Vectren 2012 Annual Report Download - page 95

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Following is a reconciliation of the amounts in Accumulated other comprehensive income (AOCI) and Regulatory assets related
to retirement plan obligations at December 31, 2012 and 2011.
(In millions) 2012 2011
Pensions Other
Benefits Pensions Other Benefits
Prior service cost $ 4.5 $ (23.1) $ 5.4 $ (1.2)
Unamortized actuarial gain/(loss) 136.2 11.2 116.6 9.1
Transition obligation — — — 2.7
140.7 (11.9) 122.0 10.6
Less: Regulatory asset deferral (137.9) 11.7 (115.9) (10.1)
AOCI before taxes $ 2.8 $ (0.2) $ 6.1 $ 0.5
Related to pension plans, $1.4 million of prior service cost and $10.2 million of actuarial gain/loss is expected to be amortized to
cost in 2013. Related to other benefits, $0.8 million of actuarial gain/loss is expected to be amortized to periodic cost in 2013,
and $3.2 million of prior service cost is expected to reduce cost in 2013.
Multi-employer Benefit Plan
The Company, through its Infrastructure Services operating segment, participates in several industry wide multi-employer
pension plans for its union employees which provide for monthly benefits based on length of service. The risks of participating
in multi-employer pension plans are different from the risks of participating in single-employer pension plans in the following
respects: 1) assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of
other participating employers, 2) if a participating employer stops contributing to the plan, the unfunded obligations of the plan
allocable to such withdrawing employer may be borne by the remaining participating employers, and 3) if the Company stops
participating in some of its multi-employer pension plans, the Company may be required to pay those plans an amount based on
its allocable share of the underfunded status of the plan, referred to as a withdrawal liability.
Expense is recognized as payments are accrued for work performed or when withdrawal liabilities are probable and
estimable. Expense associated with multi-employer plans was $27.6 million, $18.3 million and $10.0 million for the years ended
December 31, 2012, 2011, and 2010, respectively. The increase in expense is due primarily to the increase in work performed.
During 2012, the Company, through its Infrastructure Services operating segment, made contributions to these multi-employer
plans on behalf of employees that participate in approximately 370 local unions. Contracts with these unions are negotiated
with trade agreements through two primary contractor associations. These trade agreements have varying expiration dates
ranging from 2014 through 2016. The average contribution related to these local unions was less than $0.1 million, and the
largest contribution was $3.6 million. Multiple unions can contribute to a single multi-employer plan. The Company made
contributions to at least 41 plans in 2012, four of which are considered significant plans based on, among other things, the
amount of the contributions, the number of employees participating in the plan, and the funded status of the plan. Further, of the
41 plans identified, there are four plans that are less than 65 percent funded (i.e. red zone status) and two plans where the
Company's contributions represent more than 5 percent of the total contributions received by the plan; however, none of these
plans are significant to the Company.
The Company's participation in the significant plans is outlined in the following table. The Employer Identification Number
(EIN) / Pension Plan Number column provides the Employer Identification Number ("EIN") and three digit pension plan numbers.
The most recent Pension Protection Act Zone Status available in 2012 and 2011 is for the plan year end at January 31, 2012
and 2011 for the Central Pension Fund, December 31, 2011 and 2010 for the Pipeline Industry Benefit Fund, May 31, 2011 and
2010 for the Indiana Laborers Pension Fund, and December 31, 2011 and 2010 for the Minnesota Laborers Pension Fund,
respectively. Generally, plans in the red zone are less than 65 percent funded, plans in the yellow zone are less than 80 percent
funded and plans in the green zone are at least 80 percent funded. The FIP/RP Status Pending / Implemented column indicates
plans for which a funding improvement plan ("FIP") or rehabilitation plan ("RP") is either pending or has been implemented. The
multi-employer contributions listed in the table below are the Company's multi-employer contributions made in 2012, 2011, and
2010.