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RETIREMENT BENEFIT OBLIGATIONS
 9 Months Ended
Sep. 30, 2019
RETIREMENT BENEFIT OBLIGATIONS
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 Plan) 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, 2018 as filed with the SEC on January 31, 2019 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:
 
Used to Determine Plan Costs
  
2019
   
2018
 
Discount Rate
   
4.25
%
   
3.60
 %
Rate of Compensation Increase
   
3.00
%
   
3.00
 %
Expected Long-term rate of return on plan assets
   
7.75
%
   
7.75
 %
Health Care Cost Trend Rate Assumed for Next Year
   
7.00
%
   
7.50
 %
Ultimate Health Care Cost Trend Rate
   
4.50
%
   
4.50
 %
Year that Ultimate Health Care Cost Trend Rate is reached
   
2024
     
2024
 
The following tables provide the components of the Company’s Retirement plan costs ($000’s):
 
Pension Plan
   
PBOP Plan
   
SERP Plan
 
Three Months Ended September 30,
 
2019
 
 
2018
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Service Cost
 
$
776
    $
848
   
$
576
    $
733
   
$
62
    $
122
 
Interest Cost
   
1,621
     
1,469
     
857
     
852
     
142
     
101
 
Expected Return on Plan Assets
   
(2,119
)
   
(1,946
 )    
(412
)
   
(409
 )    
—  
      
—  
  
Prior Service Cost Amortization
   
80
     
81
     
304
     
327
     
14
     
47
 
Actuarial Loss Amortization
   
1,081
     
1,447
     
56
     
346
     
157
     
121
 
                                                 
Sub-total
   
1,439
     
1,899
     
1,381
     
1,849
     
375
     
391
 
Amounts Capitalized and Deferred
   
(650
)
    
(962
 )    
(650
)
    
(930
 )    
(107
)
    
(113
 )
                                                 
Net Periodic Benefit Cost Recognized
 
$
789
    $
937
   
$
731
    $
919
   
$
268
    $
278
 
                                                 
  
Pension Plan
   
PBOP Plan
   
SERP Plan
 
Nine Months Ended September 30,
 
2019
 
 
2018
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Service Cost
 
$
2,328
    $
2,544
   
$
1,728
    $
2,199
   
$
185
    $
366
 
Interest Cost
   
4,863
     
4,407
     
2,569
     
2,554
     
426
     
303
 
Expected Return on Plan Assets
   
(6,356
)
    
(5,838
 )    
(1,234
)
   
(1,227
 )    
—  
      
—  
  
Prior Service Cost Amortization
   
240
     
243
     
910
     
981
     
42
     
141
 
Actuarial Loss Amortization
   
3,243
     
4,341
     
170
     
1,038
     
471
     
365
 
                                                 
Sub-total
   
4,318
     
5,697
     
4,143
     
5,545
     
1,124
     
1,175
 
Amounts Capitalized and Deferred
   
(1,659
)
    
(2,590
 )    
(1,730
)
    
(2,557
 )    
(322
)
    
(339
 )
                                                 
Net Periodic Benefit Cost Recognized
 
$
2,659
    $
3,107
   
$
2,413
    $
2,988
   
$
802
    $
836
 
                                                 
Employer Contributions
As of September 30, 2019, the Company had made $6.9 million and $2.8 million of contributions to its Pension and PBOP Plans, respectively, in 2019. The Company, along with its subsidiaries, expects to continue to make contributions to its Pension and PBOP Plans in 2019 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, 2019, the Company had made $0.4 million of benefit​​​​​​​ payments under the SERP Plan in 2019. The Company presently anticipates making an additional $0.2 million of benefit payments under the SERP Plan in 2019.