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PENSION AND OTHER POST-EMPLOYMENT BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Obligations and Funded Status
PensionOPEB
Obligations and Funded Status - Qualified and Non-Qualified Plans2020201920202019
(In millions)
Change in benefit obligation:
Benefit obligation as of January 1$11,050 $9,462$654 $608
Service cost194 1934 3
Interest cost287 37315 22
Plan participants’ contributions— —4 4
Plan amendments9 2— —
Special termination benefits— 14— —
Medicare retiree drug subsidy— —1 1
Actuarial loss1,011 1,53541 64
Benefits paid(616)(529)(43)(48)
Benefit obligation as of December 31$11,935 $11,050$676 $654
Change in fair value of plan assets:
Fair value of plan assets as of January 1$8,395 6,984$458 408
Actual return on plan assets1,165 1,41960 73
Company contributions24 52123 21
Plan participants’ contributions— —4 4
Benefits paid(616)(529)(43)(48)
Fair value of plan assets as of December 31$8,968 $8,395$502 $458
Funded Status:
Qualified plan$(2,500)(2,203)$— —
Non-qualified plans(467)(452)— —
Funded Status (Net liability as of December 31)$(2,967)$(2,655)$(174)$(196)
Accumulated benefit obligation$11,376 $10,439 $— $— 
Amounts Recognized in AOCI:
Prior service cost (credit)$12 $24 $(39)$(85)
Assumptions Used to Determine Benefit Obligations    
(as of December 31)
Discount rate2.67 %3.34 %2.45 %3.18 %
Rate of compensation increase4.10 %4.10 %N/AN/A
Cash balance weighted average interest crediting rate2.57 %2.57 %N/AN/A
Assumed Health Care Cost Trend Rates
(as of December 31)
Health care cost trend rate assumed (pre/post-Medicare)N/AN/A
6.0%-5.5%
6.0%-5.5%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)N/AN/A4.5 %4.5 %
Year that the rate reaches the ultimate trend rateN/AN/A20282028
Allocation of Plan Assets (as of December 31)
Equity securities23 %29 %55 %54 %
Fixed Income35 %36 %28 %30 %
Hedge funds7 %9 %— %— %
Insurance-linked securities4 %2 %— %— %
Real estate funds9 %7 %— %— %
Private equity funds5 %4 %— %— %
Cash and short-term securities17 %13 %17 %16 %
Total100 %100 %100 %100 %
Components of Net Periodic Benefit Costs
Components of Net Periodic Benefit Costs for the Years Ended December 31,PensionOPEB
202020192018202020192018
 (In millions)
Service cost $194 $193 $224 $4 $3 $5 
Interest cost 287 373 372 15 22 25 
Expected return on plan assets (618)(540)(574)(33)(29)(31)
Amortization of prior service costs (credits) (1)
12 7 7 (46)(36)(81)
Special termination costs (2)
— 14 31 — — 8 
One-time termination benefits (3)
8 — — — — — 
Pension & OPEB mark-to-market463 656 227 14 20 (82)
Net periodic benefit costs (credits)$346 $703 $287 $(46)$(20)$(156)
(1) 2020 includes the acceleration of approximately $18 million in net credits as a result of the FES Debtors’ emergence during the first quarter of 2020 and is a component of discontinued operations in FirstEnergy’s Consolidated Statements of Income.
(2) Subject to a cap, FirstEnergy agreed to fund a pension enhancement through its pension plan, for voluntary enhanced retirement packages offered to certain FES employees, as well as offer certain other employee benefits. The costs are a component of discontinued operations in FirstEnergy’s Consolidated Statements of Income.
(3) Costs represent additional benefits provided to FES and FENOC employees under the approved settlement agreement and are a component of discontinued operations in FirstEnergy’s Consolidated Statements of Income.
Assumptions Used to Determine Net Periodic Benefit Cost
Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December (1)
PensionOPEB
202020192018202020192018
Service cost weighted-average discount rate (2)
3.60%/3.24%
4.66 %3.75 %
3.63%/3.29%
4.67 %3.50 %
Interest cost weighted-average discount rate (3)
3.27%/2.90%
4.37 %3.75 %
2.71%/2.30%
3.89 %3.50 %
Expected long-term return on plan assets7.50 %7.50 %7.50 %7.50 %7.50 %7.50 %
Rate of compensation increase4.10 %4.10 %4.20 %N/AN/AN/A
(1)Excludes impact of pension and OPEB mark-to-market adjustment.
