RETIREMENT BENEFIT OBLIGATIONS

3 Months Ended

Mar. 31, 2016

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, 2015 as filed with the SEC on January 28, 2016 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:


	2016			2015
Used to Determine Plan Costs
Discount Rate		4.30	%		4.00	%
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		7.00	%		6.00	%
Ultimate Health Care Cost Trend Rate		4.00	%		4.00	%
Year that Ultimate Health Care Cost Trend Rate is reached		2022			2018

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,	2016			2015			2016			2015			2016		2015
Service Cost	$	851		$	916		$	652		$	656		$	41	$	28
Interest Cost		1,486			1,343			808			729			96		78
Expected Return on Plan Assets		(1,814	)		(1,694	)		(301	)		(273	)		—		—
Prior Service Cost Amortization		66			54			372			420			47		3
Actuarial Loss Amortization		1,099			1,180			262			288			94		84

Sub-total		1,688			1,799			1,793			1,820			278		193
Amounts Capitalized and Deferred		(610	)		(708	)		(737	)		(760	)		—		—

Net Periodic Benefit Cost Recognized	$	1,078		$	1,091		$	1,056		$	1,060		$	278	$	193

Employer Contributions

As of March 31, 2016, the Company had made $1.0 million and $0.4 million of contributions to its Pension Plan and PBOP Plan, respectively, in 2016. The Company, along with its subsidiaries, expects to continue to make contributions to its Pension and PBOP Plans in 2016 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, 2016, the Company had made $8,500 of benefit payments under the SERP Plan in 2016. The Company presently anticipates making an additional $25,600 of benefit payments under the SERP Plan in 2016.