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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Employee Benefit Plans EMPLOYEE BENEFIT PLANS
For our employee benefit plans, we:
▪recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status in the balance sheet;
▪measure a plan’s assets and its obligations that determine its funded status as of the end of the fiscal year; and
▪recognize changes in the funded status of pension and PBOP plans in the year in which the changes occur. Generally, those changes are reported in OCI and as a separate component of shareholders’ equity.
The detailed information presented below covers the employee benefit plans of primarily Sempra and its consolidated entities.
Sempra has funded and unfunded noncontributory traditional defined benefit and cash balance plans, including separate plans for SDG&E and SoCalGas, which collectively cover all eligible employees. Pension benefits under the traditional defined benefit plans are based on service and final average earnings, while the cash balance plans provide benefits using a career average earnings methodology.
IEnova has an unfunded noncontributory defined benefit plan covering all employees that provides defined benefits to retirees based on date of hire, years of service and final average earnings.
Sempra also has PBOP plans, including separate plans for SDG&E and SoCalGas, which collectively cover all domestic and certain foreign employees. The life insurance plans are both contributory and noncontributory, and the health care plans are contributory. Participants’ contributions are adjusted annually. PBOP plans include medical benefits.
Pension and PBOP costs and obligations are dependent on assumptions used in calculating such amounts. We review these assumptions on an annual basis and update them as appropriate. We consider current market conditions, including interest rates, in making these assumptions. We use a December 31 measurement date for all of our plans.
DEDICATED ASSETS IN SUPPORT OF CERTAIN BENEFITS PLANS
In support of its Supplemental Executive Retirement, Cash Balance Restoration and Deferred Compensation Plans, Sempra maintains dedicated assets, including a Rabbi Trust and investments in life insurance contracts, which totaled $505 million and $567 million at December 31, 2022 and 2021, respectively.
PENSION AND PBOP PLANS
Oncor
In 2022 and 2021, we had $26 million and $7 million, respectively, in AOCI representing an actuarial loss related to Oncor’s pension plans.
Benefit Obligations and Assets
The following three tables provide a reconciliation of the changes in the plans’ projected benefit obligations and the fair value of assets during 2022 and 2021, and a statement of the funded status at December 31, 2022 and 2021.
PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
(Dollars in millions)
 
Pension(1)
PBOP
 2022202120222021
Sempra:
CHANGE IN PROJECTED BENEFIT OBLIGATION    
Net obligation at January 1$3,857 $4,077 $940 $989 
Service cost146 145 23 23 
Interest cost118 112 28 28 
Contributions from plan participants— — 23 21 
Actuarial gain(925)(76)(282)(53)
Benefit payments(89)(98)(69)(68)
Settlements(301)(303)— — 
Net obligation at December 312,806 3,857 663 940 
CHANGE IN PLAN ASSETS    
Fair value of plan assets at January 13,182 3,002 1,408 1,399 
Actual return on plan assets(625)340 (271)51 
Employer contributions223 241 5 5 
Contributions from plan participants— — 23 21 
Benefit payments(89)(98)(69)(68)
Settlements(301)(303)— — 
Fair value of plan assets at December 312,390 3,182 1,096 1,408 
Funded status at December 31$(416)$(675)$433 $468 
Net recorded (liability) asset at December 31$(416)$(675)$433 $468 
(1)    The accumulated benefit obligation was $2,574 and $3,419 at December 31, 2022 and 2021, respectively.
PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
(Dollars in millions)
 
Pension(1)
PBOP
 2022202120222021
SDG&E:
CHANGE IN PROJECTED BENEFIT OBLIGATION    
Net obligation at January 1$885 $913 $188 $193 
Service cost37 35 5 5 
Interest cost26 25 6 5 
Contributions from plan participants— — 8 7 
Actuarial gain(135)(2)(54)(3)
Benefit payments(17)(17)(19)(19)
Settlements(82)(69)— — 
Net obligation at December 31714 885 134 188 
CHANGE IN PLAN ASSETS    
Fair value of plan assets at January 1859 819 197 213 
Actual return on plan assets(142)73 (40)(5)
Employer contributions52 53 1 1 
Contributions from plan participants— — 8 7 
Benefit payments(17)(17)(19)(19)
Settlements(82)(69)— — 
Fair value of plan assets at December 31670 859 147 197 
Funded status at December 31$(44)$(26)$13 $9 
Net recorded (liability) asset at December 31$(44)$(26)$13 $9 
(1)    The accumulated benefit obligation was $678 and $824 at December 31, 2022 and 2021, respectively.
PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
(Dollars in millions)
 
Pension(1)
PBOP
(Dollars in millions)2022202120222021
SoCalGas:
CHANGE IN PROJECTED BENEFIT OBLIGATION    
Net obligation at January 1$2,647 $2,829 $706 $749 
Service cost96 97 17 17 
Interest cost81 78 21 22 
Contributions from plan participants— — 14 13 
Actuarial gain(748)(83)(215)(49)
Benefit payments(58)(63)(46)(46)
Settlements(204)(211)— — 
Net obligation at December 311,814 2,647 497 706 
CHANGE IN PLAN ASSETS    
Fair value of plan assets at January 12,095 1,969 1,178 1,159 
Actual return on plan assets(449)243 (224)51 
Employer contributions151 157 1 1 
Contributions from plan participants— — 14 13 
Benefit payments(58)(63)(46)(46)
Settlements(204)(211)— — 
Fair value of plan assets at December 311,535 2,095 923 1,178 
Funded status at December 31$(279)$(552)$426 $472 
Net recorded (liability) asset at December 31$(279)$(552)$426 $472 
(1)    The accumulated benefit obligation was $1,644 and $2,306 at December 31, 2022 and 2021, respectively.
Actuarial (gains) losses fluctuate based on changes in assumptions that we describe below in “Assumptions for Pension and PBOP Plans” and updates to census data. In 2021, the Society of Actuaries released updated mortality improvement projection scales, reflecting changes to projected observed longevity improvements in its mortality tables. There was no update in 2022. We
have incorporated these assumptions, adjusted for the Sempra companies’ actual mortality experience, in our calculations for each of those years.
▪Actuarial gains in pension plans at Sempra in 2022 were driven primarily by an increase in discount rates at SoCalGas, SDG&E and Sempra, a change in the rates used to convert traditional pension benefits to lump-sums at SoCalGas, and administrative changes in the long-term disability plan at SoCalGas. These actuarial gains were partially offset by actuarial losses due to an increase in the interest crediting rate for the cash balance plans at SDG&E, SoCalGas and Sempra, changes in the rates used to convert cash balance accounts to traditional pension benefit distributions at SDG&E, and updated census data at SoCalGas and Sempra.
▪Actuarial gains in PBOP plans at Sempra in 2022 were driven primarily by an increase in discount rates at SoCalGas, SDG&E and Sempra.
Net Assets and Liabilities
The assets and liabilities of the pension and PBOP plans are affected by changing market conditions as well as when actual plan experience is different than assumed. Such events result in investment gains and losses, which we defer and recognize in pension and PBOP costs over a period of years. Our funded pension and PBOP plans use the asset smoothing method, except for those at SDG&E. This method develops an asset value that recognizes realized and unrealized investment gains and losses over a three-year period. This adjusted asset value, known as the market-related value of assets, is used in conjunction with an expected long-term rate of return to determine the expected return-on-assets component of net periodic benefit cost. SDG&E does not use the asset smoothing method, but rather recognizes realized and unrealized investment gains and losses during the current year.
The 10% corridor accounting method is used at Sempra, SDG&E and SoCalGas. Under the corridor accounting method, if as of the beginning of a year unrecognized net gain or loss exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets, the excess is amortized over the average remaining service period of active participants (or, for plans where participants are substantially inactive employees, the average remaining lifetime of all participants or the period for which benefits will be paid, whichever is shorter). The asset smoothing and 10% corridor accounting methods help mitigate volatility of net periodic benefit costs from year to year.
Defined benefit pension and PBOP plans with an aggregated overfunded status are recognized as an asset and with an aggregated underfunded status are recognized as a liability; unrecognized changes in these assets and/or liabilities are normally recorded in AOCI on the balance sheet. SDG&E and SoCalGas record regulatory assets and liabilities that offset the funded pension and PBOP plans’ assets or liabilities, as these costs are expected to be recovered in future utility rates based on decisions by regulatory agencies.
