| BENEFIT PLANS The disclosures in this note apply to all Registrants except AEPTCo unless indicated otherwise.
AEP sponsors a qualified pension plan and two unfunded nonqualified pension plans. Substantially all AEP employees are covered by the qualified plan or both the qualified and a nonqualified pension plan. AEP also sponsors OPEB plans to provide health and life insurance benefits for retired employees.
Components of Net Periodic Benefit Cost
The following tables provide the components of net periodic benefit cost (credit) by Registrant for the plans:
AEP | | | | | | | | | | | | | | | | | | | | | | | | | Pension Plans | | | | OPEB | | | | Three Months Ended September 30, | | | | Three Months Ended September 30, | | | | | 2020 | | 2019 | | 2020 | | 2019 | | | (in millions) | | | | | | | | Service Cost | $ | 28.0 | | | $ | 23.8 | | | $ | 2.5 | | | $ | 2.4 | | | Interest Cost | 42.0 | | | 51.1 | | | 10.0 | | | 12.6 | | | Expected Return on Plan Assets | (66.3) | | | (74.0) | | | (23.9) | | | (23.4) | | | Amortization of Prior Service Credit | — | | | — | | | (17.4) | | | (17.3) | | | Amortization of Net Actuarial Loss | 23.5 | | | 14.4 | | | 1.4 | | | 5.5 | | | Net Periodic Benefit Cost (Credit) | $ | 27.2 | | | $ | 15.3 | | | $ | (27.4) | | | $ | (20.2) | | | | | | | | | | | Pension Plans | | | | OPEB | | | | Nine Months Ended September 30, | | | | Nine Months Ended September 30, | | | | | 2020 | | 2019 | | 2020 | | 2019 | | | (in millions) | | | | | | | | Service Cost | $ | 84.0 | | | $ | 71.6 | | | $ | 7.5 | | | $ | 7.1 | | | Interest Cost | 125.9 | | | 153.3 | | | 29.9 | | | 37.9 | | | Expected Return on Plan Assets | (198.7) | | | (222.0) | | | (71.8) | | | (70.3) | | | Amortization of Prior Service Credit | — | | | — | | | (52.3) | | | (51.8) | | | Amortization of Net Actuarial Loss | 70.3 | | | 43.2 | | | 4.4 | | | 16.6 | | | Net Periodic Benefit Cost (Credit) | $ | 81.5 | | | $ | 46.1 | | | $ | (82.3) | | | $ | (60.5) | |
AEP Texas | | | | | | | | | | | | | | | | | | | | | | | | | Pension Plans | | | | OPEB | | | | Three Months Ended September 30, | | | | Three Months Ended September 30, | | | | | 2020 | | 2019 | | 2020 | | 2019 | | | (in millions) | | | | | | | | Service Cost | $ | 2.6 | | | $ | 2.2 | | | $ | 0.2 | | | $ | 0.1 | | | Interest Cost | 3.5 | | | 4.4 | | | 0.8 | | | 1.0 | | | Expected Return on Plan Assets | (5.7) | | | (6.5) | | | (2.0) | | | (1.9) | | | Amortization of Prior Service Credit | — | | | — | | | (1.4) | | | (1.5) | | | Amortization of Net Actuarial Loss | 1.9 | | | 1.2 | | | 0.1 | | | 0.5 | | | Net Periodic Benefit Cost (Credit) | $ | 2.3 | | | $ | 1.3 | | | $ | (2.3) | | | $ | (1.8) | | | | | | | | | | | Pension Plans | | | | OPEB | | | | Nine Months Ended September 30, | | | | Nine Months Ended September 30, | | | | | 2020 | | 2019 | | 2020 | | 2019 | | | (in millions) | | | | | | | | Service Cost | $ | 7.6 | | | $ | 6.5 | | | $ | 0.6 | | | $ | 0.5 | | | Interest Cost | 10.5 | | | 13.1 | | | 2.4 | | | 3.0 | | | Expected Return on Plan Assets | (17.1) | | | (19.4) | | | (6.0) | | | (5.8) | | | Amortization of Prior Service Credit | — | | | — | | | (4.4) | | | (4.4) | | | Amortization of Net Actuarial Loss | 5.8 | | | 3.7 | | | 0.4 | | | 1.4 | | | Net Periodic Benefit Cost (Credit) | $ | 6.8 | | | $ | 3.9 | | | $ | (7.0) | | | $ | (5.3) | |
