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EMPLOYEE BENEFITS | 12 Months Ended
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Dec. 31, 2021
Postemployment Benefits [Abstract] |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS A. Pension Benefits and Postretirement Benefits Other Than Pension Eversource provides defined benefit retirement plans (Pension Plans) that cover eligible employees and are subject to the provisions of ERISA, as amended by the Pension Protection Act of 2006. Eversource's policy is to annually fund the Pension Plans in an amount at least equal to an amount that will satisfy all federal funding requirements. In addition to the Pension Plans, Eversource maintains non-qualified defined benefit retirement plans (SERP Plans) which provide benefits in excess of Internal Revenue Code limitations to eligible participants consisting of current and retired employees. Eversource also provides defined benefit postretirement plans (PBOP Plans) that provide life insurance and a health reimbursement arrangement created for the purpose of reimbursing retirees and dependents for health insurance premiums and certain medical expenses to eligible employees that meet certain age and service eligibility requirements. The benefits provided under the PBOP Plans are not vested, and the Company has the right to modify any benefit provision subject to applicable laws at that time. Eversource annually funds postretirement costs through tax deductible contributions to external trusts. The Pension, SERP and PBOP Plans cover eligible employees, including, among others, employees of the regulated companies. Because the regulated companies recover retiree benefit costs from customers through rates, regulatory assets are recorded in lieu of recording an adjustment to Accumulated Other Comprehensive Income/(Loss) as an offset to the funded status of the Pension, SERP and PBOP Plans. Regulatory accounting is also applied to the portions of the Eversource Service retiree benefit costs that support the regulated companies, as these costs are also recovered from customers. Adjustments to the Pension, SERP and PBOP Plans' funded status for the unregulated companies are recorded on an after-tax basis to Accumulated Other Comprehensive Income/(Loss). For further information, see Note 2, "Regulatory Accounting," and Note 16, "Accumulated Other Comprehensive Income/(Loss)," to the financial statements. Funded Status: The Pension, SERP and PBOP Plans are accounted for under the multiple-employer approach, with each operating company's balance sheet reflecting its share of the funded status of the plans. Although Eversource maintains marketable securities in a benefit trust, the SERP Plans do not contain any assets. For further information, see Note 5, "Marketable Securities," to the financial statements. The following tables provide information on the plan benefit obligations, fair values of plan assets, and funded status:
| Pension and SERP
| As of December 31,
| 2021 |  | 2020
(Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH
Change in Benefit Obligation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Benefit Obligation as of Beginning of Year | $ | (7,045.3) |  |  | $ | (1,477.3) |  |  | $ | (1,517.9) |  |  | $ | (748.7) |  |  | $ | (6,321.7) |  |  | $ | (1,331.3) |  |  | $ | (1,397.3) |  |  | $ | (692.6) |
Service Cost | (85.8) |  |  | (23.0) |  |  | (15.8) |  |  | (8.9) |  |  | (76.2) |  |  | (21.8) |  |  | (15.4) |  |  | (8.2) |
Interest Cost | (130.0) |  |  | (27.3) |  |  | (26.8) |  |  | (14.5) |  |  | (177.8) |  |  | (37.3) |  |  | (38.6) |  |  | (19.4) |
Actuarial Gain/(Loss) | 177.1 |  |  | 127.8 |  |  | 20.8 |  |  | 14.7 |  |  | (658.2) |  |  | (152.3) |  |  | (139.5) |  |  | (62.1) |
Benefits Paid - Pension | 309.5 |  |  | 64.6 |  |  | 68.7 |  |  | 34.7 |  |  | 279.3 |  |  | 63.6 |  |  | 59.4 |  |  | 33.5 |
Benefits Paid - Lump Sum | 34.7 |  |  | — |  |  | 15.6 |  |  | — |  |  | 23.4 |  |  | — |  |  | 13.1 |  |  | — |
Benefits Paid - SERP | 10.1 |  |  | 0.3 |  |  | 0.2 |  |  | 0.4 |  |  | 7.3 |  |  | 0.3 |  |  | 0.2 |  |  | 0.4 |
Employee Transfers | — |  |  | 4.0 |  |  | 6.8 |  |  | 1.3 |  |  | — |  |  | 1.5 |  |  | 0.2 |  |  | (0.3) |
Increase due to acquisition of CMA | — |  |  | — |  |  | — |  |  | — |  |  | (121.4) |  |  | — |  |  | — |  |  | — |
