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Compensation and Benefit Plans
 9 Months Ended
Sep. 30, 2012
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Compensation and Benefit Plans
Compensation and Benefit Plans
Pension Plans
As part of the pension funding provisions contained in the Surface Transportation Extension Act of 2012 passed by Congress, Edison International's projected 2012 plan contributions have been reduced to $180 million from $286 million, which resulted in a third quarter regulatory adjustment reflected in the table below. Contributions of $156 million were made during the nine months ended September 30, 2012. The 2012 GRC proposed decision authorized contributions of $168 million with recovery of any undercollection through the continuation of the existing balancing account mechanism. A final GRC decision is expected by year-end. Annual contributions to these plans are expected to be, at a minimum, equal to the related annual expense.
Expense components are:
 
Three months ended
September 30,
 
Nine months ended
September 30,
(in millions)
2012
 
2011
 
2012
 
2011
Service cost
$
49

 
$
43

 
$
135

 
$
129

Interest cost
49

 
52

 
147

 
156

Expected return on plan assets
(56
)
 
(60
)
 
(174
)
 
(180
)
Amortization of prior service cost
1

 
2

 
3

 
6

Amortization of net loss
21

 
6

 
57

 
18

Expense under accounting standards
64

 
43

 
168

 
129

Regulatory adjustment (deferred)
(57
)
 
(6
)
 
(3
)
 
(18
)
Total expense recognized
$
7

 
$
37

 
$
165

 
$
111


Postretirement Benefits Other Than Pensions
Edison International made contributions of $17 million during the nine months ended September 30, 2012 and expects to make $48 million of additional contributions during the remainder of 2012. In 2012, annual contributions made to plans for SCE employees are expected to be recovered through CPUC-approved regulatory mechanisms. Annual contributions are expected to be, at a minimum, equal to the total annual expense for these plans. Benefits under these plans, with some exceptions, are generally unvested and subject to change.
Expense components are:
 
Three months ended
September 30,
 
Nine months ended
September 30,
(in millions)
2012
 
2011
 
2012
 
2011
Service cost
$
13

 
$
11

 
$
39

 
$
33

Interest cost
30

 
33

 
90

 
99

Expected return on plan assets
(27
)
 
(28
)
 
(81
)
 
(84
)
Special termination benefits1
3

 
—

 
3

 
—

Amortization of prior service credit
(9
)
 
(9
)
 
(27
)
 
(27
)
Amortization of net loss
12

 
9

 
36

 
27

Total expense
$
22

 
$
16

 
$
60

 
$
48

1 
Due to the reduction in the workforce at San Onofre, Edison International has incurred costs for enhanced retiree health care coverage. See below for further information.
San Onofre Workforce Reduction
In August 2012, SCE announced plans for downsizing to bring the San Onofre organization and cost structure in line with industry peers. SCE plans to reduce the San Onofre workforce by 730 employees to 1,500 employees beginning in the fourth quarter of 2012 and continuing in 2013. At September 30, 2012, SCE had recorded $30 million in estimated cash severance costs (SCE's share) related to the non-represented employee workforce reduction.