Pension and Other Post-Employment Benefits

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS

PENSION AND OTHER POST-EMPLOYMENT BENEFITS

The components of the consolidated net periodic costs (credits) for pension and OPEB were as follows:

Components of Net Periodic Benefit Costs (Credits)	Pension				OPEB
For the Three Months Ended March 31,	2022		2021		2022		2021
	(In millions)
Service costs	$	46	$	49	$	1	$	1
Interest costs	68		56		3		3
Expected return on plan assets	(164)		(163)		(10)		(10)
Amortization of prior service costs (credits)(1)	1		1		(3)		(4)
Net periodic credits, including amounts capitalized	$	(49)	$	(57)	$	(9)	$	(10)
Net periodic credits, recognized in earnings	$	(69)	$	(78)	$	(9)	$	(10)

(1) The income tax benefits associated with pension and OPEB prior service costs amortized out of AOCI were $1 million as of March 31, 2022 and 2021.

On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021, which among other things, extended shortfall amortization periods and modification of the interest rate stabilization rules for single-employer plans thereby impacting funding requirements. As a result, FirstEnergy does not currently expect to have a required contribution to the pension plan based on various assumptions, including annual expected rate of returns for assets of 7.5%. However, FirstEnergy may elect to contribute to the pension plan voluntarily.

Service costs, net of capitalization, are reported within Other operating expenses on FirstEnergy’s Consolidated Statements of Income. Non-service costs, other than the pension and OPEB mark-to-market adjustment, which is separately shown, are reported within Miscellaneous income, net, within Other Income (Expense) on FirstEnergy’s Consolidated Statements of Income.