Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 442

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 442
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 risk spread to allow for the yields of high-quality corporate bonds. Such method is required when there is no deep market for high quality corporate bonds.Expected return on plan assets is based on the weighted average of the plans’ target investment allocation as of the measurement date and the expected returns for those asset types.Interest crediting rate is based on an average 30-year Treasury bond from the month of November of the preceding year.We amortize prior service cost using straight line amortization over average future service (or average expected lifetime for plans where participants are substantially inactive employees), which is an alternative method allowed under U.S. GAAP.

2024 Form 10-K  |  F-88

The significant assumptions affecting projected benefit obligation and net periodic benefit cost are as follows:WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE PROJECTED BENEFIT OBLIGATION PensionPBOPDecember 31, 2024202320242023Sempra:    Discount rate5.74 %5.31 %5.75 %5.34 %Interest crediting rate(1)(2)4.54 4.66 4.54 4.66 Rate of compensation increase2.70-10.002.70-10.002.70-10.002.70-10.00SDG&E:    Discount rate5.75 %5.30 %5.75 %5.30 %Interest crediting rate(1)(2)4.54 4.66 4.54 4.66 Rate of compensation increase3.50-10.003.50-10.003.50-10.003.50-10.00SoCalGas:    Discount rate5.70 %5.25 %5.75 %5.35 %Interest crediting rate(1)(2)4.54 4.66 4.54 4.66 Rate of compensation increase2.70-10.002.70-10.002.70-10.002.70-10.00(1)    Interest crediting rate for pension benefits applies only to funded cash balance plans.(2)    Interest crediting rate for PBOP applies only to interest bearing health retirement accounts at SDG&E and SoCalGas.WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE NET PERIODIC BENEFIT COST P