Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 985

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 6
Chunk 985
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 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
for our Other Benefits Plan assumed an 8.0% annual rate of increase in the per capita cost of covered healthcare benefits in 2025 with
the annual rate of increase declining 0.15% per year for 2026-2045, resulting in an annual rate of increase in the per capita cost of
covered healthcare benefits of 5.0% by year 2045.

35 

The following is a sensitivity analysis for certain actuarial assumptions
used in determining projected benefit obligations (PBO) and expenses for our retirement benefit plans:

Pension Plan

    Actuarial Assumptions 
    Estimated  Increase/ (Decrease)  on PBO (000s)  
    Estimated  Increase/ (Decrease)  on Expense (000s) 
  
    Discount Rate 1% Increase 
    $(8,940) 
    $(38)
  
    Discount Rate 1% Decrease 
     10,814  
     1,338 

Other Benefits Plan

    Actuarial Assumptions 
    Estimated  Increase/ (Decrease)  on PBO (000s)  
    Estimated  Increase/ (Decrease)  on Expense (000s) 
  
    Discount Rate 1% Increase 
    $(3,299) 
    $(454)
  
    Discount Rate 1% Decrease 
     4,075  
     551 
  
    Healthcare Cost Trend Rate 1% Increase