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RETIREMENT BENEFIT OBLIGATIONS
 9 Months Ended
Sep. 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 September 30,
  
2022
 
 
2021
 
 
2022
 
 
2021
 
 
2022
 
 
2021
 
Service Cost
   
$
792
 
   $ 868    
$
723
 
  
$
759
 
  
$
69
 
  
$
89
 
Interest Cost
   
 
1,372
 
     1,250    
 
798
 
  
 
685
 
  
 
118
 
  
 
114
 
Expected Return on Plan Assets
   
 
(2,722
) 
     (2,422 )   
 
(853
) 
  
 
(627
) 
  
 
—  
 
  
 
—  
 
Prior Service Cost Amortization
   
 
89
 
     76    
 
273
 
  
 
302
 
  
 
14
 
  
 
14
 
Actuarial Loss Amortization
   
 
1,376
 
     2,021    
 
255
 
  
 
260
 
  
 
196
 
  
 
372
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Sub-total
   
 
907
 
     1,793    
 
1,196
 
  
 
1,379
 
  
 
397
 
  
 
589
 
Amounts Capitalized and Deferred
   
 
(345
) 
     (944 )   
 
(655
) 
  
 
(904
) 
  
 
(117
) 
  
 
(178
) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net Periodic Benefit Cost Recognized
   
$
562
 
   $ 849    
$
541
 
  
$
475
 
  
$
280
 
  
$
411
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
 
  
Pension Plan
 
 
PBOP Plan
 
 
SERP
 
Nine Months Ended September 30,
  
2022
 
 
2021
 
 
2022
 
 
2021
 
 
2022
 
 
2021
 
Service Cost
   
$
2,374
 
   $ 2,604    
$
2,167
 
   $ 2,275    
$
205
 
   $ 266  
Interest Cost
   
 
4,114
 
     3,752    
 
2,396
 
     2,055    
 
354
 
     343  
Expected Return on Plan Assets
   
 
(8,162
) 
     (7,268 )   
 
(2,561
) 
     (1,881 )   
 
—  
 
     —    
Prior Service Cost Amortization
   
 
267
 
     226    
 
819
 
     906    
 
42
 
     42  
Actuarial Loss Amortization
   
 
4,130
 
     6,065    
 
765
 
     784    
 
595
 
     1,117  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Sub-total
   
 
2,723
 
     5,379    
 
3,586
 
     4,139    
 
1,196
 
     1,768  
Amounts Capitalized and Deferred
   
 
(810
) 
     (2,544 )   
 
(1,788
) 
     (2,358 )   
 
(354
) 
     (534 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net Periodic Benefit Cost Recognized
   
$
1,913
 
   $ 2,835    
$
1,798
 
   $ 1,781    
$
842
 
   $  1,234  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Employer Contributions
As of September 30, 2022, the Company had made $3.8 million and $2.0 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 September 30, 2022, the Company had made $0.5 million of benefit payments under the SERP Plan in 2022. The Company presently anticipates making an additional $0.1 million of benefit payments under the SERP Plan in 2022.