TEC is a participant in the comprehensive retirement plans of TECO Energy. The following table presents detail related to TECO Energy’s periodic benefit cost for pension and other postretirement benefits. Amounts disclosed for TECO Energy’s pension benefits include the amounts related to its qualified pension plan and non-qualified, non-contributory SERP and Restoration Plan.

TECO Energy Benefit Cost
(millions)	Pension Benefits							Other Postretirement Benefits
Three months ended March 31,	2020			2019				2020		2019
Components of net periodic benefit cost
Service cost	$	5		$	5			$	0	$	0
Interest cost		7			8				1		2
Expected return on assets		(13	)		(12	)			0		0
Amortization of:
Actuarial (gain) loss		5			3				0		0
Settlement cost		0			1		⁽¹⁾		0		0
Net periodic benefit cost	$	4		$	5			$	1	$	2

(1)Represents TECO Energy’s SERP and Restoration Plan settlement charges as a result of the prior retirements of certain executives.

TEC’s portion of the net periodic benefit cost for the three months ended March 31, 2020 and 2019, respectively, was $3 million and $4 million for pension benefits, and $2 million and $2 million for other postretirement benefits.

TECO Energy assumed a long-term EROA of 7.00% and a discount rate of 3.22% for pension benefits under its qualified pension plan for 2020. For TECO Energy’s other postretirement benefits, TECO Energy used a discount rate of 3.32% for 2020.

TECO Energy made contributions of $5 million and zero to its qualified pension plan in the three months ended March 31, 2020 and 2019, respectively. TEC’s portion of these contributions was $4 million and zero, respectively. TECO Energy expects to make contributions to the pension plan of $14 million for the remainder of 2020. TEC estimates its portion of the 2020 contribution to be $12 million.

Included in the benefit cost discussed above, for the three months ended March 31, 2020, $4 million of unamortized prior service benefits and costs and actuarial gains and losses were reclassified by TEC from regulatory assets to the Consolidated Condensed Statement of Income, compared with $3 million for the three months ended March 31, 2019.

The COVID-19 pandemic could impact key actuarial assumptions used to account for employee post-retirement benefits including the anticipated rates of return on plan assets and discount rates used in determining the accrued benefit obligation, benefit costs and annual pension funding requirements. Fluctuations in actual equity market returns and changes in interest rates as a result of the COVID-19 pandemic may also result in changes to pension costs and funding in future periods. The extent of the future impact of COVID-19 on TEC’s financial results and business operations cannot be predicted at this time and will depend on future developments, including the duration and severity of the pandemic, further potential government actions, future economic activity and energy usage. Actual results may differ significantly from these estimates.