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RETIREMENT BENEFIT OBLIGATIONS
 3 Months Ended
Mar. 31, 2020
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) 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, 2019 as filed with the SEC on January 30, 2020 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
 
2020
 
  
2019
 
Discount Rate
 
 
3.25
%
   
4.25
 %
Rate of Compensation Increase
 
 
3.00
%
   
3.00
 %
Expected Long-term rate of return on plan assets
 
 
7.40
%
   
7.75
 %
Health Care Cost Trend Rate Assumed for Next Year
 
 
7.00
%
   
7.00
 %
Ultimate Health Care Cost Trend Rate
 
 
4.50
%
   
4.50
 %
Year that Ultimate Health Care Cost Trend Rate is reached
 
 
2029
 
    
2024
 
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,
 
2020
 
  
2019
 
  
2020
 
  
2019
 
  
2020
 
  
2019
 
Service Cost
 
$
831
 
   $
776
   
$
675
 
   $
576
   
$
71
 
   $
60
 
Interest Cost
 
 
1,444
 
    
1,621
   
 
780
 
    
856
   
 
137
 
    
139
 
Expected Return on Plan Assets
 
 
(2,255
)
   
(2,119
 )  
 
(516
)
   
(411
 )  
 
—  
 
    
—  
  
Prior Service Cost Amortization
 
 
80
 
    
80
   
 
303
 
    
303
   
 
14
 
    
3
 
Actuarial Loss Amortization
 
 
1,618
 
    
1,081
   
 
186
 
    
57
   
 
259
 
    
158
 
                                                 
Sub-total
 
 
1,718
 
    
1,439
    
 
1,428
 
    
1,381
   
 
481
 
    
360
 
Amounts Capitalized and Deferred
 
 
(630
)
   
(412
 )  
 
(532
)
   
(474
 )  
 
(138
)
   
(103
 )
                                                 
Net Periodic Benefit Cost Recognized
 
$
1,088
 
   $
1,027
   
$
896
 
   $
907
   
$
343
 
   $
257
 
                                                 
 
 
 
 
 
Employer Contributions
As of March 31, 2020, the Company had not made any contributions to its Pension Plan and PBOP Plan, respectively, in 2020. The Company, along with its subsidiaries, expects to continue to make contributions to its Pension and PBOP Plans in 2020 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, 2020, the Company had made $0.2 million of benefit payments under the SERP Plan in 2020. The Company presently anticipates making an additional $0.5 million of benefit payments under the SERP Plan in 2020.