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Retirement and Post-Retirement Employee Benefit Plans (Tables)
12 Months Ended
Sep. 30, 2020
Retirement Benefits [Abstract]  
Schedule of Net Periodic Benefit Cost Not yet Recognized Additionally, the amounts that have not yet been recognized in net periodic pension cost that have been recorded as regulatory assets or liabilities are as follows:
 
Defined
Benefit Plan
 
Supplemental
Executive
Retirement Plans
 
Postretirement
Plans
 
Total
 
(In thousands)
September 30, 2020
 
 
 
 
 
 
 
Unrecognized prior service (credit) cost
$
(584
)
 
$

 
$
951

 
$
367

Unrecognized actuarial loss
78,082

 
51,045

 
9,110

 
138,237

 
$
77,498

 
$
51,045

 
$
10,061

 
$
138,604

September 30, 2019
 
 
 
 
 
 
 
Unrecognized prior service (credit) cost
$
(815
)
 
$

 
$
1,125

 
$
310

Unrecognized actuarial (gain) loss
67,191

 
56,784

 
(43,782
)
 
80,193

 
$
66,376

 
$
56,784

 
$
(42,657
)
 
$
80,503


Schedule of Allocation of Plan Assets
The following table presents asset allocation information for the Master Trust as of September 30, 2020 and 2019.
 
Targeted
Allocation  Range
 
Actual
Allocation
September 30
Security Class
2020
 
2019
Domestic equities
35%-55%
 
45.3%
 
40.6%
International equities
10%-20%
 
15.6%
 
14.5%
Fixed income
5%-30%
 
17.0%
 
18.8%
Company stock
0%-15%
 
13.0%
 
15.4%
Other assets
0%-20%
 
9.1%
 
10.7%

The following table presents asset allocation information for the postretirement benefit plan assets as of September 30, 2020 and 2019.
 
Actual
Allocation
September 30
Security Class
2020
 
2019
Diversified investment funds
97.4%
 
97.1%
Cash and cash equivalents
2.6%
 
2.9%

Schedule of Assumptions Used The actuarial assumptions used to determine the pension liability for the supplemental plans were determined as of September 30, 2020 and 2019 and the actuarial assumptions used to determine the net periodic pension cost for the supplemental plans were determined as of September 30, 2019, 2018 and 2017. These assumptions are presented in the following table:
 
Pension
Liability
 
Pension Cost
 
2020
 
2019
 
2020
 
2019
 
2018
Discount rate(1)
2.80
%
 
3.29
%
 
3.19
%
 
4.38
%
 
4.08
%
Rate of compensation increase
3.50
%
 
3.50
%
 
3.50
%
 
3.50
%
 
3.50
%
Interest crediting rate
4.69
%
 
4.69
%
 
4.69
%
 
4.69
%
 
4.69
%

 (1)
Reflects a weighted average discount rate for pension cost for fiscal 2020 and 2018 due to the settlements during the year.
The actuarial assumptions used to determine the pension liability for our postretirement plan were determined as of September 30, 2020 and 2019 and the actuarial assumptions used to determine the net periodic pension cost for the postretirement plan were determined as of September 30, 2019, 2018 and 2017.
The assumptions are presented in the following table:
 
Postretirement
Liability
 
Postretirement Cost
 
2020
 
2019
 
2020
 
2019
 
2018
Discount rate
2.80
%
 
3.29
%
 
3.29
%
 
4.38
%
 
3.89
%
Expected return on plan assets
4.94
%
 
5.14
%
 
5.14
%
 
5.33
%
 
4.29
%
Initial trend rate
6.25
%
 
6.25
%
 
6.25
%
 
6.50
%
 
7.00
%
Ultimate trend rate
5.00
%
 
5.00
%
 
5.00
%
 
5.00
%
 
5.00
%
Ultimate trend reached in
2026

 
2025

 
2025

 
2022

 
2022


The actuarial assumptions used to determine the pension liability for the Plan was determined as of September 30, 2020 and 2019 and the actuarial assumptions used to determine the net periodic pension cost for the Plan was determined as of September 30, 2019, 2018 and 2017. On October 21, 2020, the Society of Actuaries released its annually-updated mortality improvement scale for pension plans incorporating new assumptions surrounding life expectancies in the United States.  As of September 30, 2020, we updated our assumed mortality rates to incorporate the updated mortality table.
Additional assumptions are presented in the following table:
 
Pension
Liability
 
Pension Cost
 
2020
 
2019
 
2020
 
2019
 
2018
Discount rate
2.80
%
 
3.29
%
 
3.29
%
 
4.38
%
 
3.89
%
Rate of compensation increase
3.50
%
 
3.50
%
 
3.50
%
 
3.50
%
 
3.50
%
Expected return on plan assets
6.25
%
 
6.50
%
 
6.50
%
 
6.75
%
 
6.75
%
Interest crediting rate
4.69
%
 
4.69
%
 
4.69
%
 
4.69
%
 
4.69
%

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan
The following table presents the Plan’s accumulated benefit obligation, projected benefit obligation and funded status as of September 30, 2020 and 2019:
 