Benefit Obligation as of End of Year | $ | (6,729.7) |  |  | $ | (1,330.9) |  |  | $ | (1,448.4) |  |  | $ | (721.0) |  |  | $ | (7,045.3) |  |  | $ | (1,477.3) |  |  | $ | (1,517.9) |  |  | $ | (748.7) |
Change in Pension Plan Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair Value of Pension Plan Assets as of Beginning of Year | $ | 5,409.2 |  |  | $ | 1,043.1 |  |  | $ | 1,345.1 |  |  | $ | 593.7 |  |  | $ | 4,968.6 |  |  | $ | 986.2 |  |  | $ | 1,288.8 |  |  | $ | 551.6 |
Employer Contributions | 180.0 |  |  | 98.9 |  |  | 30.0 |  |  | — |  |  | 109.6 |  |  | 23.2 |  |  | 0.7 |  |  | 19.5 |
Actual Return on Pension Plan Assets | 1,250.5 |  |  | 250.4 |  |  | 312.0 |  |  | 136.9 |  |  | 512.3 |  |  | 98.8 |  |  | 128.3 |  |  | 55.8 |
Benefits Paid - Pension | (309.5) |  |  | (64.6) |  |  | (68.7) |  |  | (34.7) |  |  | (279.3) |  |  | (63.6) |  |  | (59.4) |  |  | (33.5) |
Benefits Paid - Lump Sum | (34.7) |  |  | — |  |  | (15.6) |  |  | — |  |  | (23.4) |  |  | — |  |  | (13.1) |  |  | — |
Employee Transfers | — |  |  | (4.0) |  |  | (6.8) |  |  | (1.3) |  |  | — |  |  | (1.5) |  |  | (0.2) |  |  | 0.3 |
Increase due to acquisition of CMA | — |  |  | — |  |  | — |  |  | — |  |  | 121.4 |  |  | — |  |  | — |  |  | — |
Fair Value of Pension Plan Assets as of End of Year | $ | 6,495.5 |  |  | $ | 1,323.8 |  |  | $ | 1,596.0 |  |  | $ | 694.6 |  |  | $ | 5,409.2 |  |  | $ | 1,043.1 |  |  | $ | 1,345.1 |  |  | $ | 593.7 |
Funded Status as of December 31st | $ | (234.2) |  |  | $ | (7.1) |  |  | $ | 147.6 |  |  | $ | (26.4) |  |  | $ | (1,636.1) |  |  | $ | (434.2) |  |  | $ | (172.8) |  |  | $ | (155.0) |
For the year ended December 31, 2021, the decrease in Eversource's pension liability was primarily attributable to an increase in the return on pension assets. While all pension asset classes performed well, the driver of the increase came from higher valuations of Eversource’s private equity investments. Actuarial Gains and Losses: For the year ended December 31, 2021, the decrease in the benefit obligation due to actuarial gains was primarily attributable to an increase in the discount rate, which resulted in a decrease to Eversource's pension liability of $286.8 million. The decrease in the benefit obligation was partially offset by changes in the mortality assumption. For the year ended December 31, 2020, the increase in the benefit obligation due to actuarial losses was primarily attributable to a decrease in the discount rate, which resulted in an increase to Eversource's pension liability of $603.0 million, which was partially offset by changes in the mortality assumption. The pension and SERP Plans' funded status includes the current portion of the SERP liability totaling $9.7 million and $6.8 million as of December 31, 2021 and 2020, respectively, which is included in Other Current Liabilities on the balance sheets. As of December 31, 2021 and 2020, the accumulated benefit obligation for the Pension and SERP Plans is as follows:
(Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH
2021 | $ | 6,337.3 |  |  | $ | 1,241.1 |  |  | $ | 1,376.1 |  |  | $ | 670.3 |
2020 | 6,669.4 |  |  | 1,356.4 |  |  | 1,449.4 |  |  | 707.2 |
| PBOP
| As of December 31,
| 2021 |  | 2020
(Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH
Change in Benefit Obligation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Benefit Obligation as of Beginning of Year | $ | (993.9) |  |  | $ | (178.6) |  |  | $ | (260.5) |  |  | $ | (109.5) |  |  | $ | (899.0) |  |  | $ | (172.7) |  |  | $ | (258.3) |  |  | $ | (93.0) |
Service Cost | (13.5) |  |  | (2.3) |  |  | (2.4) |  |  | (1.2) |  |  | (10.2) |  |  | (1.7) |  |  | (2.1) |  |  | (0.9) |
Interest Cost | (17.4) |  |  | (3.2) |  |  | (4.4) |  |  | (1.8) |  |  | (24.6) |  |  | (4.4) |  |  | (6.6) |  |  | (2.8) |
Actuarial Gain/(Loss) | 81.4 |  |  | 5.8 |  |  | 11.5 |  |  | 14.6 |  |  | (82.8) |  |  | (8.6) |  |  | (7.4) |  |  | (19.0) |
Benefits Paid | 51.7 |  |  | 10.9 |  |  | 16.3 |  |  | 5.6 |  |  | 50.2 |  |  | 10.1 |  |  | 14.9 |  |  | 6.1 |
Employee Transfers | — |  |  | 1.9 |  |  | 1.1 |  |  | — |  |  | — |  |  | (1.3) |  |  | (1.0) |  |  | 0.1 |
Impact of Acquisition of CMA | 7.4 |  |  | — |  |  | — |  |  | — |  |  | (27.5) |  |  | — |  |  | — |  |  | — |
