Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 403

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 403
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.97%Other postretirementService cost5.50%4.82%Interest cost5.36%4.91%Expected long-term rates of return Qualified pension assets6.00% - 7.00% Blended 6.75%6.75%Other postretirement - non-taxable assets6.00% - 7.00%6.50% - 7.25%Other postretirement - taxable assets - after tax rate4.75%5.25%Weighted-average rate of increase in future compensation 3.98% - 4.45%3.98% - 4.40%Assumed health care cost trend ratesPre-65 retirees8.15%6.95%Post-65 retirees10.13%7.88%Ultimate health care cost trend rate4.75%4.75%Year ultimate health care cost trend rate is reached and beyondPre-65 retirees20352032Post-65 retirees20352032

(a)    In 2024, qualified pension cost included settlement costs of $328 million.

Actual asset returns have an effect on Entergy’s qualified pension and other postretirement costs.  In 2024, Entergy’s actual annual return on qualified pension assets was approximately 6.7% and on other postretirement assets was approximately 7%, as compared to the 2024 expected long-term rates of return discussed above.

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Table of ContentsEntergy Corporation and SubsidiariesManagement’s Financial Discussion and Analysis

The following chart reflects the sensitivity of qualified pension cost and qualified pension projected benefit obligation to changes in certain actuarial assumptions (dollars in millions):

Actuarial AssumptionChange in AssumptionImpact on 2025 Qualified Pension CostImpact on 2024 Qualified Pension Projected Benefit Obligation Increase/(Decrease)Discount rate(0.25%)$4$104Rate of return on plan assets(0.25%)$11$—Rate of increase in compensation0.25%$4$23

The following chart reflects the sensitivity of postretirement benefits cost and accumulated postretirement benefit obligation to changes in certain actuarial assumptions (dollars in millions):

Actuarial AssumptionChange in AssumptionImpact on 2025 Postretirement Benefits CostImpact on 2024 Accumulated Postretirement Benefit Obligation Increase/(Decrease)Discount rate(0.25%)$1$18Health care cost trend0.25%