HECO's pension plan turns positive

By Deborah Adamson
Advertiser Staff Writer

Hawaiian Electric Industries disclosed in a regulatory filing yesterday that its pension plan had net losses of $112 million, $96 million and $31 million for 2002, 2001 and 2000 as a result of the bear market.

But as stocks recovered this year, assets rose by a net $113 million and the return soared to above 18 percent. In addition, HECO and its banking subsidiary, American Savings Bank, plan to contribute as much as $35 million this year to the pension plan, most of which has been put in.

In January, the utility and thrift holding company considered hiking electricity rates to pay for rising expenses that included a projected $12.6 million in retirement costs for 2003.

But a spokeswoman for HECO said the utility has no current plans to raise rates and hasn't done so since 1996.

In 2002, the total of future pension monies owed to employees and reflected in today's dollars came to $888.2 million. Actual assets totaled $665 million.

As of Oct. 31, the plan had assets of $770 million.

By the end of the year, HECO expects its pension financing will continue to improve.

Retirement benefits expenses are expected to range between $8 million and $14 million next year.