APCo | | | | | | | | | | | | | | | | | | | | | | | | | Pension Plans | | | | OPEB | | | | Three Months Ended September 30, | | | | Three Months Ended September 30, | | | | | 2020 | | 2019 | | 2020 | | 2019 | | | (in millions) | | | | | | | | Service Cost | $ | 2.7 | | | $ | 2.4 | | | $ | 0.3 | | | $ | 0.2 | | | Interest Cost | 5.0 | | | 6.3 | | | 1.6 | | | 2.2 | | | Expected Return on Plan Assets | (8.4) | | | (9.4) | | | (3.6) | | | (3.7) | | | Amortization of Prior Service Credit | — | | | — | | | (2.5) | | | (2.5) | | | Amortization of Net Actuarial Loss | 2.8 | | | 1.8 | | | 0.2 | | | 1.0 | | | Net Periodic Benefit Cost (Credit) | $ | 2.1 | | | $ | 1.1 | | | $ | (4.0) | | | $ | (2.8) | | | | | | | | | | | Pension Plans | | | | OPEB | | | | Nine Months Ended September 30, | | | | Nine Months Ended September 30, | | | | | 2020 | | 2019 | | 2020 | | 2019 | | | (in millions) | | | | | | | | Service Cost | $ | 7.9 | | | $ | 7.1 | | | $ | 0.8 | | | $ | 0.7 | | | Interest Cost | 15.2 | | | 18.9 | | | 4.9 | | | 6.5 | | | Expected Return on Plan Assets | (25.2) | | | (28.1) | | | (10.9) | | | (11.0) | | | Amortization of Prior Service Credit | — | | | — | | | (7.6) | | | (7.5) | | | Amortization of Net Actuarial Loss | 8.4 | | | 5.3 | | | 0.7 | | | 2.8 | | | Net Periodic Benefit Cost (Credit) | $ | 6.3 | | | $ | 3.2 | | | $ | (12.1) | | | $ | (8.5) | |
I&M | | | | | | | | | | | | | | | | | | | | | | | | | Pension Plans | | | | OPEB | | | | Three Months Ended September 30, | | | | Three Months Ended September 30, | | | | | 2020 | | 2019 | | 2020 | | 2019 | | | (in millions) | | | | | | | | Service Cost | $ | 3.9 | | | $ | 3.3 | | | $ | 0.4 | | | $ | 0.3 | | | Interest Cost | 4.9 | | | 6.0 | | | 1.2 | | | 1.5 | | | Expected Return on Plan Assets | (8.3) | | | (9.1) | | | (3.0) | | | (2.8) | | | Amortization of Prior Service Credit | — | | | — | | | (2.3) | | | (2.4) | | | Amortization of Net Actuarial Loss | 2.7 | | | 1.6 | | | 0.1 | | | 0.7 | | | Net Periodic Benefit Cost (Credit) | $ | 3.2 | | | $ | 1.8 | | | $ | (3.6) | | | $ | (2.7) | | | | | | | | | | | Pension Plans | | | | OPEB | | | | Nine Months Ended September 30, | | | | Nine Months Ended September 30, | | | | | 2020 | | 2019 | | 2020 | | 2019 | | | (in millions) | | | | | | | | Service Cost | $ | 11.6 | | | $ | 10.0 | | | $ | 1.1 | | | $ | 1.0 | | | Interest Cost | 14.7 | | | 17.9 | | | 3.5 | | | 4.4 | | | Expected Return on Plan Assets | (24.9) | | | (27.5) | | | (8.8) | | | (8.5) | | | Amortization of Prior Service Credit | — | | | — | | | (7.1) | | | (7.1) | | | Amortization of Net Actuarial Loss | 8.1 | | | 4.9 | | | 0.5 | | | 2.0 | | | Net Periodic Benefit Cost (Credit) | $ | 9.5 | | | $ | 5.3 | | | $ | (10.8) | | | $ | (8.2) | |
OPCo | | | | | | | | | | | | | | | | | | | | | | | | | Pension Plans | | | | OPEB | | | | Three Months Ended September 30, | | | | Three Months Ended September 30, | | | | | 2020 | | 2019 | | 2020 | | 2019 | | | (in millions) | | | | | | | | Service Cost | $ | 2.4 | | | $ | 1.9 | | | $ | 0.2 | | | $ | 0.2 | | | Interest Cost | 3.9 | | | 4.8 | | | 1.0 | | | 1.4 | | | Expected Return on Plan Assets | (6.6) | | | (7.3) | | | (2.6) | | | (2.7) | | | Amortization of Prior Service Credit | — | | | — | | | (1.8) | | | (1.8) | | | Amortization of Net Actuarial Loss | 2.1 | | | 1.3 | | | 0.2 | | | 0.6 | | | Net Periodic Benefit Cost (Credit) | $ | 1.8 | | | $ | 0.7 | | | $ | (3.0) | | | $ | (2.3) | | | | | | | | | | | Pension Plans | | | | OPEB | | | | Nine Months Ended September 30, | | | | Nine Months Ended September 30, | | | | | 2020 | | 2019 | | 2020 | | 2019 | | | (in millions) | | | | | | | | Service Cost | $ | 7.2 | | | $ | 5.9 | | | $ | 0.7 | | | $ | 0.6 | | | Interest Cost | 11.6 | | | 14.3 | | | 3.1 | | | 4.1 | | | Expected Return on Plan Assets | (19.7) | | | (22.0) | | | (7.9) | | | (8.1) | | | Amortization of Prior Service Credit | — | | | — | | | (5.3) | | | (5.2) | | | Amortization of Net Actuarial Loss | 6.4 | | | 4.0 | | | 0.5 | | | 1.9 | | | Net Periodic Benefit Cost (Credit) | $ | 5.5 | | | $ | 2.2 | | | $ | (8.9) | | | $ | (6.7) | |
