NOTE 9: RETIREMENT BENEFIT OBLIGATIONS

The Company co-sponsors the Unitil Corporation Retirement Plan (Pension Plan), the Unitil Retiree Health and Welfare Benefits Plan (PBOP Plan), and the Unitil Corporation Supplemental Executive Retirement Plan (SERP) to provide certain pension and postretirement benefits for its retirees and current employees. Please see Note 10 to the Consolidated Financial Statements in the Company’s Form 10-K for the year ended December 31, 2013 as filed with the SEC on January 29, 2014 for additional information regarding these plans.

The following table includes the key weighted average assumptions used in determining the Company’s benefit plan costs and obligations:


	2014			2013
Used to Determine Plan Costs
Discount Rate		4.80	%		4.00	%
Rate of Compensation Increase		3.00	%		3.00	%
Expected Long-term rate of return on plan assets		8.00	%		8.50	%
Health Care Cost Trend Rate Assumed for Next Year		7.00	%		8.00	%
Ultimate Health Care Cost Trend Rate		4.00	%		4.00	%
Year that Ultimate Health Care Cost Trend Rate is reached		2018			2017

The following table provides the components of the Company’s Retirement plan costs ($000’s):


	Pension Plan						PBOP Plan						SERP
Three Months Ended March 31,	2014			2013			2014			2013			2014		2013
Service Cost	$	751		$	893		$	497		$	631		$	14	$	18
Interest Cost		1,273			1,142			672			612			68		60
Expected Return on Plan Assets		(1,561	)		(1,489	)		(230	)		(180	)		—		—
Prior Service Cost Amortization		53			52			420			425			3		3
Actuarial Loss Amortization		712			1,059			14			196			25		46

Sub-total		1,228			1,657			1,373			1,684			110		127
Amounts Capitalized and Deferred		(344	)		(616	)		(473	)		(769	)		—		—

Net Periodic Benefit Cost Recognized	$	884		$	1,041		$	900		$	915		$	110	$	127

Employer Contributions

As of March 31, 2014, the Company had made $0.9 million of contributions to its Pension Plan in 2014 and had not made any contributions to its PBOP Plan in 2014. The Company, along with its subsidiaries, expects to continue to make contributions to its Pension and PBOP Plans in 2014 and future years at minimum required and discretionary funding levels consistent with the amounts recovered in the distribution utilities’ rates for these Pension and PBOP Plan costs.

As of March 31, 2014, the Company had made $13,000 of contributions to the SERP Plan in 2014. The Company presently anticipates contributing an additional $40,000 to the SERP Plan in 2014.