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Retirement Plans and Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Plans and Postretirement Benefit Plans [Abstract]

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block]

The following table presents the status of the Company's Pension Plan, the Restoration of Retirement Income Plan and the postretirement benefit plans for 2019 and 2018. These amounts have been recorded in Accrued Benefit Obligations with the offset in Accumulated Other Comprehensive Loss (except OG&E's portion, which is recorded as a regulatory asset as discussed in Note 1) in the Company's Consolidated Balance Sheets. The amounts in Accumulated Other Comprehensive Loss and those recorded as a regulatory asset represent a net periodic benefit cost to be recognized in the Consolidated Statements of Income in future periods. The benefit obligation for the Company's Pension Plan and the Restoration of Retirement Income Plan represents the projected benefit obligation, while the benefit obligation for the postretirement benefit plans represents the accumulated postretirement benefit obligation. The accumulated postretirement benefit obligation for the Company's Pension Plan and Restoration of Retirement Income Plan differs from the projected benefit obligation in that the former includes no assumption about future compensation levels. The accumulated postretirement benefit obligation for the Pension Plan and the Restoration of Retirement Income Plan at December 31, 2019 was $563.3 million and $8.1 million, respectively. The accumulated postretirement benefit obligation for the Pension Plan and the Restoration of Retirement Income Plan at December 31, 2018 was $561.9 million and $7.8 million, respectively. The details of the funded status of the Pension Plan, the Restoration of Retirement Income Plan and the postretirement benefit plans and the amounts included in the Consolidated Balance Sheets are included in the following table.


	Pension Plan						Restoration of Retirement Income Plan						Postretirement Benefit Plans
December 31 (In millions)	2019		2018		2019		2018		2019		2018
Change in benefit obligation
Beginning obligations	$	615.9	$	687.5	$	9.6	$	8.1	$	135.8	$	149.4
Service cost	12.9		14.9		0.5		0.4		0.2		0.3
Interest cost	20.7		23.8		0.4		0.3		5.6		5.4

Plan settlements	(83.1)		(73.7)		(1.2)		(2.0)		—		—
Plan amendments	—		—		0.3		—		—		—
Participants' contributions	—		—		—		—		4.1		3.8

Actuarial losses (gains)	64.3		(22.0)		0.7		2.8		2.9		(9.6)
Benefits paid	(14.6)		(14.6)		—		—		(12.1)		(13.5)
Ending obligations	$	616.1	$	615.9	$	10.3	$	9.6	$	136.5	$	135.8

Change in plans' assets
Beginning fair value	$	522.8	$	635.3	$	—	$	—	$	45.3	$	50.2
Actual return on plans' assets	85.2		(39.2)		—		—		4.6		(0.6)
Employer contributions	20.0		15.0		1.2		2.0		5.1		5.4
Plan settlements	(83.1)		(73.7)		(1.2)		(2.0)		—		—
Participants' contributions	—		—		—		—		4.1		3.8

Benefits paid	(14.6)		(14.6)		—		—		(12.1)		(13.5)
Ending fair value	$	530.3	$	522.8	$	—	$	—	$	47.0	$	45.3
Funded status at end of year	$	(85.8)	$	(93.1)	$	(10.3)	$	(9.6)	$	(89.5)	$	(90.5)

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

The following table presents the net periodic benefit cost components, before consideration of capitalized amounts, of the Company's Pension Plan, Restoration of Retirement Income Plan and postretirement benefit plans that are included in the Consolidated Financial Statements. Service cost is presented within Other Operation and Maintenance, and interest cost, expected return on plan assets, amortization of net loss, amortization of unrecognized prior service cost and settlement cost are presented within Other Net Periodic Benefit Expense in the Company's Consolidated Statements of Income. OG&E recovers specific amounts of pension and postretirement medical costs in rates approved in its Oklahoma rate reviews. In accordance with approved orders, OG&E defers the difference between actual pension and postretirement medical expenses and the amount approved in its last Oklahoma rate review as a regulatory asset or regulatory liability. These amounts have been recorded in the Pension tracker in the regulatory assets and liabilities table in Note 1 and within Other Net Periodic Benefit Expense in the Company's Consolidated Statements of Income.


