Amount by which fair value of plan assets exceeds market-related value of plan assets (MRVA)

[Table of Contents](#i96cbbb599c964cb4a125b720672b6568_10)The accumulated benefit obligation (ABO) for all pension plans was $74,199 and $80,694 at December 31, 2021 and 2020. Key information for our plans with ABO and PBO in excess of plan assets as of December 31 was as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |  | 2020 |
|  |  |  |  |
| Accumulated benefit obligation | $66,406  |  |  | $74,337  |  |
| Fair value of plan assets | 58,593  |  |  | 61,502  |  |



|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |  | 2020 |
| Projected benefit obligation | $67,841  |  |  | $76,057  |  |
| Fair value of plan assets | 58,593  |  |  | 61,502  |  |

AssumptionsThe following assumptions, which are the weighted average for all plans, are used to calculate the benefit obligation at December 31 of each year and the net periodic benefit cost for the subsequent year.

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| December 31, | 2021 |  | 2020 |  | 2019 |
| Discount rate: |  |  |  |  |  |
| Pension | 2.80  | % |  | 2.50  | % |  | 3.30  | % |
| Other postretirement benefits | 2.50  | % |  | 2.00  | % |  | 3.00  | % |
| Expected return on plan assets | 6.30  | % |  | 6.50  | % |  | 6.80  | % |
| Rate of compensation increase | 4.30  | % |  | 4.30  | % |  | 4.30  | % |
| Interest crediting rates for cash balance plans | 5.00  | % |  | 5.00  | % |  | 5.15  | % |

The discount rate for each plan is determined based on the plans’ expected future benefit payments using a yield curve developed from high quality bonds that are rated as Aa or better by at least half of the four rating agencies utilized as of the measurement date. The yield curve is fitted to yields developed from bonds at various maturity points. Bonds with the ten percent highest and the ten percent lowest yields are omitted. The present value of each plan’s benefits is calculated by applying the discount rates to projected benefit cash flows.The pension fund’s expected return on plan assets assumption is derived from a review of actual historical returns achieved by the pension trust and anticipated future long-term performance of individual asset classes. While consideration is given to historical returns, the assumption represents a long-term, prospective return. The expected return on plan assets component of the net periodic benefit cost for the upcoming plan year is determined based on the expected return on plan assets assumption and the market-related value of plan assets (MRVA). Since our adoption of the accounting standard for pensions in 1987, we have determined the MRVA based on a five-year moving average of plan assets. As of December 31, 2021, the MRVA was approximately $4,773 less than the fair market value of assets.Assumed health care cost trend rates were as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| December 31, | 2021 |  | 2020 |  | 2019 |
| Health care cost trend rate assumed next year | 4.50  | % |  | 4.50  | % |  | 5.00  | % |
| Ultimate trend rate | 4.50  | % |  | 4.50  | % |  | 4.50  | % |
| Year that trend reached ultimate rate | 2021 |  | 2021 |  | 2021 |

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