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Pension Plan and Employee Benefits
 3 Months Ended
Mar. 31, 2025
Retirement Benefits [Abstract]  
Pension Plan and Employee Benefits
Note 9 — Pension Plan and Employee Benefits

Pension Plan
Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. Based on the funding assumptions at December 31, 2024, management estimates that $76.1 million in pension contributions will be required through 2029, of which $16.5 million is required in 2025. In January 2025, Cleco made an $11.5 million required contribution payment towards the 2025 plan year and a $5.0 million required contribution towards the 2024 plan year.
The non-service components of net periodic pension cost are included in Other income (expense), net within Cleco’s and Cleco Power’s Condensed Consolidated Statements of Income. The components of net periodic pension cost for the three months ended March 31, 2025, and 2024 were as follows:

FOR THE THREE MONTHS ENDED MAR. 31,
(THOUSANDS)20252024
Components of periodic benefit costs
Service cost$966 $1,189 
Interest cost6,776 6,535 
Expected return on plan assets(8,292)(7,607)
Net periodic benefit (income) cost
$(550)$117 
Because Cleco Power is the pension plan sponsor and the related trust holds the assets, the net unfunded status of the pension plan is reflected at Cleco Power. The liability of Cleco’s other subsidiaries is transferred with a like amount of assets to Cleco Power monthly. The expense of the pension plan related to Cleco’s other subsidiaries for the three months ended March 31, 2025, and 2024 was $0.2 million and $0.5 million, respectively.
The current and non-current portions of the pension benefits liability for Cleco and Cleco Power at March 31, 2025, and December 31, 2024, were as follows:

(THOUSANDS)AT MAR. 31, 2025AT DEC. 31, 2024
Current$3,770 $16,344 
Non-current$64,775 $69,250 

Other Benefits Plan
Cleco’s retirees, including retirees not covered by the pension plan, may be eligible to receive Other Benefits. Dependents of these retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits. Cleco recognizes the expected cost of Other Benefits during the periods in which the benefits are earned.
The non-service components of net periodic pension and Other Benefits cost are included in Other income (expense), net within Cleco’s and Cleco Power’s Condensed Consolidated Statements of Income. The components of net periodic pension and Other Benefits cost for the three months ended March 31, 2025, and 2024 were as follows:

FOR THE THREE MONTHS ENDED MAR. 31,
(THOUSANDS)20252024
Components of periodic benefit costs
Service cost$395 $479 
Interest cost586 583 
Amortizations
Net loss
74 164 
Net periodic benefit cost$1,055 $1,226 

Cleco Holdings is the plan sponsor for the Other Benefit plan. There are no assets set aside in a trust, and the liabilities are reported on the individual subsidiaries’ financial statements. The expense related to Other Benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three months ended March 31, 2025, and 2024 was $1.0 million and $1.1 million, respectively. The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at March 31, 2025, and December 31, 2024, were as follows:
Cleco
(THOUSANDS)AT MAR. 31, 2025AT DEC. 31, 2024
Current$5,279 $5,279 
Non-current$38,428 $38,724 

Cleco Power
(THOUSANDS)AT MAR. 31, 2025AT DEC. 31, 2024
Current$4,524 $4,524 
Non-current$29,815 $30,054 

SERP
SERP is a non-qualified, non-contributory, defined benefit pension plan for the benefit of certain executive officers who are designated as participants by the Leadership Development and Compensation Committee. In 2014, SERP was closed to new participants; however, with regard to current SERP participants, including former employees or their beneficiaries, all terms of SERP will continue.
Cleco does not fund the SERP liability, but instead pays for current benefits out of the cash available of the respective company of the employed officer. Because SERP is a non-qualified plan, Cleco has purchased life insurance policies on certain SERP participants as a mechanism to provide a source of funding. These polices are held in a rabbi trust formed by Cleco Power. The rabbi trust is the named beneficiary of the life insurance policies and, therefore, receives the proceeds upon death of the insured participants. The life insurance policies may be used to reimburse Cleco for benefits paid from general funds, pay the SERP participants’ death benefits, or pay future SERP payments. Market conditions could have a significant impact on the cash surrender value of the life insurance policies. Because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. Cleco Power is the plan sponsor and Support Group is the plan administrator.
The non-service components of net periodic benefit cost related to SERP are included in Other income (expense), net within Cleco’s and Cleco Power’s Condensed Consolidated Statements of Income. The components of the net periodic benefit cost related to SERP for the three months ended March 31, 2025, and 2024, were as follows:
FOR THE THREE MONTHS ENDED MAR. 31,
(THOUSANDS)20252024
Components of periodic benefit costs
Service cost $14 $34 
Interest cost864 836 
Amortizations
Prior period service credit(54)(54)
Net gain
(35)(21)
Net periodic benefit cost$789 $795 

The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for both the three months ended March 31, 2025, and 2024 was $0.1 million.
Liabilities relating to SERP are reported on the individual subsidiaries’ financial statements. The current and non-current portions of the SERP liability for Cleco and Cleco Power at March 31, 2025, and December 31, 2024, were as follows:

Cleco
(THOUSANDS)AT MAR. 31, 2025AT DEC. 31, 2024
Current$4,815 $4,815 
Non-current$58,459 $58,728 

Cleco Power
(THOUSANDS)AT MAR. 31, 2025AT DEC. 31, 2024
Current$833 $833 
Non-current$10,095 $10,160 
401(k) Plan
Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the 401(k) Plan, employer contributions are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the Plan is voluntary, and active Cleco employees are eligible to participate. Cleco’s 401(k) Plan expense for the three months ended March 31, 2025, and 2024, was as follows:

 FOR THE THREE MONTHS ENDED MAR. 31,
(THOUSANDS)20252024
401(k) Plan expense
$2,909 $3,075 

Cleco Power is the plan sponsor for the 401(k) Plan. The expense of the 401(k) Plan related to Cleco’s other subsidiaries for the three months ended March 31, 2025, and 2024, was as follows:

 FOR THE THREE MONTHS ENDED MAR. 31,
(THOUSANDS)20252024
401(k) Plan expense
$706 $1,601