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Retirement Benefits
9 Months Ended
Sep. 30, 2021
Subsidiaries [Member]  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Pension and Other Postretirement Benefits Disclosure [Text Block] Retirement Benefits
PSE has a defined benefit pension plan (Qualified Pension Benefits) covering a substantial majority of PSE employees. For employees hired prior to 2014, pension benefits earned are a function of age, salary, years of service and, in the case of employees in the cash balance formula plan, the applicable annual interest crediting rates. Effective January 1, 2014, all new UA represented employees hired or rehired receive annual pay credits of 4.0% of eligible pay each year in the cash balance formula of the defined pension plan. Effective January 1, 2014 for non-represented employees, and December 12, 2014 for employees represented by the IBEW, newly hired or rehired employees receive annual employer contributions of 4.0% of eligible play each year into the cash balance formula of the defined benefit pension or 401k plan account. PSE also has a non-qualified Supplemental Executive Retirement Plan (SERP) for certain key senior management employees that closed to new participants in 2019. Effective 2019, PSE has an officer restoration benefit for new officers who join PSE or are promoted, such that company contributions under PSE’s applicable tax-qualified plan, which otherwise would have been credited if not for IRS limitations, are credited at 4.0% of earnings to an account with the Deferred Compensation Plan
In addition to providing pension benefits, PSE provides legacy group health care and life insurance benefits (Plan) for certain retired employees. These benefits are provided principally through an insurance company. The insurance premiums, paid primarily by retirees, are based on the benefits provided during the prior year. On June 11, 2019, the Company's Welfare Benefits Committee approved the termination of the Plan effective December 31, 2019, and the creation of a Retiree Health Reimbursement Account (HRA) Plan effective January 1, 2020.
The components of service cost are included within utility operations and maintenance for PSE and within non-utility expense and other for Puget Energy while all non-service cost components are included in other income.
For further information, see Note 13, "Retirement Benefits" to the consolidated financial statements included in Item 8 of the Company's Form 10-K for the period ended December 31, 2020.
The following tables summarize the Company’s net periodic benefit cost for the three and nine months ended September 30, 2021 and 2020:
Puget EnergyQualified
Pension Benefits
SERP
Pension Benefits
Other
Benefits
Three Months Ended September 30,
(Dollars in Thousands)202120202021202020212020
Components of net periodic benefit cost:
Service cost$6,722 $6,084 $115 $176 $34 $47 
Interest cost5,595 6,295 293 362 72 92 
Expected return on plan assets(12,060)(12,476)— — (84)(97)
Amortization of prior service cost(476)(393)87 87 — 
Amortization of net loss (gain)2,951 2,040 588 512 (10)(20)
Net periodic benefit cost$2,732 $1,550 $1,083 $1,137 $14 $22 

Puget EnergyQualified
Pension Benefits
SERP
Pension Benefits
Other
Benefits
Nine Months Ended September 30,
(Dollars in Thousands)202120202021202020212020
Components of net periodic benefit cost:
Service cost$20,166 $18,253 $344 $580 $117 $142 
Interest cost16,786 18,885 879 1,102 226 276 
Expected return on plan assets(36,179)(37,427)— — (266)(292)
Amortization of prior service cost(1,428)(1,180)262 262 — 
Amortization of net loss (gain)8,852 6,120 1,763 1,610 (30)(61)
Net periodic benefit cost$8,197 $4,651 $3,248 $3,554 $52 $65 

Puget Sound EnergyQualified
Pension Benefits
SERP
Pension Benefits
Other
Benefits
Three Months Ended September 30,
(Dollars in Thousands)202120202021202020212020
Components of net periodic benefit cost:
Service cost$6,722 $6,084 $115 $176 $34 $47 
Interest cost5,595 6,295 293 362 72 92 
Expected return on plan assets(12,061)(12,478)— — (84)(97)
Amortization of prior service cost(378)(393)87 87 — 
Amortization of net loss (gain)5,465 4,761 635 575 (11)(34)
Net periodic benefit cost$5,343 $4,269 $1,130 $1,200 $13 $
Puget Sound EnergyQualified
Pension Benefits
SERP
Pension Benefits
Other
Benefits
Nine Months Ended September 30,
(Dollars in Thousands)202120202021202020212020
Components of net periodic benefit cost:
Service cost$20,166 $18,253 $344 $580 $117 $142 
Interest cost16,786 18,885 879 1,102 226 276 
Expected return on plan assets(36,182)(37,433)— — (266)(292)
Amortization of prior service cost(1,135)(1,180)262 262 — 
Amortization of net loss (gain)16,396 14,283 1,906 1,810 (40)(103)
Net periodic benefit cost$16,031 $12,808 $3,391 $3,754 $42 $23 

The following table summarizes the Company’s change in benefit obligation for the periods ended September 30, 2021 and December 31, 2020:
Puget Energy and
Puget Sound Energy
Qualified
Pension Benefits
SERP
Pension Benefits
Other
Benefits
Nine Months EndedYear EndedNine Months EndedYear EndedNine Months EndedYear Ended
(Dollars in Thousands)September 30,
2021
December 31,
2020
September 30,
2021
December 31,
2020
September 30,
2021
December 31,
2020
Change in benefit obligation:
Benefit obligation at beginning of period$849,383$774,305$46,742$63,000$12,114$11,627
Amendments44
Service cost20,16624,337 344756117190
Interest cost16,78625,180 8791,464226368
Actuarial loss (gain)4,58069,413 (630)3,663(80)604
Benefits paid(37,807)(42,775)(1,485)(22,141)(669)(906)
Medicare part D subsidy received— 195187
Administrative Expense(1,077)
Benefit obligation at end of period$853,108$849,383 $45,850$46,742$11,903$12,114

The aggregate expected contributions by the Company to fund the qualified pension plan, SERP and the other postretirement plans for the year ending December 31, 2021, are expected to be at least $18.0 million, $6.9 million and $0.3 million, respectively. During the nine months ended September 30, 2021, the Company contributed $18.0 million and $1.5 million to fund the qualified pension plan and the SERP, respectively. During the nine months ended September 30, 2020, the Company contributed $18.0 million and $18.1 million to fund the qualified pension plan and the SERP, respectively. The Company contributed an immaterial amount to fund the other postretirement plans.