Company: ADP
Filing Date: 2025-08-06
Form Type: 10-K
Source: 0000008670-25-000037
Chunk: 128

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-08-06
Form: 10-K
Item: Item 8
Chunk 128
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 plans with accumulated benefit obligations in excess of plan assets as of June 30, 2025 and 2024 had the following accumulated benefit obligation and fair value of plan assets:June 30,20252024Accumulated benefit obligation$107.9 $108.6 Fair value of plan assets$9.2 $7.6 The components of net pension (income)/expense were as follows: 202520242023Service cost – benefits earned during the year$6.0 $5.2 $4.8 Interest cost on projected benefits87.4 84.6 78.2 Expected return on plan assets(116.0)(115.9)(127.5)Net amortization and deferral3.2 2.9 1.9 Special termination benefits, plan curtailments, and settlement charges(0.3)0.3 — Net pension (income)/expense$(19.7)$(22.9)$(42.6)The net actuarial loss and prior service cost for the defined benefit pension plans that are included in accumulated other comprehensive income (loss) that have not yet been recognized as components of net periodic benefit cost are $280.2 million and $2.2 million, respectively, at June 30, 2025. There is no remaining transition obligation for the defined benefit pension plans included in accumulated other comprehensive income (loss).Assumptions used to determine the actuarial present value of benefit obligations were:    Years ended June 30,20252024Discount rate5.35 %5.40 %Interest crediting rate3.85 %3.70 %Increase in compensation levelsN/AN/AAssumptions used to determine the net pension (income)/expense generally were:Years ended June 30,202520242023Discount rate5.40 %5.10 %4.60 %Interest crediting rate3.70 %3.50 %3.25 %Expected long-term rate of return on assets6.00 %6.00 %6.75 %Increase in compensation levelsN/AN/AN/AThe discount rate is based upon published rates for high-quality fixed-income investments that produce cash flows that approximate the timing and amount of expected future benefit payments.The interest crediting rate is based on the current and expected future ten-year U.S. Treasury rates or a minimum of 3.25%.The expected