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Table of Contents
VALERO ENERGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
settle our pension and other postretirement benefit plan liabilities as of those dates. We believe that the yields associated with the bonds
used to develop this yield curve reflect the current level of interest rates.
The weighted-average assumptions used to determine the net periodic benefit cost for the years ended December 31, 2015, 2014, and
2013 were as follows:
Pension Plans
Other Postretirement
Benefit Plans
2015
2014
2013
2015
2014
2013
Discount rate 4.10%
4.92%
4.33%
4.13%
4.88%
4.19%
Expected long-term rate of return
on plan assets 7.29%
7.61%
7.62%
—%
—%
—%
Rate of compensation increase 3.78%
3.81%
3.73%
—%
—%
—%
The assumed health care cost trend rates as of December 31, 2015 and 2014 were as follows:
2015
2014
Health care cost trend rate assumed for the next year 7.29%
7.36%
Rate to which the cost trend rate was assumed to decline
(the ultimate trend rate) 5.00%
5.00%
Year that the rate reaches the ultimate trend rate 2026
2020
Assumed health care cost trend rates impact the amounts reported for retiree health care plans. A one percentage-point change in
assumed health care cost trend rates would have the following effects on other postretirement benefits (in millions):
1% Increase
1% Decrease
Effect on total of service and interest cost components $ —
$ —
Effect on accumulated postretirement benefit obligation 3
(2)
96