Benefit Obligation as of End of Year | $ | (884.3) |  |  | $ | (165.5) |  |  | $ | (238.4) |  |  | $ | (92.3) |  |  | $ | (993.9) |  |  | $ | (178.6) |  |  | $ | (260.5) |  |  | $ | (109.5) |
Change in Plan Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair Value of Plan Assets as of Beginning of Year | $ | 1,004.1 |  |  | $ | 134.1 |  |  | $ | 464.6 |  |  | $ | 79.4 |  |  | $ | 935.9 |  |  | $ | 126.3 |  |  | $ | 424.4 |  |  | $ | 76.0 |
Actual Return on Plan Assets | 183.2 |  |  | 24.1 |  |  | 84.2 |  |  | 14.2 |  |  | 116.5 |  |  | 15.7 |  |  | 53.3 |  |  | 9.3 |
Employer Contributions | 2.3 |  |  | — |  |  | — |  |  | — |  |  | 1.9 |  |  | — |  |  | — |  |  | — |
Benefits Paid | (51.3) |  |  | (10.9) |  |  | (16.3) |  |  | (5.6) |  |  | (50.2) |  |  | (10.1) |  |  | (14.9) |  |  | (6.1) |
Employee Transfers | — |  |  | (1.6) |  |  | (2.5) |  |  | — |  |  | — |  |  | 2.2 |  |  | 1.8 |  |  | 0.2 |
Fair Value of Plan Assets as of End of Year | $ | 1,138.3 |  |  | $ | 145.7 |  |  | $ | 530.0 |  |  | $ | 88.0 |  |  | $ | 1,004.1 |  |  | $ | 134.1 |  |  | $ | 464.6 |  |  | $ | 79.4 |
Funded Status as of December 31st | $ | 254.0 |  |  | $ | (19.8) |  |  | $ | 291.6 |  |  | $ | (4.3) |  |  | $ | 10.2 |  |  | $ | (44.5) |  |  | $ | 204.1 |  |  | $ | (30.1) |
The Eversource PBOP funded status includes prepaid assets of $272 million and $34.7 million recorded in Other Long-Term Assets and liabilities of $18.0 million and $24.5 million included in Accrued Pension, SERP and PBOP on the balance sheets as of December 31, 2021 and 2020, respectively. Actuarial Gains and Losses: For the year ended December 31, 2021, the decrease in the benefit obligation due to actuarial gains was primarily attributable to an increase in the discount rate, which resulted in a decrease to the Eversource PBOP liability of $29.8 million, and by changes in our retirement assumptions. For the year ended December 31, 2020, the increase in the benefit obligation due to actuarial losses was primarily attributable to a decrease in the discount rate, which resulted in an increase to the Eversource PBOP liability of $68.3 million, and by changes in our retirement assumptions. The following actuarial assumptions were used in calculating the Pension, SERP and PBOP Plans' year end funded status:
| Pension and SERP |  | PBOP
| As of December 31, |  | As of December 31,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Discount Rate |  | 2.8% | — | 3.0% |  | 2.4% | — | 2.7% |  | 2.91% | — | 2.92% |  | 2.5% | — | 2.6%
Compensation/Progression Rate |  | 3.5% | — | 4.0% |  | 3.5% | — | 4.0% |  | N/A
For the Eversource Service PBOP Plan, the health care cost trend rate is not applicable. For the Aquarion PBOP Plan, the health care cost trend rate for pre-65 retirees is 6.5 percent, with an ultimate rate of 5 percent in 2028, and for post-65 retirees, the health care trend rate and ultimate rate is 3.5 percent. Expense: Eversource charges net periodic benefit plan expense/(income) for the Pension, SERP and PBOP Plans to its subsidiaries based on the actual participant demographic data for each subsidiary's participants. The actual investment return in the trust is allocated to each of the subsidiaries annually in proportion to the investment return expected to be earned during the year. The Company utilizes the spot rate methodology to estimate the discount rate for the service and interest cost components of benefit expense, which provides a relatively precise measurement by matching projected cash flows to the corresponding spot rates on the yield curve. The components of net periodic benefit plan expense/(income) for the Pension, SERP and PBOP Plans, prior to amounts capitalized as Property, Plant and Equipment or deferred as regulatory assets/(liabilities) for future recovery or refund, are shown below. The service cost component of net periodic benefit plan expense/(income), less the capitalized portion, is included in Operations and Maintenance expense on the statements of income. The remaining components of net periodic benefit plan expense/(income), less the deferred portion, are included in Other Income, Net on the statements of income. Pension, SERP and PBOP expense reflected in the statements of cash flows for CL&P, NSTAR Electric and PSNH does not include intercompany allocations of net periodic benefit plan expense/(income), as these amounts are cash settled on a short-term basis.
