2025 Essential Annual Report

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (continued) (In thousands of dollars, except per share amounts)

The changes in the benefit obligation and fair value of plan assets, the funded status of the plans and the assumptions used in the measurement of the company’s benefit obligation are as follows:

Pension Benefits

Other Post-retirement Benefits

2025

2024

2025

2024

Change in benefit obligation: Benefit obligation at January 1,

$

295,036 $ 313,698 $

82,964 $ 91,502

Service cost Interest cost

1,218

1,429

1,488 4,529 1,548

1,453 4,450

15,964

15,632

Actuarial loss/(gain)

4,817

(12,579)

(1,071)

Plan participants' contributions

-

-

44

121

Benefits paid

(26,344)

(23,144)

(3,439)

(7,439)

Plan amendments

137 124

- - -

- -

- -

Curtailments Settlements

(2,791)

(6,052) 82,964

Benefit obligation at December 31,

288,161

295,036

87,134

Change in plan assets: Fair value of plan assets at January 1,

293,652 24,317

312,303

94,250

95,005 11,781

Actual return on plan assets Employer contributions Participants' contributions

(4,959)

9,824

3,945

9,393

-

-

-

-

44

121

Benefits paid Settlements

(26,286)

(23,085)

(3,642)

(6,605) (6,052) 94,250

-

-

-

Fair value of plan assets at December 31,

295,628

293,652

100,476

Funded status of plan: Net asset / (liability) recognized at December 31,

$

7,467 $ (1,384) $

13,342 $ 11,286

The following table provides the net liability recognized on the consolidated balance sheets at December 31: Pension Benefits Other Post-retirement Benefits 2025 2024 2025 2024 Non-current asset $ 25,873 $ 16,475 $ 29,344 $ 29,508 Current liability (18,406) (1,844) (761) (557) Noncurrent liability - (16,015) (15,241) (17,665) Net asset / (liability) recognized $ 7,467 $ (1,384) $ 13,342 $ 11,286

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