Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Changes in Benefit Obligations and Plan Assets

The following table summarizes changes in the benefit obligations and plan assets of (i) the People’s Qualified Plan (including the Chittenden Qualified Plan and the Suffolk Qualified Plan), the First Connecticut Qualified Plan, the People's Supplemental Plans, the First Connecticut Supplemental Plan, the BSB Bancorp Supplemental Plan and the United Financial Supplemental Plan (together the “Pension Plans”) and (ii) the People’s Postretirement Plan, the First Connecticut Postretirement Plans, the BSB Bancorp Post Retirement Welfare (Life Insurance) Plan and the United Financial Postretirement Plan (together the “Other Postretirement Plans”). The table also shows the funded status (or the difference between benefit obligations and plan assets) recognized in the Consolidated Statements of Condition. All plans have a December 31 measurement date.


	Pension Plans						Other Postretirement Plans
(in millions)	2019		2018		2019		2018
Benefit obligations: (1)
Beginning of year	$	562.7	$	584.8	$	15.3	$	14.6
Service cost	—		—		0.3		0.3
Interest cost	22.9		20.2		0.6		0.5
Actuarial loss (gain)	80.2		(51.0)		1.2		(1.7)
Benefits paid	(28.2)		(21.4)		(0.7)		(0.8)
Settlements	(13.1)		(2.7)		—		—
Acquisitions (2)	41.0		35.2		2.0		2.4
Plan revaluations (3)	—		(2.4)		—		—
End of year	665.5		562.7		18.7		15.3
Fair value of plan assets:
Beginning of year	596.4		584.9		—		—
Actual return on assets	138.6		(40.9)		—		—
Employer contributions	18.7		52.7		0.7		0.8
Benefits paid	(28.2)		(21.4)		(0.7)		(0.8)
Settlements	(13.1)		(2.7)		—		—
Acquisitions (2)	34.3		23.8		—		—
End of year	746.7		596.4		—		—
Funded status at end of year	$	81.2	$	33.7	$	(18.7)	$	(15.3)
Amounts recognized in the Consolidated Statements of Condition:
Other assets	$	121.4	$	78.0	$	—	$	—
Other liabilities	(40.2)		(44.3)		(18.7)		(15.3)
Funded status at end of year	$	81.2	$	33.7	$	(18.7)	$	(15.3)

(1)Represents the projected benefit obligation for the Pension Plans and the accumulated benefit obligation for the Other Postretirement Plans.

(2)Represents the benefit obligations and plan assets of the United Financial Qualified Plan and the United Financial Supplemental Plan as of November 1, 2019, the BSB Bancorp Supplemental Plan as of April 1, 2019, the First Connecticut Qualified Plan as of October 1, 2018, and the benefit obligations of the United Financial Postretirement Plan as of November 1, 2019, the BSB Bancorp Post Retirement Welfare (Life Insurance) Plan as of April 1, 2019 and the First Connecticut Postretirement Plans as of October 1, 2018

(3)Represents the revaluations of the Chittenden Qualified Plan and the Suffolk Qualified Plan, effective October 1, 2018, upon merging into the People’s Qualified Plan.

Accumulated and Projected Benefit Obligations

The following table summarizes the accumulated and projected benefit obligations for the Pension Plans at the respective measurement dates:


	Pension Plans
As of December 31 (in millions)	2019		2018
Accumulated benefit obligations:
Qualified Plans	$	625.3	$	518.7
Supplemental Plans	40.0		43.6
Total	$	665.3	$	562.3
Projected benefit obligations:
Qualified Plans	$	625.3	$	518.7
Supplemental Plans	40.2		44.0
Total	$	665.5	$	562.7

Components of Net Periodic Benefit (Income) Expense and Other Amounts

Components of net periodic benefit (income) expense and other amounts recognized in other comprehensive income (loss) are as follows:


	Pension Plans										Other Postretirement Plans
Years ended December 31 (in millions)	2019		2018		2017		2019		2018		2017
Net periodic benefit (income) expense:
Interest cost	$	22.9	$	20.2	$	19.1	$	0.9	$	0.8	$	0.8
Expected return on plan assets	(46.1)		(44.3)		(37.9)		—		—		—
Recognized net actuarial loss	5.3		7.3		6.5		0.1		0.3		0.2
Recognized prior service credit	—		(0.3)		(0.8)		—		—		—
Settlements (1)	2.9		1.0		2.6		—		—		—
Net periodic benefit (income) expense	(15.0)		(16.1)		(10.5)		1.0		1.1		1.0
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net actuarial (gain) loss	(20.5)		26.0		(4.8)		1.1		(2.0)		1.0
Prior service credit	—		0.3		0.8		—		—		—
Total pre-tax changes recognized in other comprehensive income (loss)	(20.5)		26.3		(4.0)		1.1		(2.0)		1.0
Total recognized in net periodic benefit (income) expense and other comprehensive income (loss)	$	(35.5)	$	10.2	$	(14.5)	$	2.1	$	(0.9)	$	2.0

(1)Settlement charges are a result of lump-sum benefit payments in excess of the sum of a plan’s annual interest and service costs. When an employer settles the full amount of its obligation for vested benefits with respect to some of a plan’s participants, the employer is required to recognize in income a pro-rata portion of the aggregate gain or loss recorded in AOCL.

