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Pension and Other Postretirement Benefit Plans
9 Months Ended
Sep. 30, 2011
Compensation and Retirement Disclosure [Abstract] 
Pension and Other Postretirement Benefit Plans
Pension and Other Postretirement Benefit Plans

PNMR and its subsidiaries maintain qualified defined benefit pension plans, postretirement benefit plans providing medical and dental benefits, and executive retirement programs (“PNM Plans” and “TNMP Plans”). PNMR maintains the legal obligation for the benefits owed to participants under these plans.

Information concerning pension and other postretirement plans is contained in Note 12 of Notes to Consolidated Financial Statements in the 2010 Annual Reports on Form 10-K. Annual net periodic benefit cost (income) for the plans is actuarially determined using the methods and assumptions set forth in that note and is recognized ratably throughout the year.

PNM Plans

The following table presents the components of the PNM Plans’ net periodic benefit cost:
 
Three Months Ended September 30,
 
Pension Plan
 
Other Postretirement Benefits
 
Executive Retirement Program
 
2011
 
2010
 
2011
 
2010
 
2011
 
2010
 
(In thousands)
Components of Net Periodic
 
 
 
 
 
 
 
 
 
 
 
Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
—

 
$
—

 
$
65

 
$
105

 
$
—

 
$
—

Interest cost
8,202

 
8,518

 
1,345

 
1,913

 
233

 
263

Long-term return on plan assets
(9,269
)
 
(9,339
)
 
(1,347
)
 
(1,393
)
 
—

 
—

Amortization of net loss
2,302

 
1,613

 
801

 
1,372

 
23

 
18

Amortization of prior service cost
79

 
79

 
(662
)
 
(1,036
)
 
—

 
—

Net periodic benefit cost
$
1,314

 
$
871

 
$
202

 
$
961

 
$
256

 
$
281


 
Nine Months Ended September 30,
 
Pension Plan
 
Other Postretirement Benefits
 
Executive Retirement Program
 
2011
 
2010
 
2011
 
2010
 
2011
 
2010
 
 
 
 
 
(In thousands)
 
 
 
 
Components of Net Periodic
 
 
 
 
 
 
 
 
 
 
 
Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
—

 
$
—

 
$
195

 
$
314

 
$
—

 
$
—

Interest cost
24,606

 
25,555

 
4,035

 
5,738

 
699

 
790

Long-term return on plan assets
(27,807
)
 
(28,016
)
 
(4,041
)
 
(4,179
)
 
—

 
—

Amortization of net loss
6,906

 
4,838

 
2,403

 
4,116

 
69

 
53

Amortization of prior service cost
237

 
238

 
(1,986
)
 
(3,107
)
 
—

 
—

Net periodic benefit cost
$
3,942

 
$
2,615

 
$
606

 
$
2,882

 
$
768

 
$
843



PNM made contributions to its pension plan trust of $20.5 million and $34.0 million in the three months and nine months ended September 30, 2011 and $6.5 million and $13.1 million in the three months and nine months ended September 30, 2010. PNM anticipates making additional contributions of $7.5 million in 2011.  Based on current law and estimates of portfolio performance, PNM estimates making contributions to its pension plan trust that total $163.9 million for 2012- 2015. The estimated contributions were developed using estimated discount rates and expected returns on assets to calculate the pension liabilities. Actual amounts to be funded in the future will be dependent on the actuarial assumptions at that time, including the appropriate discount rate and return on assets. PNM contributed $0.7 million and $1.9 million to the trust for other postretirement benefits for the three months and nine months ended September 30, 2011 and $0.4 million and $1.6 million for the three months and nine months ended September 30, 2010. PNM expects contributions during 2011 to the trust for other postretirement benefits to total $2.6 million.  Disbursements under the executive retirement program, which are funded by the Company and considered to be contributions to the plan, were $0.4 million and $1.2 million in the three months and nine months ended September 30, 2011 and $0.4 million and $1.1 million in the three months and nine months ended September 30, 2010 and are expected to total $1.5 million during 2011.

TNMP Plans

The following table presents the components of the TNMP Plans’ net periodic benefit cost (income):

 
Three Months Ended September 30,
 
Pension Plan
 
Other Postretirement Benefits
 
Executive Retirement Program
 
2011
 
2010
 
2011
 
2010
 
2011
 
2010
 
 
 
 
 
(In thousands)
 
 
 
 
Components of Net Periodic
 
 
 
 
 
 
 
 
 
 
 
Benefit Cost (Income)
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
—

 
$
—

 
$
77

 
$
72

 
$
—

 
$
—

Interest cost
951

 
1,032

 
163

 
178

 
12

 
13

Long-term return on plan assets
(1,368
)
 
(1,449
)
 
(133
)
 
(129
)
 
—

 
—

Amortization of net (gain) loss
86

 
—

 
(48
)
 
(49
)
 
—

 
(1
)
Amortization of prior service cost
—

 
—

 
15

 
15

 
—

 
—

Net Periodic Benefit Cost (Income)
$
(331
)
 
$
(417
)
 
$
74

 
$
87

 
$
12

 
$
12


 
Nine Months Ended September 30,
 
Pension Plan
 
Other Postretirement Benefits
 
Executive Retirement Program
 
2011
 
2010
 
2011
 
2010
 
2011
 
2010
 
 
 
 
 
(In thousands)
 
 
 
 
Components of Net Periodic
 
 
 
 
 
 
 
 
 
 
 
Benefit Cost (Income)
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
—

 
$
—

 
$
231

 
$
217

 
$
—

 
$
—

Interest cost
2,853

 
3,095

 
489

 
533

 
36

 
39

Long-term return on plan assets
(4,104
)
 
(4,346
)
 
(399
)
 
(386
)
 
—

 
—

Amortization of net (gain) loss
258

 
—

 
(144
)
 
(147
)
 
—

 
(3
)
Amortization of prior service cost
—

 
—

 
45

 
45

 
—

 
—

Net Periodic Benefit Cost (Income)
$
(993
)
 
$
(1,251
)
 
$
222

 
$
262

 
$
36

 
$
36



TNMP made contributions to its pension plan trust of $0.8 million and $1.0 million in the three months and nine months ended September 30, 2011 and $0.2 million in the three months and nine months ended September 30, 2010. TNMP anticipates making additional contributions of $0.2 million in 2011. Based on current law and estimates of portfolio performance, TNMP estimates making contributions to its pension plan trust that total $6.0 million for 2012-2015. The estimated contributions were developed using estimated discount rates and expected returns on assets to calculate the pension liabilities. Actual amounts to be funded in the future will be dependent on the actuarial assumptions at that time, including the appropriate discount rate and return on assets. TNMP contributed zero and $0.4 million to the trust for other postretirement benefits for the three months and nine months ended September 30, 2011 and zero and $0.6 million for the three months and nine months ended September 30, 2010. TNMP does not expect to make additional contributions during 2011 to the trust for other postretirement benefits. Disbursements under the executive retirement program, which are funded by the Company and considered to be contributions to the plan, were less than $0.1 million in the three months and nine months ended September 30, 2011 and 2010 and are expected to total $0.1 million during 2011.