2020
 
2019
 
(In thousands)
Accumulated benefit obligation
$
565,755

 
$
541,287

Change in projected benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
577,270

 
$
504,719

Service cost
17,551

 
15,311

Interest cost
19,028

 
22,071

Actuarial (gain) loss
22,898

 
71,139

Benefits paid
(32,526
)
 
(35,970
)
Benefit obligation at end of year
604,221

 
577,270

Change in plan assets:
 
 
 
Fair value of plan assets at beginning of year
530,109

 
531,691

Actual return on plan assets
31,298

 
25,888

Employer contributions

 
8,500

Benefits paid
(32,526
)
 
(35,970
)
Fair value of plan assets at end of year
528,881

 
530,109

Reconciliation:
 
 
 
Funded status
(75,340
)
 
(47,161
)
Unrecognized prior service cost

 

Unrecognized net loss

 

Net amount recognized
$
(75,340
)
 
$
(47,161
)

The following table presents the postretirement plan’s benefit obligation and funded status as of September 30, 2020 and 2019:
 
2020
 
2019
 
(In thousands)
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
316,033

 
$
265,986

Service cost
13,466

 
10,810

Interest cost
10,612

 
11,839

Plan participants’ contributions
5,849

 
5,901

Actuarial (gain) loss
43,412

 
39,472

Benefits paid
(18,694
)
 
(17,975
)
Benefit obligation at end of year
370,678

 
316,033

Change in plan assets:
 
 
 
Fair value of plan assets at beginning of year
201,901

 
199,361

Actual return on plan assets
2,356

 
1,125

Employer contributions
16,833

 
13,489

Plan participants’ contributions
5,849

 
5,901

Benefits paid
(18,694
)
 
(17,975
)
Fair value of plan assets at end of year
208,245

 
201,901

Reconciliation:
 
 
 
Funded status
(162,433
)
 
(114,132
)
Unrecognized transition obligation

 

Unrecognized prior service cost

 

Unrecognized net loss

 

Accrued postretirement cost
$
(162,433
)
 
$
(114,132
)

The following table presents the supplemental plans’ accumulated benefit obligation, projected benefit obligation and funded status as of September 30, 2020 and 2019:
 
2020
 
2019
 
(In thousands)
Accumulated benefit obligation
$
122,207

 
$
138,772

Change in projected benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
143,987

 
$
121,370

Service cost
1,074

 
869

Interest cost
4,188

 
5,127

Actuarial (gain) loss
7,386

 
25,099

Benefits paid
(4,766
)
 
(8,478
)
Settlements
(22,729
)
 

Benefit obligation at end of year
129,140

 
143,987

Change in plan assets:
 
 
 
Fair value of plan assets at beginning of year

 

Employer contribution
27,495

 
8,478

Benefits paid
(4,766
)
 
(8,478
)
Settlements
(22,729
)
 

Fair value of plan assets at end of year

 

Reconciliation:
 
 
 
Funded status
(129,140
)
 
(143,987
)
Unrecognized prior service cost

 

Unrecognized net loss

 

Accrued pension cost
$
(129,140
)
 
$
(143,987
)

Schedule of Net Benefit Costs Supplemental Plan
Net periodic pension cost for the Plan for fiscal 2020, 2019 and 2018 is presented in the following table.
 
Fiscal Year Ended September 30
 
2020
 
2019
 
2018
 
(In thousands)
Components of net periodic pension cost:
 
 
 
 
 
Service cost
$
17,551

 
$
15,311

 
$
17,264

Interest cost(1)
19,028

 
22,071

 
20,803

Expected return on assets(1)
(28,316
)
 
(28,451
)
 
(27,666
)
Amortization of prior service credit(1)
(231
)
 
(232
)
 
(231
)
Recognized actuarial loss(1)
9,025

 
4,201

 
9,114

Net periodic pension cost
$
17,057

 
$
12,900

 
$
19,284



(1)
The components of net periodic cost other than the service cost component are included in the line item other non-operating income (expense) in the consolidated statements of comprehensive income or are capitalized on the consolidated balance sheets as a regulatory asset or liability, as described in Note 2.
Net periodic pension cost for the supplemental plans for fiscal 2020, 2019 and 2018 is presented in the following table.
 
Fiscal Year Ended September 30
 
2020
 
2019
 
2018
 
(In thousands)
Components of net periodic pension cost:
 
 
 
 
 
Service cost
$
1,074

 
$
869

 
$
1,332

Interest cost(1)
4,188

 
5,127

 
4,988

Recognized actuarial loss(1)
3,945

 
2,227

 
3,079

Settlements(1)
9,180

 

 
4,159

Net periodic pension cost
$
18,387

 
$
8,223

 
$
13,558



(1)
The components of net periodic cost other than the service cost component are included in the line item other non-operating income (expense) in the consolidated statements of comprehensive income or are capitalized on the consolidated balance sheets as a regulatory asset or liability, as described in Note 2.

Net periodic postretirement cost for fiscal 2020, 2019 and 2018 is presented in the following table.
 
