National Grid 2005 Annual Report Download - page 51

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The following table provides a reconciliation of the changes in the Plans’ fair benefit obligations for the fiscal years 2005 and 2004, accumulated benefit obliga-
tion for the pension plans at March 31, and the assumption used in developing the obligations.
51
National Grid USA / Annual Report
(in thousands)
2005 2004 2005 2004 2005 2004
Accumulated benefit obligation 2,409,544$ 2,373,523$ 111,044$ 110,807$ N/A N/A
Change in benefit obligation:
Beginning balance, April 1, 2,609,731$ 2,441,307$ 114,190$ 113,805$ 1,834,258$ 1,585,462$
Service cost 50,656 47,342 690 647 22,200 17,930
Interest cost 144,100 146,273 6,149 6,578 103,810 98,849
Actuarial los s es 112,221 164,137 1,762 2,948 9,435 199,684
Plan amendments 31,201 - - - 146,689 (8,121)
Benefit payments (252,253) (144,292) (8,995) (8,399) (97,383) (85,203)
Settlements - (133,073) (1,057) (1,389) - -
Curtailments - (3,818) - - - 16,721
Special termination benefits - 91,855 - - - 8,936
Ending balance, March 31, 2,695,656$ 2,609,731$ 112,739$ 114,190$ 2,019,009$ 1,834,258$
Weighted average assumptions as of March 31, to determine obligation
Discount rate 5.75% 5.75% 5.75% 5.75% 5.75% 5.75%
Expected return on plan assets - Pension 8.50% 8.50% N/A N/A N/A N/A
Expected return on plan assets - PBOP Nonunion 6.75% 7.25%
Expected return on plan assets - PBOP Union 8.50% 8.75%
Medical trend
Initial 10.00% 10.00%
Ultimate 5.00% 5.00%
Year ultimate is reached 2010 2009
PBOP
Pension Plans
Qualified
Nonqualified
Pension Plans