.6)
$
(180.4) $
- $
(93.5) $
(38.7)
Change due to transfer of employees 0.1
2.3
(0.3)
-
3.7 (395.5) 4.3 1.0
Service Cost
(2.1)
(5.4)
(1.4)
(0.4)
(2.2) (3.1) (1.3) (0.4)
Interest Cost
(7.2)
(19.0)
(3.9)
(1.5)
(8.1) (19.4) (4.3) (1.7)
Actuarial Gain/(Loss) 7.2
59.1
3.6
1.5
3.5 (68.6) (1.1) 1.3
Benefits Paid 11.9
18.9
5.3
2.6
9.6 17.9 4.1 1.9
Benefit Obligation as of End of Year $
(164.0)
$
(412.8)
$
(88.5)
$
(34.4)
$
(173.9) $
(468.7) $
(91.8) $
(36.6)
Change in Plan Assets
Fair Value of Plan Assets as of Beginning of Year $
149.0
$
336.5
$
80.9
$
34.4
$
151.3 $
- $
81.8 $
35.3
Change due to transfer of employees -
0.6
0.2
-
(3.2) 316.7 (3.1) (1.0)
Actual Return on Plan Assets
(0.4)
(2.8)
-
(0.1)
6.3 18.4 3.8 1.6
Employer Contributions -
4.9
-
-
4.2 19.3 2.5 0.4
Benefits Paid
(11.9)
(18.9)
(5.3)
(2.6)
(9.6) (17.9) (4.1) (1.9)
Fair Value of Plan Assets as of End of Year $
136.7
$
320.3
$
75.8
$
31.7
$
149.0 $
336.5 $
80.9 $
34.4
Funded Status as of December 31
st
$
(27.3)
$
(92.5)
$
(12.7)
$
(2.7)
$
(24.9) $
(132.2) $
(10.9) $
(2.2)
During 2014, the Society of Actuaries released a series of updated mortality tables resulting from studies that measured mortality rates for various
groups of individuals. The updated mortality tables released in 2014 increased the life expectancy of plan participants by three to five years and had
the effect of increasing the estimated benefits to be provided to plan participants. The impact of adopting the updated mortality tables on
Eversource’s liability as of December 31, 2014 was an increase of approximately $82 million. In 2015, a revised scale for the mortality table was