NOTE 9: RETIREMENT BENEFIT OBLIGATIONS

The Company co-sponsors the Unitil Corporation Retirement Plan (Pension Plan), the Unitil Retiree Health and Welfare Benefits Plan (PBOP Plan), and the Unitil Corporation Supplemental Executive Retirement Plan (SERP) to provide certain pension and postretirement benefits for its retirees and current employees. Please see Note 10 to the Consolidated Financial Statements in the Company’s Form 10-K for the year ended December 31, 2017 as filed with the SEC on February 1, 2018 for additional information regarding these plans.

The following table includes the key weighted average assumptions used in determining the Company’s benefit plan costs and obligations:


	2018			2017
Used to Determine Plan Costs
Discount Rate		3.60	%		4.10	%
Rate of Compensation Increase		3.00	%		3.00	%
Expected Long-term rate of return on plan assets		7.75	%		7.75	%
Health Care Cost Trend Rate Assumed for Next Year		7.50	%		8.00	%
Ultimate Health Care Cost Trend Rate		4.50	%		4.00	%
Year that Ultimate Health Care Cost Trend Rate is reached		2024			2025

The following tables provide the components of the Company’s Retirement plan costs ($000’s):


	Pension Plan						PBOP Plan						SERP
Three Months Ended September 30,	2018			2017			2018			2017			2018			2017
Service Cost	$	848		$	824		$	733		$	744		$	122		$	115
Interest Cost		1,469			1,514			852			978			101			98
Expected Return on Plan Assets		(1,946	)		(1,826	)		(409	)		(337	)		—			—
Prior Service Cost Amortization		81			66			327			350			47			47
Actuarial Loss Amortization		1,447			1,165			346			524			121			74

Sub-total		1,899			1,743			1,849			2,259			391			334
Amounts Capitalized and Deferred		(962	)		(932	)		(930	)		(1,226	)		(113	)		(99	)

Net Periodic Benefit Cost Recognized	$	937		$	811		$	919		$	1,033		$	278		$	235


	Pension Plan						PBOP Plan						SERP
Nine Months Ended September 30,	2018			2017			2018			2017			2018			2017
Service Cost	$	2,544		$	2,471		$	2,199		$	2,231		$	366		$	345
Interest Cost		4,407			4,543			2,554			2,935			303			294
Expected Return on Plan Assets		(5,838	)		(5,479	)		(1,227	)		(1,010	)		—			—
Prior Service Cost Amortization		243			197			981			1,049			141			141
Actuarial Loss Amortization		4,341			3,496			1,038			1,573			365			222

Sub-total		5,697			5,228			5,545			6,778			1,175			1,002
Amounts Capitalized and Deferred		(2,590	)		(2,402	)		(2,557	)		(3,418	)		(339	)		(297	)

Net Periodic Benefit Cost Recognized	$	3,107		$	2,826		$	2,988		$	3,360		$	836		$	705

Employer Contributions

As of September 30, 2018, the Company had made $16.6 million and $3.0 million of contributions to its Pension and PBOP Plans, respectively, in 2018. The Company, along with its subsidiaries, expects to continue to make contributions to its Pension and PBOP Plans in 2018 and future years at minimum required and discretionary funding levels consistent with the amounts recovered in the distribution utilities’ rates for these Pension and PBOP Plan costs.

As of September 30, 2018, the Company had made $87,500 of benefit payments under the SERP in 2018. The Company presently anticipates making an additional $313,100 of benefit payments under the SERP in 2018.