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RETIREMENT BENEFIT OBLIGATIONS
 3 Months Ended
Mar. 31, 2021
Retirement Benefits [Abstract]  
Retirement Benefit Plans
NOTE 9: RETIREMENT BENEFIT OBLIGATIONS
The Company sponsors the following retirement benefit plans to provide certain pension and post-retirement benefits for its retirees and current employees as follows:
 
  •  
The Unitil Corporation Retirement Plan (Pension Plan)
-
The Pension Plan is a defined benefit pension plan. Under the Pension Plan, retirement benefits are based upon an employee’s level of compensation and length of service. Effective January 1, 2010, the Pension Plan was closed to new
non-union
employees. For union employees, the Pension Plan was closed on various dates between December 31, 2010 and June 1, 2013, depending on the various Collective Bargaining Agreements of each union.
 
  •  
The Unitil Retiree Health and Welfare Benefits Plan (PBOP Plan)
-
The PBOP Plan provides health care and life insurance benefits to retirees. The Company has established Voluntary Employee Benefit Trusts, into which it funds contributions to the PBOP Plan.
 
  •  
The Unitil Corporation Supplemental Executive Retirement Plan (SERP)
-
The SERP is a
non-qualified
retirement plan, with participation limited to executives selected by the Board of Directors.
See Note 10 (Retirement Benefit Plans) to the Consolidated Financial Statements in the Company’s Form
10-K
for the year ended December 31, 2020 as filed with the SEC on February 2, 2021 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
   
2021
     2020  
Discount Rate
   
 
2.50
% 
     3.25 % 
Rate of Compensation Increase
   
 
3.00
% 
     3.00 % 
Expected Long-term rate of return on plan assets
   
 
7.50
% 
     7.40 % 
Health Care Cost Trend Rate Assumed for Next Year
   
 
6.60
% 
     7.00 % 
Ultimate Health Care Cost Trend Rate
   
 
4.50
% 
     4.50 % 
Year that Ultimate Health Care Cost Trend Rate is reached
   
 
2029
 
     2029  
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,
   
2021
     2020    
2021
     2020    
2021
     2020  
Service Cost
   
$
868
 
   $ 831    
$
758
 
   $ 675    
$
89
 
   $ 71  
Interest Cost
   
 
1,251
 
     1,444    
 
685
 
     780    
 
114
 
     137  
Expected Return on Plan Assets
   
 
(2,423
) 
     (2,255 )   
 
(627
) 
     (516 )   
 
—  
 
     —    
Prior Service Cost Amortization
   
 
75
 
     80    
 
302
 
     303    
 
14
 
     14  
Actuarial Loss Amortization
   
 
2,022
 
     1,618    
 
262
 
     186    
 
372
 
     259  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Sub-total
   
 
1,793
       1,718    
 
1,380
 
     1,428    
 
589
 
     481  
Amounts Capitalized and Deferred
   
 
(713
) 
     (630 )   
 
(662
) 
     (532 )   
 
(178
) 
     (138 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net Periodic Benefit Cost Recognized
   
$
1,080
 
   $ 1,088    
$
718
 
   $ 896    
$
411
 
   $ 343  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Employer Contributions 
As of March 31, 2021, th
e
 Company had made $0.7 million and $0.4 million in contributions to its Pension Plan and PBOP Plan, respectively, in 2021. The Company, along with its subsidiaries, expects to continue to make contributions to its Pension and PBOP Plans in 2021 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, 2021, the Company had made $0.2 million of benefit payments under the SERP Plan in 2021. The Company presently anticipates making an additional $0.4 million of benefit payments unde
r
 the SERP Plan in 2021.