| Pension and SERP |  | PBOP
| For the Year Ended December 31, 2021 |  | For the Year Ended December 31, 2021
(Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH
Service Cost | $ | 85.8 |  |  | $ | 23.0 |  |  | $ | 15.8 |  |  | $ | 8.9 |  |  | $ | 13.5 |  |  | $ | 2.3 |  |  | $ | 2.4 |  |  | $ | 1.2 |
Interest Cost | 130.0 |  |  | 27.3 |  |  | 26.8 |  |  | 14.5 |  |  | 17.4 |  |  | 3.2 |  |  | 4.4 |  |  | 1.8 |
Expected Return on Plan Assets | (437.5) |  |  | (86.8) |  |  | (108.1) |  |  | (47.5) |  |  | (79.1) |  |  | (10.3) |  |  | (36.9) |  |  | (6.1) |
Actuarial Loss | 243.9 |  |  | 45.5 |  |  | 61.6 |  |  | 20.7 |  |  | 8.9 |  |  | 1.8 |  |  | 2.4 |  |  | 0.7 |
Prior Service Cost/(Credit) | 1.4 |  |  | — |  |  | 0.3 |  |  | — |  |  | (21.2) |  |  | 1.1 |  |  | (17.0) |  |  | 0.4 |
Total Net Periodic Benefit Plan Expense/(Income) | $ | 23.6 |  |  | $ | 9.0 |  |  | $ | (3.6) |  |  | $ | (3.4) |  |  | $ | (60.5) |  |  | $ | (1.9) |  |  | $ | (44.7) |  |  | $ | (2.0) |
Intercompany Expense/(Income) Allocations | N/A |  | $ | 8.0 |  |  | $ | 8.8 |  |  | $ | 2.7 |  |  | N/A |  | $ | (1.6) |  |  | $ | (1.9) |  |  | $ | (0.6) |
| Pension and SERP |  | PBOP
| For the Year Ended December 31, 2020 |  | For the Year Ended December 31, 2020
(Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH
Service Cost | $ | 76.2 |  |  | $ | 21.8 |  |  | $ | 15.4 |  |  | $ | 8.2 |  |  | $ | 10.2 |  |  | $ | 1.7 |  |  | $ | 2.1 |  |  | $ | 0.9 |
Interest Cost | 177.8 |  |  | 37.3 |  |  | 38.6 |  |  | 19.4 |  |  | 24.6 |  |  | 4.4 |  |  | 6.6 |  |  | 2.8 |
Expected Return on Plan Assets | (400.3) |  |  | (79.2) |  |  | (103.0) |  |  | (44.7) |  |  | (73.6) |  |  | (9.9) |  |  | (34.0) |  |  | (5.7) |
Actuarial Loss | 202.0 |  |  | 39.2 |  |  | 55.2 |  |  | 15.6 |  |  | 8.4 |  |  | 1.1 |  |  | 2.5 |  |  | 0.8 |
Prior Service Cost/(Credit) | 1.2 |  |  | — |  |  | 0.3 |  |  | — |  |  | (21.2) |  |  | 1.1 |  |  | (17.0) |  |  | 0.4 |
Total Net Periodic Benefit Plan Expense/(Income) | $ | 56.9 |  |  | $ | 19.1 |  |  | $ | 6.5 |  |  | $ | (1.5) |  |  | $ | (51.6) |  |  | $ | (1.6) |  |  | $ | (39.8) |  |  | $ | (0.8) |
Intercompany Expense/(Income) Allocations | N/A |  | $ | 9.1 |  |  | $ | 8.9 |  |  | $ | 2.9 |  |  | N/A |  | $ | (1.1) |  |  | $ | (1.4) |  |  | $ | (0.5) |
| Pension and SERP |  | PBOP
| For the Year Ended December 31, 2019 |  | For the Year Ended December 31, 2019
(Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH |  | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH
Service Cost | $ | 67.7 |  |  | $ | 18.0 |  |  | $ | 14.6 |  |  | $ | 7.1 |  |  | $ | 7.8 |  |  | $ | 1.4 |  |  | $ | 1.7 |  |  | $ | 0.7 |
Interest Cost | 219.0 |  |  | 45.7 |  |  | 49.0 |  |  | 24.0 |  |  | 32.7 |  |  | 6.3 |  |  | 9.5 |  |  | 3.4 |
Expected Return on Plan Assets | (367.1) |  |  | (73.2) |  |  | (97.1) |  |  | (40.7) |  |  | (66.8) |  |  | (9.2) |  |  | (30.2) |  |  | (5.4) |
Actuarial Loss | 143.2 |  |  | 26.9 |  |  | 44.7 |  |  | 10.6 |  |  | 8.3 |  |  | 1.3 |  |  | 3.3 |  |  | 0.3 |
Prior Service Cost/(Credit) | 0.9 |  |  | — |  |  | 0.3 |  |  | — |  |  | (23.5) |  |  | 1.1 |  |  | (16.9) |  |  | 0.4 |
Total Net Periodic Benefit Plan Expense/(Income) | $ | 63.7 |  |  | $ | 17.4 |  |  | $ | 11.5 |  |  | $ | 1.0 |  |  | $ | (41.5) |  |  | $ | 0.9 |  |  | $ | (32.6) |  |  | $ | (0.6) |
Intercompany Expense/(Income) Allocations | N/A |  | $ | 8.5 |  |  | $ | 8.0 |  |  | $ | 2.3 |  |  | N/A |  | $ | (0.9) |  |  | $ | (1.2) |  |  | $ | (0.4) |
The following actuarial assumptions were used to calculate Pension, SERP and PBOP expense amounts:
| Pension and SERP |  | PBOP
| For the Years Ended December 31, |  | For the Years Ended December 31,
| 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019
Discount Rate | 1.5% | — | 3.0% |  | 2.6% | — | 3.5% |  | 2.7% | — | 3.6% |  | 1.8% | — | 3.1% |  | 2.7% | — | 3.6% |  | 3.9% | — | 4.6%
Expected Long-Term Rate of Return | 8.25% |  | 8.25% |  | 8.25% |  | 8.25% |  | 8.25% |  | 8.25%
Compensation/Progression Rate | 3.5% | — | 4.0% |  | 3.5% | — | 4.0% |  | 3.5% | — | 4.0% |  | N/A |  | N/A |  | N/A
For the Aquarion Pension and PBOP Plans, the expected long-term rate of return was 7 percent for the years ended December 31, 2021 and 2020. For the Aquarion PBOP Plan, the health care cost trend rate was a range of 3.5 percent to 6.2 percent for the year ended December 31, 2021 and 3.5 percent to 6.5 percent for the year ended December 31, 2020. The following is a summary of the changes in plan assets and benefit obligations recognized in Regulatory Assets and Other Comprehensive Income (OCI) as well as amounts in Regulatory Assets and OCI that were reclassified as net periodic benefit expense during the years presented:
| Pension and SERP |  | PBOP
| Regulatory Assets |  | OCI |  | Regulatory Assets |  | OCI
