XML 123 R38.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Defined Benefit Plan and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Changes in Projected Benefit Obligations
The following tables summarize the Company’s change in benefit obligation, change in plan assets and amounts recognized in the Statements of Financial Position for the years ended December 31, 2019, and 2018:

Puget Energy and
Puget Sound Energy		Qualified
Pension Benefits		SERP
Pension Benefits		Other
Benefits
(Dollars in Thousands)201920182019201820192018
Change in benefit obligation:
Benefit obligation at beginning of period$677,643  $700,481  $55,708  $55,754  $10,636  $11,454  
Amendments—  —  —  1,446  9,049  —  
Service cost22,656  22,757  1,023  847  61  69  
Interest cost28,913  27,303  2,314  2,120  410  444  
Curtailment Loss / (Gain)—  —  —  —  (7,486) —  
Actuarial loss (gain)84,272  (29,067) 6,756  1,122  (287) (379) 
Benefits paid(36,740) (42,662) (2,801) (5,581) (982) (1,037) 
Medicare part D subsidy received—  —  —  —  226  85  
Administrative expense(2,439) (1,169) —  —  —  —  
Benefit obligation at end of period$774,305  $677,643  $63,000  $55,708  $11,627  $10,636  
Schedule of Changes in Fair Value of Plan Assets
Puget Energy and
Puget Sound Energy		Qualified
Pension Benefits		SERP
Pension Benefits		Other
Benefits
(Dollars in Thousands)201920182019201820192018
Change in plan assets:
Fair value of plan assets at beginning of period$640,242  $704,360  $—  $—  $5,960  $7,138  
Actual return on plan assets133,939  (38,379) —  —  1,006  (395) 
Employer contribution18,000  18,000  2,801  5,581  305  254  
Benefits paid(36,740) (42,662) (2,801) (5,581) (982) (1,037) 
Administrative expense(2,399) (1,077) —  —  —  —  
Fair value of plan assets at end of period$753,042  $640,242  $—  $—  $6,289  $5,960  
Funded status at end of period$(21,263) $(37,401) $(63,000) $(55,708) $(5,338) $(4,676) 
Schedule of Amounts Recognized in Balance Sheet and Accumulated Other Comprehensive Income
Puget Energy and
Puget Sound Energy		Qualified
Pension Benefits		SERP
Pension Benefits		Other
Benefits
(Dollars in Thousands)201920182019201820192018
Amounts recognized in Consolidated Balance Sheet consist of:
Noncurrent assets$—  $—  $—  $—  $—  $—  
Current liabilities—  —  (22,604) (6,249) (308) (332) 
Noncurrent liabilities(21,263) (37,401) (40,396) (49,459) (5,030) (4,344) 
Net assets (liabilities)$(21,263) $(37,401) $(63,000) $(55,708) $(5,338) $(4,676) 
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block]
Puget Energy and
Puget Sound Energy		Qualified
Pension Benefits		SERP
Pension Benefits		Other
Benefits
(Dollars in Thousands)201920182019201820192018
Pension Plans with an Accumulated Benefit Obligation in excess of Plan Assets:
Projected benefit obligation$774,305  $677,643  $63,000  $55,708  $11,627  $10,636  
Accumulated benefit obligation762,838  668,469  59,988  51,031  11,604  10,557  
Fair value of plan assets753,042  640,242  —  —  6,289  5,960  
Schedule of Net Benefit Costs
The following tables summarize Puget Energy's and PSE's net periodic benefit cost for the years ended December 31, 2019, 2018, and 2017.
