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RETIREMENT BENEFIT OBLIGATIONS
 6 Months Ended
Jun. 30, 2021
Retirement Benefits [Abstract]  
Retirement Benefit Plans
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, 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 tables provide the components of the Company’s Retirement plan costs ($000’s):
 
 
  
Pension Plan
 
 
PBOP Plan
 
 
SERP Plan
 
Three Months Ended June 30,
  
2021
 
 
2020
 
 
2021
 
 
2020
 
 
2021
 
 
2020
 
Service Cost
   
$
868
 
   $ 831    
$
758
 
   $ 675    
$
88
 
   $ 71  
Interest Cost
   
 
1,251
 
     1,443    
 
685
 
     779    
 
115
 
     138  
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    
 
373
 
     259  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Sub-total
   
 
1,793
 
     1,717    
 
1,380
 
     1,427    
 
590
 
     482  
Amounts Capitalized and Deferred
   
 
(887
) 
     (807 )   
 
(791
) 
     (695 )   
 
(178
) 
     (152 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net Periodic Benefit Cost Recognized
   
$
906
 
   $ 910    
$
589
 
   $ 732    
$
412
 
   $ 330  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
  
Pension Plan
 
 
PBOP Plan
 
 
SERP Plan
 
Six Months Ended June 30,
  
2021
 
 
2020
 
 
2021
 
 
2020
 
 
2021
 
 
2020
 
Service Cost
   
$
1,736
 
   $ 1,662    
$
1,516
 
   $ 1,350    
$
177
 
   $ 142  
Interest Cost
   
 
2,502
 
     2,887    
 
1,370
 
     1,559    
 
229
 
     275  
Expected Return on Plan Assets
   
 
(4,846
) 
     (4,510 )   
 
(1,254
) 
     (1,032 )   
 
—  
 
     —    
Prior Service Cost Amortization
   
 
150
 
     160    
 
604
 
     606    
 
28
 
     28  
Actuarial Loss Amortization
   
 
4,044
 
     3,236    
 
524
 
     372    
 
745
 
     518  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Sub-total
   
 
3,586
 
     3,435    
 
2,760
 
     2,855    
 
1,179
 
     963  
Amounts Capitalized and Deferred
   
 
(1,600
) 
     (1,437 )   
 
(1,454
) 
     (1,227 )   
 
(356
) 
     (290 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net Periodic Benefit Cost Recognized
   
$
1,986
 
   $ 1,998    
$
1,306
 
   $ 1,628    
$
823
 
   $ 673  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Employer Contributions
As of June 30, 2021, the Company had made $2.7 million and $1.6 million of 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 June 30, 2021, the Company had made $0.3 million of benefit payments under the SERP Plan in 2021. The Company presently anticipates making an additional $0.3 million of benefit payments under the SERP Plan in 202
1
.