(2) Weighted-average discount rates effect from January 1, 2020, through February 26, 2020, were 3.60% and 3.63% for pension and OPEB service cost, respectively. Discount rates were 3.24% and 3.29% for pension and OPEB service cost, respectively, for the period February 27, 2020 through December 31, 2020.
(3) Weighted-average discount rates in effect from January 1, 2020, through February 26, 2020, were 3.27% and 2.71% for pension and OPEB interest cost, respectively. Discount rates were 2.90% and 2.30% for pension and OPEB interest cost, respectively, for the period February 27, 2020, through December 31, 2020.
Target asset allocations for pension and OPEB portfolio
FirstEnergy’s target asset allocations for its pension and OPEB trust portfolios for 2020 and 2019 are shown in the following table:
Target Asset Allocations
20202019
Equities38 %38 %
Fixed income30 %30 %
Hedge funds8 %8 %
Real estate10 %10 %
Alternative investments8 %8 %
Cash6 %6 %
100 %100 %
Estimated Future Benefit Payments
Taking into account estimated employee future service, FirstEnergy expects to make the following benefit payments from plan assets and other payments, net of participant contributions:
OPEB
PensionBenefit PaymentsSubsidy Receipts
(In millions)
2021$579 $49 $(1)
2022583 47 (1)
2023598 46 (1)
2024601 45 (1)
2025610 44 (1)
Years 2026-20303,129 197 (2)
Pension  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Pension investments measured at fair value
The following tables set forth pension financial assets that are accounted for at fair value by level within the fair value hierarchy. See Note 10, "Fair Value Measurements," for a description of each level of the fair value hierarchy. There were no significant transfers between levels during 2020 and 2019.
December 31, 2020Asset Allocation
Level 1Level 2Level 3Total
(In millions)
Cash and short-term securities$— $1,493 $— $1,493 17 %
Equities1,903 162 — 2,065 23 %
Fixed income:
Corporate bonds— 2,672 — 2,672 31 %
Other(3)
— 387 — 387 4 %
Alternatives:
Derivatives(13)— — (13)— %
Total (1)
$1,890 $4,714 $— $6,604 75 %
Private equity funds (2)
465 5 %
Insurance-linked securities (2)
323 4 %
Hedge funds (2)
645 7 %
Real estate funds (2)
815 9 %
Total Investments$8,852 100 %
(1)Excludes $116 million as of December 31, 2020, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.
(2)Net Asset Value used as a practical expedient to approximate fair value.
(3)Includes insurance annuities, bank loans and emerging markets debt.
December 31, 2019Asset Allocation
Level 1Level 2Level 3Total
(In millions)
Cash and short-term securities$— $1,069 $— $1,069 13 %
Equities1,532 828 — 2,360 29 %
Fixed income:
Corporate bonds— 2,064 — 2,064 25 %
Other(3)
— 880 — 880 11 %
Alternatives:
Derivatives(40)— — (40)— %
Total (1)
$1,492 $4,841 $— $6,333 78 %
Private equity funds (2)
342 4 %
Insurance-linked securities (2)
186 2 %
Hedge funds (3)
774 9 %
Real estate funds (2)
584 7 %
Total Investments$8,219 100 %
(1)Excludes $176 million as of December 31, 2019, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.
(2)Net Asset Value used as a practical expedient to approximate fair value.
(3)Includes insurance annuities, bank loans and emerging markets debt.
OPEB  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Pension investments measured at fair value
As of December 31, 2020, and 2019, the OPEB trust investments measured at fair value were as follows:
December 31, 2020Asset Allocation
Level 1Level 2Level 3Total
(In millions)
Cash and short-term securities$— $84 $— $84 17 %
Equity investment:
Domestic283 — — 283 55 %
Fixed income:
Government bonds— 104 — 104 20 %
Corporate bonds— 34 — 34 7 %
Mortgage-backed securities (non-government)7 — 7 1 %
Total (1)
$283 $229 $— $512 100 %
(1) Excludes $(10) million as of December 31, 2020, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.
December 31, 2019Asset Allocation
Level 1Level 2Level 3Total
(In millions)
Cash and short-term securities$— $72 $— $72 16 %
Equity investment:
Domestic246 — — 246 54 %
Fixed income:
Government bonds— 100 — 100 22 %
Corporate bonds— 34 — 34 7 %
Mortgage-backed securities (non-government)— 5 — 5 1 %
Total (1)
$246 $211 $— $457 100 %
(1) Excludes $1 million as of December 31, 2019, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.