Pension and Postretirement Benefits

6 Months Ended

Jun. 30, 2015

DP&L sponsors a defined benefit pension plan for the vast majority of its employees.

We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of ERISA and, in addition, make voluntary contributions from time to time. There were no contributions made during the six months ended June 30, 2015 or 2014.

The amounts presented in the following tables for pension include the collective bargaining plan formula, the traditional management plan formula, the cash balance plan formula and the SERP, in the aggregate. The amounts presented for postretirement include both health and life insurance. The pension and postretirement costs below have not been adjusted for amounts billed to the Service Company for former DP&L employees who are now employed by the Service Company but are still participants in the DP&L plan. See "Related Party Transactions" discussion in Note 1, "Overview and Summary of Significant Accounting Policies".

The net periodic benefit cost of the pension and postretirement benefit plans for the three and six months ended June 30, 2015 and 2014 was:



Net Periodic Benefit Cost	Pension						Postretirement
	Three months ended						Three months ended
	June 30,						June 30,
$ in millions	2015			2014			2015			2014
Service cost	$	1.8		$	1.5		$	—		$	—
Interest cost	4.3			4.4			0.1			0.2
Expected return on plan assets	(5.6		)	(5.6		)	—			—
Amortization of unrecognized:
Prior service cost	0.5			0.3			—			—
Actuarial loss / (gain)	1.4			0.8			(0.1		)	(0.2		)
Net periodic benefit cost	$	2.4		$	1.4		$	—		$	—



Net Periodic Benefit Cost	Pension						Postretirement
	Six months ended						Six months ended
	June 30,						June 30,
$ in millions	2015			2014			2015			2014
Service cost	$	3.6		$	3.0		$	—		$	0.1
Interest cost	8.6			8.8			0.3			0.4
Expected return on plan assets	(11.3		)	(11.4		)	—			(0.1		)
Amortization of unrecognized:
Prior service cost	1.0			0.7			—			—
Actuarial loss / (gain)	2.9			1.7			(0.2		)	(0.3		)
Net periodic benefit cost	$	4.8		$	2.8		$	0.1		$	0.1

Benefit payments and Medicare Part D reimbursements, which reflect future service, are estimated to be paid as follows:



$ in millions	Pension		Postretirement
2015	$	12.4	$	0.9
2016	25.2		1.8
2017	25.7		1.7
2018	26.3		1.6
2019	26.7		1.5
2020 - 2024	137.0		6.1

THE DAYTON POWER AND LIGHT COMPANY [Member]

Pension and Postretirement Benefits

DP&L sponsors a defined benefit pension plan for the vast majority of its employees.

The net periodic benefit cost of the pension and postretirement benefit plans for the three and six months ended June 30, 2015 and 2014 was:



Net Periodic Benefit Cost	Pension						Postretirement
	Three months ended						Three months ended
	June 30,						June 30,
$ in millions	2015			2014			2015			2014
Service cost	$	1.7		$	1.4		$	—		$	0.1
Interest cost	4.3			4.3			0.2			0.2
Expected return on plan assets	(5.5		)	(5.6		)	—			(0.1		)
Amortization of unrecognized:
Prior service cost	0.8			0.7			—			—
Actuarial loss / (gain)	2.4			1.6			(0.1		)	(0.1		)
Net periodic benefit cost	$	3.7		$	2.4		$	0.1		$	0.1



Net Periodic Benefit Cost	Pension						Postretirement
	Six months ended						Six months ended
	June 30,						June 30,
$ in millions	2015			2014			2015			2014
Service cost	$	3.5		$	2.9		$	—		$	0.1
Interest cost	8.6			8.7			0.4			0.4
Expected return on plan assets	(11.2		)	(11.3		)	—			(0.1		)
Amortization of unrecognized:
Prior service cost	1.6			1.4			—			—
Actuarial loss / (gain)	4.8			3.2			(0.3		)	(0.3		)
Net periodic benefit cost	$	7.3		$	4.9		$	0.1		$	0.1

Benefit payments and Medicare Part D reimbursements, which reflect future service, are estimated to be paid as follows:



$ in millions	Pension		Postretirement
2015	$	12.4	$	0.9
2016	25.2		1.8
2017	25.7		1.7
2018	26.3		1.6
2019	26.7		1.5
2020 - 2024	137.0		6.1