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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

Change in projected benefit obligation and fair value of plan assets

The Company uses a December 31 measurement date for all of its employee benefit plans. The tables below set forth information relating to the Company’s Pension Plan and Other Benefits Plan for 2020 and 2019.

	(Thousands of Dollars)
	Pension Plan						Other Benefits Plan
	December 31,
	2020			2019			2020			2019
Change in Projected Benefit Obligation:
Beginning Balance	$	100,891		$	83,927		$	55,166		$	48,474
Service Cost		2,434			2,171			993			839
Interest Cost		3,099			3,426			1,699			1,984
Actuarial (Gain) Loss		12,585			14,188			(4,279	)		4,671
Benefits Paid		(3,148	)		(2,821	)		(803	)		(802	)
Ending Balance	$	115,861		$	100,891		$	52,776		$	55,166

Index

	(Thousands of Dollars)
	Pension Plan						Other Benefits Plan
	December 31,
	2020			2019			2020			2019
Change in Fair Value of Plan Assets:
Beginning Balance	$	80,380		$	66,771		$	40,613		$	34,622
Actual Return on Plan Assets		8,289			12,753			3,988			5,192
Employer Contributions		3,400			3,677			1,094			1,601
Benefits Paid		(3,148	)		(2,821	)		(803	)		(802	)
Ending Balance	$	88,921		$	80,380		$	44,892		$	40,613

Funded Status	$	(26,940	)	$	(20,511	)	$	(7,884	)	$	(14,553	)

Amounts recognized in balance sheet

	(Thousands of Dollars)
	Pension Plan				Other Benefits Plan
	December 31,
	2020		2019		2020		2019
Amounts Recognized in the Consolidated Balance Sheets consist of :
Current Liability	$	398	$	393	$	—	$	—
Noncurrent Liability		26,542		20,118		7,884		14,553
Net Liability Recognized	$	26,940	$	20,511	$	7,884	$	14,553

Components of net benefit cost

	(Thousands of Dollars)
	Pension Plan									Other Benefits Plan
	Years Ended December 31,
	2020			2019			2018			2020			2019			2018
Components of Net Periodic Benefit Cost
Service Cost	$	2,434		$	2,171		$	2,426		$	993		$	839		$	1,135
Interest Cost		3,099			3,426			3,061			1,699			1,984			1,898
Expected Return on Plan Assets		(5,635	)		(4,694	)		(4,871	)		(2,853	)		(2,451	)		(2,550	)
Amortization of Net Actuarial Loss		2,059			1,618			1,658			1,352			1,319			1,787
Amortization of Prior Service Credit		—			—			—			—			—			(1,607	)
Net Periodic Benefit Cost*	$	1,957		$	2,521		$	2,274		$	1,191		$	1,691		$	663

*Service cost is included in Operations and Maintenance expense on the consolidated statements of income; all other amounts are included in Other Income (Expense), net.

Amounts expected to be amortized from regulatory assets

Amounts that are expected to be amortized from Regulatory Assets into Net Periodic Benefit Cost in 2021 are as follows:

(Thousands of Dollars)

Pension

Plan

Other

Benefits

Plan

Actuarial Loss

2,868

527

Discount and compensation rates

The discount rate and compensation increase rate for determining our postretirement benefit plans’ benefit obligations and costs as of and for the years ended December 31, 2020, 2019 and 2018, respectively, are as follows:

Pension Plan Other Benefits Plan

	Pension Plan						Other Benefits Plan
	2020		2019		2018		2020		2019		2018
Weighted Average Assumptions:
Expected Return on Plan Assets	7.00	%	7.00	%	7.00	%	7.00	%	7.00	%	7.00	%
Discount Rate for:
Benefit Obligation	2.37	%	3.12	%	4.15	%	2.37	%	3.12	%	4.15	%
Benefit Cost	3.12	%	4.15	%	3.53	%	3.12	%	4.15	%	3.53	%
Compensation Increase for:
Benefit Obligation	3.00	%	3.00	%	3.00	%	3.00	%	3.00	%	3.00	%
Benefit Cost	3.00	%	3.00	%	3.00	%	3.00	%	3.00	%	3.00	%

Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one-percentage point change in assumed healthcare cost trend rates would have the following effects on the Other Benefits Plan:

	(Thousands of Dollars) 1 Percentage Point
	Increase		Decrease
Effect on Current Year Service and Interest Costs	$	561	$	(431	)
Effect on Projected Benefit Obligation	$	8,845	$	(6,941	)

Expected benefit payments

The following benefit payments, which reflect expected future service, are expected to be paid:

	(Thousands of Dollars)
Year	Pension Plan		Other Benefits Plan
2021	$	3,373	$	1,245
2022		3,537		1,489
2023		3,819		1,585
2024		4,715		1,664
2025		5,137		1,755
2026-2030		26,787		9,671
Totals	$	47,368	$	17,409

Allocation of plan assets

The allocation of plan assets at December 31, 2020 and 2019 by asset category is as follows:

	Pension Plan									Other Benefits Plan
Asset Category	2020			2019			Target			2020			2019			Target
Equity Securities		60.6	%		61.5	%		55	%		62.3	%		60.0	%		43	%
Debt Securities		37.5	%		36.5	%		38	%		31.0	%		33.0	%		50	%
Cash		1.2	%		0.5	%		2	%		6.7	%		7.0	%		2	%
Real Estate/Commodities		0.7	%		1.5	%		5	%		0.0	%		0.0	%		5	%
Total		100.0	%		100.0	%					100.0	%		100.0	%

Fair value of plan assets

The following tables present Middlesex’s Pension Plan assets measured and recorded at fair value within the fair value hierarchy:

	(Thousands of Dollars)
	As of December 31, 2020
	Level 1		Level 2		Level 3		Total
Mutual Funds	$	76,026	$	—	$	—	$	76,026
Money Market Funds		1,086		—		—		1,086
Common Equity Securities		11,809		—		—		11,809
Total Investments	$	88,921	$	—	$	—	$	88,921

	(Thousands of Dollars)
	As of December 31, 2019
	Level 1		Level 2		Level 3		Total
Mutual Funds	$	69,565	$	—	$	—	$	69,565
Money Market Funds		397		—		—		397
Common Equity Securities		10,418		—		—		10,418
Total Investments	$	80,380	$	—	$	—	$	80,380

The following tables present Middlesex’s Other Benefits Plan assets measured and recorded at fair value within the fair value hierarchy:

	(Thousands of Dollars)
	As of December 31, 2020
	Level 1		Level 2		Level 3		Total
Mutual Funds	$	27,408	$	—	$	—	$	27,408
Money Market Funds		3,696		—		—		3,696
Agency/US/State/Municipal Debt		—		13,788		—		13,788
Total Investments	$	31,104	$	13,788	$	—	$	44,892

	(Thousands of Dollars)
	As of December 31, 2019
	Level 1		Level 2		Level 3		Total
Mutual Funds	$	24,361	$	—	$	—	$	24,361
Money Market Funds		2,859		—		—		2,859
Agency/US/State/Municipal Debt		—		13,393		—		13,393
Total Investments	$	27,220	$	13,393	$	—	$	40,613

Restricted stock plan

The following table presents awarded but not yet vested share information for the 2018 Restricted Stock Plan:

	Shares (thousands)			Unearned Compensation (thousands)			Weighted Average Grant Price
Balance, January 1, 2018		132		$	1,785
Granted		22			827		$	36.53
Vested		(27	)		—
Forfeited		(2	)		(18	)
Amortization of Compensation Expense		—			(956	)
Balance, December 31, 2018		125		$	1,638
Granted		18			975		$	55.99
Vested		(28	)		—
Forfeited		(18	)		—
Amortization of Compensation Expense		—			(907	)
Balance, December 31, 2019		97		$	1,706
Granted		16			982		$	60.12
Vested		(27	)		—
Amortization of Compensation Expense		—			(851	)
Balance, December 31, 2020		86		$	1,837