| For the Years Ended December 31, |  | For the Years Ended December 31,
(Millions of Dollars) | 2021 |  | 2020 (1) |  | 2021 |  | 2020 |  | 2021 |  | 2020 (1) |  | 2021 |  | 2020
Actuarial (Gains)/Losses Arising During the Year | $ | (961.7) |  |  | $ | 553.1 |  |  | $ | (28.4) |  |  | $ | 24.3 |  |  | $ | (181.5) |  |  | $ | 39.1 |  |  | $ | (4.0) |  |  | $ | 1.3 |
Actuarial Losses Reclassified as Net Periodic Benefit Expense | (231.2) |  |  | (194.3) |  |  | (12.7) |  |  | (7.7) |  |  | (8.5) |  |  | (8.0) |  |  | (0.4) |  |  | (0.4) |
Prior Service Cost Arising During the Year | — |  |  | 2.0 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Prior Service (Cost)/Credit Reclassified as Net Periodic Benefit (Expense)/Income | (1.3) |  |  | (1.0) |  |  | (0.1) |  |  | (0.2) |  |  | 21.1 |  |  | 21.3 |  |  | 0.1 |  |  | (0.1) |
(1) Amounts include the impact of the CMA asset acquisition beginning October 9, 2020. The following is a summary of the remaining Regulatory Assets and Accumulated Other Comprehensive Income amounts that have not been recognized as components of net periodic benefit expense as of December 31, 2021 and 2020:
| Regulatory Assets as of December 31, |  | AOCI as of December 31,
(Millions of Dollars) | 2021 |  | 2020 |  | 2021 |  | 2020
Pension and SERP |  |  |  |  |  |  |
Actuarial Loss | $ | 1,427.3 |  |  | $ | 2,620.2 |  |  | $ | 66.3 |  |  | $ | 107.4 |
Prior Service Cost | 5.3 |  |  | 6.6 |  |  | 0.6 |  |  | 0.7 |
PBOP |  |  |  |  |  |  |
Actuarial Loss | $ | 45.0 |  |  | $ | 235.0 |  |  | $ | 3.5 |  |  | $ | 7.9 |
Prior Service (Credit)/Cost | (130.1) |  |  | (151.2) |  |  | 1.0 |  |  | 0.9 |
The difference between the actual return and calculated expected return on plan assets for the Pension and PBOP Plans, as well as changes in actuarial assumptions impacting the projected benefit obligation, are recorded as unamortized actuarial gains or losses arising during the year in Regulatory Assets or Accumulated Other Comprehensive Income/(Loss). Unamortized actuarial gains or losses are amortized as a component of pension and PBOP expense over the estimated average future employee service period. Estimated Future Benefit Payments: The following benefit payments, which reflect expected future service, are expected to be paid by the Pension, SERP and PBOP Plans:
(Millions of Dollars) | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 |  | 2027 - 2031
Pension and SERP | $ | 359.6 |  |  | $ | 367.4 |  |  | $ | 405.0 |  |  | $ | 381.2 |  |  | $ | 384.3 |  |  | $ | 1,918.2 |
PBOP | 56.4 |  |  | 56.2 |  |  | 55.9 |  |  | 55.3 |  |  | 54.3 |  |  | 254.6 |
Eversource Contributions: Based on the current status of the Pension Plans and federal pension funding requirements, there is no minimum funding requirement for our Pension Plans for 2022. Eversource currently expects to make contributions between $100 million to $175 million in 2022, most of which will be contributed by Eversource Service, however the planned contribution is discretionary and subject to change. Eversource currently estimates contributing $2.4 million to the PBOP Plans in 2022. Fair Value of Pension and PBOP Plan Assets: Pension and PBOP funds are held in external trusts. Trust assets, including accumulated earnings, must be used exclusively for Pension and PBOP payments. Eversource's investment strategy for its Pension and PBOP Plans is to maximize the long-term rates of return on these plans' assets within an acceptable level of risk. The investment strategy for each asset category includes a diversification of asset types, fund strategies and fund managers and it establishes target asset allocations that are routinely reviewed and periodically rebalanced. PBOP assets are comprised of assets held in the PBOP Plan trust, as well as specific assets within the Pension Plan trust (401(h) assets). The investment policy and strategy of the 401(h) assets is consistent with that of the defined benefit pension plan. Eversource's expected long-term rates of return on Pension and PBOP Plan assets are based on target asset allocation assumptions and related expected long-term rates of return. In developing its expected long-term rate of return assumptions for the Pension and PBOP Plans, Eversource evaluated input from consultants, as well as long-term inflation assumptions and historical returns. Management has assumed long-term rates of return of 8.25 percent for the Eversource Service Pension and PBOP Plan assets and a 7 percent long-term rate of return for the Aquarion Plans to estimate its 2022 Pension and PBOP costs. These long-term rates of return are based on the assumed rates of return for the target asset allocations as follows:
| As of December 31,
| 2021 |  | 2020
| Eversource Pension Plan and PBOP Plan |  | Eversource Pension Plan and PBOP Plan