SDG&E and SoCalGas record annual pension and PBOP net periodic benefit costs equal to the contributions to their qualified plans as authorized by the CPUC. The annual contributions to the pension plans are the greater of:
▪a minimum required funding amount as required by the IRS;
▪the amount required to maintain an 85% Adjusted Funding Target Attainment Percentage as defined by the Pension Protection Act of 2006, as amended; or
▪beginning January 1, 2019 and for the duration of the 2019 GRC cycle, a fixed amount equal to the estimated annual service cost as defined by U.S. GAAP plus one year of a 14-year amortization of the unfunded projected benefit obligation of the pension plan as of January 1, 2019, and limited to an annual amount that keeps the fair value of the pension plan assets from exceeding 110% of the pension benefit obligation of the plan.
The annual contributions to PBOP plans are equal to the lesser of the maximum tax deductible amount or the net periodic benefit cost calculated in accordance with U.S. GAAP for pension and PBOP plans. Any differences between booked net periodic benefit cost and amounts contributed to the pension and PBOP plans for SDG&E and SoCalGas are disclosed as regulatory adjustments in accordance with U.S. GAAP for rate-regulated entities.
The net (liability) asset is included in the following categories on the Consolidated Balance Sheets.
PENSION AND PBOP OBLIGATIONS, NET OF PLAN ASSETS
(Dollars in millions)
 PensionPBOP
December 31,December 31,
 2022202120222021
Sempra:    
Noncurrent assets$8 $19 $443 $481 
Current liabilities(23)(19)(1)(1)
Noncurrent liabilities(401)(675)(9)(12)
Net recorded (liability) asset$(416)$(675)$433 $468 
SDG&E:    
Noncurrent assets$— $— $13 $9 
Current liabilities(2)(1)— — 
Noncurrent liabilities(42)(25)— — 
Net recorded (liability) asset $(44)$(26)$13 $9 
SoCalGas:    
Noncurrent assets$— $— $426 $472 
Current liabilities(2)(1)— — 
Noncurrent liabilities(277)(551)— — 
Net recorded (liability) asset$(279)$(552)$426 $472 

Amounts recorded in AOCI, net of income tax effects and amounts recorded as regulatory assets, are as follows.
AMOUNTS IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
PensionPBOP
December 31,December 31,
 2022202120222021
Sempra:    
Net actuarial (loss) gain$(95)$(86)$14 $11 
Prior service cost(5)(8)— — 
Total$(100)$(94)$14 $11 
SDG&E:    
Net actuarial loss$(6)$(9)  
Prior service cost(1)(1)
Total$(7)$(10)
SoCalGas:    
Net actuarial loss$(9)$(15)  
Prior service cost(3)(3)  
Total$(12)$(18)  
Sempra, SDG&E and SoCalGas each have a funded pension plan. The following table shows the obligations of funded pension plans with benefit obligations in excess of plan assets.
OBLIGATIONS OF FUNDED PENSION PLANS
(Dollars in millions)
December 31,
 20222021
Sempra:  
Projected benefit obligation$2,476 $2,612 
Accumulated benefit obligation2,277 2,277 
Fair value of plan assets2,205 2,095 
SDG&E:
Projected benefit obligation$691 
Accumulated benefit obligation658 
Fair value of plan assets670 
SoCalGas:  
Projected benefit obligation$1,785 $2,612 
Accumulated benefit obligation1,619 2,277 
Fair value of plan assets1,535 2,095 
We also have unfunded pension plans at Sempra, SDG&E, SoCalGas and IEnova. The following table shows the obligations of unfunded pension plans.
OBLIGATIONS OF UNFUNDED PENSION PLANS
(Dollars in millions)
December 31,
 20222021
Sempra:  
Projected benefit obligation$153 $178 
Accumulated benefit obligation124 139 
SDG&E: 
Projected benefit obligation$23 $26 
Accumulated benefit obligation20 22 
SoCalGas:  
Projected benefit obligation$29 $35 
Accumulated benefit obligation25 29 
Sempra, SDG&E and SoCalGas each have a funded PBOP plan. The following table shows the obligations of funded PBOP plans with accumulated postretirement benefit obligations in excess of plan assets.
OBLIGATIONS OF FUNDED PBOP PLANS
(Dollars in millions)
 December 31, 2021
Sempra:  
Accumulated postretirement benefit obligation$34 
Fair value of plan assets33 
We also have unfunded PBOP plans at Sempra. The following table shows the obligations of unfunded PBOP plans.
