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RETIREMENT BENEFIT OBLIGATIONS
 6 Months Ended
Jun. 30, 2022
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, 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 tables provide the components of the Company’s Retirement plan costs ($000’s):
 
     
         
      
         
      
         
      
         
      
         
      
         
  
    
Pension Plan
    
PBOP Plan
    
SERP
  
Three Months Ended June 30,
   
2022
    
2021
    
2022
    
2021
    
2022
    
2021
  
Service Cost
   
$
791
 
  
$
868
 
  
$
722
 
  
$
758
 
  
$
68
 
  
$
88
 
Interest Cost
   
 
1,371
 
  
 
1,251
 
  
 
799
 
  
 
685
 
  
 
118
 
  
 
115
 
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
 
  
 
373
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Sub-total
   
 
908
 
  
 
1,793
 
  
 
1,195
 
  
 
1,380
 
  
 
399
 
  
 
590
 
Amounts Capitalized and Deferred
   
 
(309
) 
  
 
(887
) 
  
 
(622
) 
  
 
(791
) 
  
 
(119
) 
  
 
(178
) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net Periodic Benefit Cost Recognized
   
$
599
 
  
$
906
 
  
$
573
 
  
$
589
 
  
$
280
 
  
$
412
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
    
Pension Plan
    
PBOP Plan
    
SERP
  
Six Months Ended June 30,
   
2022
     2021    
2022
     2021    
2022
     2021  
Service Cost
   
$
1,582
 
   $ 1,736    
$
1,444
 
   $ 1,516    
$
136
 
   $ 177  
Interest Cost
   
 
2,742
 
     2,502    
 
1,598
 
     1,370    
 
236
 
     229  
Expected Return on Plan Assets
   
 
(5,440
)
     (4,846 )   
 
(1,708
) 
     (1,254 )   
 
—  
 
     —    
Prior Service Cost Amortization
   
 
178
 
     150    
 
546
 
     604    
 
28
 
     28  
Actuarial Loss Amortization
   
 
2,754
 
     4,044    
 
510
 
     524    
 
399
 
     745  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Sub-total
   
 
1,816
 
     3,586    
 
2,390
 
     2,760    
 
799
 
     1,179  
Amounts Capitalized and Deferred
   
 
(464
) 
     (1,600 )   
 
(1,133
) 
     (1,454 )   
 
(238
) 
     (356 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net Periodic Benefit Cost Recognized
   
$
1,352
 
   $ 1,986    
$
1,257
 
   $ 1,306    
$
561
 
   $ 823  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Employer Contributions
As of June 30, 2022, the Company had made $1.9 million and $0.8 million of contributions to its Pension Plan and PBOP Plan, respectively, in 2022. The Company, along with its subsidiaries, expects to continue 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 June 30, 2022, the Company had made $0.3 million of benefit payments under the SERP Plan in 2022. The Company presently anticipates making an additional $0.3 million of benefit payments under the SERP Plan in 2022.