XML 72 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Pension and Other Postretirement Benefit Plans
 3 Months Ended
Mar. 31, 2012
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 OPEB plans is contained in Note 12 of the Notes to Consolidated Financial Statements in the 2011 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 March 31,
 
Pension Plan
 
OPEB Plan
 
Executive Retirement Program
 
2012
 
2011
 
2012
 
2011
 
2012
 
2011
 
(In thousands)
Components of Net Periodic
 
 
 
 
 
 
 
 
 
 
 
Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
—

 
$
—

 
$
54

 
$
65

 
$
—

 
$
—

Interest cost
8,058

 
8,202

 
1,324

 
1,345

 
219

 
233

Long-term return on plan assets
(10,325
)
 
(9,269
)
 
(1,225
)
 
(1,347
)
 
—

 
—

Amortization of net loss
2,629

 
2,302

 
972

 
801

 
21

 
23

Amortization of prior service cost
79

 
79

 
(336
)
 
(662
)
 
—

 
—

Net periodic benefit cost
$
441

 
$
1,314

 
$
789

 
$
202

 
$
240

 
$
256


PNM made contributions to its pension plan trust of $77.7 million and $6.0 million in the three months ended March 31, 2012 and 2011. PNM does not anticipate making additional contributions in 2012.  Based on current law and estimates of portfolio performance, PNM estimates making contributions to its pension plan trust that total $85.3 million for 2013-2016. These anticipated contributions were developed using current funding assumptions with a discount rate of 5.3%. Actual amounts to be funded in the future will be dependent on the actuarial assumptions at that time, including the appropriate discount rate. PNM made contributions to the OPEB trust of $0.8 million in the three months ended March 31, 2012 and none in the three months ended March 31, 2011. PNM expects contributions during 2012 to the OPEB trust to total $3.2 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 $0.4 million in the three months ended March 31, 2012 and 2011 and are expected to total $1.5 million during 2012.

TNMP Plans

The following table presents the components of the TNMP Plans’ net periodic benefit cost (income):
 
Three Months Ended March 31,
 
Pension Plan
 
OPEB Plan
 
Executive Retirement Program
 
2012
 
2011
 
2012
 
2011
 
2012
 
2011
 
 
 
 
 
(In thousands)
 
 
 
 
Components of Net Periodic
 
 
 
 
 
 
 
 
 
 
 
Benefit Cost (Income)
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
—

 
$
—

 
$
61

 
$
77

 
$
—

 
$
—

Interest cost
909

 
951

 
156

 
163

 
11

 
12

Long-term return on plan assets
(1,331
)
 
(1,368
)
 
(129
)
 
(133
)
 
—

 
—

Amortization of net (gain) loss
115

 
86

 
(52
)
 
(48
)
 
—

 
—

Amortization of prior service cost
—

 
—

 
14

 
15

 
—

 
—

Net Periodic Benefit Cost (Income)
$
(307
)
 
$
(331
)
 
$
50

 
$
74

 
$
11

 
$
12


TNMP made contributions to its pension plan trust of $5.3 million and $0.1 million in the three months ended March 31, 2012 and 2011. TNMP does not anticipate making additional contributions in 2012. Based on current law and estimates of portfolio performance, TNMP estimates making contributions to its pension plan trust that total $1.8 million for 2013-2016. These anticipated contributions were developed using current funding assumptions with a discount rate of 5.3%. Actual amounts to be funded in the future will be dependent on the actuarial assumptions at that time, including the appropriate discount rate. TNMP made contributions to the OPEB trust of $0.3 million in the three months ended March 31, 2012 and none in the three months ended March 31, 2011. TNMP does not expect to make additional contributions during 2012 to the OPEB trust. 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 ended March 31, 2012 and 2011 and are expected to total $0.1 million during 2012.