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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

The following schedule summarizes the assets of the Chesapeake Pension Plan and the FPU Pension Plan, by investment type, at December 31, 2020, 2019 and 2018:


	Chesapeake Pension Plan						FPU Pension Plan
At December 31,	2020		2019		2018		2020		2019		2018
Asset Category
Equity securities	—	%	—	%	49	%	54	%	53	%	50	%
Debt securities	96	%	92	%	41	%	37	%	37	%	41	%
Other	4	%	8	%	10	%	9	%	10	%	9	%
Total	100	%	100	%	100	%	100	%	100	%	100	%

Schedule of Asset Allocation Strategy

The following allocation range of asset classes is intended to produce a rate of return sufficient to meet the plans’ goals and objectives (this allocation range applied to the Chesapeake Pension Plan prior to the de-risking strategy executed during the fourth quarter of 2019):


Asset Allocation Strategy
Asset Class	Minimum Allocation Percentage		Maximum Allocation Percentage
Domestic Equities (Large Cap, Mid Cap and Small Cap)	14	%	32	%
Foreign Equities (Developed and Emerging Markets)	13	%	25	%
Fixed Income (Inflation Bond and Taxable Fixed)	26	%	40	%
Alternative Strategies (Long/Short Equity and Hedge Fund of Funds)	6	%	14	%
Diversifying Assets (High Yield Fixed Income, Commodities, and Real Estate)	7	%	19	%
Cash	0	%	5	%

Summary of Pension Plan Assets

At December 31, 2020 and 2019, the assets of the Chesapeake Pension Plan and the FPU Pension Plan were comprised of the following investments:


	Fair Value Measurement Hierarchy

	At December 31, 2020								At December 31, 2019
Asset Category	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(in thousands)
Mutual Funds - Equity securities
U.S. Large Cap (1)	$	3,615	$	—	$	—	$	3,615	$	3,553	$	—	$	—	$	3,553
U.S. Mid Cap (1)	1,672		—		—		1,672		1,604		—		—		1,604
U.S. Small Cap (1)	891		—		—		891		726		—		—		726
International (2)	11,307		—		—		11,307		9,855		—		—		9,855
Alternative Strategies (3)	5,586		—		—		5,586		4,739		—		—		4,739
	23,071		—		—		23,071		20,477		—		—		20,477
Mutual Funds - Debt securities
Fixed income (4)	21,563		—		—		21,563		19,220		—		—		19,220
High Yield (4)	2,606		—		—		2,606		2,476		—		—		2,476
	24,169		—		—		24,169		21,696		—		—		21,696
Mutual Funds - Other
Commodities (5)	2,246		—		—		2,246		1,708		—		—		1,708
Real Estate (6)	1,954		—		—		1,954		2,288		—		—		2,288
Guaranteed deposit (7)	—		—		1,019		1,019		—		—		1,147		1,147
	4,200		—		1,019		5,219		3,996		—		1,147		5,143
Total Pension Plan Assets in fair value hierarchy	$	51,440	$	—	$	1,019	52,459		$	46,169	$	—	$	1,147	47,316
Investments measured at net asset value (8)							8,116								7,017
Total Pension Plan Assets							$	60,575							$	54,333

Schedule of Level Three Defined Benefit Plan Assets Roll Forward

The following table sets forth the summary of the changes in the fair value of Level 3 investments for the years ended December 31, 2020 and 2019:


	For the Year Ended December 31,
	2020		2019
(in thousands)
Balance, beginning of year	$	1,147	$	627
Purchases	3,190		2,274
Transfers in	921		3,090
Disbursements	(4,290)		(4,907)
Investment income	51		63
Balance, end of year	$	1,019	$	1,147

Schedule of Amounts Not Yet Reflected in Net Periodic Benefit Cost and Included in Accumulated Other Comprehensive Income Loss or Regulatory Assets

The following table presents the amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive loss or as a regulatory asset as of December 31, 2020:


(in thousands)	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan		FPU Medical Plan		Total
Prior service cost (credit)	$	—	$	—	$	—	$	(370)	$	—	$	(370)
Net loss (gain)	2,033		21,242		699		546		(194)		24,326
Total	$	2,033	$	21,242	$	699	$	176	$	(194)	$	23,956

Accumulated other comprehensive loss (gain) pre-tax(1)	$	2,033	$	4,036	$	699	$	176	$	(37)	$	6,907
Post-merger regulatory asset	—		17,206		—		—		(157)		17,049


Total unrecognized cost	$	2,033	$	21,242	$	699	$	176	$	(194)	$	23,956

(1) The total amount of accumulated other comprehensive loss recorded on our consolidated balance sheet as of December 31, 2020 is net of income tax benefits of $1.8 million.