OBLIGATIONS OF UNFUNDED PBOP PLANS
(Dollars in millions)
December 31,
 20222021
Sempra:  
Accumulated postretirement benefit obligation$10 $12 
Net Periodic Benefit Cost
The following tables provide the components of net periodic benefit cost and pretax amounts recognized in OCI:
NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OCI
(Dollars in millions)
 PensionPBOP
Years ended December 31,Years ended December 31,
 202220212020202220212020
Sempra:
NET PERIODIC BENEFIT COST      
Service cost$146 $145 $129 $23 $23 $18 
Interest cost118 112 129 28 28 33 
Expected return on assets(183)(173)(169)(64)(61)(55)
Amortization of:    
Prior service cost (credit)10 11 12 (2)(2)(2)
Actuarial loss (gain)25 45 35 (15)(9)(10)
Settlement charges 28 38 22 — — — 
Net periodic benefit cost (credit)144 178 158 (30)(21)(16)
Regulatory adjustment84 57 91 30 21 16 
Total expense recognized228 235 249 — — — 
CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OCI (1)
      
Net loss (gain)12 (5)28 (4)(4)1 
Amortization of actuarial loss (8)(8)(14)1 — — 
Amortization of prior service cost(4)(4)(4)— — — 
Settlements — (7)(22)— — — 
Total recognized in OCI— (24)(12)(3)(4)1 
Total recognized in net periodic benefit cost and OCI$228 $211 $237 $(3)$(4)$1 
(1)    Includes discontinued operations in 2020.
NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OCI
(Dollars in millions)
 PensionPBOP
Years ended December 31,Years ended December 31,
 202220212020202220212020
SDG&E:
NET PERIODIC BENEFIT COST      
Service cost$37 $35 $31 $5 $5 $4 
Interest cost26 25 30 6 5 6 
Expected return on assets(46)(50)(49)(10)(10)(10)
Amortization of:      
Prior service cost1 1 2 — — — 
Actuarial loss (gain)1 2 3 (2)(2)(3)
Settlement charges14 6 — — — — 
Net periodic benefit cost (credit)33 19 17 (1)(2)(3)
Regulatory adjustment20 34 38 1 2 3 
Total expense recognized53 53 55 $— $— $— 
CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OCI
   
Net (gain) loss(3)1 6 
Transfer of actuarial gain— — (7)
Transfer of prior service credit— — (5)
Amortization of actuarial loss(1)— (1)
Amortization of prior service cost— (1)(1)
Total recognized in OCI(4)— (8)
Total recognized in net periodic benefit cost and OCI$49 $53 $47 
NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OCI
(Dollars in millions)
 PensionPBOP
Years ended December 31,Years ended December 31,
 202220212020202220212020
SoCalGas:
NET PERIODIC BENEFIT COST      
Service cost$96 $97 $86 $17 $17 $14 
Interest cost81 78 88 21 22 25 
Expected return on assets(126)(113)(107)(53)(48)(43)
Amortization of:      
Prior service cost (credit)8 8 8 (2)(3)(2)
Actuarial loss (gain)18 36 26 (12)(7)(7)
Settlement charges14 25 — — — — 
Net periodic benefit cost (credit)91 131 101 (29)(19)(13)
Regulatory adjustment64 23 53 29 19 13 
Total expense recognized155 154 154 $— $— $— 
CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OCI
      
Net (gain) loss(5)2 6 
Transfer of actuarial loss— — 5 
Transfer of prior service cost— — 3 
Amortization of actuarial loss(2)(1)(1)
Amortization of prior service cost (1)(1)(1)
Total recognized in OCI(8)— 12 
Total recognized in net periodic benefit cost and OCI $147 $154 $166 
Assumptions for Pension and PBOP Plans
Benefit Obligation and Net Periodic Benefit Cost
Except for the IEnova plans, we develop the discount rate assumptions using a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high-quality corporate bonds that generate sufficient cash flows to provide for projected benefit payments of the plan. The selected bond portfolio is derived from a universe of corporate bonds with a Bloomberg Composite of AA or higher. After the bond portfolio is selected, a single interest rate is determined that equates the present value of the plans’ projected benefit payments discounted at this rate with the market value of the bonds selected.