Puget EnergyQualified
Pension Benefits		SERP
Pension Benefits		Other
Benefits
(Dollars in Thousands)201920182017201920182017201920182017
Components of net periodic benefit cost:
Service cost$22,656  $22,757  $20,081  $1,023  $847  $913  $61  $69  $72  
Interest cost28,913  27,303  28,373  2,314  2,120  2,285  410  444  500  
Expected return on plan assets(50,249) (50,202) (47,784) —  —  —  (393) (472) (461) 
Amortization of prior service cost (credit)(1,980) (1,980) (1,980) 331  1,580  42  —  —  —  
Amortization of net loss (gain)1,151  2,187  —  1,365  42  1,077  (374) (335) (402) 
Net periodic benefit cost$491  $65  $(1,310) $5,033  $4,589  $4,317  $(296) $(294) $(291) 
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
The following tables summarize Puget Energy's and PSE's benefit obligations recognized in other comprehensive income (OCI) for the years ended December 31, 2019, and 2018:
Puget EnergyQualified
Pension Benefits		SERP
Pension Benefits		Other
Benefits
(Dollars in Thousands)201920182019201820192018
Other changes (pre-tax) in plan assets and benefit obligations recognized in other comprehensive income:
Net loss (gain)$541  $59,422  $6,756  $1,122  $(900) $488  
Amortization of net (loss) gain(1,151) (2,187) (1,365) (1,580) 374  335  
Settlements, mergers, sales, and closures—  —  —  (619) 2,892  —  
Prior service cost (credit)—  —  —  1,446  —  —  
Amortization of prior service (cost) credit1,980  1,980  (331) (42) —  —  
Total change in other comprehensive income for year$1,370  $59,215  $5,060  $327  $2,366  $823  
Schedule of Assumptions Used
In accounting for pension and other benefit obligations and costs under the plans, the following weighted-average actuarial assumptions were used by the Company:
Qualified
Pension Benefits		SERP
Pension Benefits		Other
Benefits
Benefit Obligation Assumptions201920182017201920182017201920182017
Discount rate3.35 %4.40 %4.00 %3.35 %4.40 %4.00 %3.35 %4.40 %4.00 %
Rate of compensation increase4.50  4.50  4.50  4.50  4.50  4.50  4.50  4.50  4.50  
Medical trend rate1
—  —  —  —  —  —  N/A  7.60  6.80  
Benefit Cost Assumptions
Discount rate4.40  4.40  4.50  4.40  4.40  4.50  4.40  4.40  4.50  
Return on plan assets7.50  7.50  7.45  —  —  —  7.00  7.00  6.75  
Rate of compensation increase4.50  4.50  4.50  4.50  4.50  4.50  4.50  4.50  4.50  
Medical trend rate1
—  —  —  —  —  —  N/A  7.60  9.50  
Schedule of Expected Benefit Payments
The expected total benefits to be paid during the next five years and the aggregate total to be paid for the five years thereafter are as follows:
(Dollars in Thousands)202020212022202320242025-2029
Qualified Pension total benefits$45,000  $45,200  $46,200  $47,900  $48,800  $253,400  
SERP Pension total benefits22,604  1,940  5,792  3,663  6,290  21,283  
Other Benefits total with Medicare Part D subsidy843  826  972  937  901  4,053  
Other Benefits total without Medicare Part D subsidy1,055  1,007  972  937  901  4,053  
Schedule of Allocation of Plan Assets
To obtain the desired return needed to fund the pension benefit plans, the Retirement Plan Committee has established investment allocation percentages by asset classes as follows:

Allocation
Asset ClassMinimumTargetMaximum
Domestic large cap equity25 %31 %40 %
Domestic small cap equity—  9  15  
Non-U.S. equity10  25  30  
Fixed income15  25  30  
Real estate—  —  10  
Absolute return5  10  15  
Cash—  —  5  
The following table sets forth by level, within the fair value hierarchy, the qualified pension plan as of December 31, 2019, and 2018:
Recurring Fair Value MeasuresRecurring Fair Value Measures
December 31, 2019December 31, 2018
(Dollars in Thousands)Level 1Level 2TotalLevel 1Level 2Total
Assets:
Mutual Funds$91,658  $—  $91,658  $103,661  $—  $103,661  
Common Stock224,146  —  224,146  177,949  —  177,949  
Government Securities34,916  —  34,916  —  —  —  
Corporate Bonds—  —  —  —  —  —  
Cash and cash equivalents—  150  150  —  702  702  
Subtotal$350,720  $150  $350,870  $281,610  $702  $282,312  
Investments measured at NAV1
401,668  356,586  
Net (payable) receivable505  1,345  
Total assets$753,043  $640,243  

________________________
1.In accordance with ASU 2015-07, "Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)", certain investments that are measured at NAV per share (or its equivalent) are not classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the statement of net assets available for benefits. Investments measured at NAV primarily consist of common/collective trust funds and two partnerships held as of December 31, 2019, and 2018.
Mesirow Institutional Multi-Strategy Fund Partnership, L.P. utilizes a combination of long and short strategies through investments in investment funds. The major strategy allocations of the investment funds include (1) Investments in debt obligations of public and private entities; typically, in financial duress, and (2) Investments in equity positions on a global basis utilizing fundamental analysis.
