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RETIREMENT BENEFIT OBLIGATIONS
 9 Months Ended
Sep. 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 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, 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 
  
Three Months Ended September 30,
   
2021
    
2020
    
2021
    
2020
    
2021
    
2020
  
Service Cost
   
$
868
 
  
$
829
 
  
$
759
 
  
$
673
 
  
$
89
 
  
$
70
 
Interest Cost
   
 
1,250
 
  
 
1,445
 
  
 
685
 
  
 
782
 
  
 
114
 
  
 
137
 
Expected Return on Plan Assets
   
 
(2,422
) 
  
 
(2,254
) 
  
 
(627
) 
  
 
(515
) 
  
 
—  
 
  
 
—  
 
Prior Service Cost Amortization
   
 
76
 
  
 
80
 
  
 
302
 
  
 
301
 
  
 
14
 
  
 
15
 
Actuarial Loss Amortization
   
 
2,021
 
  
 
1,618
 
  
 
260
 
  
 
187
 
  
 
372
 
  
 
259
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Sub-total
   
 
1,793
 
  
 
1,718
 
  
 
1,379
 
  
 
1,428
 
  
 
589
 
  
 
481
 
Amounts Capitalized and Deferred
   
 
(944
) 
  
 
(861
) 
  
 
(904
) 
  
 
(860
) 
  
 
(178
) 
  
 
(144
) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net Periodic Benefit Cost Recognized
   
$
849
 
  
$
857
 
  
$
475
 
  
$
568
 
  
$
411
 
  
$
337
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
     
                  
      
                  
      
                  
      
                  
      
                  
      
                  
  
    
Pension Plan
    
PBOP Plan
    
SERP 
  
Nine Months Ended September 30,
   
 
2021
 
  
 
2020
 
  
 
2021
 
  
 
2020
 
  
 
2021
 
  
 
2020
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Service Cost
   
$
2,604
 
  
$
2,491
 
  
$
2,275
 
  
$
2,023
 
  
$
266
 
  
$
212
 
Interest Cost
   
 
3,752
 
  
 
4,332
 
  
 
2,055
 
  
 
2,341
 
  
 
343
 
  
 
412
 
Expected Return on Plan Assets
   
 
(7,268
) 
  
 
(6,764
) 
  
 
(1,881
) 
  
 
(1,547
) 
  
 
—  
 
  
 
—  
 
Prior Service Cost Amortization
   
 
226
 
  
 
240
 
  
 
906
 
  
 
907
 
  
 
42
 
  
 
43
 
Actuarial Loss Amortization
   
 
6,065
 
  
 
4,854
 
  
 
784
 
  
 
559
 
  
 
1,117
 
  
 
777
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Sub-total
   
 
5,379
 
  
 
5,153
 
  
 
4,139
 
  
 
4,283
 
  
 
1,768
 
  
 
1,444
 
Amounts Capitalized and Deferred
   
 
(2,544
) 
  
 
(2,298
) 
  
 
(2,358
) 
  
 
(2,087
) 
  
 
(534
) 
  
 
(434
) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net Periodic Benefit Cost Recognized
   
$
2,835
 
  
$
2,855
 
  
$
1,781
 
  
$
2,196
 
  
$
 1,234
 
  
$
 1,010
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Employer Contributions
As of September 30, 2021, the Company had made $4.1 million and $2.8 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 Pe
n
sion 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 September 30, 2021, the Company had made $0.5 million of benefit payments under the SERP Plan in 2021. The Company presently anticipates making an additional $0.1 million of benefit payments under the SERP Plan in 2021.