It includes service cost (the portion of the EPBO
attributed to the current period), interest cost (the extrapolation of the obligation from current to future value), a negative component for return on invested OPEB funds (if any), and the systematic amortization of a portion of prior service costs and gains/losses on OPEB assets and/or the OPEB obligation.
Any differences between the APBO and EPBO
would represent the future service costs of active employees not yet fully eligible.
The APBO is equal to the EPBO
for retirees and active employees fully eligible for benefits.
Maturities are manageable with $88 million in expected maturities at EPBO
Once the actuarial present value of plan benefits has been determined through the measurement process, each employer must use a specified actuarial method to compute the annual retiree benefits expense and the accumulated postretirement benefit obligation (APBO), the portion of the EPBO
attributed to service rendered prior to the measurement date.
is measured by determining the estimated future claims in each retirement year and computing the present value of those claims in the year of the financial statements.
The APBO and EPBO
are equal on or after the date of full eligibility.
The recommendation also considers that both CIG and SNG are now or will be fully owned by EPBO
('BBB-'; Stable Outlook).
The portion of the active employees' EPBO
allocated to the current year of service.
Ratings Affirmed: Over the near term EPBO
will be unaffected by KMI's acquisition of EP.
Because the EPBO
represents a measure of future benefit payment streams, it will he discounted to today's dollars using present value techniques.
EP, as general partner, sponsor and the operating entity that controls EPB and EPBO
, controls board of director and management actions including setting the levels of partnership distributions, amending the partnership agreement and generally dictating strategy and capital structure decisions.