	Pension Plan										Restoration of Retirement Income Plan								Postretirement Benefit Plans
Year Ended December 31 (In millions)	2019		2018		2017		2019		2018		2017		2019		2018		2017
Service cost	$	12.9	$	14.9	$	15.5	$	0.5	$	0.4	$	0.3	$	0.2	$	0.3	$	0.6
Interest cost	20.7		23.8		26.2		0.4		0.3		0.3		5.6		5.4		7.2
Expected return on plan assets	(36.1)		(44.1)		(42.6)		—		—		—		(1.9)		(2.0)		(2.2)

Amortization of net loss	17.3		16.2		17.4		0.5		0.7		0.4		2.0		3.8		2.0
Amortization of unrecognized prior service cost (A)	—		—		(0.1)		—		0.1		0.1		(8.4)		(8.4)		(3.5)

Settlement cost	27.6		25.1		15.3		0.5		1.0		—		—		—		0.6
Total net periodic benefit cost	42.4		35.9		31.7		1.9		2.5		1.1		(2.5)		(0.9)		4.7
Less: Amount paid by unconsolidated affiliates	2.9		2.5		4.3		0.1		0.1		—		(0.6)		(0.5)		0.3
Net periodic benefit cost	$	39.5	$	33.4	$	27.4	$	1.8	$	2.4	$	1.1	$	(1.9)	$	(0.4)	$	4.4

(A)Unamortized prior service cost is amortized on a straight-line basis over the average remaining service period to the first eligibility age of participants who are expected to receive a benefit and are active at the date of the plan amendment.

In addition to the net periodic benefit cost amounts recognized, as presented in the table above, for the Pension and Restoration of Retirement Income Plans in 2019, 2018 and 2017, the Company recognized the following:


Year Ended December 31 (In millions)	2019		2018		2017
Decrease of pension expense to maintain allowed recoverable amount in Oklahoma jurisdiction (A)	$	(16.1)	$	(14.1)	$	(2.3)
Deferral of pension expense related to pension settlement charges:
Oklahoma jurisdiction (A)	$	17.9	$	22.1	$	13.2
Arkansas jurisdiction (A)	$	1.7	$	2.1	$	1.1

(A) Included in the pension regulatory asset or liability in each jurisdiction, as indicated in the regulatory assets and liabilities table in Note 1.

In addition to the net periodic benefit income and cost amounts recognized, as presented in the table above, for the postretirement benefit plans in 2019, 2018 and 2017, the Company recognized the following:


Year Ended December 31 (In millions)	2019		2018		2017
Increase of postretirement expense to maintain allowed recoverable amount in Oklahoma jurisdiction (A)	$	1.0	$	4.4	$	6.2

(A) Included in the pension regulatory asset or liability in each jurisdiction, as indicated in the regulatory assets and liabilities table in Note 1.

Schedule of Capitalized Pension and Postretirement Cost [Table Text Block]


(In millions)	2019		2018		2017
Capitalized portion of net periodic pension benefit cost	$	3.6	$	3.8	$	4.4
Capitalized portion of net periodic postretirement benefit cost	$	0.2	$	0.2	$	1.2

Schedule of Assumptions Used [Table Text Block]

Rate Assumptions


	Pension Plan and Restoration of Retirement Income Plan										Postretirement Benefit Plans
Year Ended December 31	2019		2018		2017		2019		2018		2017
Assumptions to determine benefit obligations:
Discount rate	3.15	%	4.20	%	3.60	%	3.25	%	4.30	%	3.70	%
Rate of compensation increase	4.20	%	4.20	%	4.20	%	N/A		N/A		N/A




Assumptions to determine net periodic benefit cost:
Discount rate	3.63	%	3.73	%	4.00	%	4.30	%	3.70	%	4.20	%
Expected return on plan assets	7.50	%	7.50	%	7.50	%	4.00	%	4.00	%	4.00	%
Rate of compensation increase	4.20	%	4.20	%	4.20	%	N/A		N/A		4.20	%

N/A - not applicable

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block]

The effects of a one-percentage point change in the assumed health care cost trend rate are presented in the following tables.


