EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2024

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.

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 $585 million and $549 million at December 31, 2024 and 2023, respectively.

PENSION AND PBOP PLANS

Oncor

In 2024 and 2023, we had $34 million and $38 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 2024 and 2023, and a statement of the funded status at December 31, 2024 and 2023.

PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
(Dollars in millions)
	Pension(1)				PBOP
	2024		2023		2024		2023
Sempra:
CHANGE IN PROJECTED BENEFIT OBLIGATION
Obligation at January 1	$	3,107	$	2,806	$	693	$	663
Service cost	132		109		15		13
Interest cost	166		157		36		37
Contributions from plan participants	—		—		23		23
Actuarial (gain) loss	(100)		190		(11)		28
Plan amendments	2		4		—		—
Benefit payments	(81)		(83)		(69)		(71)
Settlements	(87)		(76)		—		—
Obligation at December 31	3,139		3,107		687		693
CHANGE IN PLAN ASSETS
Fair value of plan assets at January 1	2,664		2,390		1,169		1,096
Actual return on plan assets	196		218		57		117
Employer contributions	243		215		5		4
Contributions from plan participants	—		—		23		23
Benefit payments	(81)		(83)		(69)		(71)
Settlements	(87)		(76)		—		—
Fair value of plan assets at December 31	2,935		2,664		1,185		1,169
Funded status at December 31	$	(204)	$	(443)	$	498	$	476
Net recorded (liability) asset at December 31	$	(204)	$	(443)	$	498	$	476

(1)    The accumulated benefit obligation was $2,900 and $2,865 at December 31, 2024 and 2023, respectively.

PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
(Dollars in millions)
	Pension(1)				PBOP
	2024		2023		2024		2023
SDG&E:
CHANGE IN PROJECTED BENEFIT OBLIGATION
Obligation at January 1	$	807	$	714	$	140	$	134
Service cost	39		32		3		3
Interest cost	43		40		7		8
Contributions from plan participants	—		—		8		8
Actuarial (gain) loss	(28)		69		(6)		7
Benefit payments	(16)		(17)		(18)		(20)
Settlements	(23)		(31)		—		—
Obligation at December 31	822		807		134		140
CHANGE IN PLAN ASSETS
Fair value of plan assets at January 1	726		670		150		147
Actual return on plan assets	63		52		5		14
Employer contributions	37		52		—		1
Contributions from plan participants	—		—		8		8
Benefit payments	(16)		(17)		(18)		(20)
Settlements	(23)		(31)		—		—
Fair value of plan assets at December 31	787		726		145		150
Funded status at December 31	$	(35)	$	(81)	$	11	$	10
Net recorded (liability) asset at December 31	$	(35)	$	(81)	$	11	$	10

(1)    The accumulated benefit obligation was $781 and $769 at December 31, 2024 and 2023, respectively.

PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
(Dollars in millions)
	Pension(1)				PBOP
(Dollars in millions)	2024		2023		2024		2023
SoCalGas:
CHANGE IN PROJECTED BENEFIT OBLIGATION
Obligation at January 1	$	1,977	$	1,814	$	521	$	497
Service cost	79		65		11		9
Interest cost	105		101		27		28
Contributions from plan participants	—		—		14		14
Actuarial (gain) loss	(70)		90		(4)		21
Plan amendments	2		—		—		—
Benefit payments	(56)		(58)		(47)		(48)
Settlements	(38)		(35)		—		—
Obligation at December 31	1,999		1,977		522		521
CHANGE IN PLAN ASSETS
Fair value of plan assets at January 1	1,744		1,535		990		923
Actual return on plan assets	115		151		50		100
Employer contributions	172		151		1		1
Contributions from plan participants	—		—		14		14
Benefit payments	(56)		(58)		(47)		(48)
Settlements	(38)		(35)		—		—
Fair value of plan assets at December 31	1,937		1,744		1,008		990
Funded status at December 31	$	(62)	$	(233)	$	486	$	469
Net recorded (liability) asset at December 31	$	(62)	$	(233)	$	486	$	469

(1)    The accumulated benefit obligation was $1,824 and $1,799 at December 31, 2024 and 2023, 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.

