Retirement Benefits

9 Months Ended

Sep. 30, 2015

Retirement Benefits

9:RETIREMENT BENEFITS

CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.

Following amendments to the OPEB Plan in 2013, Consumers’ OPEB costs decreased substantially and, as a result, the OPEB Plan was fully funded at December 31, 2013.  In September 2014, the MPSC approved a settlement agreement addressing Consumers’ OPEB Plan funding.  In accordance with the settlement agreement, Consumers contributed $25 million to the plan in October 2014 and $29 million in February 2015.  Consumers has suspended further contributions until the MPSC determines funding requirements in future general rate cases.

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 benefits plans:

In Millions
	DB Pension Plan												OPEB Plan
	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
September 30	2015			2014			2015			2014			2015			2014			2015			2014
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost		$	13		$	10		$	37		$	30		$	7		$	5		$	19		$	15
Interest expense			26			24			77			74			14			14			43			42
Expected return on plan assets			(35)			(33)			(104)			(101)			(23)			(22)			(68)			(66)
Amortization of:
Net loss			22			14			67			43			5			1			16			2
Prior service cost (credit)			-			-			1			1			(10)			(10)			(31)			(31)
Net periodic cost (credit)		$	26		$	15		$	78		$	47		$	(7)		$	(12)		$	(21)		$	(38)
Consumers
Net periodic cost (credit)
Service cost		$	12		$	10		$	36		$	30		$	7		$	5		$	19		$	15
Interest expense			25			24			74			72			14			13			42			40
Expected return on plan assets			(34)			(33)			(101)			(99)			(22)			(20)			(65)			(62)
Amortization of:
Net loss			22			14			66			42			6			-			17			2
Prior service cost (credit)			-			-			1			1			(10)			(10)			(30)			(30)
Net periodic cost (credit)		$	25		$	15		$	76		$	46		$	(5)		$	(12)		$	(17)		$	(35)

Consumers Energy Company [Member]

Retirement Benefits

9:RETIREMENT BENEFITS

CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.

Following amendments to the OPEB Plan in 2013, Consumers’ OPEB costs decreased substantially and, as a result, the OPEB Plan was fully funded at December 31, 2013.  In September 2014, the MPSC approved a settlement agreement addressing Consumers’ OPEB Plan funding.  In accordance with the settlement agreement, Consumers contributed $25 million to the plan in October 2014 and $29 million in February 2015.  Consumers has suspended further contributions until the MPSC determines funding requirements in future general rate cases.

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 benefits plans:

In Millions
	DB Pension Plan												OPEB Plan
	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
September 30	2015			2014			2015			2014			2015			2014			2015			2014
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost		$	13		$	10		$	37		$	30		$	7		$	5		$	19		$	15
Interest expense			26			24			77			74			14			14			43			42
Expected return on plan assets			(35)			(33)			(104)			(101)			(23)			(22)			(68)			(66)
Amortization of:
Net loss			22			14			67			43			5			1			16			2
Prior service cost (credit)			-			-			1			1			(10)			(10)			(31)			(31)
Net periodic cost (credit)		$	26		$	15		$	78		$	47		$	(7)		$	(12)		$	(21)		$	(38)
Consumers
Net periodic cost (credit)
Service cost		$	12		$	10		$	36		$	30		$	7		$	5		$	19		$	15
Interest expense			25			24			74			72			14			13			42			40
Expected return on plan assets			(34)			(33)			(101)			(99)			(22)			(20)			(65)			(62)
Amortization of:
Net loss			22			14			66			42			6			-			17			2
Prior service cost (credit)			-			-			1			1			(10)			(10)			(30)			(30)
Net periodic cost (credit)		$	25		$	15		$	76		$	46		$	(5)		$	(12)		$	(17)		$	(35)