Vectren 2013 Annual Report Download - page 96

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2019-2023. Expected benefit payments projected to be required for postretirement benefits during the years following 2013 (in
millions) are approximately $4.9 in 2014, $5.0 in 2015, $5.2 in 2016, $5.5 in 2017, $5.9 in 2018, and $31.9 in years 2019-2023.
Prior Service Cost, Actuarial Gains and Losses, and Transition Obligation Effects
Following is a roll forward of prior service cost, actuarial gains and losses, and transition obligations.
Pensions Other Benefits
(In millions)
Prior
Service
Cost
Net
Gain
or Loss
Prior
Service
Cost
Net
Gain
or Loss Transition
Obligation
Balance at January 1, 2011 $ 7.1 $ 78.2 $ (2.0) $ 10.3 $ 3.8
Amounts arising during the period — 42.2 — (0.6) —
Reclassification to benefit costs (1.7) (3.8) 0.8 (0.6) (1.1)
Balance at December 31, 2011 $ 5.4 $ 116.6 $ (1.2) $ 9.1 $ 2.7
Amounts arising during the period 0.7 26.4 (24.4) 2.8 (2.2)
Reclassification to benefit costs (1.6) (6.8) 2.5 (0.7) (0.5)
Balance at December 31, 2012 $ 4.5 $ 136.2 $ (23.1) $ 11.2 $ —
Amounts arising during the period — (58.8) (0.2) (2.4) —
Reclassification to benefit costs (1.5) (10.1) 3.2 (0.7) —
Balance at December 31, 2013 $ 3.0 $ 67.3 $ (20.1) $ 8.1 $ —
Following is a reconciliation of the amounts in Accumulated other comprehensive income (AOCI) and Regulatory assets related
to retirement plan obligations at December 31, 2013 and 2012.
(In millions) 2013 2012
Pensions Other
Benefits Pensions Other Benefits
Prior service cost $ 3.0 $ (20.1) $ 4.5 $ (23.1)
Unamortized actuarial gain/(loss) 67.3 8.1 136.2 11.2
Transition obligation — — — —
70.3 (12.0) 140.7 (11.9)
Less: Regulatory asset deferral (68.9) 11.8 (137.9) 11.7
AOCI before taxes $ 1.4 $ (0.2) $ 2.8 $ (0.2)
Related to pension plans, $1.1 million of prior service cost and $4.7 million of actuarial gain/loss is expected to be amortized to
cost in 2014. Related to other benefits, $0.4 million of actuarial gain/loss is expected to be amortized to periodic cost in 2014,
and $3.0 million of prior service cost is expected to reduce costs in 2014.
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 $33.2 million, $27.6 million and $18.3 million for the years ended
December 31, 2013, 2012, and 2011, respectively. The increase in expense is due primarily to the increase in work performed.
During 2013, the Company, made contributions to these multi-employer plans on behalf of employees that participate in
approximately 270 local unions. Contracts with these unions are negotiated with trade agreements through two primary