Pension Benefits

9 Months Ended

Sep. 30, 2020

Total Periodic Benefit Cost

The components of the Companies’ total periodic benefit cost for the three and nine months ended September 30, 2020 and 2019 were as follows:


	For the Three Months Ended September 30,
	Con Edison		CECONY
(Millions of Dollars)	2020	2019	2020	2019
Service cost – including administrative expenses	$73	$62	$69	$58
Interest cost on projected benefit obligation	137	150	129	141
Expected return on plan assets	(258)	(247)	(245)	(234)
Recognition of net actuarial loss	175	130	165	123
Recognition of prior service credit	(4)	(4)	(5)	(5)
TOTAL PERIODIC BENEFIT COST	$123	$91	$113	$83
Cost capitalized	(34)	(26)	(32)	(24)
Reconciliation to rate level	(62)	(5)	(59)	(4)
Total expense recognized	$27	$60	$22	$55


	For the Nine Months Ended September 30,
	Con Edison		CECONY
(Millions of Dollars)	2020	2019	2020	2019
Service cost – including administrative expenses	$220	$187	$206	$175
Interest cost on projected benefit obligation	412	451	387	423
Expected return on plan assets	(775)	(741)	(735)	(702)
Recognition of net actuarial loss	524	389	496	369
Recognition of prior service credit	(12)	(13)	(15)	(15)
TOTAL PERIODIC BENEFIT COST	$369	$273	$339	$250
Cost capitalized	(98)	(80)	(93)	(76)
Reconciliation to rate level	(188)	(12)	(179)	(10)
Total expense recognized	$83	$181	$67	$164

Components of net periodic benefit cost other than service cost are presented outside of operating income on the Companies' consolidated income statements, and only the service cost component is eligible for capitalization. Accordingly, the service cost component is included in the line "Other operations and maintenance" and the non-service cost components are included in the line "Other deductions" in the Companies' consolidated income statements.

Expected Contributions

Based on estimates as of September 30, 2020, the Companies expect to make contributions to the pension plans during 2020 of $474 million (of which $434 million is to be made by CECONY). The Companies’ policy is to fund the total periodic benefit cost of the qualified plan to the extent tax deductible and to also contribute to the non-qualified supplemental plans. During the first nine months of 2020, the Companies contributed $470 million to the pension plans, of which $430 million was made by CECONY. CECONY also contributed $18 million to the external trust for its non-qualified supplemental plan.