Company: AILIM
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001002910-25-000055
Chunk: 96

Company: Ameren Illinois Co
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 96
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, 2024 and 2023:Pension BenefitsPostretirement Benefits2024202320242023Discount rate at measurement date5.70 %5.25 %5.70 %5.25 %Increase in future compensation4.00 3.50 (a)4.00 3.50 (a)Cash balance pension plan interest crediting rate5.50 5.50 (b)(b)Medical cost trend rate (initial)(c)(b)(b)(d)(d)Medical cost trend rate (ultimate)(c)(b)(b)5.00 5.00 (a)As of December 31, 2023, increase in future compensation was 4.00% in 2024, and 3.50% thereafter.(b)Not applicable.(c)Initial and ultimate medical cost trend rate for certain Medicare-eligible participants was 2.50% at December 31, 2024 and 2023.(d)Initial medical cost trend rates of 7.00% and 6.93% for pre-Medicare plan participants and 7.00% and 6.50% for post-Medicare plan participants at December 31, 2024 and 2023, respectively, trend down to the ultimate rate by 2033 and 2030, respectively, with a 3.00% upward adjustment to the post-Medicare trend rate in 2025.Ameren determines discount rate assumptions by identifying a theoretical settlement portfolio of high-quality corporate bonds sufficient to provide for a plan’s projected benefit payments. The settlement portfolio of bonds is selected from a pool of approximately 860 high-quality corporate bonds. A single discount rate is then determined; that rate results in a discounted value of the plan’s benefit payments that equates to the market value of the selected bonds. In 2024, Ameren elected to continue to use the Society of Actuaries mortality table and the Society of Actuaries 2020 Mortality Improvement Scale.FundingPension benefits are based on the employees’ years of service, age, and compensation. Ameren’s pension plans are funded in compliance with income tax regulations, federal funding requirements, and other regulatory requirements. As a result, Ameren expects to fund its pension plans at a level equal to the greater of the pension cost or the legally required minimum contribution. Based on its assumptions at December 31, 2024, its investment performance in 2024, and