We develop the discount rate assumptions for the plans at IEnova by constructing a synthetic government zero coupon bond yield curve from the available market data, based on duration matching, and we add a risk spread to allow for the yields of high-quality corporate bonds. Such method is required when there is no deep market for high quality corporate bonds.
Long-term return on assets is based on the weighted average of the plans’ investment allocation as of the measurement date and the expected returns for those asset types.
Interest crediting rate is based on an average 30-year Treasury bond from the month of November of the preceding year.
We amortize prior service cost using straight line amortization over average future service (or average expected lifetime for plans where participants are substantially inactive employees), which is an alternative method allowed under U.S. GAAP.
The significant assumptions affecting benefit obligation and net periodic benefit cost are as follows:
WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATION
 PensionPBOP
December 31,December 31,
 2022202120222021
Sempra:    
Discount rate5.63 %3.04 %5.65 %3.04 %
Interest crediting rate(1)(2)
3.99 1.94 3.99 1.94 
Rate of compensation increase
2.70-10.00
2.70-10.00
2.70-10.00
2.70-10.00
SDG&E:    
Discount rate5.60 %2.99 %5.65 %3.05 %
Interest crediting rate(1)(2)
3.99 1.94 3.99 1.94 
Rate of compensation increase
3.50-10.00
3.50-10.00
3.50-10.00
3.50-10.00
SoCalGas:    
Discount rate5.60 %3.04 %5.65 %3.05 %
Interest crediting rate(1)(2)
3.99 1.94 3.99 1.94 
Rate of compensation increase
2.70-10.00
2.70-10.00
2.70-10.00
2.70-10.00
(1)    Interest crediting rate for pension benefits applies only to funded cash balance plans.
(2)    Interest crediting rate for PBOP applies only to interest bearing health retirement accounts at SDG&E and SoCalGas.

WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE NET PERIODIC BENEFIT COST
 PensionPBOP
Years ended December 31,Years ended December 31,
 202220212020202220212020
Sempra:      
Discount rate3.04 %2.78 %3.49 %3.04 %2.88 %3.54 %
Expected return on plan assets6.27 6.47 7.00 4.77 4.76 4.64 
Interest crediting rate(1)(2)
1.94 1.62 2.28 1.94 1.62 2.28 
Rate of compensation increase
2.70-10.00
2.70-10.00
2.70-10.00
2.70-10.00
2.70-10.00
2.70-10.00
SDG&E:    
Discount rate2.99 %2.73 %3.44 %3.05 %2.85 %3.55 %
Expected return on plan assets5.50 6.25 7.00 4.80 4.81 5.51 
Interest crediting rate(1)(2)
1.94 1.62 2.28 1.94 1.62 2.28 
Rate of compensation increase
3.50-10.00
2.70-10.00
2.70-10.00
3.50-10.00
2.70-10.00
2.70-10.00
SoCalGas:    
Discount rate3.04 %2.79 %3.50 %3.05 %2.90 %3.55 %
Expected return on plan assets6.75 6.75 7.00 4.71 4.70 4.41 
Interest crediting rate(1)(2)
1.94 1.62 2.28 1.94 1.62 2.28 
Rate of compensation increase
2.70-10.00
2.70-10.00
2.70-10.00
2.70-10.00
2.70-10.00
2.70-10.00
(1)    Interest crediting rate for pension benefits applies only to funded cash balance plans.
(2)    Interest crediting rate for PBOP applies only to interest bearing health retirement accounts at SDG&E and SoCalGas.
Health Care Cost Trend Rates
Assumed health care cost trend rates have a significant effect on the amounts that Sempra, SDG&E and SoCalGas report for the health care plan costs. Following are the health care cost trend rates applicable to our PBOP plans:
ASSUMED HEALTH CARE COST TREND RATES
 PBOP
 Pre-65 retireesRetirees aged 65 years and older
Years ended December 31,Years ended December 31,
 202220212020202220212020
Health care cost trend rate assumed for next year 6.00 %6.00 %6.00 %4.50 %4.75 %4.75 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend)4.75 %4.75 %4.75 %4.50 %4.50 %4.50 %
Year the rate reaches the ultimate trend202820252025202220222022
Plan Assets
Investment Allocation Strategy for Sempra’s Pension Master Trust
Sempra’s pension master trust holds the investments for our pension plans and a portion of the investments for our PBOP plans. We maintain additional trusts, as we discuss below, for certain of SDGE’s and SoCalGas’ PBOP plans. Other than through indexing strategies, the trusts do not invest in securities of Sempra.
