Benefit Plans

3 Months Ended

Mar. 31, 2017

Benefit Plans

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 $5.0 million in employer contributions during each of the three months ended March 31, 2017 and 2016.

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 but are still participants in the DP&L plan. See Note 11 – Related Party Transactions.

The net periodic benefit cost of the pension benefit plans for the three months ended March 31, 2017 and 2016 was:



Net Periodic Benefit Cost	Pension
	Three months ended
	March 31,
$ in millions	2017			2016
Service cost	$	1.4		$	1.4
Interest cost	3.6			3.7
Expected return on plan assets	(5.7		)	(5.7		)
Plan curtailment ^(a)	4.1			—
Amortization of unrecognized:
Prior service cost	0.4			0.5
Actuarial loss	1.3			1.0
Net periodic benefit cost	$	5.1		$	0.9


(a)	As a result of the decision to retire certain of DP&L's coal-fired plants, we recognized a plan curtailment of $4.1 million in the first quarter of 2017. See Note 14 – Fixed-asset Impairment for more information.

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 $15.8 million at both March 31, 2017 and December 31, 2016 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 to be paid during the twelve months ending March 31,	Pension
2018	$	18.8
2019	25.5
2020	26.0
2021	26.4
2022	26.7
2023 - 2027	139.6

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 vast majority of its employees.

The net periodic benefit cost of the pension benefit plans for the three months ended March 31, 2017 and 2016 was:



Net Periodic Benefit Cost	Pension
	Three months ended
	March 31,
$ in millions	2017			2016
Service cost	$	1.4		$	1.4
Interest cost	3.6			3.7
Expected return on plan assets	(5.7		)	(5.7		)
Plan curtailment ^(a)	5.6			—
Amortization of unrecognized:
Prior service cost	0.5			0.8
Actuarial loss	2.2			1.8
Net periodic benefit cost	$	7.6		$	2.0


(a)	As a result of the decision to retire certain of DP&L's coal-fired plants, we recognized a plan curtailment of $5.6 million in the first quarter of 2017. See Note 14 – Fixed-asset Impairment for more information.

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



$ in millions
Estimated to be paid during the twelve months ending March 31,	Pension
2018	$	18.8
2019	25.5
2020	26.0
2021	26.4
2022	26.7
2023 - 2027	139.6