OG&E 2009 Annual Report Download - page 91

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Restoration of Retirement Postretirement
Pension Plan Income Plan Benefit Plans
December 31 (In millions) 2009 2008 2009 2008 2009 2008
Change in Benefit Obligation
Beginning obligations $ (432.6) $ (413.6) $ (1.1) $ (0.8) $ (191.9) $ (179.2)
Service cost (11.5) (12.4) --- --- (2.2) (2.3)
Interest cost (24.7) (24.9) (0.1) (0.1) (11.5) (11.1)
Plan amendments (9.7) --- (0.5) --- --- ---
Plan curtailments 0.2 --- --- --- --- ---
Participants’ contributions --- --- --- --- (5.6) (4.9)
Actuarial gains (losses) (27.7) (15.3) (0.1) (0.5) (35.1) (6.4)
Benefits paid 29.6 33.6 --- 0.3 13.8 12.0
Ending obligations (476.4) (432.6) (1.8) (1.1) (232.5) (191.9)
Change in Plans’ Assets
Beginning fair value 309.2 400.7 --- --- 55.1 76.0
Actual return on plans’ assets 72.3 (104.9) --- --- (7.1) (18.7)
Employer contributions 47.0 47.0 --- 0.3 12.6 4.9
Participants’ contributions --- --- --- --- 5.7 4.9
Benefits paid (29.6) (33.6) --- (0.3) (13.8) (12.0)
Ending fair value 398.9 309.2 --- --- 52.5 55.1
Funded status at end of year $ (77.5) $ (123.4) $ (1.8) $ (1.1) $ (180.0) $ (136.8)
Net Periodic Benefit Cost
Restoration of Retirement Postretirement
Pension Plan Income Plan Benefit Plans
Year ended December 31
(In millions) 2009 2008 2007 2009 2008 2007 2009 2008 2007
Service cost $ 11.5 $ 12.4 $ 13.8 $ --- $ --- $ --- $ 2.2 $ 2.3 $ 2.7
Interest cost 24.7 24.9 25.6 0.1 0.1 --- 11.5 11.1 10.4
Return on plan assets (26.3) (34.3) (34.5) --- --- --- (6.3) (6.3) (5.7)
Amortization of transition
obligation --- --- --- --- --- --- 2.5 2.5 2.5
Amortization of net loss 18.5 7.4 8.4 0.1 0.1 --- 4.1 3.5 5.5
Amortization of unrecognized
prior service cost 0.9 1.1 4.5 0.1 0.1 0.1 0.7 1.5 1.5
Curtailments 0.2 --- --- --- --- --- --- --- ---
Settlement --- --- 13.3 --- --- 0.1 --- --- ---
Net periodic benefit cost (A) $ 29.5 $ 11.5 $ 31.1 $ 0.3 $ 0.3 $ 0.2 $ 14.7 $ 14.6 $ 16.9
(A) In addition to the approximately $29.8 million, $11.8 million and $31.3 million of net periodic benefit cost recognized in 2009, 2008
and 2007, respectively, the Company recognized the following:
Ÿa reduction in pension expense in 2009 of approximately $1.8 million, an increase in pension expense in 2008 of
approximately $7.5 million and a reduction in pension expense in 2007 of approximately $8.3 million to maintain
the allowable amount to be recovered for pension expense in the Oklahoma jurisdiction which are identified as
Deferred Pension Plan Expenses (see Note 1); and
Ÿa reduction in pension expense in 2009 of approximately $3.2 million in the Arkansas jurisdiction to reflect the
approval of recovery of the Company’s 2006 and 2007 pension settlement costs in the May 2009 Arkansas rate
order which are identified as Deferred Pension Plan Expenses (see Note 1).
The capitalized portion of the net periodic pension benefit cost was approximately $7.5 million, $3.6 million and
$5.2 million at December 31, 2009, 2008 and 2007, respectively. The capitalized portion of the net periodic postretirement
benefit cost was approximately $3.6 million, $4.2 million and $4.5 million at December 31, 2009, 2008 and 2007,
respectively.
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