Pension Plans

▪In 2024, actuarial gains were driven by an increase in discount rates at SoCalGas and SDG&E, offset by updated census data at SoCalGas and SDG&E.

▪In 2023, actuarial losses were driven by a decrease in discount rates at SoCalGas and SDG&E, an increase in the interest crediting rate for cash balance plans at SDG&E and SoCalGas and updated census data at Sempra and SDG&E. These actuarial losses were partially offset by actuarial gains at SoCalGas due to a change in the rates to convert traditional pension benefits to lump-sums.

PBOP Plans

▪In 2024, actuarial gains were driven by an increase in discount rates at SoCalGas, partially offset by an increase in the 2025 expected healthcare costs at SoCalGas.

▪In 2023, actuarial losses were driven by a decrease in discount rates at SoCalGas and SDG&E.

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-plan-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, 2024 and for the duration of the 2024 GRC cycle, a fixed amount equal to the estimated annual service cost as defined by U.S. GAAP plus one year of a seven-year amortization of the unfunded projected benefit obligation of the pension plan as of January 1, 2024, 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 but not less than benefits paid directly by the employer (such as benefits paid to key employees). 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)
	Pension				PBOP
	December 31,
	2024		2023		2024		2023
Sempra:
Noncurrent assets	$	6	$	—	$	507	$	485
Current liabilities	(50)		(44)		(1)		(1)
Noncurrent liabilities	(160)		(399)		(8)		(8)
Net recorded (liability) asset	$	(204)	$	(443)	$	498	$	476
SDG&E:
Noncurrent assets	$	—	$	—	$	11	$	10
Current liabilities	(7)		(2)		—		—
Noncurrent liabilities	(28)		(79)		—		—
Net recorded (liability) asset	$	(35)	$	(81)	$	11	$	10
SoCalGas:
Noncurrent assets	$	—	$	—	$	486	$	469
Current liabilities	(17)		(2)		—		—
Noncurrent liabilities	(45)		(231)		—		—
Net recorded (liability) asset	$	(62)	$	(233)	$	486	$	469

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)
	Pension				PBOP
	December 31,
	2024		2023		2024		2023
Sempra:
Net actuarial (loss) gain	$	(120)	$	(124)	$	14	$	13
Prior service cost	(9)		(6)		—		—
Total	$	(129)	$	(130)	$	14	$	13
SDG&E:
Net actuarial loss	$	(12)	$	(8)
Total	$	(12)	$	(8)
SoCalGas:
Net actuarial loss	$	(14)	$	(10)
Prior service cost	(3)		(2)
Total	$	(17)	$	(12)

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,
	2024		2023
Sempra:
Projected benefit obligation	$	2,752	$	2,925
Accumulated benefit obligation	2,542		2,712
Fair value of plan assets	2,724		2,664
SDG&E:
Projected benefit obligation	$	793	$	781
Accumulated benefit obligation	755		746
Fair value of plan assets	787		726
SoCalGas:
Projected benefit obligation	$	1,959	$	1,944
Accumulated benefit obligation	1,787		1,771
Fair value of plan assets	1,937		1,744

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,
	2024		2023
Sempra:
Projected benefit obligation	$	183	$	182
Accumulated benefit obligation	159		153
SDG&E:
Projected benefit obligation	$	29	$	26
Accumulated benefit obligation	26		23
SoCalGas:
Projected benefit obligation	$	40	$	33
Accumulated benefit obligation	37		28

Sempra, SDG&E and SoCalGas each have a funded PBOP plan. At December 31, 2024, Sempra’s, SDG&E’s and SoCalGas’ plan assets were each in excess of their respective obligations for funded PBOP plans with accumulated postretirement benefit obligations.

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,
	2024		2023
Sempra:
Accumulated postretirement benefit obligation	$	9	$	9

Net Periodic Benefit Cost

The following tables provide the components of net periodic benefit cost (which, other than the service cost component, are included in Other Income, Net) and pretax amounts recognized in OCI.

NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OCI
(Dollars in millions)
	Pension						PBOP
	Years ended December 31,
	2024		2023		2022		2024		2023		2022
Sempra:
NET PERIODIC BENEFIT COST
Service cost	$	132	$	109	$	146	$	15	$	13	$	23
Interest cost	166		157		118		36		37		28
Expected return on plan assets	(178)		(169)		(183)		(70)		(69)		(64)
Amortization of:
Prior service cost (credit)	5		5		10		(2)		(2)		(2)
Actuarial loss (gain)	14		10		25		(17)		(23)		(15)
Settlement charges	9		—		28		—		—		—
Net periodic benefit cost (credit)	148		112		144		(38)		(44)		(30)
Regulatory adjustment	100		117		84		38		43		30
Total expense (income) recognized	248		229		228		—		(1)		—
CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OCI
Net (gain) loss	(2)		42		12		(1)		(2)		(4)
Prior service cost	3		4		—		—		—		—
Amortization of actuarial (loss) gain	(7)		(5)		(8)		1		2		1
Amortization of prior service cost	(3)		(2)		(4)		—		—		—
Settlements	(9)		—		—		—		—		—
Total recognized in OCI	(18)		39		—		—		—		(3)
Total recognized in net periodic benefit cost and OCI	$	230	$	268	$	228	$	—	$	(1)	$	(3)

NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OCI
(Dollars in millions)
	Pension						PBOP
	Years ended December 31,
	2024		2023		2022		2024		2023		2022
SDG&E:
NET PERIODIC BENEFIT COST
Service cost	$	39	$	32	$	37	$	3	$	3	$	5
Interest cost	43		40		26		7		8		6
Expected return on plan assets	(45)		(39)		(46)		(9)		(8)		(10)
Amortization of:
Prior service cost	1		1		1		—		—		—
Actuarial loss (gain)	8		4		1		(1)		(2)		(2)
Settlement charges	—		—		14		—		—		—
Net periodic benefit cost (credit)	46		38		33		—		1		(1)
Regulatory adjustment	(8)		15		20		—		—		1
Total expense recognized	38		53		53		$	—	$	1	$	—
CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OCI
Net loss (gain)	4		3		(3)
Amortization of actuarial loss	(1)		—		(1)
Amortization of prior service cost	—		(1)		—
Total recognized in OCI	3		2		(4)
Total recognized in net periodic benefit cost and OCI	$	41	$	55	$	49

NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OCI
(Dollars in millions)
	Pension						PBOP
	Years ended December 31,
	2024		2023		2022		2024		2023		2022
SoCalGas:
NET PERIODIC BENEFIT COST
Service cost	$	79	$	65	$	96	$	11	$	9	$	17
Interest cost	105		101		81		27		28		21
Expected return on plan assets	(121)		(119)		(126)		(59)		(59)		(53)
Amortization of:
Prior service cost (credit)	4		4		8		(3)		(2)		(2)
Actuarial loss (gain)	1		1		18		(14)		(19)		(12)
Settlement charges	—		—		14		—		—		—
Net periodic benefit cost (credit)	68		52		91		(38)		(43)		(29)
Regulatory adjustment	108		102		64		38		43		29
Total expense recognized	176		154		155		$	—	$	—	$	—
CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OCI
Net loss (gain)	4		2		(5)
Prior service cost	2		—		—
Amortization of actuarial loss	(1)		(1)		(2)
Amortization of prior service cost	(1)		(1)		(1)
Total recognized in OCI	4		—		(8)
Total recognized in net periodic benefit cost and OCI	$	180	$	154	$	147

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.

