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Pension and OPEB
 9 Months Ended
Sep. 30, 2014
Pension and OPEB
Pension and Other Postretirement Benefits (OPEB)
PSEG sponsors several qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria. The following table provides the components of net periodic benefit costs relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis.
Pension and OPEB costs for PSEG, except for Servco, are detailed as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
OPEB
 
Pension Benefits
 
OPEB
 
 
 
Three Months Ended
 
Three Months Ended
 
Nine Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
September 30,
 
September 30,
 
 
 
2014

 
2013
 
2014

 
2013
 
2014
 
2013
 
2014
 
2013
 
 
 
Millions
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service Cost
$
26

 
$
29

 
$
5

 
$
6

 
$
78

 
$
87

 
$
14

 
$
16

 
 
Interest Cost
58

 
54

 
18

 
15

 
176

 
161

 
52

 
47

 
 
Expected Return on Plan Assets
(99
)
 
(87
)
 
(7
)
 
(6
)
 
(299
)
 
(261
)
 
(20
)
 
(16
)
 
 
Amortization of Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior Service Cost (Credit)
(5
)
 
(5
)
 
(4
)
 
(4
)
 
(14
)
 
(14
)
 
(11
)
 
(11
)
 
 
Actuarial Loss
14

 
47

 
6

 
11

 
42

 
141

 
18

 
32

 
 
Total Benefit Costs
$
(6
)
 
$
38

 
$
18

 
$
22

 
$
(17
)
 
$
114

 
$
53

 
$
68

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Pension and OPEB costs for Power, PSE&G and PSEG’s other subsidiaries, except for Servco, are detailed as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
OPEB
 
Pension Benefits
 
OPEB
 
 
 
Three Months Ended
 
Three Months Ended
 
Nine Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
September 30,
 
September 30,
 
 
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
 
 
Millions
 
 
Power
$
(2
)
 
$
11

 
$
5

 
$
6

 
$
(5
)
 
$
33

 
$
15

 
$
17

 
 
PSE&G
(4
)
 
23

 
12

 
16

 
(14
)
 
68

 
35

 
49

 
 
Other
—

 
4

 
1

 
—

 
2

 
13

 
3

 
2

 
 
Total Benefit Costs
$
(6
)
 
$
38

 
$
18

 
$
22

 
$
(17
)
 
$
114

 
$
53

 
$
68

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


PSEG does not anticipate making any significant contributions into its pension plan during 2014. However, during the three months ended March 31, 2014, PSEG contributed its entire planned contribution for the year 2014 of $14 million into its postretirement healthcare plan.

Servco Pension and OPEB
At the direction of LIPA, effective January 1, 2014, Servco established benefit plans that provide substantially the same benefits to its employees as those previously provided by National Grid Electric Services LLC (NGES), the predecessor T&D system manager for LIPA. Since the vast majority of Servco's employees had worked under NGES' T&D operations services arrangement with LIPA, Servco's plans provide certain of those employees with pension and OPEB vested credit for prior years' services earned while working for NGES. The benefit plans cover all employees of Servco for current service. Under the OSA, all of these and any future employee benefit costs are to be funded by LIPA. See Note 3. Variable Interest Entities (VIEs). These obligations, as well as the offsetting long-term receivable, are separately presented on the Condensed Consolidated Balance Sheet of PSEG.
Servco amounts are not included in any of the preceding pension and OPEB benefit cost disclosures. Pension and OPEB costs of Servco are accounted for according to the OSA. Servco recognizes expenses for contributions to its pension plan trusts and for OPEB payments made to retirees. Operating Revenues are recognized for the reimbursement of these costs. The pension-related revenues and costs for the three months and nine months ended September 30, 2014 were $21 million and $67 million, respectively. Servco has contributed its entire planned contribution amount to its pension plan trusts during 2014. There were no OPEB-related revenues earned or costs incurred for the three months and nine months ended September 30, 2014.
Power [Member]
  
Pension and OPEB
Pension and Other Postretirement Benefits (OPEB)
PSEG sponsors several qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria. The following table provides the components of net periodic benefit costs relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis.
Pension and OPEB costs for PSEG, except for Servco, are detailed as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
OPEB
 
Pension Benefits
 
OPEB
 
 
 
Three Months Ended
 
Three Months Ended
 
Nine Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
September 30,
 
September 30,
 
 
 
2014

 
2013
 
2014

 
2013
 
2014
 
2013
 
2014
 
2013
 
 
 
Millions
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service Cost
$
26

 
$
29

 
$
5

 
$
6

 
$
78

 
$
87

 
$
14

 
$
16

 
 
Interest Cost
58

 
54

 
18

 
15

 
176

 
161

 
52

 
47

 
 
Expected Return on Plan Assets
(99
)
 
(87
)
 
(7
)
 
(6
)
 
(299
)
 
(261
)
 
(20
)
 
(16
)
 
 
Amortization of Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior Service Cost (Credit)
(5
)
 
(5
)
 
(4
)
 
(4
)
 
(14
)
 
(14
)
 
(11
)
 
(11
)
 
 
Actuarial Loss
14

 
47

 
6

 
11

 
42

 
141

 
18

 
32

 
 
Total Benefit Costs
$
(6
)
 
$
38

 
$
18

 
$
22

 
$
(17
)
 
$
114

 
$
53

 
$
68

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Pension and OPEB costs for Power, PSE&G and PSEG’s other subsidiaries, except for Servco, are detailed as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
OPEB
 
Pension Benefits
 
OPEB
 
 
 
Three Months Ended
 
Three Months Ended
 
Nine Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
September 30,
 
September 30,
 
 
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
 
 
Millions
 
 
Power
$
(2
)
 
$
11

 
$
5

 
$
6

 
$
(5
)
 
$
33

 
$
15

 
$
17

 
 
PSE&G
(4
)
 
23

 
12

 
16

 
(14
)
 
68

 
35

 
49

 
 
Other
—

 
4

 
1

 
—

 
2

 
13

 
3

 
2

 
 
Total Benefit Costs
$
(6
)
 
$
38

 
$
18

 
$
22

 
$
(17
)
 
$
114

 
$
53

 
$
68

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


PSEG does not anticipate making any significant contributions into its pension plan during 2014. However, during the three months ended March 31, 2014, PSEG contributed its entire planned contribution for the year 2014 of $14 million into its postretirement healthcare plan.

