Exelon 2015 Annual Report Download - page 377

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
 In selecting the EROA, Exelon considers historical economic indicators (including inflation and GDP growth) that
impact asset returns, as well as expectations regarding future long-term capital market performance, weighted by Exelon’s target asset class
allocations.
For the December 31, 2014 actuarial valuation, Exelon changed its assumption of mortality to reflect more recent expectations of
future improvements in life expectancy. The change was supported through completion of an experience study and supplemental analyses
performed by its actuaries. The change in assumption resulted in increases of $361 million and $117 million in the pension and other
postretirement benefits obligations as of December 31, 2014, respectively. There were no changes to the mortality assumption in 2015.
The following assumptions were used to determine the benefit obligations for the plans at December 31, 2015, 2014 and 2013. Assumptions
used to determine year-end benefit obligations are the assumptions used to estimate the subsequent year’s net periodic benefit costs.
Pension Benefits Other Postretirement Benefits
2015 2014 2013 2015 2014 2013
Discount rate 4.29% 3.94% 4.80% 4.29% 3.92% 4.90%
Rate of
compensation
increase
Mortality table
RP-2000
table
projected to
2012 with
improvement
scale AA,
with
Scale BB-2D
improvements
(adjusted)
RP-2000
table
projected to
2012 with
improvement
scale AA,
with
Scale BB-2D
improvements
(adjusted)
RP-2000
table with
Scale AA
improvements
RP-2000
table
projected to
2012 with
improvement
scale AA,
with
Scale BB-2D
improvements
(adjusted)
RP-2000
table
projected to
2012 with
improvement
scale AA,
with
Scale BB-2D
improvements
(adjusted)
RP-2000
table with
Scale AA
improvements
Health care cost
trend on
covered charges
N/A N/A N/A
5.50%
decreasing to
ultimate trend
of 5.00% in
2017
6.00%
decreasing to
ultimate trend
of 5.00% in
2017
6.00%
decreasing to
ultimate trend
of 5.00% in
2017
(a) 3.25% through 2019 and 3.75% thereafter.
(b) 3.25% through 2018 and 3.75% thereafter.
370
(a) (a) (b) (a) (a) (b)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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