Expected return on plan assets is based on the weighted average of the plans’ target 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 projected benefit obligation and net periodic benefit cost are as follows:

WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE PROJECTED BENEFIT OBLIGATION
	Pension				PBOP
	December 31,
	2024		2023		2024		2023
Sempra:
Discount rate	5.74	%	5.31	%	5.75	%	5.34	%
Interest crediting rate(1)(2)	4.54		4.66		4.54		4.66
Rate of compensation increase	2.70-10.00		2.70-10.00		2.70-10.00		2.70-10.00
SDG&E:
Discount rate	5.75	%	5.30	%	5.75	%	5.30	%
Interest crediting rate(1)(2)	4.54		4.66		4.54		4.66
Rate of compensation increase	3.50-10.00		3.50-10.00		3.50-10.00		3.50-10.00
SoCalGas:
Discount rate	5.70	%	5.25	%	5.75	%	5.35	%
Interest crediting rate(1)(2)	4.54		4.66		4.54		4.66
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
	Pension						PBOP
	Years ended December 31,
	2024		2023		2022		2024		2023		2022
Sempra:
Discount rate	5.31	%	5.63	%	3.04	%	5.34	%	5.65	%	3.04	%
Expected return on plan assets	6.56		6.48		6.27		5.90		5.51		4.77
Interest crediting rate(1)(2)	4.66		3.99		1.94		4.66		3.99		1.94
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 rate	5.30	%	5.60	%	2.99	%	5.30	%	5.65	%	3.05	%
Expected return on plan assets	6.25		6.00		5.50		5.88		5.52		4.80
Interest crediting rate(1)(2)	4.66		3.99		1.94		4.66		3.99		1.94
Rate of compensation increase	3.50-10.00		3.50-10.00		3.50-10.00		3.50-10.00		3.50-10.00		3.50-10.00
SoCalGas:
Discount rate	5.25	%	5.60	%	3.04	%	5.35	%	5.65	%	3.05	%
Expected return on plan assets	6.75		6.75		6.75		5.86		5.47		4.71
Interest crediting rate(1)(2)	4.66		3.99		1.94		4.66		3.99		1.94
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 retirees						Retirees aged 65 years and older
	Years ended December 31,
	2024		2023		2022		2024		2023		2022
Health care cost trend rate assumed for next year	6.50	%	6.00	%	6.00	%	4.50	%	4.50	%	4.50	%
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 trend	2030		2028		2028		2022		2022		2022

Plan Assets

Investment 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 SDG&E’s and SoCalGas’ PBOP plans. Other than through indexing and certain collective investment 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 plans are between return-seeking assets (i.e., generally, equity securities, diversified real assets, 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 PENSION PLANS
(Dollars in millions)
	Sempra		SDG&E		SoCalGas
Return-seeking assets	34	%	42	%	49	%
Risk-mitigating assets	66	%	58	%	51	%

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 plan assets in our pension and PBOP plans is based on the weighted average of the plans’ target 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 2% and 6% 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 plan assets.

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. Specific target asset 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)
	Sempra		SDG&E and SoCalGas
	Assets held in pension master trust		Assets held in pension master trust		Assets held in Voluntary Employee Beneficiary Association trusts
Return-seeking assets	74	%	38	%	30	%
Risk-mitigating assets	26	%	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 using NAV as a practical expedient for fair value.

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 10. 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 are as follows:

FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF PENSION PLANS
(Dollars in millions)
	Fair value at December 31, 2024
	Level 1		Level 2		Total
SDG&E:
Cash and cash equivalents	$	2	$	—	$	2
Equity securities:
Domestic	9		—		9
International	5		—		5
Registered investment companies – Domestic	48		—		48
Fixed income securities:
Domestic government and government agencies	227		5		232
International government bonds	—		3		3
Domestic corporate bonds	—		65		65
International corporate bonds	—		8		8
Derivative financial instruments	6		—		6
Total investment assets in the fair value hierarchy	297		81		378
Accounts receivable/payable, net					3
Investments measured at NAV – Common/collective trusts					406
Total SDG&E investment assets					787
SoCalGas:
Cash and cash equivalents	8		—		8
Equity securities:
Domestic	27		—		27
International	14		—		14
Registered investment companies – Domestic	149		—		149
Fixed income securities:
Domestic government and government agencies	270		17		287
International government bonds	—		9		9
Domestic corporate bonds	—		201		201
International corporate bonds	—		26		26
Derivative financial instruments	(4)		1		(3)
Total investment assets in the fair value hierarchy	464		254		718
Accounts receivable/payable, net					22
Investments measured at NAV – Common/collective trusts					1,197
Total SoCalGas investment assets					1,937

FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF PENSION PLANS (CONTINUED)
(Dollars in millions)
	Fair value at December 31, 2024
	Level 1		Level 2		Total
Other Sempra:
Equity securities:
Domestic	$	2	$	—	$	2
International	1		—		1
Registered investment companies – Domestic	10		—		10
Fixed income securities:
Domestic government and government agencies	77		3		80
International government bonds	—		1		1
Domestic corporate bonds	—		14		14
International corporate bonds	—		2		2
Derivative financial instruments	1		—		1
Total investment assets in the fair value hierarchy	91		20		111
Accounts receivable/payable, net					1
Investments measured at NAV – Common/collective trusts					99
Total Other Sempra investment assets					211
Total Sempra investment assets in the fair value hierarchy	$	852	$	355
Total Sempra investment assets					$	2,935

FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF PENSION PLANS
(Dollars in millions)
	Fair value at December 31, 2023
	Level 1		Level 2		Total
SDG&E:
Cash and cash equivalents	$	17	$	—	$	17
Equity securities:
Domestic	103		—		103
International	40		—		40
Registered investment companies – Domestic	41		—		41
Fixed income securities:
Domestic government and government agencies	240		5		245
International government bonds	—		2		2
Domestic corporate bonds	—		62		62
International corporate bonds	—		8		8
Derivative financial instruments	(15)		—		(15)
Total investment assets in the fair value hierarchy	426		77		503
Accounts receivable/payable, net					1
Investments measured at NAV:
Common/collective trusts					214
Other					8
Total SDG&E investment assets					726
SoCalGas:
Cash and cash equivalents	3		—		3
Equity securities:
Domestic	353		1		354
International	137		—		137
Registered investment companies – Domestic	141		1		142
Fixed income securities:
Domestic government and government agencies	310		16		326
International government bonds	—		5		5
Domestic corporate bonds	—		212		212
International corporate bonds	—		27		27
Derivative financial instruments	11		—		11
Total investment assets in the fair value hierarchy	955		262		1,217
Accounts receivable/payable, net					(12)
Investments measured at NAV:
Common/collective trusts					513
Other					26
Total SoCalGas investment assets					1,744

FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF PENSION PLANS (CONTINUED)
(Dollars in millions)
	Fair value at December 31, 2023
	Level 1		Level 2		Total
Other Sempra:
Cash and cash equivalents	$	7	$	—	$	7
Equity securities:
Domestic	22		1		23
International	8		—		8
Registered investment companies – Domestic	8		—		8
Fixed income securities:
Domestic government and government agencies	78		2		80
Domestic corporate bonds	—		13		13
International corporate bonds	—		2		2
Derivative financial instruments	(5)		—		(5)
Total investment assets in the fair value hierarchy	118		18		136
Investments measured at NAV:
Common/collective trusts					56
Other					2
Total Other Sempra investment assets					194
Total Sempra investment assets in the fair value hierarchy	$	1,499	$	357
Total Sempra investment assets					$	2,664

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, 2024
	Level 1		Level 2		Total
SDG&E:
Cash and cash equivalents	$	1	$	—	$	1
Equity securities – Domestic	1		—		1
Registered investment companies:
Domestic	74		—		74
International	8		—		8
Fixed income securities:
Domestic government and government agencies	8		—		8
Domestic corporate bonds	—		5		5
International corporate bonds	—		1		1
Derivative financial instruments	(1)		—		(1)
Total investment assets in the fair value hierarchy	91		6		97
Accounts receivable/payable, net					1
Investments measured at NAV:
Common/collective trusts					21
Other					26
Total SDG&E investment assets					145

FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF PBOP PLANS (CONTINUED)
(Dollars in millions)
	Fair value at December 31, 2024
	Level 1		Level 2		Total
SoCalGas:
Cash and cash equivalents	$	2	$	—	$	2
Equity securities:
Domestic	5		—		5
International	2		—		2
Registered investment companies – Domestic	87		103		190
Fixed income securities:
Domestic government and government agencies	74		14		88
International government bonds	—		10		10
Domestic corporate bonds	—		295		295
International corporate bonds	—		45		45
Derivative financial instruments	1		—		1
Total investment assets in the fair value hierarchy	171		467		638
Accounts receivable/payable, net					9
Investments measured at NAV – Common/collective trusts					361
Total SoCalGas investment assets					1,008
Other Sempra:
Equity securities – International	1		—		1
Registered investment companies – Domestic	4		—		4
Fixed income securities:
Domestic government and government agencies	—		1		1
Domestic corporate bonds	—		4		4
Total investment assets in the fair value hierarchy	5		5		10
Investments measured at NAV – Common/collective trusts					22
Total Other Sempra investment assets					32
Total Sempra investment assets in the fair value hierarchy	$	267	$	478
Total Sempra investment assets					$	1,185

FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF PBOP PLANS
(Dollars in millions)
	Fair value at December 31, 2023
	Level 1		Level 2		Total
SDG&E:
Equity securities:
Domestic	$	8	$	—	$	8
International	3		—		3
Registered investment companies:
Domestic	71		—		71
International	7		—		7
Fixed income securities:
Domestic government and government agencies	12		1		13
Domestic corporate bonds	—		5		5
International corporate bonds	—		1		1
Derivative financial instruments	2		—		2
Total investment assets in the fair value hierarchy	103		7		110
Accounts receivable/payable, net					(2)
Investments measured at NAV:
Common/collective trusts					10
Other					32
Total SDG&E investment assets					150
SoCalGas:
Cash and cash equivalents	7		—		7
Equity securities:
Domestic	57		—		57
International	22		—		22
Registered investment companies – Domestic	78		103		181
Fixed income securities:
Domestic government and government agencies	128		14		142
International government bonds	—		9		9
Domestic corporate bonds	—		295		295
International corporate bonds	—		42		42
Derivative financial instruments	(6)		—		(6)
Total investment assets in the fair value hierarchy	286		463		749
Accounts receivable/payable, net					4
Investments measured at NAV:
Common/collective trusts					233
Other					4
Total SoCalGas investment assets					990

FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF PBOP PLANS (CONTINUED)
(Dollars in millions)
	Fair value at December 31, 2023
	Level 1		Level 2		Total
Other Sempra:
Equity securities:
Domestic	$	7	$	—	$	7
International	3		—		3
Registered investment companies – Domestic	3		—		3
Fixed income securities:
Domestic government and government agencies	2		1		3
Domestic corporate bonds	—		4		4
International corporate bonds	—		1		1
Total investment assets in the fair value hierarchy	15		6		21
Investments measured at NAV:
Common/collective trusts					7
Other					1
Total Other Sempra investment assets					29
Total Sempra investment assets in the fair value hierarchy	$	404	$	476
Total Sempra investment assets					$	1,169

Future Payments

We expect to contribute the following amounts to our pension and PBOP plans in 2025:

EXPECTED CONTRIBUTIONS
(Dollars in millions)
	Sempra		SDG&E		SoCalGas
Pension plans	$	280	$	54	$	188
PBOP plans	3		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)
	Sempra				SDG&E				SoCalGas
	Pension		PBOP		Pension		PBOP		Pension		PBOP
2025	$	276	$	48	$	68	$	11	$	162	$	35
2026	246		50		63		10		151		34
2027	258		46		62		10		146		34
2028	236		46		67		10		144		34
2029	230		46		61		10		143		34
2030-2034	1,161		229		305		47		721		171

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,
	2024		2023		2022
Sempra	$	65	$	59	$	64
SDG&E	22		20		19
SoCalGas	33		32		30

The market value of Sempra common stock held by the savings plans was $1.2 billion and $1.1 billion at December 31, 2024 and 2023, respectively.