This excerpt taken from the PEG 10-K filed Mar 1, 2005.
EITF Issue No. 03-4, “Accounting for Cash Balance Pension Plans” (EITF 03-4)
PSEG, PSE&G, Power and Energy Holdings
EITF 03-4 requires that cash balance pension plans be accounted for as defined benefit plans. EITF 03-4 indicates that cash balance plans are forms of accumulation plans with variable crediting formulas and are therefore not pay-related. As a result, a company would apply a traditional unit credit method for determining the expense associated with these plans. PSEG, PSE&G, Power and Energy Holdings each have previously accounted for their cash balance pension plans as defined benefit plans; thus there will be no material impact on their respective financial statements.