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Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2024

Defined Benefit Plan Disclosure [Line Items]

Schedule of SERP Trust Assets, ABO and Contributions

Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:


In Millions
Years Ended December 31	2024			2023
CMS Energy, including Consumers
Trust assets		$	127		$	132
ABO		105			115

Consumers
Trust assets		$	95		$	98
ABO		76			83

Schedule of Assumptions Used

Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefit plans to determine benefit obligations and net periodic benefit cost:


December 31	2024		2023		2022
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A	5.73	%	5.05	%	5.24	%
DB Pension Plan B	5.59		4.95		5.14
DB SERP	5.56		4.94		5.13
OPEB Plan	5.69		5.02		5.21
Rate of compensation increase
DB Pension Plan A	3.70		3.60		3.60
DB SERP3	—		—		5.50
Weighted average for net periodic benefit cost1
Service cost discount rate2,4
DB Pension Plan A	5.08	%	5.27	%	3.09	%
DB SERP3	—		5.18		3.09
OPEB Plan	5.12		5.31		3.23
Interest cost discount rate2,4
DB Pension Plan A	4.93		5.12		2.44
DB Pension Plan B	4.87		5.06		2.21
DB SERP	4.87		5.06		2.21
OPEB Plan	4.91		5.10		2.45
Expected long-term rate of return on plan assets5
DB Pension Plans	7.50		7.20		6.50
OPEB Plan	7.50		7.20		6.50
Rate of compensation increase
DB Pension Plan A	3.60		3.60		3.60
DB SERP3	—		5.50		5.50

1The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021.

2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.

3The last active participant in the DB SERP retired in 2023. Thus, the determination of the associated benefit obligation and net periodic benefit cost no longer assumes a rate of compensation increase nor a service cost discount rate.

4CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.

5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.50 percent in 2024. The actual return (loss) on the assets of the DB Pension Plans was 3.6 percent in 2024, 12.6 percent in 2023, and (15.9) percent in 2022.

Schedule of Net Benefit Costs

Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans:


In Millions
			DB Pension Plans and DB SERP									OPEB Plan

Years Ended December 31	2024	2023			2022					2024	2023	2022
CMS Energy, including Consumers
Net periodic credit
Service cost			$	28		$	29	$	41				$	11	$	12	$	17
Interest cost			109			112		84					43		44		28
Settlement loss			—			—		1					—		—		—
Expected return on plan assets			(234)			(220)		(206)					(115)		(103)		(115)
Amortization of:
Net loss			12			12		40					4		12		1
Prior service cost (credit)			4			4		4					(31)		(41)		(51)
Settlement loss			11			11		9					—		—		—

Net periodic credit			$	(70)		$	(52)	$	(27)				$	(88)	$	(76)	$	(120)
Consumers
Net periodic credit
Service cost			$	27		$	28	$	39				$	11	$	11	$	17
Interest cost			102			105		79					41		42		27
Expected return on plan assets			(221)			(208)		(194)					(107)		(95)		(107)
Amortization of:
Net loss			11			11		37					4		12		—
Prior service cost (credit)			4			4		4					(30)		(40)		(50)
Settlement loss			11			11		9					—		—		—

Net periodic credit			$	(66)		$	(49)	$	(26)				$	(81)	$	(70)	$	(113)

Schedule of Funded Status of Retirement Benefit Plans

Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefit plans with their retirement benefit plans’ liabilities:


In Millions
	DB Pension Plans							DB SERP						OPEB Plan
Years Ended December 31	2024			2023				2024			2023			2024			2023
CMS Energy, including Consumers
Benefit obligation at beginning of period		$	2,195		$	2,169			$	114		$	117		$	900		$	889
Service cost		28			29				—			—			11			12
Interest cost		104			106				5			6			43			44
Plan amendments		—			—				—			—			(25)			—
Actuarial loss (gain)		(91)		1	52		1		(4)			1			(40)		1	9		1
Benefits paid		(142)			(161)				(10)			(10)			(58)			(54)
Benefit obligation at end of period		$	2,094		$	2,195			$	105		$	114		$	831		$	900
Plan assets at fair value at beginning of period		$	3,004		$	2,820			$	—		$	—		$	1,559		$	1,446
Actual return on plan assets		102			345				—			—			86			165
Company contribution		—			—				10			10			—			—
Actual benefits paid		(142)			(161)				(10)			(10)			(57)			(52)
Plan assets at fair value at end of period		$	2,964		$	3,004			$	—		$	—		$	1,588		$	1,559
Funded status		$	870	2	$	809	2		$	(105)		$	(114)		$	757		$	659
Consumers
Benefit obligation at beginning of period									$	83		$	85		$	867		$	856
Service cost									—			—			11			11
Interest cost									4			4			41			42
Plan amendments									—			—			(24)			—
Actuarial loss (gain)									(4)			1			(38)		1	10		1
Benefits paid									(7)			(7)			(56)			(52)
Benefit obligation at end of period									$	76		$	83		$	801		$	867
Plan assets at fair value at beginning of period									$	—		$	—		$	1,453		$	1,350
Actual return on plan assets									—			—			80			154
Company contribution									7			7			—			—
Actual benefits paid									(7)			(7)			(54)			(51)
Plan assets at fair value at end of period									$	—		$	—		$	1,479		$	1,453
Funded status									$	(76)		$	(83)		$	678		$	586

