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, 2014 as filed with the SEC on January 28, 2015 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:


	2015			2014
Used to Determine Plan Costs
Discount Rate		4.00	%		4.80	%
Rate of Compensation Increase		3.00	%		3.00	%
Expected Long-term rate of return on plan assets		8.00	%		8.00	%
Health Care Cost Trend Rate Assumed for Next Year		6.00	%		7.00	%
Ultimate Health Care Cost Trend Rate		4.00	%		4.00	%
Year that Ultimate Health Care Cost Trend Rate is reached		2018			2018

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


	Pension Plan						PBOP Plan						SERP
Three Months Ended September 30,	2015			2014			2015			2014			2015		2014
Service Cost	$	916		$	753		$	656		$	497		$	28	$	15
Interest Cost		1,343			1,273			729			671			78		68
Expected Return on Plan Assets		(1,694	)		(1,562	)		(273	)		(230	)		—		—
Prior Service Cost Amortization		54			52			420			421			2		2
Actuarial Loss Amortization		1,180			711			288			14			84		25

Sub-total		1,799			1,227			1,820			1,373			192		110
Amounts Capitalized and Deferred		(927	)		(556	)		(921	)		(632	)		—		—

Net Periodic Benefit Cost Recognized	$	872		$	671		$	899		$	741		$	192	$	110


	Pension Plan						PBOP Plan						SERP
Nine Months Ended September 30,	2015			2014			2015			2014			2015		2014
Service Cost	$	2,748		$	2,255		$	1,968		$	1,491		$	84	$	43
Interest Cost		4,029			3,819			2,187			2,015			234		204
Expected Return on Plan Assets		(5,082	)		(4,684	)		(819	)		(690	)		—		—
Prior Service Cost Amortization		162			158			1,260			1,261			8		8
Actuarial Loss Amortization		3,540			2,135			864			42			252		75

Sub-total		5,397			3,683			5,460			4,119			578		330
Amounts Capitalized and Deferred		(2,510	)		(1,400	)		(2,563	)		(1,697	)		—		—

Net Periodic Benefit Cost Recognized	$	2,887		$	2,283		$	2,897		$	2,422		$	578	$	330

Employer Contributions

As of September 30, 2015, the Company had made $4.2 million of contributions to its Pension Plan in 2015 and had made $3.0 million of contributions to its PBOP Plan in 2015. The Company, along with its subsidiaries, expects to continue to make contributions to its Pension and PBOP Plans in 2015 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 September 30, 2015, the Company had made $31,800 of contributions to the SERP Plan in 2015. The Company presently anticipates contributing an additional $8,500 to the SERP Plan in 2015.