The current asset allocation objective for the pension master trust is to protect the funded status of the plans while generating sufficient returns to cover future benefit payments and accruals. A portion of the pension master trust is invested in accordance with plan specific de-risking glidepaths designed to reduce the assets’ exposure to risk as the plans become better funded. We assess the portfolio performance by comparing actual returns with relevant benchmarks. The target asset allocations for Sempra’s pension master trust are between return-seeking assets (i.e., generally, equity securities, high-yield fixed income securities and other instruments with a similar risk profile) and risk-mitigating assets (i.e., generally, government and corporate fixed income securities) as follows:
TARGET ASSET ALLOCATIONS FOR SEMPRA’S PENSION MASTER TRUST
(Dollars in millions)
SempraSDG&ESoCalGas
Return-seeking assets34 %42 %65 %
Risk-mitigating assets66 %58 %35 %

We maintain asset allocations at strategic levels within reasonable bands of variance. The asset allocations are reviewed by our Plan Funding Committee and our Pension and Benefits Investment Committee (the Committees) on a regular basis to help ensure that plan assets are positioned to meet plan obligations. When evaluating strategic asset allocations, the Committees consider many variables, including:
▪long-term cost
▪variability and level of contributions
▪funded status
▪a range of expected outcomes over varying confidence levels
In accordance with the Sempra pension investment guidelines, derivative financial instruments may be used by the pension master trust’s equity and fixed income portfolio investment managers to equitize cash, hedge certain exposures, and as substitutes for certain types of fixed income securities.
Rate of Return Assumption
The expected return on assets in our pension and PBOP plans is based on the weighted-average of the plans’ investment allocations to specific asset classes as of the measurement date. We expect a return of between 4% and 12% on return-seeking assets and between 1% and 4% for risk-mitigating assets. Certain trusts that hold assets for SDG&E’s and SoCalGas’ PBOP plans are subject to taxation, which impacts the expected after-tax return on assets in the plan.
Concentration of Risk
Plan assets are diversified across global equity and bond markets, and concentration of risk in any one economic, industry, maturity or geographic sector is limited.
Investment Strategy for Sempra’s, SDG&E’s and SoCalGas’ PBOP Plans
Sempra’s PBOP plan is funded by cash contributions from Sempra. SDG&E’s and SoCalGas’ PBOP plans are funded by cash contributions from SDG&E and SoCalGas and their current retirees. The assets of these plans are placed into the pension master trust and other Voluntary Employee Beneficiary Association trusts and are invested in accordance with a de-risking glidepath designed to reduce the assets’ exposure to risk as the trusts become better funded. These specific allocations are periodically reviewed to help ensure that plan assets are positioned to meet plan obligations. The target asset allocations for the PBOP plans are between return-seeking assets and risk-mitigating assets as follows:
TARGET ASSET ALLOCATIONS FOR PBOP PLANS
(Dollars in millions)
SempraSDG&E and SoCalGas
Assets held in pension master trustAssets held in pension master trust Assets held in Voluntary Employee Beneficiary Association trusts
Return-seeking assets74 %38 %30 %
Risk-mitigating assets26 %62 %70 %
Fair Value of Pension and PBOP Plan Assets
We classify the investments in Sempra’s pension master trust and the trusts for SDG&E’s and SoCalGas’ PBOP plans based on the fair value hierarchy, except for certain investments measured at NAV.
The following are descriptions of the valuation methods and assumptions we use to estimate the fair values of investments held by pension and PBOP plan trusts.
Equity Securities – Equity securities are valued using quoted prices listed on nationally recognized securities exchanges.
Registered Investment Companies – Investments in mutual funds sponsored by a registered investment company are valued based on exchange listed prices. Where the value is a quoted price in an active market, the investment is classified within Level 1 of the fair value hierarchy. Other investments are valued under a discounted cash flow approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks.
Fixed Income Securities – Certain fixed income securities are valued at the closing price reported in the active market in which the security is traded. Other fixed income securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar securities, the security is valued under a discounted cash flow approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. Certain high yield fixed-income securities are valued by applying a price adjustment to the bid side to calculate a mean and ask value. Adjustments can vary based on maturity, credit standing, and reported trade frequencies. The bid to ask spread is determined by the investment manager based on the review of the available market information.