PSO | | | | | | | | | | | | | | | | | | | | | | | | | Pension Plans | | | | OPEB | | | | Three Months Ended September 30, | | | | Three Months Ended September 30, | | | | | 2020 | | 2019 | | 2020 | | 2019 | | | (in millions) | | | | | | | | Service Cost | $ | 1.9 | | | $ | 1.6 | | | $ | 0.1 | | | $ | 0.2 | | | Interest Cost | 2.1 | | | 2.6 | | | 0.6 | | | 0.7 | | | Expected Return on Plan Assets | (3.6) | | | (4.0) | | | (1.3) | | | (1.3) | | | Amortization of Prior Service Credit | — | | | — | | | (1.0) | | | (1.1) | | | Amortization of Net Actuarial Loss | 1.1 | | | 0.7 | | | — | | | 0.3 | | | Net Periodic Benefit Cost (Credit) | $ | 1.5 | | | $ | 0.9 | | | $ | (1.6) | | | $ | (1.2) | | | | | | | | | | | Pension Plans | | | | OPEB | | | | Nine Months Ended September 30, | | | | Nine Months Ended September 30, | | | | | 2020 | | 2019 | | 2020 | | 2019 | | | (in millions) | | | | | | | | Service Cost | $ | 5.5 | | | $ | 4.9 | | | $ | 0.4 | | | $ | 0.5 | | | Interest Cost | 6.4 | | | 7.9 | | | 1.6 | | | 2.0 | | | Expected Return on Plan Assets | (10.9) | | | (12.2) | | | (3.9) | | | (3.9) | | | Amortization of Prior Service Credit | — | | | — | | | (3.2) | | | (3.2) | | | Amortization of Net Actuarial Loss | 3.5 | | | 2.2 | | | 0.2 | | | 0.9 | | | Net Periodic Benefit Cost (Credit) | $ | 4.5 | | | $ | 2.8 | | | $ | (4.9) | | | $ | (3.7) | |
SWEPCo | | | | | | | | | | | | | | | | | | | | | | | | | Pension Plans | | | | OPEB | | | | Three Months Ended September 30, | | | | Three Months Ended September 30, | | | | | 2020 | | 2019 | | 2020 | | 2019 | | | (in millions) | | | | | | | | Service Cost | $ | 2.6 | | | $ | 2.1 | | | $ | 0.2 | | | $ | 0.2 | | | Interest Cost | 2.5 | | | 3.1 | | | 0.6 | | | 0.7 | | | Expected Return on Plan Assets | (3.9) | | | (4.4) | | | (1.5) | | | (1.5) | | | Amortization of Prior Service Credit | — | | | — | | | (1.3) | | | (1.3) | | | Amortization of Net Actuarial Loss | 1.4 | | | 0.9 | | | 0.1 | | | 0.4 | | | Net Periodic Benefit Cost (Credit) | $ | 2.6 | | | $ | 1.7 | | | $ | (1.9) | | | $ | (1.5) | | | | | | | | | | | Pension Plans | | | | OPEB | | | | Nine Months Ended September 30, | | | | Nine Months Ended September 30, | | | | | 2020 | | 2019 | | 2020 | | 2019 | | | (in millions) | | | | | | | | Service Cost | $ | 7.5 | | | $ | 6.4 | | | $ | 0.6 | | | $ | 0.6 | | | Interest Cost | 7.6 | | | 9.3 | | | 1.9 | | | 2.3 | | | Expected Return on Plan Assets | (11.7) | | | (13.3) | | | (4.7) | | | (4.5) | | | Amortization of Prior Service Credit | — | | | — | | | (3.9) | | | (3.9) | | | Amortization of Net Actuarial Loss | 4.2 | | | 2.6 | | | 0.3 | | | 1.1 | | | Net Periodic Benefit Cost (Credit) | $ | 7.6 | | | $ | 5.0 | | | $ | (5.8) | | | $ | (4.4) | |
Qualified Pension Contribution (Applies to all Registrants except AEPTCo and PSO)
For the qualified pension plan, discretionary contributions may be made to maintain the funded status of the plan. In the third quarter of 2020, AEP made a discretionary contribution to the qualified pension plan. The following table provides details of the contribution by Registrant: | | | | | | | | | | Company | | Qualified Pension Plan | | | (in millions) | | AEP | | $ | 110.3 | | | AEP Texas | | 11.3 | | | APCo | | 7.0 | | | I&M | | 6.4 | | | OPCo | | 0.1 | | | | | | SWEPCo | | 8.9 | |
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