Curtailment benefits

[Table of Contents](#i0fa971ac9e834218957059819155291f_10)Combined Notes to Consolidated Financial Statements(Dollars in millions, except per share data unless otherwise noted)  
Note 15 — Retirement BenefitsThe following table provides the ABO and fair value of plan assets for all pension plans with an ABO in excess of plan assets. Information for pension and OPEB plans with projected benefit obligations (PBO) and accumulated postretirement benefit obligation (APBO), respectively, in excess of plan assets has been disclosed in the Obligations and Plan Assets table above as all pension and OPEB plans are underfunded.

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Exelon |  |  |
| ABO in Excess of Plan Assets | 2021 |  | 2020 |  |  |
|  |  |  |  |  |  |
| ABO | $ | 22,609  |  |  | $ | 23,514  |  |  |  |
| Fair value of net plan assets | 20,827  |  |  | 20,344  |  |  |  |

Components of Net Periodic Benefit CostsThe majority of the 2021 pension benefit cost for the Exelon-sponsored plans is calculated using an expected long-term rate of return on plan assets of 7.00% and a discount rate of 2.58%. The majority of the 2021 OPEB cost is calculated using an expected long-term rate of return on plan assets of 6.46% for funded plans and a discount rate of 2.51%.A portion of the net periodic benefit cost for all plans is capitalized in the Consolidated Balance Sheets. The following table presents the components of Exelon’s net periodic benefit costs, prior to capitalization, for the years ended December 31, 2021, 2020, and 2019.

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|   | Pension Benefits |  | OPEB |
|  | 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019 |
| Components of net periodic benefit cost: |  |  |  |  |  |  |  |  |  |  |  |
| Service cost | $ | 439  |  |  | $ | 387  |  |  | $ | 357  |  |  | $ | 80  |  |  | $ | 90  |  |  | $ | 93  |  |
| Interest cost | 641  |  |  | 757  |  |  | 883  |  |  | 114  |  |  | 154  |  |  | 188  |  |
| Expected return on assets | (1,336) |  |  | (1,270) |  |  | (1,225) |  |  | (158) |  |  | (163) |  |  | (153) |  |
| Amortization of: |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |
| Prior service cost (credit) | 3  |  |  | 4  |  |  | —  |  |  | (34) |  |  | (124) |  |  | (179) |  |
| Actuarial loss | 598  |  |  | 512  |  |  | 414  |  |  | 37  |  |  | 49  |  |  | 45  |  |
| Curtailment benefits | —  |  |  | —  |  |  | —  |  |  | —  |  |  | (1) |  |  | —  |  |
| Settlement and other charges | 27  |  |  | 14  |  |  | 17  |  |  | 1  |  |  | 1  |  |  | 1  |  |
| Contractual termination benefits | —  |  |  | —  |  |  | 1  |  |  | —  |  |  | —  |  |  | —  |  |
| Net periodic benefit cost | $ | 372  |  |  | $ | 404  |  |  | $ | 447  |  |  | $ | 40  |  |  | $ | 6  |  |  | $ | (5) |  |

Cost Allocation to Exelon SubsidiariesAll Registrants account for their participation in Exelon’s pension and OPEB plans by applying multi-employer accounting. Exelon allocates costs related to its pension and OPEB plans to its subsidiaries based on both active and retired employee participation in each plan.The amounts below represent the Registrants' allocated pension and OPEB costs. For Exelon, the service cost component is included in Operating and maintenance expense and Property, plant, and equipment, net while the non-service cost components are included in Other, net and Regulatory assets. For the Utility Registrants, the service cost and non-service cost components are included in Operating and maintenance expense and Property, plant, and equipment, net in their consolidated financial statements.268  
  
  

