Compensation and Benefit Plans

Pension Plans

Edison International made contributions of $4 million during the three months ended March 31, 2015, which includes contributions of $1 million by SCE. Edison International expects to make contributions of $117 million during the remainder of 2015, which includes $91 million from SCE. Annual contributions made by SCE to most of SCE's pension plans are anticipated to be recovered through CPUC-approved regulatory mechanisms, pending the outcome of the 2015 GRC decision. Annual contributions to these plans are expected to be, at a minimum, equal to the related annual expense.

Pension expense components for continuing operations are:



	Edison International						SCE
	Three months ended March 31,
(in millions)	2015			2014			2015			2014
Service cost	$	35		$	30		$	35		$	29
Interest cost	41			45			38			44
Expected return on plan assets	(57		)	(57		)	(53		)	(56		)
Amortization of prior service cost	1			1			1			1
Amortization of net loss¹	9			1			7			—
Expense under accounting standards	$	29		$	20		$	28		$	18
Regulatory adjustment	(1		)	31			(1		)	31
Total expense recognized	$	28		$	51		$	27		$	49


¹	Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $3 million and $2 million, respectively, for the three months ended March 31, 2015, and $2 million and $1 million, respectively, for the three months ended March 31, 2014.

Postretirement Benefits Other Than Pensions

Edison International made contributions of $15 million during the three months ended March 31, 2015 and expects to make contributions of $44 million during the remainder of 2015, substantially all of which are expected to be made by SCE. Annual contributions made to SCE plans are anticipated to be recovered through CPUC-approved regulatory mechanisms and are expected to be, at a minimum, equal to the total annual expense for these plans, pending the outcome of the 2015 GRC decision. Benefits under these plans, with some exceptions, are generally unvested and subject to change. Under the terms of the Edison International Health and Welfare Plan ("PBOP Plan") each participating employer (Edison International or its participating subsidiaries) is responsible for the costs and expenses of all PBOP benefits with respect to its employees and former employees. A participating employer may terminate the PBOP benefits with respect to its employees and former employees, as may SCE (as Plan sponsor), and, accordingly, the participants' PBOP benefits are not vested benefits.

PBOP expense components for continuing operations are:



	Edison International						SCE
	Three months ended March 31,
(in millions)	2015			2014			2015			2014
Service cost	$	12		$	11		$	12		$	11
Interest cost	29			27			28			27
Expected return on plan assets	(28		)	(28		)	(28		)	(28		)
Amortization of prior service credit	(3		)	(9		)	(3		)	(9		)
Amortization of net loss	6			—			6			—
Total expense	$	16		$	1		$	15		$	1

Workforce Reductions

In 2012, SCE commenced multiple efforts to reduce its workforce in order to reflect SCE's strategic direction to optimize its cost structure, moderate customer rate increases and align its cost structure with its peers. In addition, in June 2013, SCE announced plans to permanently retire San Onofre, which resulted in additional workforce reductions. During the second quarter of 2014, SCE increased the estimated impact for workforce reductions related to transferring certain information technology activities to third parties. Through March 31, 2015, SCE's share of estimated cash severance for all of these workforce reductions totaled $215 million. The following table provides a summary of changes in the accrued severance liability associated with these reductions:



(in millions)
Balance at January 1, 2015	$	35
Additions	—
Payments	(23		)
Balance at March 31, 2015	$	12

The liability presented in the table above is reflected in "Other current liabilities" on the consolidated balance sheets. The severance costs are included in "Operation and maintenance" on the consolidated income statements.