FairPoint Communications 2010 Annual Report Download - page 107

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Table of Contents

The weighted average assumptions used in determining benefit obligations are as follows:

 
Qualified Pension
Discount rate 5.56% 6.00%
Rate of future increases in compensation 3.00% 4.00%
Post-retirement Healthcare
Discount rate 5.65% 6.13%
Rate of future increases in compensation 4.00% 4.00%
The weighted average assumptions used in determining net periodic cost are as follows:
 
  
Qualified Pension
Discount rate 6.00% 5.94% 6.80%
Expected return on plan assets 8.32% 8.32% 8.38%
Rate of compensation increase 4.00% 4.00% 4.00%
Post-retirement Healthcare
Discount rate 6.13% 5.95% 6.80%
Rate of compensation increase 4.00% 4.00% 4.00%
Healthcare cost trend rate assumed for participants under 65 next year 7.70% 8.00% 9.50%
Healthcare cost trend rate assumed for participants over 65 next year 8.20% 8.50% 10.50%
Rate that the cost trend rates ultimately declines to 4.00% 4.00% 5.00%
Year that the rates reach the terminal rate 2029 2029 2014
Prior to the Merger, the weighted average assumptions used in determining net periodic cost for the three months ended March 31, 2008 were as follows:


Qualified Pension
Discount rate 6.50%
Expected return on plan assets 8.50%
Rate of compensation increase 4.00%
Post-retirement Healthcare
Discount rate 6.00%
Rate of compensation increase 4.00%
106