Benefit Plans

9 Months Ended

Sep. 30, 2018

Benefit Plans

DP&L sponsors a defined benefit pension plan for the 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 $7.8 million in employer contributions during the nine months ended September 30, 2018 and $5.0 million during the nine months ended September 30, 2017.

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 pension 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 that are still participants in the DP&L plan.

The net periodic benefit cost of the pension benefit plans for the three and nine months ended September 30, 2018 and 2017 was:



	Three months ended						Nine months ended
	September 30,						September 30,
$ in millions	2018			2017			2018			2017
Service cost	$	1.5		$	1.5		$	4.5		$	4.3
Interest cost	3.4			3.5			10.3			10.6
Expected return on plan assets	(5.3		)	(5.7		)	(15.9		)	(17.1		)
Plan curtailment ^(a)	—			—			—			4.1
Amortization of unrecognized:
Prior service cost	0.3			0.2			0.8			0.8
Actuarial loss	1.6			1.3			4.8			4.0
Net periodic benefit cost	$	1.5		$	0.8		$	4.5		$	6.7


(a)	As a result of the decision to retire certain of DPL's coal-fired plants, we recognized a plan curtailment of $4.1 million in the first quarter of 2017.

In addition, DP&L provides postretirement health care and life insurance benefits to certain retired employees, their spouses and eligible dependents. We have funded a portion of the union-eligible benefits using a Voluntary Employee Beneficiary Association Trust. These postretirement health care benefits and the related unfunded obligation of $12.8 million at September 30, 2018 and $12.7 million at December 31, 2017 were not material to the financial statements in the periods covered by this report.

Benefit payments, which reflect future service, are estimated to be paid as follows:



$ in millions
Estimated balance to be paid during	Pension
2018	$	7.1
2019	$	28.2
2020	$	27.9
2021	$	27.6
2022	$	27.3
2023 - 2027	$	131.3

THE DAYTON POWER AND LIGHT COMPANY [Member]

Entity Information [Line Items]

Pension and Postretirement Benefits

Benefit Plans

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

The net periodic benefit cost of the pension benefit plans for the three and nine months ended September 30, 2018 and 2017 was:



	Three months ended						Nine months ended
	September 30,						September 30,
$ in millions	2018			2017			2018			2017
Service cost	$	1.5		$	1.5		$	4.5		$	4.3
Interest cost	3.4			3.5			10.3			10.6
Expected return on plan assets	(5.3		)	(5.7		)	(15.9		)	(17.1		)
Plan curtailment ^(a)	—			—			—			5.6
Amortization of unrecognized:
Prior service cost	0.4			0.3			1.1			1.1
Actuarial loss	2.4			2.1			7.1			6.6
Net periodic benefit cost	$	2.4		$	1.7		$	7.1		$	11.1


(a)	As a result of the decision to retire certain of DPL's coal-fired plants, we recognized a plan curtailment of $5.6 million in the first quarter of 2017.

Benefit payments, which reflect future service, are estimated to be paid as follows:



$ in millions
Estimated balance to be paid during	Pension
2018	$	7.1
2019	$	28.2
2020	$	27.9
2021	$	27.6
2022	$	27.3
2023 - 2027	$	131.3