| Target Asset Allocation |  | Assumed Rate of Return |  | Target Asset Allocation |  | Assumed Rate of Return
Equity Securities: |  |  |  |  |  |  |
United States | 15.0 | % |  | 8.5 | % |  | 15.0 | % |  | 8.5 | %
Global | 10.0 | % |  | 8.75 | % |  | 10.0 | % |  | 8.75 | %
Non-United States | 8.0 | % |  | 8.5 | % |  | 8.0 | % |  | 8.5 | %
Emerging Markets | 4.0 | % |  | 10.0 | % |  | 4.0 | % |  | 10.0 | %
Debt Securities: |  |  |  |  |  |  |
Fixed Income | 13.0 | % |  | 4.0 | % |  | 13.0 | % |  | 4.0 | %
Public High Yield Fixed Income | 4.0 | % |  | 6.5 | % |  | 4.0 | % |  | 6.5 | %
Private Debt | 13.0 | % |  | 9.0 | % |  | 15.0 | % |  | 9.0 | %
Private Equity | 18.0 | % |  | 12.0 | % |  | 15.0 | % |  | 12.0 | %
Real Assets | 15.0 | % |  | 7.5 | % |  | 16.0 | % |  | 7.5 | %
The following table presents, by asset category, the Pension and PBOP Plan assets recorded at fair value on a recurring basis by the level in which they are classified within the fair value hierarchy:
| Pension Plan
| Fair Value Measurements as of December 31,
(Millions of Dollars) | 2021 |  | 2020
Asset Category: | Level 1 |  | Level 2 |  | Uncategorized |  | Total |  | Level 1 |  | Level 2 |  | Uncategorized |  | Total
Equity Securities | $ | 722.5 |  |  | $ | — |  |  | $ | 1,385.2 |  |  | $ | 2,107.7 |  |  | $ | 630.8 |  |  | $ | — |  |  | $ | 1,321.7 |  |  | $ | 1,952.5 |
Fixed Income | 139.6 |  |  | 233.8 |  |  | 1,689.1 |  |  | 2,062.5 |  |  | 113.6 |  |  | 265.6 |  |  | 1,402.5 |  |  | 1,781.7 |
Private Equity | — |  |  | — |  |  | 1,702.7 |  |  | 1,702.7 |  |  | 22.3 |  |  | — |  |  | 1,175.4 |  |  | 1,197.7 |
Real Assets | 218.3 |  |  | — |  |  | 702.8 |  |  | 921.1 |  |  | 158.4 |  |  | — |  |  | 580.8 |  |  | 739.2 |
Total | $ | 1,080.4 |  |  | $ | 233.8 |  |  | $ | 5,479.8 |  |  | $ | 6,794.0 |  |  | $ | 925.1 |  |  | $ | 265.6 |  |  | $ | 4,480.4 |  |  | $ | 5,671.1 |
Less: 401(h) PBOP Assets (1) |  |  |  |  |  |  | (298.5) |  |  |  |  |  |  |  |  | (261.9) |
Total Pension Assets |  |  |  |  |  |  | $ | 6,495.5 |  |  |  |  |  |  |  |  | $ | 5,409.2 |
| PBOP Plan
| Fair Value Measurements as of December 31,
(Millions of Dollars) | 2021 |  | 2020
Asset Category: | Level 1 |  | Level 2 |  | Uncategorized |  | Total |  | Level 1 |  | Level 2 |  | Uncategorized |  | Total
Equity Securities | $ | 191.4 |  |  | $ | — |  |  | $ | 248.3 |  |  | $ | 439.7 |  |  | $ | 176.5 |  |  | $ | — |  |  | $ | 217.8 |  |  | $ | 394.3 |
Fixed Income | 49.7 |  |  | 45.2 |  |  | 125.5 |  |  | 220.4 |  |  | 16.0 |  |  | 43.2 |  |  | 152.9 |  |  | 212.1 |
Private Equity | — |  |  | — |  |  | 58.7 |  |  | 58.7 |  |  | — |  |  | — |  |  | 31.5 |  |  | 31.5 |
Real Assets | 90.0 |  |  | — |  |  | 31.0 |  |  | 121.0 |  |  | 82.1 |  |  | — |  |  | 22.2 |  |  | 104.3 |
Total | $ | 331.1 |  |  | $ | 45.2 |  |  | $ | 463.5 |  |  | $ | 839.8 |  |  | $ | 274.6 |  |  | $ | 43.2 |  |  | $ | 424.4 |  |  | $ | 742.2 |
Add: 401(h) PBOP Assets (1) |  |  |  |  |  |  | 298.5 |  |  |  |  |  |  |  |  | 261.9 |
Total PBOP Assets |  |  |  |  |  |  | $ | 1,138.3 |  |  |  |  |  |  |  |  | $ | 1,004.1 |
(1) The assets of the Pension Plan include a 401(h) account that has been allocated to provide health and welfare postretirement benefits under the PBOP Plan. The Company values assets based on observable inputs when available. Equity securities, exchange traded funds and futures contracts classified as Level 1 in the fair value hierarchy are priced based on the closing price on the primary exchange as of the balance sheet date. Fixed income securities, such as government issued securities and corporate bonds, are included in Level 2 and are valued using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. The pricing models utilize observable inputs such as recent trades for the same or similar instruments, yield curves, discount margins and bond structures. Swaps are valued using pricing models that incorporate interest rates and equity and fixed income index closing prices to determine a net present value of the cash flows. Certain investments, such as commingled funds, private equity investments, fixed income funds, real asset funds and hedge funds are valued using the net asset value (NAV) as a practical expedient. Assets valued at NAV are uncategorized in the fair value hierarchy. These investments are structured as investment companies offering shares or units to multiple investors for the purpose of providing a return. Commingled funds are recorded at NAV provided by the asset manager, which is based on the market prices of the underlying equity securities. Private Equity investments, Fixed Income partnership funds and Real Assets are valued using the NAV provided by the partnerships, which are based on discounted cash flows of the underlying investments, real estate appraisals or public market comparables of the underlying investments, or the NAV of