ONE-PERCENTAGE POINT INCREASE
Year Ended December 31 (In millions)	2019		2018		2017
Effect on aggregate of the service and interest cost components	$	—	$	—	$	—
Effect on accumulated postretirement benefit obligations	$	0.1	$	0.1	$	0.1


ONE-PERCENTAGE POINT DECREASE
Year Ended December 31 (In millions)	2019		2018		2017
Effect on aggregate of the service and interest cost components	$	—	$	—	$	—
Effect on accumulated postretirement benefit obligations	$	0.3	$	0.3	$	0.3

Projected Benefit Obligation Funded Status Thresholds [Table Text Block]

The Pension Plan assets are held in a trust which follows an investment policy and strategy designed to reduce the funded status volatility of the Plan by utilizing liability driven investing. The purpose of liability-driven investing is to structure the asset portfolio to more closely resemble the pension liability and thereby more effectively hedge against changes in the liability. The investment policy follows a glide path approach that shifts a higher portfolio weighting to fixed income as the Plan's funded status increases. The table below sets forth the targeted fixed income and equity allocations at different funded status levels.


Projected Benefit Obligation Funded Status Thresholds	<90%	95%	100%	105%	110%	115%	120%
Fixed income	50%	58%	65%	73%	80%	85%	90%
Equity	50%	42%	35%	27%	20%	15%	10%
Total	100%	100%	100%	100%	100%	100%	100%

Pension Plan Equity Asset Allocation Table [Table Text Block]

Within the portfolio's overall allocation to equities, the funds are allocated according to the guidelines in the table below.


Asset Class	Target Allocation	Minimum	Maximum
Domestic Large Cap Equity	40%	35%	60%
Domestic Mid-Cap Equity	15%	5%	25%
Domestic Small-Cap Equity	25%	5%	30%
International Equity	20%	10%	30%

Schedule of Allocation of Plan Assets [Table Text Block]

The following tables summarize the postretirement benefit plans' investments that are measured at fair value on a recurring basis at December 31, 2019 and 2018. There were no Level 2 investments held by the postretirement benefit plans at December 31, 2019 and 2018.


(In millions)	December 31, 2019		Level 1		Level 3
Group retiree medical insurance contract	$	34.8	$	—	$	34.8

Mutual funds	10.9		10.9		—
Money market fund	1.2		1.2		—

Total plan investments	$	46.9	$	12.1	$	34.8


(In millions)	December 31, 2018		Level 1		Level 3
Group retiree medical insurance contract	$	36.0	$	—	$	36.0

Mutual funds	8.9		8.9		—

Cash	0.9		0.9		—
Total plan investments	$	45.8	$	9.8	$	36.0

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block]

The following table summarizes the postretirement benefit plans' investments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3).


Year Ended December 31 (In millions)	2019
Group retiree medical insurance contract:
Beginning balance	$	36.0
Claims paid	(3.8)
Investment fees	(0.1)
Net unrealized gains related to instruments held at the reporting date	1.4
Interest income	0.8
Dividend income	0.5

Ending balance	$	34.8

Schedule of Expected Benefit Payments [Table Text Block]

The following table summarizes the benefit payments the Company expects to pay related to OGE Energy's Pension Plan and Restoration of Retirement Income Plan. These expected benefits are based on the same assumptions used to measure the Company's benefit obligation at the end of the year and include benefits attributable to estimated future employee service.


