Seattle City Light 2016 ANNUAL REPORT | Audited Financial Statements 51 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 - 51 - Noncurrent Liabilities—The Department had the following activities during 2016 and 2015: ($ in millions) Balance at 1/1/16 Additions Reductions Balance at 12/31/16 2016 Net pension liability 271.8 $ 70.9 $ (24.9) $ 317.8 $ Accumulated provision for injuries and damages 42.3 49.8 (0.1) 92.0 Compensated absences 19.4 - (3.6) 15.8 Other 8.0 0.1 (0.1) 8.0 Total 341.5 $ 120.8 $ (28.7) $ 433.6 $ Balance at 1/1/15, as Adjusted Additions Reductions Balance at 12/31/15 2015 Net pension liability 255.9 $ 38.0 $ (22.1) $ 271.8 $ Accumulated provision for injuries and damages 42.9 0.1 (0.7) 42.3 Compensated absences 16.7 2.7 - 19.4 Other 7.7 0.4 (0.1) 8.0 Total 323.2 $ 41.2 $ (22.9) $ 341.5 $ Additional information on the Net pension liability can be found in Note 12 Seattle City Employees’ Retirement System. Information about the provision for injuries and damages can be found in Note10 Provision for Injuries and Damages and Note 14 Environmental Liabilities. Other includes primarily a liability for Other Postemployment Benefits; see Note 13 Other Postemployment Benefits. The beginning balance for 2015 was adjusted to record Net pension liability for the Department in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27. 10. PROVISION FOR INJURIES AND DAMAGES The Department establishes liabilities for claims based on estimates of the ultimate projected cost of claims. Environmental related expenses are discussed in Note 14 Environmental Liabilities. The length of time for which such costs must be estimated varies depending on the nature of the claim. Actual claims costs depend on such factors as inflation, changes in doctrines of legal liability, damage awards, and specific incremental claim adjustment expenses. Claims liabilities are recomputed periodically using actuarial and statistical techniques to produce current estimates, which reflect recent settlements, claim frequency, industry averages, City-wide cost allocations, and economic and social factors. For 2016 and 2015, liabilities for lawsuits, claims, and workers’ compensation were discounted over a period of 24 to 28 years at the City’s average annual rate of return on investments, which was 1.13% and 0.931%, respectively. To address the risk for certain losses arising from personal and property damage claims by third parties and for job-related illnesses and injuries to employees, the Department as part of the City of Seattle, has been self-insured for most of its general liability risks, for workers’ compensation, and for employees’ health care benefits. Beginning June 1, 2014, the City had general liability insurance coverage for losses