underlying assets held in hedge funds. Equity Securities investments in United States, Global, Non-United States and Emerging Markets that are uncategorized include investments in commingled funds and hedge funds that are overlaid with equity index swaps and futures contracts. Fixed Income investments that are uncategorized include investments in commingled funds, fixed income funds that invest in a variety of opportunistic and fixed income strategies, and hedge funds that are overlaid with fixed income futures. Defined Contribution Plans Eversource maintains defined contribution plans on behalf of eligible participants. The Eversource 401k Plan provides for employee and employer contributions up to statutory limits. For eligible employees, the Eversource 401k Plan provides employer matching contributions of either 100 percent up to a maximum of three percent of eligible compensation or 50 percent up to a maximum of eight percent of eligible compensation. The Eversource 401k Plan also contains a K-Vantage feature for the benefit of eligible participants, which provides an additional annual employer contribution based on age and years of service. K-Vantage participants are not eligible to actively participate in the Eversource Pension Plan. The total Eversource 401k Plan employer matching contributions, including the K-Vantage contributions, were as follows:
(Millions of Dollars) | Eversource |  | CL&P |  | NSTAR Electric |  | PSNH
2021 | $ | 55.5 |  |  | $ | 7.0 |  |  | $ | 12.2 |  |  | $ | 4.3 |
2020 | 49.4 |  |  | 6.6 |  |  | 11.8 |  |  | 4.1 |
2019 | 41.6 |  |  | 5.5 |  |  | 10.3 |  |  | 3.5 |
Share-Based Payments Share-based compensation awards are recorded using a fair-value based method at the date of grant. Eversource, CL&P, NSTAR Electric and PSNH record compensation expense related to these awards, as applicable, for shares issued to their respective employees and officers, as well as for the allocation of costs associated with shares issued to Eversource's service company employees and officers that support CL&P, NSTAR Electric and PSNH. Eversource Incentive Plans: Eversource maintains long-term equity-based incentive plans in which Eversource, CL&P, NSTAR Electric and PSNH employees, officers and board members are eligible to participate. The incentive plans authorize Eversource to grant up to 6,700,000 new shares for various types of awards, including RSUs and performance shares, to eligible employees, officers, and board members. As of December 31, 2021 and 2020, Eversource had 2,430,716 and 2,876,601 common shares, respectively, available for issuance under these plans. Eversource accounts for its various share-based plans as follows: •RSUs - Eversource records compensation expense, net of estimated forfeitures, on a straight-line basis over the requisite service period based upon the fair value of Eversource's common shares at the date of grant. The par value of RSUs is reclassified to Common Stock from Capital Surplus, Paid In as RSUs become issued as common shares. •Performance Shares - Eversource records compensation expense, net of estimated forfeitures, on a straight-line basis over the requisite service period. Performance shares vest based upon the extent to which Company goals are achieved. Vesting of outstanding performance shares is based upon both the Company's EPS growth over the requisite service period and the total shareholder return as compared to the Edison Electric Institute (EEI) Index during the requisite service period. The fair value of performance shares is determined at the date of grant using a lattice model. RSUs: Eversource granted RSUs under the annual long-term incentive programs that are subject to three-year graded vesting schedules for employees, and one-year graded vesting schedules, or immediate vesting, for board members. RSUs are paid in shares, reduced by amounts sufficient to satisfy withholdings for income taxes, subsequent to vesting. A summary of RSU transactions is as follows:
| RSUs (Units) |  | Weighted Average Grant-Date Fair Value
Outstanding as of December 31, 2020 | 674,218 |  |  | $ | 63.42 |
Granted | 165,930 |  |  | $ | 81.89 |
Shares Issued | (223,484) |  |  | $ | 69.03 |
Forfeited | (22,041) |  |  | $ | 83.86 |
Outstanding as of December 31, 2021 | 594,623 |  |  | $ | 65.70 |
The weighted average grant-date fair value of RSUs granted for the years ended December 31, 2021, 2020 and 2019 was $81.89, $88.23 and $67.91, respectively. As of December 31, 2021 and 2020, the number and weighted average grant-date fair value of unvested RSUs was 297,270 and $83.39 per share, and 379,258 and $77.13 per share, respectively. During 2021, there were 219,560 RSUs at a weighted average grant-date fair value of $72.37 per share that vested during the year and were either paid or deferred. As of December 31, 2021, 297,353 RSUs were fully vested and deferred and an additional 282,407 are expected to vest. Performance Shares: Eversource granted performance shares under the annual long-term incentive programs that vest based upon the extent to which Company goals are achieved at the end of three-year performance measurement periods. Performance shares are paid in shares, after the performance measurement period. A summary of performance share transactions is as follows:
| Performance Shares (Units) |  | Weighted Average Grant-Date Fair Value
Outstanding as of December 31, 2020 | 447,805 |  |  | $ | 69.93 |
Granted | 286,645 |  |  | $ | 76.08 |
Shares Issued | (256,914) |  |  | $ | 56.88 |
Forfeited | (13,029) |  |  | $ | 84.28 |
Outstanding as of December 31, 2021 | 464,507 |  |  | $ | 80.54 |
The weighted average grant-date fair value of performance shares granted for the years ended December 31, 2021, 2020 and 2019 was $76.08, $75.36 and $68.33, respectively. As of December 31, 2021 and 2020, the number and weighted average grant-date fair value of unvested performance shares was 436,957 and $81.41 per share, and 404,698 and $70.85 per share, respectively. During 2021, there were 241,949 performance shares at a weighted average grant-date fair value of $57.23 per share that vested during the year and were either paid or deferred. As of December 31, 2021, 27,550 performance shares were fully vested and deferred. Compensation Expense: The total compensation expense and associated future income tax benefits recognized by Eversource, CL&P, NSTAR Electric and PSNH for share-based compensation awards were as follows:
Eversource | For the Years Ended December 31,
(Millions of Dollars) | 2021 |  | 2020 |  | 2019
Compensation Expense | $ | 28.2 |  |  | $ | 33.9 |  |  | $ | 27.3 |
Future Income Tax Benefit | 7.3 |  |  | 8.9 |  |  | 7.0 |
| For the Years Ended December 31,
| 2021 |  | 2020 |  | 2019
(Millions of Dollars) | CL&P |  | NSTAR Electric |  | PSNH |  | CL&P |  | NSTAR Electric |  | PSNH |  | CL&P |  | NSTAR Electric |  | PSNH
Compensation Expense | $ | 8.8 |  |  | $ | 9.0 |  |  | $ | 3.0 |  |  | $ | 10.9 |  |  | $ | 11.3 |  |  | $ | 3.6 |  |  | $ | 9.8 |  |  | $ | 9.7 |  |  | $ | 3.3 |
Future Income Tax Benefit | 2.3 |  |  | 2.3 |  |  | 0.8 |  |  | 2.9 |  |  | 3.0 |  |  | 1.0 |  |  | 2.5 |  |  | 2.5 |  |  | 0.8 |
As of December 31, 2021, there was $17.8 million of total unrecognized compensation expense related to nonvested share-based awards for Eversource, including $3.2 million for CL&P, $5.0 million for NSTAR Electric, and $1.1 million for PSNH. This cost is expected to be recognized ratably over a weighted-average period of 1.72 years for Eversource, CL&P, NSTAR Electric and PSNH. An income tax rate of 26 percent was used to estimate the tax effect on total share-based payments determined under the fair-value based method for all awards. Beginning in 2019, the Company began issuing treasury shares to settle fully vested RSUs and performance shares under the Company's incentive plans. For the years ended December 31, 2021, 2020 and 2019, excess tax benefits associated with the distribution of stock compensation awards reduced income tax expense by $4.0 million, $6.6 million, and $1.5 million, respectively, which increased cash flows from operating activities on the statements of cash flows. Other Retirement Benefits Eversource provides retirement and other benefits for certain current and past company officers. These benefits are accounted for on an accrual basis and expensed over a period equal to the service lives of the employees. The actuarially-determined liability for these benefits is included in Other Current and Long-Term Liabilities on the balance sheets. The related expense, which includes the allocation of expense associated with Eversource's service company officers that support CL&P, NSTAR Electric and PSNH, is included in Operations and Maintenance Expense on the income statements. The liability and expense amounts are as follows:
Eversource (Millions of Dollars) | As of and For the Years Ended December 31,
2021 |  | 2020 |  | 2019
Actuarially-Determined Liability | $ | 42.8 |  |  | $ | 45.7 |  |  | $ | 52.0 |
Other Retirement Benefits Expense | 2.2 |  |  | 3.3 |  |  | 2.7 |
| As of and For the Years Ended December 31,
| 2021 |  | 2020 |  | 2019
(Millions of Dollars) | CL&P |  | NSTAR Electric |  | PSNH |  | CL&P |  | NSTAR Electric |  | PSNH |  | CL&P |  | NSTAR Electric |  | PSNH
Actuarially-Determined Liability | $ | 0.2 |  |  | $ | 0.1 |  |  | $ | 1.5 |  |  | $ | 0.2 |  |  | $ | 0.1 |  |  | $ | 1.7 |  |  | $ | 0.2 |  |  | $ | 0.1 |  |  | $ | 1.7 |
Other Retirement Benefits Expense | 0.7 |  |  | 0.7 |  |  | 0.3 |  |  | 1.2 |  |  | 1.1 |  |  | 0.5 |  |  | 1.0 |  |  | 0.9 |  |  | 0.4 |

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