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Pension Plans and Other Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2021

Change in Benefit Obligation and Plan Assets

The following table sets forth the pension and other postretirement benefit plan disclosures as of December 31, 2021 and 2020 and the components of net periodic benefit costs for the years ended December 31, 2021, 2020 and 2019 (dollars in thousands):


	Pension Benefits						Other Post- retirement Benefits
	2021			2020			2021			2020
Change in benefit obligation:
Benefit obligation as of beginning of year	$	826,915		$	742,382		$	161,233		$	159,296
Service cost		25,306			22,392			4,114			3,902
Interest cost		26,160			27,853			5,139			6,042
Actuarial (gain)/loss		(13,997	)		74,688			2,808			(2,589	)
Benefits paid		(65,342	)		(40,400	)		(5,696	)		(5,418	)
Benefit obligation as of end of year	$	799,042		$	826,915		$	167,598		$	161,233
Change in plan assets:
Fair value of plan assets as of beginning of year	$	722,024		$	642,063		$	52,173		$	44,853
Actual return on plan assets		50,370			96,591			7,371			7,320
Employer contributions		42,000			22,000			—			—
Benefits paid		(63,431	)		(38,630	)		—			—
Fair value of plan assets as of end of year	$	750,963		$	722,024		$	59,544		$	52,173
Funded status	$	(48,079	)	$	(104,891	)	$	(108,054	)	$	(109,060	)
Amounts recognized in the Consolidated Balance Sheets:
Other current liabilities	$	(1,951	)	$	(1,943	)	$	(684	)	$	(669	)
Non-current liabilities		(46,128	)		(102,948	)		(107,370	)		(108,391	)
Net amount recognized	$	(48,079	)	$	(104,891	)	$	(108,054	)	$	(109,060	)
Accumulated pension benefit obligation	$	685,493		$	710,023
Accumulated postretirement benefit obligation:
For retirees							$	78,347		$	75,876
For fully eligible employees							$	32,144		$	32,097
For other participants							$	57,107		$	53,260
Included in accumulated other comprehensive loss (income) (net of tax):
Unrecognized prior service cost (credit)	$	1,699		$	1,902		$	(2,741	)	$	(3,570	)
Unrecognized net actuarial loss		94,109			119,318			48,872			53,737
Total		95,808			121,220			46,131			50,167
Less regulatory asset		(85,550	)		(108,301	)		(45,350	)		(48,708	)
Accumulated other comprehensive loss for unfunded benefit obligation for pensions and other postretirement benefit plans	$	10,258		$	12,919		$	781		$	1,459


	Pension Benefits						Other Post- retirement Benefits
	2021			2020			2021			2020
Weighted-average assumptions as of December 31:
Discount rate for benefit obligation		3.39	%		3.25	%		3.40	%		3.27	%
Discount rate for annual expense		3.25	%		3.85	%		3.27	%		3.89	%
Expected long-term return on plan assets		5.40	%		5.50	%		4.60	%		5.30	%
Rate of compensation increase		4.66	%		4.74	%
Medical cost trend pre-age 65 – initial								6.00	%		6.25	%
Medical cost trend pre-age 65 – ultimate								5.00	%		5.00	%
Ultimate medical cost trend year pre-age 65							2026			2026
Medical cost trend post-age 65 – initial								6.00	%		6.25	%
Medical cost trend post-age 65 – ultimate								5.00	%		5.00	%
Ultimate medical cost trend year post-age 65							2026			2026

Components of Net Periodic Benefit Cost


	Pension Benefits									Other Post-retirement Benefits
	2021			2020			2019			2021			2020			2019
Components of net periodic benefit cost:
Service cost (a)	$	25,306		$	22,392		$	19,755		$	4,114		$	3,902		$	3,006
Interest cost		26,160			27,853			28,417			5,139			6,042			5,598
Expected return on plan assets		(39,088	)		(34,886	)		(31,763	)		(2,400	)		(2,377	)		(2,101	)
Amortization of prior service cost (credit)		257			257			257			(921	)		(958	)		(981	)
Net loss recognition		6,645			6,717			10,216			3,865			4,871			4,013
Net periodic benefit cost	$	19,280		$	22,333		$	26,882		$	9,797		$	11,480		$	9,535

