Pension Settlement Payout Losses Incurred in 2020
NY-ADR
9/8/21 N.Y. St. Reg. PSC-36-21-00007-P
NEW YORK STATE REGISTER
VOLUME XLIII, ISSUE 36
September 08, 2021
RULE MAKING ACTIVITIES
PUBLIC SERVICE COMMISSION
PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. PSC-36-21-00007-P
Pension Settlement Payout Losses Incurred in 2020
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
The Commission is considering a petition filed by New York American Water Company, Inc. (NYAW) requesting deferral accounting and amortization of pension settlement losses.
Statutory authority:
Public Service Law, section 89-c
Subject:
Pension settlement payout losses incurred in 2020.
Purpose:
Consideration of NYAW's petition to defer and amortize, for future rate recognition, pension payout losses incurred in 2020.
Substance of proposed rule:
The Public Service Commission is considering a petition filed by the New York American Water Company, Inc. (NYAW) on June 29, 2021, to defer and amortize, for future rate recognition, all losses incurred due to lump sum pension payouts from its pension plan that triggered settlements during 2020.
Under NYAW’s contract with employees, retiring employees may choose to receive their pension as a single lump sum. These payments can impact NYAW’s ability to meet its ongoing pension obligations. It is Commission policy to allow losses from such pension losses, when the lump sum payments to pension plan participants in any year exceed the sum of the service and interest costs associated with such pension plan that year, to be amortized by the affected utilities for later recover. The petition states that the pension losses for 2020 were $603,096.
The full text of the petition and the full record of the proceeding may be reviewed online at the Department of Public Service web page: www.dps.ny.gov. The Commission may adopt, reject, or modify, in whole or in part, the action proposed, and may resolve related matters.
Text of proposed rule and any required statements and analyses may be obtained by filing a Document Request Form (F-96) located on our website http://www.dps.ny.gov/f96dir.htm. For questions, contact:
John Pitucci, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 486-2655, email: [email protected]
Data, views or arguments may be submitted to:
Michelle L. Phillips, Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 474-6517, email: [email protected]
Public comment will be received until:
60 days after publication of this notice.
Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement
Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.
(21-W-0364SP1)
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