Note 5 — Deferred Charges and Other Assets
Deferred charges and other assets as of December 31, 2018 and 2017 consisted of the
following:
Recovery
Period
(in thousands) 2018 2017 (in years)
Regulatory assets:
Source development charges $ 873 $ 952 5-25
Miscellaneous studies 865 980 2-25
Unrecovered pension and post-retirement
benefits expense 8,197 8,244 (1)
Total regulatory assets 9,935 10,176
Supplemental executive retirement plan asset 762 735
Total deferred charges and other assets $ 10,697 $ 10,911
We expect to recover these amounts consistent with the anticipated expense recognition of these assets.
Note 6 — Post-retirement Benefit Plans
Pension Plan and Other Post-retirement Benefits
The Company has a non-contributory, defined benefit pension plan (the “DB Plan’’) that covers
substantially all employees. The benefits are based on years of service and participant
compensation levels. The Company’s funding policy is to contribute annual amounts that meet
the requirements for funding under the U.S. Department of Labor’s Pension Protection Act.
Contributions are intended to provide not only for benefits attributed to service to date, but
also for those expected to be earned in the future.
Post-retirement medical benefits are provided for eligible retired employees through one of
two plans (collectively referred to as our “OPEB Plans”). For employees who retire on or after
the normal retirement age of 65, benefits are provided through a post-retirement plan (the
“Post-65 Plan”). For eligible non-union employees who retire prior to their normal retirement
age and who have met certain age and service requirements, benefits are provided through a
post-employment medical plan (the “Post-employment Plan’). Future benefits under the Post-
65 Plan increase annually based on the actual percentage of wage and salary increases earned
from the plan inception date to the normal retirement date. The benefits under the Post-
employment Plan allow for the continuity of medical benefits coverage at group rates from the
employee’s retirement date until the employee becomes eligible for Medicare, which are fully
funded by the retiree. The liability related to the Post-65 Plan will be funded from the general
assets of our Company.
