FirstEnergy announced Thursday that it contributed $600 million to its pension plan and adopted accounting changes regarding pensions and post-retirement benefits.
The company has occasionally made such large contributions to the pension plan because interest rates have been low, and the company needs to keep the plan funded at a certain level, FirstEnergy spokeswoman Tricia Ingraham said Thursday.
If interest rates were higher, the company might not need to make those contributions, she said.
As for the accounting changes, Ingraham described them as a financial, behind-the-scenes technicality that would not affect retirement payouts.
The pension donation and the accounting changes have nothing to do with one another, she said.
The pension and post-retirement benefit accounting method change is preferable under the U.S. Generally
Accepted Accounting Principles, according to a company news release.
— Julie E. Greene