(In millions)	Projected Benefit Payments
2020	$	58.4
2021	$	56.8
2022	$	56.2
2023	$	55.7
2024	$	56.6
After 2024	$	249.4

The Medicare Prescription Drug, Improvement and Modernization Act of 2003 expanded coverage for prescription drugs. The following table summarizes the gross benefit payments the Company expects to pay related to its postretirement benefit plans, including prescription drug benefits.


(In millions)	Gross Projected Postretirement Benefit Payments
2020	$	11.2
2021	$	11.2
2022	$	11.1
2023	$	9.5
2024	$	9.4
After 2024	$	42.3

Defined Benefit Plan, Plan Assets, Category

The following tables summarize the Pension Plan's investments that are measured at fair value on a recurring basis at December 31, 2019 and 2018. There were no Level 3 investments held by the Pension Plan at December 31, 2019 and 2018.


(In millions)	December 31, 2019		Level 1		Level 2		Net Asset Value (A)
Common stocks	$	202.0	$	202.0	$	—	$	—
U.S. Treasury notes and bonds (B)	134.8		134.8		—		—
Mortgage- and asset-backed securities	45.8		—		45.8		—
Corporate fixed income and other securities	130.5		—		130.5		—
Commingled fund (C)	23.9		—		—		23.9
Foreign government bonds	3.0		—		3.0		—
U.S. municipal bonds	1.1		—		1.1		—

Money market fund	7.5		—		—		7.5
Mutual fund	2.4		2.4		—		—
Preferred stocks	0.7		0.7		—		—
Futures:
U.S. Treasury futures (receivable)	22.9		—		22.9		—
U.S. Treasury futures (payable)	(10.9)		—		(10.9)		—
Cash collateral	0.6		0.6		—		—
Forward contracts:
Receivable (foreign currency)	0.1		—		0.1		—

Total Pension Plan investments	564.4		$	340.5	$	192.5	$	31.4

Interest and dividends receivable	2.4
Payable to broker for securities purchased	(36.5)
Total Pension Plan assets	$	530.3

(A)GAAP allows the measurement of certain investments that do not have a readily determinable fair value at the net asset value. These investments do not consider the observability of inputs; therefore, they are not included within the fair value hierarchy.

(B)This category represents U.S. Treasury notes and bonds with a Moody's Investors Service rating of Aaa and Government Agency Bonds with a Moody's Investors Service rating of A1 or higher.

(C)This category represents units of participation in a commingled fund that primarily invested in stocks of international companies and emerging markets.


(In millions)	December 31, 2018		Level 1		Level 2		Net Asset Value (A)

Common stocks	$	169.3	$	169.3	$	—	$	—


U.S. Treasury notes and bonds (B)	137.9		137.9		—		—
Mortgage- and asset-backed securities	65.9		—		65.9		—


Corporate fixed income and other securities	143.2		—		143.2		—

Commingled fund (C)	19.7		—		—		19.7
Foreign government bonds	4.4		—		4.4		—
U.S. municipal bonds	0.6		—		0.6		—

Money market fund	0.3		—		—		0.3

Mutual fund	8.0		8.0		—		—

Futures:
U.S. Treasury futures (receivable)	27.0		—		27.0		—
U.S. Treasury futures (payable)	(20.4)		—		(20.4)		—
Cash collateral	0.7		0.7		—		—
Forward contracts:
Receivable (foreign currency)	0.1		—		0.1		—

Total Pension Plan investments	556.7		$	315.9	$	220.8	$	20.0

Interest and dividends receivable	3.0
Payable to broker for securities purchased	(36.9)
Total Pension Plan assets	$	522.8

(B)This category represents U.S. Treasury notes and bonds with a Moody's Investors Service rating of Aaa and Government Agency Bonds with a Moody's Investors Service rating of A1 or higher.

(C)This category represents units of participation in a commingled fund that primarily invested in stocks of international companies and emerging markets.