(a)

Total service costs in the table above are recorded to the same accounts as labor expense. Labor and benefits expense is recorded to various projects based on whether the work is a capital project or an operating expense. Approximately 40 percent of all labor and benefits is capitalized to utility property and 60 percent is expensed to utility other operating expenses.

Schedule of Allocation of Plan Assets

The target investment allocation percentages by asset classes are indicated in the table below:


	2021			2020
Equity securities		55	%		35	%
Debt securities		40	%		49	%
Real estate		5	%		7	%
Absolute return		0	%		9	%

Employer Matching Contributions

Employer matching contributions were as follows for the years ended December 31 (dollars in thousands):


	2021		2020		2019
Employer 401(k) matching contributions	$	11,671	$	11,742	$	10,412

Deferred Compensation Assets and Liabilities

There were deferred compensation assets included in other property and investments-net and corresponding deferred compensation liabilities included in other non-current liabilities and deferred credits on the Consolidated Balance Sheets of the following amounts as of December 31 (dollars in thousands):


	2021		2020
Deferred compensation assets and liabilities	$	9,513	$	9,174

Pension Plan And SERP [Member]

Schedule of Expected Benefit Payments

The Company expects that benefit payments under the pension plan and the SERP will total (dollars in thousands):


	2022		2023		2024		2025		2026		Total 2027- 2031
Expected benefit payments	$	43,282	$	43,218	$	43,675	$	44,319	$	43,810	$	228,585

Schedule of Allocation of Plan Assets

The following table discloses by level within the fair value hierarchy (see Note 18 for a description of the fair value hierarchy) of the pension plan’s assets measured and reported as of December 31, 2021 at fair value (dollars in thousands):


	Level 1		Level 2		Level 3		Total
Cash equivalents	$	—	$	6,259	$	—	$	6,259
Fixed income securities:
U.S. government issues		—		19,310		—		19,310
Corporate issues		—		233,496		—		233,496
International issues		—		34,270		—		34,270
Municipal issues		—		18,558		—		18,558
Mutual funds:
U.S. equity securities		236,552		—		—		236,552
International equity securities		112,873		—		—		112,873
Plan assets measured at NAV (not subject to hierarchy disclosure)
Common/collective trusts:
Real estate		—		—		—		31,040
Partnership/closely held investments:
Absolute return (1)		—		—		—		363
International equity securities		—		—		—		50,427
Real estate		—		—		—		7,815
Total	$	349,425	$	311,893	$	—	$	750,963


	Level 1		Level 2		Level 3		Total
Cash equivalents	$	—	$	3,309	$	—	$	3,309
Fixed income securities:
U.S. government issues		—		10,990		—		10,990
Corporate issues		—		279,857		—		279,857
International issues		—		39,634		—		39,634
Municipal issues		—		22,431		—		22,431
Mutual funds:
U.S. equity securities		146,375		—		—		146,375
International equity securities		96,311		—		—		96,311
Absolute return (1)		11,640		—		—		11,640
Plan assets measured at NAV (not subject to hierarchy disclosure)
Common/collective trusts:
Real estate		—		—		—		29,532
Partnership/closely held investments:
Absolute return (1)		—		—		—		47,188
International equity securities		—		—		—		26,760
Real estate		—		—		—		7,997
Total	$	254,326	$	356,221	$	—	$	722,024

(1)

This category invests in multiple strategies to diversify risk and reduce volatility. The strategies include: (a) event driven, relative value, convertible, and fixed income arbitrage, (b) distressed investments, (c) long/short equity and fixed income and (d) market neutral strategies.