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## 11. Pension and other post-retirement benefits 

In conjunction with recent utilities acquisitions, the Company assumed defined benefit pension and OPEB plans for qualifying employees in the related acquired businesses. The electricity and gas utilities, other than Calpeco, each have noncontributory defined pension plans covering substantially all employees. Benefits are based on each employee's years of service and compensation. Calpeco has a defined benefit cash balance pension plan covering substantially all its employees, under which employees are credited with a percentage of base pay plus a prescribed interest rate credit. The Company's policy is to make pension contributions within the range determined by generally accepted actuarial principles. The OPEB plans provide health care and life insurance coverage to eligible retired employees. Eligibility is based on age and length of service requirements and, in most cases, retirees must cover a portion of the cost of their coverage. 

The Company acquired EnergyNorth, Granite State and the Midwest Utilities in the third quarter of 2012; therefore, they are not included in the December 31, 2011 comparative information. The determination of the fair value of pension and OPEB assets and liabilities acquired has been based upon management’s preliminary estimates and certain assumptions. Namely, plan assets acquired had not been transferred to the Company as at December 31, 2012. An estimate of the assets to be transferred adjusted for estimated return, contributions and benefits was used to estimate the funded status at the acquisition date and December 31, 2012. The Company will continue to review information and perform further analysis prior to finalizing the fair value of the pension and OPEB assets acquired and liabilities assumed. The actual fair values of the assets acquired and liabilities assumed may differ from the amounts recorded. 

(a) Net pension and OPEB obligation 

The following table sets forth the projected benefit obligations, fair value of plan assets, and funded status of the Company’s plans at December 31: 

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