DTE Energy 2008 Annual Report Download - page 31

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The following table reconciles the obligations, assets and funded status of the Company’s portion of the plans including amounts recorded as
accrued postretirement cost in the Consolidated Statements of Financial Position at December 31:
Assumptions used in determining the projected benefit obligation and net benefit cost are listed below:
A one-percentage-point increase in health care cost trend rates would have increased the total service cost and interest cost components of
benefit costs by $6 million and increased the accumulated benefit obligation by $41 million at December 31, 2008. A one-percentage-point
decrease in the health care cost trend rates would have decreased the total service cost and interest cost components of benefit costs by
$7 million and would have decreased the accumulated benefit obligation by $69 million at December 31, 2008.
At December 31, 2008, the benefits expected to be paid, including prescription drug benefits, in each of the next five years and in the aggregate
for the five fiscal years thereafter are as follows:
29
(in Millions) 2008 2007
Chan
g
e in accumulated
p
ostretirement benefit obli
g
ation
Accumulated postretirement benefit obligation, beginning of year $431 $510
December 2007 cash flow (2) —
Service cost
14 15
Interest cost 27 28
Actuarial (gain) loss
19 (81)
Measurement date change 3 —
Benefits paid and Medicare Part D (25) (25)
Plan amendments (1)(16)
Accumulated postretirement benefit obligation, end of year $466 $431
Change in plan assets
Plan assets at fair value, beginning of year $175 $156
December 2007 VEBA cash flow (14) —
Company contribution
40 20
Measurement date change 2 —
Actual return on plan assets
(62) 14
Benefits paid (23)(15)
Plan assets at fair value, end of year $118 $175
Funded status of the plans, November 30 $ — $(256)
December adjustment
—(12)
Funded status at fair value, December 31 $(348) $(268)
Noncurrent liabilities $ (348) $(268)
Amounts reco
g
nized in re
g
ulator
y
assets
Net loss $159 $67
Prior service cost 46
Net transition obligation
15 18
Regulatory Asset — postretirement costs $178 $91
2008 2007 2006
Pro
j
ected benefit obli
g
ation
Discount rate 6.90% 6.50% 5.70%
Net benefit costs
Discount rate 6.50% 5.70% 5.90%
Expected long-term rate of return on plan assets 8.75% 8.75%8.75%
Health care trend rate pre-65 7.00% 8.00% 9.00%
Health care trend rate pos
t
-65 6.00% 7.00%8.00%
Ultimate health care trend rate 5.00% 5.00% 5.00%
Year in which ultimate reache
d
2011 2011 2011
2014 &
(in Millions) 2009 2010 2011 2012 2013 thereafter Total
Amount to be paid $31 $31 $33 $34 $34 $174 $337