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Pension and Other Postretirement Benefit Plans
 9 Months Ended
Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]  
Pension and Other Postretirement Benefit Plans
Pension and Other Postretirement Benefit Plans

PNMR and its subsidiaries maintain qualified defined benefit pension plans, postretirement benefit plans providing medical and dental benefits, and executive retirement programs (collectively, the “PNM Plans” and “TNMP Plans”). PNMR maintains the legal obligation for the benefits owed to participants under these plans.

Additional information concerning pension and OPEB plans is contained in Note 12 of the Notes to Consolidated Financial Statements in the 2015 Annual Reports on Form 10-K. Annual net periodic benefit cost (income) for the plans is actuarially determined using the methods and assumptions set forth in that note and is recognized ratably throughout the year.

PNM Plans

The following tables present the components of the PNM Plans’ net periodic benefit cost:
 
Three Months Ended September 30,
 
Pension Plan
 
OPEB Plan
 
Executive Retirement Program
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
(In thousands)
Components of Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
—

 
$
—

 
$
35

 
$
51

 
$
—

 
$
—

Interest cost
7,577

 
7,064

 
1,087

 
1,022

 
203

 
190

Expected return on plan assets
(8,854
)
 
(9,831
)
 
(1,371
)
 
(1,403
)
 
—

 
—

Amortization of net (gain) loss
3,455

 
3,705

 
286

 
491

 
64

 
81

Amortization of prior service cost
(241
)
 
(241
)
 
(7
)
 
(160
)
 
—

 
—

Net periodic benefit cost
$
1,937

 
$
697

 
$
30

 
$
1

 
$
267

 
$
271

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30,
 
Pension Plan
 
OPEB Plan
 
Executive Retirement Program
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
(In thousands)
Components of Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
—

 
$
—

 
$
105

 
$
153

 
$
—

 
$
—

Interest cost
22,731

 
21,191

 
3,260

 
3,067

 
609

 
570

Expected return on plan assets
(26,562
)
 
(29,492
)
 
(4,113
)
 
(4,208
)
 
—

 
—

Amortization of net (gain) loss
10,365

 
11,115

 
858

 
1,474

 
192

 
243

Amortization of prior service cost
(724
)
 
(724
)
 
(22
)
 
(481
)
 
—

 
—

Net periodic benefit cost
$
5,810

 
$
2,090

 
$
88

 
$
5

 
$
801

 
$
813


PNM made contributions to its pension plan trust of zero and $30.0 million in the three and nine months ended September 30, 2015 and does not anticipate making any contributions to the pension plan in 2016-2020, based on current law, including recent amendments to funding requirements, and estimates of portfolio performance. The funding assumptions were developed using discount rates of 4.8% to 5.7%. Actual amounts to be funded in the future will be dependent on the actuarial assumptions at that time, including the appropriate discount rate. PNM may make additional contributions at its discretion. PNM made contributions to the OPEB trust of $0.8 million and $2.4 million in the three and nine months ended September 30, 2016 and $0.8 million and $2.4 million in the three and nine months ended September 30, 2015. PNM does not expect to make additional contributions to the OPEB trust in 2016 and does not expect to make contributions for 2017-2020.  Disbursements under the executive retirement program, which are funded by PNM and considered to be contributions to the plan, were $0.4 million and $1.2 million in the three and nine months ended September 30, 2016 and $0.4 million and $1.2 million in the three and nine months ended September 30, 2015 and are expected to total $1.5 million during 2016 and $5.9 million for 2017-2020.

TNMP Plans

The following tables present the components of the TNMP Plans’ net periodic benefit cost (income):
 
Three Months Ended September 30,
 
Pension Plan
 
OPEB Plan
 
Executive Retirement Program
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
(In thousands)
Components of Net Periodic Benefit Cost (Income)
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
—

 
$
—

 
$
46

 
$
62

 
$
—

 
$
—

Interest cost
826

 
761

 
169

 
152

 
10

 
9

Expected return on plan assets
(986
)
 
(1,105
)
 
(122
)
 
(130
)
 
—

 
—

Amortization of net (gain) loss
175

 
195

 
(10
)
 
—

 
1

 
1

Amortization of prior service cost
—

 
—

 
—

 
—

 
—

 
—

Net Periodic Benefit Cost (Income)
$
15

 
$
(149
)
 
$
83

 
$
84

 
$
11

 
$
10

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30,
 
Pension Plan
 
OPEB Plan
 
Executive Retirement Program
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
(In thousands)
Components of Net Periodic Benefit Cost (Income)
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
—

 
$
—

 
$
139

 
$
185

 
$
—

 
$
—

Interest cost
2,478

 
2,282

 
508

 
456

 
30

 
27

Expected return on plan assets
(2,957
)
 
(3,315
)
 
(367
)
 
(390
)
 
—

 
—

Amortization of net (gain) loss
525

 
586

 
(30
)
 
—

 
1

 
3

Amortization of prior service cost
—

 
—

 
—

 
—

 
—

 
—

Net Periodic Benefit Cost (Income)
$
46

 
$
(447
)
 
$
250

 
$
251

 
$
31

 
$
30



TNMP made no contribution to its pension trust in 2015 and does not anticipate making any contributions in 2016-2020, based on current law, including recent amendments to funding requirements, and estimates of portfolio performance. The funding assumptions were developed using discount rates of 4.8% to 5.7%. Actual amounts to be funded in the future will depend on the actuarial assumptions at that time, including the appropriate discount rate. TNMP may make additional contributions at its discretion. TNMP made no contributions to the OPEB trust in the three and nine months ended September 30, 2016 and 2015. TNMP expects to make contributions to the OPEB trust totaling $0.3 million in 2016 and $1.4 million for 2017-2020. Disbursements under the executive retirement program, which are funded by TNMP and considered to be contributions to the plan, were less than $0.1 million in the three and nine months ended September 30, 2016 and 2015 and are expected to total $0.1 million during 2016 and $0.4 million in 2017-2020.