Common/Collective Trusts – Investments in common/collective trust funds are valued based on the NAV of units owned, which is based on the current fair value of the funds’ underlying assets.
Derivative Financial Instruments – Futures contracts that are publicly traded in active markets are valued at closing prices as of the last business day of the year. Forward currency contracts are valued at the prevailing forward exchange rate of the underlying currencies, and unrealized gain (loss) is recorded daily. Fixed income futures and options are marked to market daily. Equity index futures contracts are valued at the last sales price quoted on the exchange on which they primarily trade.
While management believes the valuation methods described above are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
We provide more discussion of fair value measurements in Notes 1 and 12. The following tables set forth by level within the fair value hierarchy a summary of the investments in our pension and PBOP plan trusts measured at fair value on a recurring basis.
The fair values by asset category of the PBOP plan assets held in the pension master trust and in the additional trusts for SoCalGas’ PBOP plans and SDG&E’s PBOP plan trusts are as follows:
FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF PBOP PLANS
(Dollars in millions)
 
Fair value at December 31, 2022
 Level 1Level 2Total
SDG&E:   
Equity securities:   
Domestic$10 $— $10 
International5 — 5 
Registered investment companies:
Domestic65 — 65 
International7 — 7 
Fixed income securities:
Domestic government and government agencies 9 2 11 
Domestic corporate bonds— 6 6 
International corporate bonds— 1 1 
Total investment assets in the fair value hierarchy96 9 105 
Investments measured at NAV – Common/collective trusts42 
Total SDG&E investment assets147 
SoCalGas:   
Cash and cash equivalents1 — 1 
Equity securities:   
Domestic46 — 46 
International24 — 24 
Registered investment companies:
Domestic80 72 152 
International3 — 3 
Fixed income securities:   
Domestic government and government agencies151 14 165 
International government bonds1 8 9 
Domestic corporate bonds— 269 269 
International corporate bonds— 37 37 
Total investment assets in the fair value hierarchy306 400 706 
Accounts receivable/payable, net(4)
Investments measured at NAV:
Common/collective trusts218 
Other3 
Total SoCalGas investment assets923 
Other Sempra:   
Equity securities:   
Domestic6 — 6 
International3 — 3 
Registered investment companies – Domestic2 — 2 
Fixed income securities:   
Domestic government and government agencies2 — 2 
Domestic corporate bonds— 4 4 
Total investment assets in the fair value hierarchy13 4 17 
Investments measured at NAV:
Common/collective trusts7 
Other2 
Total other Sempra investment assets26 
Total Sempra investment assets in the fair value hierarchy$415 $413 
Total Sempra investment assets$1,096 
Future Payments
We expect to contribute the following amounts to our pension and PBOP plans in 2023:
EXPECTED CONTRIBUTIONS
(Dollars in millions)
  SempraSDG&ESoCalGas
Pension plans$233 $53 $153 
PBOP plans5 1 1 

The following table shows the total benefits we expect to pay for the next 10 years to current employees and retirees from the plans or from company assets.
EXPECTED BENEFIT PAYMENTS
(Dollars in millions)
 SempraSDG&ESoCalGas
 PensionPBOPPensionPBOPPensionPBOP
2023$223 $46 $58 $10 $130 $33 
2024220 45 58 10 129 33 
2025216 45 59 10 131 32 
2026220 47 57 10 132 32 
2027220 44 56 10 129 32 
2028-20321,062 220 285 47 654 161 
SAVINGS PLANS
Sempra, SDG&E and SoCalGas offer trusteed savings plans to all employees. Employee participation, employee contributions and employer matching contributions are subject to the provisions of the respective plans, and for employee contributions, limits imposed by the respective governmental authorities.
Employer contributions to the savings plans were as follows:
EMPLOYER CONTRIBUTIONS TO SAVINGS PLANS
(Dollars in millions)
Years ended December 31,
 202220212020
Sempra$64 $52 $47 
SDG&E19 18 16 
SoCalGas30 28 25 

The market value of Sempra common stock held by the savings plans was $1.1 billion and $1.0 billion at December 31, 2022 and 2021, respectively.