Schedule of Estimated Future Benefit Payments

The schedule below shows the estimated future benefit payments for each of the plans previously described:


	Chesapeake Pension Plan(1)		FPU Pension Plan(1)		Chesapeake SERP(2)		Chesapeake Postretirement Plan(2)		FPU Medical Plan(2)
(in thousands)
2021	$	384	$	3,409	$	151	$	68	$	67
2022	$	99	$	3,493	$	150	$	66	$	67
2023	$	981	$	3,559	$	148	$	61	$	66
2024	$	106	$	3,601	$	146	$	58	$	67
2025	$	1,007	$	3,680	$	158	$	55	$	67
Years 2026 through 2030	$	1,193	$	18,627	$	735	$	222	$	317

(1) The pension plan is funded; therefore, benefit payments are expected to be paid out of the plan assets.

(2) Benefit payments are expected to be paid out of our general funds.

Pension benefit

Schedule of Funded Status of Benefit Obligation and Plan Assets

The following schedules set forth the funded status at December 31, 2020 and 2019 and the net periodic cost for the years ended December 31, 2020, 2019 and 2018 for the Chesapeake and FPU Pension Plans as well as the Chesapeake SERP:


	Chesapeake Pension Plan						FPU Pension Plan						Chesapeake SERP
At December 31,	2020			2019			2020			2019			2020			2019
(in thousands)
Change in benefit obligation:
Benefit obligation — beginning of year	$	6,214		$	10,712		$	65,304		$	59,377		$	2,157		$	2,285
Interest cost	176			375			2,085			2,452			63			74
Actuarial loss	450			1,443			6,069			6,508			144			159
Effect of settlement	(612)			(5,833)			—			—			—			—
Benefits paid	(82)			(483)			(3,092)			(3,033)			(152)			(361)
Benefit obligation — end of year	6,146			6,214			70,366			65,304			2,212			2,157
Change in plan assets:
Fair value of plan assets — beginning of year	4,630			8,649			49,703			43,601			—			—
Actual return on plan assets	369			1,180			6,581			7,978			—			—
Employer contributions	304			1,117			2,774			1,157			152			361
Effect of settlement	(612)			(5,833)			—			—			—			—
Benefits paid	(82)			(483)			(3,092)			(3,033)			(152)			(361)
Fair value of plan assets — end of year	4,609			4,630			55,966			49,703			—			—
Reconciliation:
Funded status	(1,537)			(1,584)			(14,400)			(15,601)			(2,212)			(2,157)
Accrued pension cost	$	(1,537)		$	(1,584)		$	(14,400)		$	(15,601)		$	(2,212)		$	(2,157)
Assumptions:
Discount rate	2.25		%	3.00		%	2.50		%	3.25		%	2.25		%	3.00		%
Expected return on plan assets	3.50		%	6.00		%	6.00		%	6.50		%	—		%	—		%

Component of Net Periodic Pension Cost (Benefit)


	Chesapeake Pension Plan									FPU Pension Plan									Chesapeake SERP
For the Years Ended December 31,	2020			2019 (1)			2018			2020			2019			2018			2020			2019			2018
(in thousands)
Components of net periodic pension cost:
Interest cost	$	176		$	375		$	384		$	2,085		$	2,452		$	2,339		$	63		$	74		$	83
Expected return on assets	(157)			(487)			(542)			(2,967)			(2,770)			(3,091)			—			—			—
Amortization of actuarial loss	243			391			343			552			505			404			20			85			101
Settlement expense	203			1,982			—			—			—			—			—			58			—
Net periodic pension cost	465			2,261			185			(330)			187			(348)			83			217			184
Amortization of pre-merger regulatory asset	—			—			—			—			543			761			—			—			—
Total periodic cost	$	465		$	2,261		$	185		$	(330)		$	730		$	413		$	83		$	217		$	184
Assumptions:
Discount rate	3.00		%	3.00		%	3.50		%	3.25		%	4.25		%	3.75		%	3.00		%	4.00		%	3.50		%
Expected return on plan assets	3.50		%	6.00		%	6.00		%	6.00		%	6.50		%	6.50		%	—		%	—		%	—		%