Retirement Benefits

3 Months Ended

Mar. 31, 2023

Subsidiaries [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Pension and Other Postretirement Benefits Disclosure [Text Block]

Retirement BenefitsPSE has a defined benefit pension plan (Qualified Pension Benefits) covering a substantial majority of PSE employees. For employees hired prior to 2014, pension benefits earned are a function of age, salary, years of service and, in the case of employees in the cash balance formula plan, the applicable annual interest crediting rates. Effective January 1, 2014, all new

UA represented employees hired or rehired receive annual pay credits of 4.0% of eligible pay each year in the cash balance formula of the defined pension plan. Effective January 1, 2014 for non-represented employees, and December 12, 2014 for employees represented by the IBEW, newly hired or rehired employees receive annual employer contributions of 4.0% of eligible pay each year into the cash balance formula of the defined benefit pension or 401k plan account. PSE also has a non-qualified Supplemental Executive Retirement Plan (SERP) for certain key senior management employees that closed to new participants in 2019. Effective 2019, PSE has an officer restoration benefit for new officers who join PSE or are promoted, such that company contributions under PSE’s applicable tax-qualified plan, which otherwise would have been credited if not for the IRS limitations, are credited at 4.0% of earnings to an account with the Deferred Compensation Plan.

In addition to providing pension benefits, PSE provides legacy group health care and life insurance benefits (Plan) for certain retired employees. These benefits are provided principally through an insurance company. The insurance premiums, paid primarily by retirees, are based on the benefits provided during the prior year.

Puget Energy's retirement plans were remeasured as a result of the merger in 2009, which represents the difference between Puget Energy and PSE's retirement plans. The components of service cost are included within utility operations and maintenance for PSE and within non-utility expense and other for Puget Energy while all non-service cost components are included in other income.

For further information, see Note 13, "Retirement Benefits" in the Combined Notes to Consolidated Financial Statements included in Item 8 of the Company's Form 10-K for the period ended December 31, 2022.

The following tables summarize the Company’s net periodic benefit cost for the three months ended March 31, 2023 and 2022:

Puget Energy	Qualified Pension Benefits				SERP Pension Benefits				Other Benefits
	Three Months Ended March 31,
(Dollars in Thousands)	2023		2022		2023		2022		2023		2022
Components of net periodic benefit cost:
Service cost	$	4,632	$	6,797	$	71	$	139	$	47	$	55
Interest cost	7,929		6,087		424		313		115		81
Expected return on plan assets	(12,652)		(12,777)		—		—		(79)		(99)
Amortization of prior service cost	—		—		73		72		7		6
Amortization of net loss (gain)	(862)		1,628		—		618		(51)		(4)
Net periodic benefit cost	$	(953)	$	1,735	$	568	$	1,142	$	39	$	39

Puget Sound Energy	Qualified Pension Benefits				SERP Pension Benefits				Other Benefits
	Three Months Ended March 31,
(Dollars in Thousands)	2023		2022		2023		2022		2023		2022
Components of net periodic benefit cost:
Service cost	$	4,632	$	6,797	$	71	$	139	$	47	$	55
Interest cost	7,929		6,087		424		313		115		81
Expected return on plan assets	(12,652)		(12,777)		—		—		(79)		(99)
Amortization of prior service cost	—		—		73		72		7		6
Amortization of net loss (gain)	—		3,806		22		663		(54)		(6)
Net periodic benefit cost	$	(91)	$	3,913	$	590	$	1,187	$	36	$	37

The following table summarizes the Company’s change in benefit obligation for the periods ended March 31, 2023 and December 31, 2022:

Puget Energy and Puget Sound Energy	Qualified Pension Benefits				SERP Pension Benefits				Other Benefits
	Three Months Ended		Year Ended		Three Months Ended		Year Ended		Three Months Ended		Year Ended
(Dollars in Thousands)	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Change in benefit obligation:
Benefit obligation at beginning of period	$	589,278	$	834,960	$	32,046	$	43,155	$	9,015	$	11,654
Amendments	—		—		—		—		—		38
Service cost	4,632		26,351		71		557		47		217
Interest cost	7,929		24,263		424		1,253		115		311
Actuarial loss (gain)	—		(215,005)		—		(5,260)		—		(2,397)
Benefits paid	(11,625)		(80,226)		(485)		(7,659)		(438)		(808)
Administrative Expense	—		(1,065)		—		—		—		—
Benefit obligation at end of period	$	590,214	$	589,278	$	32,056	$	32,046	$	8,739	$	9,015

The aggregate expected contributions by the Company to fund the qualified pension plan, SERP and the other postretirement plans for the year ending December 31, 2023, are expected to be at least $18.0 million, $3.5 million and $0.3 million, respectively. The Company contributed $0.5 million to fund the SERP during each of the three months ended March 31, 2023 and the three months ended March 31, 2022. The Company contributed an immaterial amount to fund the other postretirement plans.