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RETIREMENT BENEFIT OBLIGATIONS
 3 Months Ended
Mar. 31, 2022
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, 2021 as filed with the SEC on February 1, 2022 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
   
2022
     2021  
Discount Rate
   
 
2.85
% 
     2.50 % 
Rate of Compensation Increase
   
 
3.00
% 
     3.00 % 
Expected Long-term rate of return on plan assets
   
 
7.50
% 
     7.50 % 
Health Care Cost Trend Rate Assumed for Next Year
   
 
6.20
% 
     6.60 % 
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,
   
2022
     2021    
2022
     2021    
2022
     2021  
Service Cost
   
$
791
 
   $ 868    
$
722
 
   $ 758    
$
68
 
   $ 89  
Interest Cost
   
 
1,371
 
     1,251    
 
799
 
     685    
 
118
 
     114  
Expected Return on Plan Assets
   
 
(2,720
) 
     (2,423 )   
 
(854
) 
     (627 )   
 
—  
 
     —    
Prior Service Cost Amortization
   
 
89
 
     75    
 
273
 
     302    
 
14
 
     14  
Actuarial Loss Amortization
   
 
1,377
 
     2,022    
 
255
 
     262    
 
199
 
     372  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Sub-total
   
 
908
       1,793    
 
1,195
 
     1,380    
 
399
 
     589  
Amounts Capitalized and Deferred
   
 
(156
) 
     (713 )   
 
(511
) 
     (662 )   
 
(118
) 
     (178 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net Periodic Benefit Cost Recognized
   
$
752
 
   $ 1,080    
$
684
 
   $ 718    
$
281
 
   $ 411  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Employer Contributions
As of March 31, 2022, the Company had not made any contributions to its Pension Plan and PBOP Plan, respectively, in 2022. The Company, along with its subsidiaries, expects to make contributions to its Pension and PBOP Plans in 2022 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, 2022, the Company had made $0.2 million of benefit payments under the SERP Plan in 2022. The Company presently anticipates making an additional $0.4 million of benefit payments under the SERP Plan in 2022.