Pension and Other Post-Employment Benefits

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

PENSION AND OTHER POST-EMPLOYMENT BENEFITS

PENSION AND OTHER POST-EMPLOYMENT BENEFITS

The components of FirstEnergy’s net periodic benefit costs (credits) for pension and OPEB were as follows:

Components of Net Periodic Benefit Costs (Credits)	Pension				OPEB
For the Three Months Ended June 30,	2022		2021		2022		2021
	(In millions)
Service costs	$	46	$	48	$	1	$	1
Interest costs	68		57		2		2
Expected return on plan assets	(164)		(163)		(10)		(7)
Amortization of prior service costs (credits)(1)	—		1		(2)		(5)
Net periodic benefit credits	$	(50)	$	(57)	$	(9)	$	(9)
Net periodic benefit credits, net of amounts capitalized	$	(72)	$	(85)	$	(10)	$	(10)

(1) The income tax benefits associated with pension and OPEB prior service costs amortized out of AOCI were $1 million for the three months ended June 30, 2021.

Components of Net Periodic Benefit Costs (Credits)	Pension				OPEB
For the Six Months Ended June 30,	2022		2021		2022		2021
	(In millions)
Service costs	$	92	97		2		2
Interest costs	136		113		5		5
Expected return on plan assets	(328)		(326)		(20)		(17)
Amortization or prior service costs (credits)(1)	1		2		(5)		(9)
Net periodic benefit credits	$	(99)	$	(114)	$	(18)	$	(19)
Net periodic benefit credits, net of amounts capitalized	$	(141)	$	(163)	$	(19)	$	(20)

(1) The income tax benefits associated with the pension and OPEB prior service costs amortized out of AOCI were $1 million and $2 million for the six months ended June 30, 2022 and 2021, respectively.

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.