Page 65 - SWGas Annual Report 2015

The following table sets forth the retirement plan, SERP, and PBOP funded statuses and amounts recognized on
the Consolidated Balance Sheets and Consolidated Statements of Income.

2015 PBOP 2014 PBOP

Qualified Qualified
Retirement Plan SERP Retirement Plan SERP

(Thousands of dollars) $1,060,240 $ 41,176 $ 72,202 $ 886,714 $ 36,143 $ 58,020
25,123 21,360
Change in benefit obligations 44,229 320 1,641 43,440 292 1,101
Benefit obligation for service — —
rendered to date at (44,553) 1,695 2,999 1,745 2,829
beginning of year (PBO/ (40,222) 144,606
PBO/APBO) —— (35,880) — 6,661
Service cost
Interest cost 2,322 (3,251) 5,459 4,567
Plan amendments
Actuarial loss (gain) (2,793) (959) (2,463) (976)
Benefits paid
1,044,817 42,720 72,632 1,060,240 41,176 72,202
Benefit obligation at end of
year (PBO/PBO/APBO)

Change in plan assets 754,796 — 44,892 719,944 — 42,314
Market value of plan assets at (13,694) — (1,034) 34,732 — 2,859
beginning of year 36,000 2,793 36,000 2,463 —
Actual return on plan assets (40,222) (2,793) — (35,880) (2,463) (281)
Employer contributions (274)
Benefits paid
736,880 — 43,584 754,796 — 44,892
Market value of plan assets at
end of year $ (307,937) $(42,720) $(29,048) $ (305,444) $(41,176) $(27,310)

Funded status at year end

Weighted-average assumptions 4.50% 4.50% 4.50% 4.25% 4.25% 4.25%
(benefit obligation) 3.25% 3.25% N/A 2.75% 2.75% N/A
Discount rate
Weighted-average rate of
compensation increase

Estimated funding for the plans above during calendar year 2016 is approximately $39 million of which $36 million
pertains to the retirement plan. Management monitors plan assets and liabilities and could, at its discretion,
increase plan funding levels above the minimum in order to achieve a desired funded status and avoid or minimize
potential benefit restrictions.

The accumulated benefit obligation for the retirement plan and the SERP is presented below (in thousands):

December 31, 2015 December 31, 2014

Retirement plan $922,992 $886,215
SERP 39,270 39,125

Southwest Gas Corporation