Fiscal Year Ended September 30
 
2020
 
2019
 
2018
 
(In thousands)
Components of net periodic postretirement cost:
 
 
 
 
 
Service cost
$
13,466

 
$
10,810

 
$
12,078

Interest cost(1)
10,612

 
11,839

 
10,907

Expected return on assets(1)
(10,499
)
 
(10,659
)
 
(8,006
)
Amortization of transition obligation(1)

 

 

Amortization of prior service cost (credit)(1)
173

 
173

 
11

Recognized actuarial gain(1)
(1,337
)
 
(8,178
)
 
(6,473
)
Net periodic postretirement cost
$
12,415

 
$
3,985

 
$
8,517



(1)
The components of net periodic cost other than the service cost component are included in the line item other non-operating income (expense) in the consolidated statements of comprehensive income or are capitalized on the consolidated balance sheets as a regulatory asset or liability, as described in Note 2.
Schedule of Employee Pension Plans Investments at Fair Value In addition to the assets shown below, the Plan had net accounts receivable of $0.7 million and $1.3 million at September 30, 2020 and 2019, which materially approximates fair value due to the short-term nature of these assets.
 
Assets at Fair Value as of September 30, 2020
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Investments:
 
 
 
 
 
 
 
Common stocks
$
211,244

 
$

 
$

 
$
211,244

Money market funds

 
6,096

 

 
6,096

Registered investment companies
29,762

 

 

 
29,762

Government securities:
 
 
 
 
 
 
 
Mortgage-backed securities

 
15,230

 

 
15,230

U.S. treasuries
21,755

 
36

 

 
21,791

Corporate bonds

 
52,648

 

 
52,648

Total investments measured at fair value
$
262,761

 
$
74,010

 
$

 
336,771

Investments measured at net asset value:
 
 
 
 
 
 
 
Common/collective trusts (1)
 
 
 
 
 
 
122,207

Limited partnerships (1)
 
 
 
 
 
 
69,176

Total investments
 
 
 
 
 
 
$
528,154


 
Assets at Fair Value as of September 30, 2019
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Investments:
 
 
 
 
 
 
 
Common stocks
$
212,785

 
$

 
$

 
$
212,785

Money market funds

 
16,419

 

 
16,419

Registered investment companies
26,326

 

 

 
26,326

Government securities:
 
 
 
 
 
 
 
Mortgage-backed securities

 
19,986

 

 
19,986

U.S. treasuries
22,930

 
885

 

 
23,815

Corporate bonds

 
55,774

 

 
55,774

Total investments measured at fair value
$
262,041

 
$
93,064

 
$

 
355,105

Investments measured at net asset value:
 
 
 
 
 
 
 
Common/collective trusts (1)
 
 
 
 
 
 
108,975

Limited partnerships (1)
 
 
 
 
 
 
64,718

Total investments
 
 
 
 
 
 
$
528,798


(1)
The fair value of our common/collective trusts and limited partnerships are measured using the net asset value per share practical expedient. There are no redemption restrictions, redemption notice periods or unfunded commitments for these investments. The redemption frequency is daily.
Schedule of Expected Benefit Payments
The following benefit payments for our defined benefit plans, which reflect expected future service, as appropriate, are expected to be paid in the following fiscal years:
 
Pension
Plan
 
Supplemental
Plans
 
(In thousands)
2021
$
37,523

 
$
30,021

2022
37,804

 
17,117

2023
39,053

 
5,124

2024
40,036

 
4,472

2025
41,016

 
32,550

2026-2030
204,582

 
22,308


The following benefit payments paid by us, retirees and prescription drug subsidy payments for our postretirement benefit plans, which reflect expected future service, as appropriate, are expected to be paid in the following fiscal years. Company payments for fiscal 2020 include contributions to our postretirement plan trusts.
 
Company
Payments
 
Retiree
Payments
 
Subsidy
Payments
 
Total
Postretirement
Benefits
 
(In thousands)
2021
$
22,632

 
$
4,368

 
$

 
$
27,000

2022
16,263

 
4,772

 

 
21,035

2023
16,590

 
5,144

 

 
21,734

2024
17,517

 
5,651

 

 
23,168

2025
18,353

 
6,104

 

 
24,457

2026-2030
101,158

 
35,039

 

 
136,197


Schedule of Postretirement Benefit Plans Investments at Fair Value
The following tables set forth by level, within the fair value hierarchy, the Retiree Medical Plan’s assets at fair value as of September 30, 2020 and 2019. The methods used to determine fair value for the assets held by the Retiree Medical Plan are fully described in Note 2.
 
Assets at Fair Value as of September 30, 2020
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Investments:
 
 
 
 
 
 
 
Money market funds
$

 
$
5,525

 
$

 
$
5,525

Registered investment companies
202,720

 

 

 
202,720

Total investments measured at fair value
$
202,720

 
$
5,525

 
$

 
$
208,245

 
 
Assets at Fair Value as of September 30, 2019
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Investments:
 
 
 
 
 
 
 
Money market funds
$

 
$
5,972

 
$

 
$
5,972

Registered investment companies
195,929

 

 

 
195,929

Total investments measured at fair value
$
195,929

 
$
5,972

 
$

 
$
201,901