Grosvenor Institutional Partners Fund, L.P invests substantially all of the fund assets available in the Grosvenor Master Fund, a Cayman Islands exempted company which is sponsored, managed and has the same investment objective as the Partnership fund. In addition to the Master Fund, investments are made primarily in offshore investment funds, investment partnerships, and pooled investment vehicles; collectively referred to as Portfolio Funds, which generally implement "nontraditional" or "alternative" investment strategies.
Other Pension Plan [Member]  
Defined Benefit Plan and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Allocation of Plan Assets
The following table sets forth by level, within the fair value hierarchy, the Other Benefits plan assets which consist of insurance benefits for retired employees, at fair value:
Recurring Fair Value MeasuresRecurring Fair Value Measures
December 31, 2019December 31, 2018
(Dollars in Thousands)Level 1Level 2TotalLevel 1Level 2Total
Assets:
Mutual fund1
$6,201  $—  $6,201  $5,910  $—  $5,910  
Investments measured at NAV2
88  50  
Total assets$6,289  $5,960  
________________
1.This is a publicly traded balanced mutual fund.  The fund seeks regular income, conservation of principal, and an opportunity for long-term growth of principal and income.  The fair value is determined by taking the number of shares owned by the plan, and multiplying by the market price as of December 31, 2019, and 2018.
2.In accordance with ASU 2015-07, "Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)", certain investments are measured at NAV per share (or its equivalent) are not classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the statement of net assets available for benefits. Investments measured at NAV consist of a common/collective trust fund as of December 31, 2019, and 2018.
Parent Company [Member]  
Defined Benefit Plan and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Amounts Recognized in Balance Sheet and Accumulated Other Comprehensive Income
The following tables summarize Puget Energy's and PSE's pension benefit amounts recognized in AOCI for the years ended December 31, 2019, and 2018:
Puget EnergyQualified
Pension Benefits		SERP
Pension Benefits		Other
Benefits
(Dollars in Thousands)201920182019201820192018
Amounts recognized in Accumulated Other Comprehensive Income consist of:
Net loss (gain)$94,319  $94,929  $15,003  $9,612  $(197) $(2,564) 
Prior service cost (credit)(3,884) (5,863) 1,276  1,607  —  —  
Total$90,435  $89,066  $16,279  $11,219  $(197) $(2,564) 
Subsidiaries [Member]  
Defined Benefit Plan and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Amounts Recognized in Balance Sheet and Accumulated Other Comprehensive Income
Puget Sound EnergyQualified
Pension Benefits		SERP
Pension Benefits		Other
Benefits
(Dollars in Thousands)201920182019201820192018
Amounts recognized in Accumulated Other Comprehensive Income consist of:
Net loss (gain)$217,502  $229,819  $16,473  $11,450  $(364) $(3,857) 
Prior service cost (credit)(3,086) (4,659) 1,276  1,609  —  —  
Total$214,416  $225,160  $17,749  $13,059  $(364) $(3,857) 
Schedule of Net Benefit Costs
Puget Sound EnergyQualified
Pension Benefits		SERP
Pension Benefits		Other
Benefits
(Dollars in Thousands)201920182017201920182017201920182017
Components of net periodic benefit cost:
Service cost$22,656  $22,757  $20,081  $1,023  $847  $913  $61  $69  $72  
Interest cost28,913  27,303  28,373  2,314  2,120  2,285  410  444  500  
Expected return on plan assets(50,267) (50,240) (47,862) —  —  —  (393) (472) (461) 
Amortization of prior service cost (credit)(1,573) (1,573) (1,573) 333  44  44  —  —  —  
Amortization of net loss (gain)12,877  14,917  13,048  1,733  2,069  1,565  (562) (556) (641) 
Net periodic benefit cost$12,606  $13,164  $12,067  $5,403  $5,080  $4,807  $(484) $(515) $(530) 
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
Puget Sound EnergyQualified
Pension Benefit		SERP
Pension Benefits		Other
Benefits
(Dollars in Thousands)201920182019201820192018
Other changes (pre-tax) in plan assets and benefit obligations recognized in other comprehensive income:
Net loss (gain)$559  $59,460  $6,756  $1,122  $(900) $488  
Amortization of net (loss) gain(12,877) (14,917) (1,733) (2,069) 562  556  
Settlements, mergers, sales, and closures—  —  —  (737) 3,832  —  
Prior service cost (credit)—  —  —  1,446  —  —  
Amortization of prior service (cost) credit1,573  1,573  (333) (44) —  —  
Total change in other comprehensive income for year$(10,745) $46,116  $4,690  $(282) $3,494  $1,044