Exelon 2001 Annual Report Download - page 78

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76
The Internal Revenue Service and certain state tax authorities are currently auditing certain tax returns of Exelon’s
predecessor entities, Unicom and PECO. The current audits are not expected to have an adverse impact on financial
condition or results of operations of Exelon.
(16) Retirement Benefits
Exelon sponsors defined benefit pension plans and postretirement welfare benefit plans applicable to essentially all ComEd,
PECO, Generation and BSC employees and certain employees of Enterprises. In 2001, Exelon consolidated the former Unicom
and PECO plans into Exelon plans. Essentially all management employees, and electing union employees, hired on or after
January 1, 2001 participate in newly established cash balance pension plans. Management employees who were active
participants in the former Unicom and PECO pension plans on December 31, 2000, and remain employed by Exelon on January
1, 2002, will have the opportunity to continue to participate in the pension plan or to transfer to the cash balance plan. Benefits
under Exelon’s pension plans generally reflect each employee’s compensation, years of service and age at retirement. Funding
is based upon actuarially determined contributions that take into account the amount deductible for income tax purposes and
the minimum contribution required under the Employee Retirement Income Security Act of 1974, as amended. The following
tables provide a reconciliation of benefit obligations, plan assets and funded status of the plans.
Pension Benefits Other Postretirement Benefits
2001 2000 2001 2000
Change in Benefit Obligation:
Net benefit obligation at beginning of year $ 6,695 $ 2,054 $ 2,275 $ 798
Service cost 94 39 42 24
Interest cost 498 219 161 83
Plan participants’ contributions – – 4 1
Plan amendments 44 – (191) –
Actuarial (gain)loss 254 228 173 144
Acquisitions – 4,231 – 1,228
Curtailments/Settlements (38) (74) – 4
Special accounting costs 48 217 3 48
Gross benefits paid (494) (219) (136) (55)
Net benefit obligation at end of year $ 7,101 $ 6,695 $ 2,331 $ 2,275
Change in Plan Assets:
Fair value of plan assets at beginning of year $ 7,000 $ 2,982 $ 1,188 $ 244
Actual return on plan assets (265) 173 (14) (7)
Employer contributions 38 2 90 84
Plan participants’ contributions – – 4 1
Acquisitions – 4,062 – 921
Gross benefits paid (494) (219) (136) (55)
Fair value of plan assets at end of year $ 6,279 $ 7,000 $ 1,132 $ 1,188
Funded status at end of year $ (822) $ 305 $ (1,199) $ (1,087)
Miscellaneous adjustment – – – 5
Unrecognized net actuarial (gain)loss 397 (777) 440 143
Unrecognized prior service cost 108 77 (191) –
Unrecognized net transition obligation (asset) (17) (21) 103 122
Net amount recognized at end of year $ (334) $ (416) $ (847) $ (817)