Prior Service Cost Arising During the Year

  
The following is a summary of the changes in plan assets and benefit obligations recognized in Regulatory Assets and Other Comprehensive Income (OCI) as well as amounts in Regulatory Assets and OCI that were reclassified as net periodic benefit expense during the years presented:

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|  | Pension and SERP |  | PBOP |
|   | Regulatory Assets |  | OCI |  | Regulatory Assets |  | OCI |
|   | For the Years Ended December 31, |  | For the Years Ended December 31, |
| (Millions of Dollars) | 2021 |  | 2020 (1) |  | 2021 |  | 2020 |  | 2021 |  | 2020 (1) |  | 2021 |  | 2020 |
| Actuarial (Gains)/Losses Arising During the Year | $ | (961.7) |  |  | $ | 553.1  |  |  | $ | (28.4) |  |  | $ | 24.3  |  |  | $ | (181.5) |  |  | $ | 39.1  |  |  | $ | (4.0) |  |  | $ | 1.3  |  |
| Actuarial Losses Reclassified as Net Periodic Benefit Expense | (231.2) |  |  | (194.3) |  |  | (12.7) |  |  | (7.7) |  |  | (8.5) |  |  | (8.0) |  |  | (0.4) |  |  | (0.4) |  |
| Prior Service Cost Arising During the Year | —  |  |  | 2.0  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |
| Prior Service (Cost)/Credit Reclassified as Net Periodic  Benefit (Expense)/Income | (1.3) |  |  | (1.0) |  |  | (0.1) |  |  | (0.2) |  |  | 21.1  |  |  | 21.3  |  |  | 0.1  |  |  | (0.1) |  |

  
(1)  Amounts include the impact of the CMA asset acquisition beginning October 9, 2020.  
The following is a summary of the remaining Regulatory Assets and Accumulated Other Comprehensive Income amounts that have not been recognized as components of net periodic benefit expense as of December 31, 2021 and 2020:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Regulatory Assets as of December 31, |  | AOCI as of December 31, |
| (Millions of Dollars) | 2021 |  | 2020 |  | 2021 |  | 2020 |
| Pension and SERP |  |  |  |  |  |  |  |
| Actuarial Loss | $ | 1,427.3  |  |  | $ | 2,620.2  |  |  | $ | 66.3  |  |  | $ | 107.4  |  |
| Prior Service Cost | 5.3  |  |  | 6.6  |  |  | 0.6  |  |  | 0.7  |  |
| PBOP |  |  |  |  |  |  |  |
| Actuarial Loss | $ | 45.0  |  |  | $ | 235.0  |  |  | $ | 3.5  |  |  | $ | 7.9  |  |
| Prior Service (Credit)/Cost | (130.1) |  |  | (151.2) |  |  | 1.0  |  |  | 0.9  |  |

  
The difference between the actual return and calculated expected return on plan assets for the Pension and PBOP Plans, as well as changes in actuarial assumptions impacting the projected benefit obligation, are recorded as unamortized actuarial gains or losses arising during the year in Regulatory Assets or Accumulated Other Comprehensive Income/(Loss). Unamortized actuarial gains or losses are amortized as a component of pension and PBOP expense over the estimated average future employee service period.   
Estimated Future Benefit Payments:  The following benefit payments, which reflect expected future service, are expected to be paid by the Pension, SERP and PBOP Plans:

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| (Millions of Dollars) | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 |  | 2027 - 2031 |
| Pension and SERP | $ | 359.6  |  |  | $ | 367.4  |  |  | $ | 405.0  |  |  | $ | 381.2  |  |  | $ | 384.3  |  |  | $ | 1,918.2  |  |
| PBOP | 56.4  |  |  | 56.2  |  |  | 55.9  |  |  | 55.3  |  |  | 54.3  |  |  | 254.6  |  |

  
Eversource Contributions:   Based on the current status of the Pension Plans and federal pension funding requirements, there is no minimum funding requirement for our Pension Plans for 2022. Eversource currently expects to make contributions between $100 million to $175 million in 2022, most of which will be contributed by Eversource Service, however the planned contribution is discretionary and subject to change. Eversource currently estimates contributing $2.4 million to the PBOP Plans in 2022.  
Fair Value of Pension and PBOP Plan Assets:  Pension and PBOP funds are held in external trusts.  Trust assets, including accumulated earnings, must be used exclusively for Pension and PBOP payments.  Eversource's investment strategy for its Pension and PBOP Plans is to maximize the long-term rates of return on these plans' assets within an acceptable level of risk.  The investment strategy for each asset category includes a diversification of asset types, fund strategies and fund managers and it establishes target asset allocations that are routinely reviewed and periodically rebalanced.  PBOP assets are comprised of assets held in the PBOP Plan trust, as well as specific assets within the Pension Plan trust (401(h) assets).  The investment policy and strategy of the 401(h) assets is consistent with that of the defined benefit pension plan. Eversource's expected long-term rates of return on Pension and PBOP Plan assets are based on target asset allocation assumptions and related expected long-term rates of return.  In developing its expected long-term rate of return assumptions for the Pension and PBOP Plans, Eversource evaluated input from consultants, as well as long-term inflation assumptions and historical returns. Management has assumed long-term rates of return of 8.25 percent for the Eversource Service Pension and PBOP Plan assets and a 7 percent long-term rate of return for the Aquarion Plans to estimate its 2022 Pension and PBOP costs. 112
