Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 210

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 210
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0 percent for the Pension and SERP Plans, and 5.0 percent to 5.2 percent for the PBOP Plans.  The increase in the discount rates used to calculate the funded status resulted in a decrease to the Pension and SERP Plans’ projected benefit obligation of $332.9 million and a decrease to the PBOP Plans' projected benefit obligation of $39.8 million as of December 31, 2024.

The Company uses the spot rate methodology for the service and interest cost components of Pension, SERP and PBOP expense because it provides a relatively precise measurement by matching projected cash flows to the corresponding spot rates on the yield curve.  The discount rates used to estimate the 2024 expense were within a range of 4.7 percent to 5.1 percent for the Pension and SERP Plans, and within a range of 4.9 percent to 5.2 percent for the PBOP Plans.  

Mortality Assumptions:  Assumptions as to mortality of the participants in our Pension, SERP and PBOP Plans are a key estimate in measuring the expected payments a participant may receive over their lifetime and the corresponding plan liability we need to record.  The mortality assumption is composed of a base table that represents the current expectation of life expectancy of the population adjusted by an improvement scale that attempts to anticipate future improvements in life expectancy.  In 2024, our mortality assumption utilized the Society of Actuaries base mortality tables (Pri-2012), adjusted to reflect Eversource’s own mortality experience, and projected generationally using the MP-2021 improvement scale.

Compensation/Progression Rate Assumptions:  This assumption reflects the expected long-term salary growth rate, including consideration of the levels of increases built into collective bargaining agreements, and impacts the estimated benefits that Pension and SERP Plan participants will receive in the future.  As of December 31, 2024 and 2023, the compensation/progression rates used to determine the Pension and SERP Plan funded status were within a range of 3.5 percent to 4.0 percent.     

Health Care Cost Assumptions:  The Eversource Service PBOP Plan is not subject to health care cost trends.  As of December 31, 2024, for the Aquarion PBOP Plan, the health care trend rate used to determine the funded status for pre-65 retirees is 7.5 percent, with an