Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 531

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 2
Chunk 531
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 end of the accounting period. While
actual usage for customers may differ from the estimate, we believe the overall total estimate of consumption and revenue for the fiscal
period will not differ materially from actual consumption.

Retirement Benefit Plans

We maintain a noncontributory defined benefit
pension plan (Pension Plan) which covers all currently active employees hired prior to April 1, 2007. In addition, the Company maintains
an unfunded supplemental plan for certain executive officers.

The Company has a retirement benefit plan other
than pensions (Other Benefits Plan) for substantially all of its retired employees. Employees hired after March 31, 2007 are not eligible
to participate in the Other Benefits Plan. Coverage includes healthcare and life insurance.

The costs for providing retirement benefits are
dependent upon numerous factors, including actual plan experience and assumptions of future experience. Future retirement benefit plan
obligations and expense will depend on future investment performance, changes in future discount rates and various other demographic factors
related to the population participating in the Company’s retirement benefit plans, all of which can change significantly in future
years.

The primary assumptions used for determining future retirement benefit
plans’ obligations and costs, which are reviewed and revised as needed each year, are as follows:

    ●
    Discount Rate - calculated based on market rates for long-term, high-quality corporate bonds specific to the expected duration of our Pension Plan and Other Benefits Plan’s liabilities; 
  
    ●
    Compensation Increase - based on management projected future employee compensation increases;
  
    ●
    Long-Term Rate of Return - determined based on expected returns from our asset allocation for our Pension Plan and Other Benefits Plan assets;
  
    ●
    Mortality - The Company utilizes the Society of Actuaries’ mortality table (Pri-2012) (Fully Generational, IRS Adjusted, Mortality Improvement Scale MP-2021); and
  
    ●
    Healthcare Cost Trend Rate - based on management projected future healthcare costs.

The discount rate, compensation increase rate and long-term rate of
return used to determine future obligations of our retirement benefit plans as of December 31, 2024 are as follows:

    Pension Plan
    Other Benefits Plan
  
    Discount Rate
    5.47%
    5.49%
  
    Compensation Increase
    3.00%
    3.00%
  
    Long-term Rate of Return
    7.00%
    7.00%

For the 2024 valuation, costs and obligations