Pre-Tax Amounts in Accumulated Other Comprehensive Loss

The pre-tax amounts in AOCL that have not been recognized as components of net periodic benefit (income) expense are as follows:


	Pension Plans						Other Postretirement Plans
As of December 31 (in millions)	2019		2018		2019		2018
Net actuarial loss	$	228.5	$	249.0	$	3.9	$	2.8

Total pre-tax amounts included in AOCL	$	228.5	$	249.0	$	3.9	$	2.8

Assumptions Used in Determining Benefit Obligations and Net Periodic Benefit Expense

The following assumptions were used in determining the benefit obligations and net periodic benefit (income) expense as of and for the periods indicated:

Qualified Plans

Other Postretirement Plans

2019

2018

2017

2019

2018

2017

Weighted-average assumptions used to determine
benefit obligations at December 31:

Discount rate:

People’s Qualified Plan

3.38

4.41

3.74

3.40

4.40

3.70

First Connecticut Qualified Plan

3.39

4.41

n/a

United Financial Qualified Plan

3.42

n/a

Chittenden Qualified Plan (1)

n/a

3.62

n/a

Suffolk Qualified Plan (1)

n/a

3.72

n/a

Rate of compensation increase

n/a

Weighted-average assumptions used to determine net
periodic benefit (income) expense for the years
ended December 31:

Discount rate:

People’s Qualified Plan (2)

4.41

3.74%/4.34%

4.41

4.40

3.70

4.40

First Connecticut Qualified Plan

4.41

4.35

n/a

United Financial Qualified Plan

3.33

n/a

Chittenden Qualified Plan (1)

n/a

4.16

n/a

Suffolk Qualified Plan (1)

n/a

4.24

n/a

Expected return on plan assets

People’s Qualified Plan

7.25

n/a

First Connecticut Qualified Plan

6.00

n/a

United Financial Qualified Plan

5.25

n/a

Rate of compensation increase

n/a

Assumed health care cost trend rates at December 31:

Health care cost trend rate assumed for next year

n/a

5.70

6.00

6.20

Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)

n/a

4.50

Year that the rate reaches the ultimate trend rate

n/a

2037

n/a — not applicable

(1)Effective October 1, 2018, the Chittenden Qualified Plan and the Suffolk Qualified Plan were merged into the People’s Qualified Plan.

(2)Rate of 3.74% through September 30, 2018 and 4.34% through December 31, 2018.

Asset Allocation

All investment decisions are governed by an established policy that contains the following asset allocation guidelines:


	Asset Class
	Policy Target %	Policy Range %
Cash equivalents	1	0-20
Equity securities	65	55-75
Fixed income securities	24	10-40

Fair Value of Assets in Qualified Plans

The following table summarizes the percentages of fair value for the major categories of assets in the Qualified Plans as of the respective measurement dates:


	Plan Assets
	2019										2018
As of December 31	People’s Qualified Plan		First Connecticut Qualified Plan		United Financial Qualified Plan (1)		People’s Qualified Plan		First Connecticut Qualified Plan
Equity securities	66	%	66	%	9	%	70	%	73	%
Cash and fixed income securities	34		34		91		30		27
Total	100	%	100	%	100	%	100	%	100	%

(1)The United Financial Qualified Plan is not yet aligned with the Company's investment strategy and asset allocation guidelines as the acquisition of United Financial occurred effective November 1, 2019.

Plan Assets Measured at Fair Value

The following tables present the Qualified Plans’ assets measured at fair value:


	Fair Value Measurements Using
As of December 31, 2019 (in millions)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	18.9	$	—	$	—	$	18.9
Equity securities:
Common stocks	261.2		—		—		261.2
Mutual funds	—		215.2		—		215.2
Fixed income securities:
U.S. Treasury	—		104.8		—		104.8
Corporate	—		73.0		—		73.0
Mutual funds	—		72.5		—		72.5
Other	—		1.1		—		1.1
Total	$	280.1	$	466.6	$	—	$	746.7


	Fair Value Measurements Using
As of December 31, 2018 (in millions)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	15.2	$	—	$	—	$	15.2
Equity securities:
Common stocks	216.6		—		—		216.6
Mutual funds	—		201.1		—		201.1
Fixed income securities:
Corporate	—		68.5		—		68.5
U.S. Treasury	—		58.6		—		58.6
Mutual funds	—		32.9		—		32.9
Other	—		3.5		—		3.5
Total	$	231.8	$	364.6	$	—	$	596.4