1The actuarial gains for 2024 for the DB Pension Plans and OPEB Plans were primarily the result of higher discount rates. The actuarial losses for 2023 for the DB Pension Plans and OPEB Plan were primarily the result of lower discount rates.

2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $836 million at December 31, 2024 and $781 million at December 31, 2023.

Schedule of Retirement Benefit Plan Assets (Liabilities)

Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:


In Millions
December 31	2024			2023
CMS Energy, including Consumers
Non-current assets
DB Pension Plans		$	870		$	809
OPEB Plan		757			659
Current liabilities
DB SERP		10			10
Non-current liabilities

DB SERP		95			104

Consumers
Non-current assets
DB Pension Plans		$	836		$	781
OPEB Plan		678			586
Current liabilities
DB SERP		7			7
Non-current liabilities

DB SERP		69			76

Schedule of Net Periodic Benefit Cost Not Yet Recognized

Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets see Note 2, Regulatory Matters.


In Millions
	DB Pension Plans and DB SERP						OPEB Plan
December 31	2024			2023			2024			2023
CMS Energy, including Consumers
Regulatory assets
Net loss		$	653		$	634		$	176		$	191
Prior service cost (credit)		12			16			(94)			(100)
Regulatory assets		$	665		$	650		$	82		$	91
AOCI
Net loss (gain)		60			65			(3)			(3)
Prior service cost (credit)		—			1			(2)			(2)
Total amounts recognized in regulatory assets and AOCI		$	725		$	716		$	77		$	86
Consumers
Regulatory assets
Net loss		$	653		$	634		$	176		$	191
Prior service cost (credit)		12			16			(94)			(100)
Regulatory assets		$	665		$	650		$	82		$	91
AOCI
Net loss		15			20			—			—
Total amounts recognized in regulatory assets and AOCI		$	680		$	670		$	82		$	91

Schedule of Allocation of Plan Assets

Presented in the following tables are the fair values of the assets of CMS Energy’s DB Pension Plans and OPEB Plan, by asset category and by level within the fair value hierarchy. For additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.


In Millions
	DB Pension Plans
	December 31, 2024									December 31, 2023
	Total			Level 1			Level 2			Total			Level 1			Level 2
CMS Energy, including Consumers
Cash and short-term investments		$	148		$	148		$	—		$	178		$	178		$	—




Mutual funds		—			—			—			47			47			—
		$	148		$	148		$	—		$	225		$	225		$	—
Pooled funds		2,816									2,779
Total		$	2,964								$	3,004


In Millions
	OPEB Plan
	December 31, 2024									December 31, 2023
	Total			Level 1			Level 2			Total			Level 1			Level 2
CMS Energy, including Consumers
Cash and short-term investments		$	35		$	35		$	—		$	82		$	82		$	—
U.S. government and agencies securities		13			—			13			16			—			16
Corporate debt		68			—			68			67			—			67
State and municipal bonds		2			—			2			1			—			1
Foreign bonds		15			—			15			15			—			15
Common stocks		170			170			—			161			161			—
Mutual funds		53			53			—			60			60			—
		$	356		$	258		$	98		$	402		$	303		$	99
Pooled funds		1,232									1,157
Total		$	1,588								$	1,559

Schedule of Asset Allocation

Presented in the following table are the investment components of the assets of CMS Energy’s DB Pension Plans and OPEB Plan as of December 31, 2024:


	DB Pension Plans			OPEB Plan
Fixed-income securities		39.0	%		38.0	%
Equity securities		38.0			42.0
Real asset investments		10.0			9.0
Return-seeking fixed income		7.0			6.0
Liquid alternative investments		4.0			4.0
Cash and cash equivalents		2.0			1.0
		100.0	%		100.0	%

Schedule of Expected Benefit Payments

Presented in the following table are the expected benefit payments for each of the next five years and the five‑year period thereafter:


In Millions
	DB Pension Plans			DB SERP			OPEB Plan
CMS Energy, including Consumers
2025		$	162		$	10		$	59
2026		161			10			61
2027		162			10			62
2028		162			9			63
2029		162			9			63
2030-2034		802			42			309
Consumers
2025		$	152		$	7		$	56
2026		152			7			58
2027		152			7			59
2028		152			7			60
2029		153			6			60
2030-2034		757			29			296

Consumers Energy Company