Servco Pension and OPEB
At the direction of LIPA, effective January 1, 2014, Servco established benefit plans that provide substantially the same benefits to its employees as those previously provided by National Grid Electric Services LLC (NGES), the predecessor T&D system manager for LIPA. Since the vast majority of Servco's employees had worked under NGES' T&D operations services arrangement with LIPA, Servco's plans provide certain of those employees with pension and OPEB vested credit for prior years' services earned while working for NGES. The benefit plans cover all employees of Servco for current service. Under the OSA, all of these and any future employee benefit costs are to be funded by LIPA. See Note 3. Variable Interest Entities (VIEs). These obligations, as well as the offsetting long-term receivable, are separately presented on the Condensed Consolidated Balance Sheet of PSEG.
Servco amounts are not included in any of the preceding pension and OPEB benefit cost disclosures. Pension and OPEB costs of Servco are accounted for according to the OSA. Servco recognizes expenses for contributions to its pension plan trusts and for OPEB payments made to retirees. Operating Revenues are recognized for the reimbursement of these costs. The pension-related revenues and costs for the three months and nine months ended September 30, 2014 were $21 million and $67 million, respectively. Servco has contributed its entire planned contribution amount to its pension plan trusts during 2014. There were no OPEB-related revenues earned or costs incurred for the three months and nine months ended September 30, 2014.
PSE And G [Member]
  
Pension and OPEB
Pension and Other Postretirement Benefits (OPEB)
PSEG sponsors several qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria. The following table provides the components of net periodic benefit costs relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis.
Pension and OPEB costs for PSEG, except for Servco, are detailed as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
OPEB
 
Pension Benefits
 
OPEB
 
 
 
Three Months Ended
 
Three Months Ended
 
Nine Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
September 30,
 
September 30,
 
 
 
2014

 
2013
 
2014

 
2013
 
2014
 
2013
 
2014
 
2013
 
 
 
Millions
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service Cost
$
26

 
$
29

 
$
5

 
$
6

 
$
78

 
$
87

 
$
14

 
$
16

 
 
Interest Cost
58

 
54

 
18

 
15

 
176

 
161

 
52

 
47

 
 
Expected Return on Plan Assets
(99
)
 
(87
)
 
(7
)
 
(6
)
 
(299
)
 
(261
)
 
(20
)
 
(16
)
 
 
Amortization of Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior Service Cost (Credit)
(5
)
 
(5
)
 
(4
)
 
(4
)
 
(14
)
 
(14
)
 
(11
)
 
(11
)
 
 
Actuarial Loss
14

 
47

 
6

 
11

 
42

 
141

 
18

 
32

 
 
Total Benefit Costs
$
(6
)
 
$
38

 
$
18

 
$
22

 
$
(17
)
 
$
114

 
$
53

 
$
68

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Pension and OPEB costs for Power, PSE&G and PSEG’s other subsidiaries, except for Servco, are detailed as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
OPEB
 
Pension Benefits
 
OPEB
 
 
 
Three Months Ended
 
Three Months Ended
 
Nine Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
September 30,
 
September 30,
 
 
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
 
 
Millions
 
 
Power
$
(2
)
 
$
11

 
$
5

 
$
6

 
$
(5
)
 
$
33

 
$
15

 
$
17

 
 
PSE&G
(4
)
 
23

 
12

 
16

 
(14
)
 
68

 
35

 
49

 
 
Other
—

 
4

 
1

 
—

 
2

 
13

 
3

 
2

 
 
Total Benefit Costs
$
(6
)
 
$
38

 
$
18

 
$
22

 
$
(17
)
 
$
114

 
$
53

 
$
68

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


PSEG does not anticipate making any significant contributions into its pension plan during 2014. However, during the three months ended March 31, 2014, PSEG contributed its entire planned contribution for the year 2014 of $14 million into its postretirement healthcare plan.

Servco Pension and OPEB
At the direction of LIPA, effective January 1, 2014, Servco established benefit plans that provide substantially the same benefits to its employees as those previously provided by National Grid Electric Services LLC (NGES), the predecessor T&D system manager for LIPA. Since the vast majority of Servco's employees had worked under NGES' T&D operations services arrangement with LIPA, Servco's plans provide certain of those employees with pension and OPEB vested credit for prior years' services earned while working for NGES. The benefit plans cover all employees of Servco for current service. Under the OSA, all of these and any future employee benefit costs are to be funded by LIPA. See Note 3. Variable Interest Entities (VIEs). These obligations, as well as the offsetting long-term receivable, are separately presented on the Condensed Consolidated Balance Sheet of PSEG.
Servco amounts are not included in any of the preceding pension and OPEB benefit cost disclosures. Pension and OPEB costs of Servco are accounted for according to the OSA. Servco recognizes expenses for contributions to its pension plan trusts and for OPEB payments made to retirees. Operating Revenues are recognized for the reimbursement of these costs. The pension-related revenues and costs for the three months and nine months ended September 30, 2014 were $21 million and $67 million, respectively. Servco has contributed its entire planned contribution amount to its pension plan trusts during 2014. There were no OPEB-related revenues earned or costs incurred for the three months and nine months ended September 30, 2014.