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Retirement Benefits
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
RETIREMENT BENEFITS RETIREMENT BENEFITS
The primary objective of the Ameren pension and postretirement benefit plans is to provide eligible employees with pension and postretirement health care and life insurance benefits. Ameren has defined benefit pension plans covering substantially all of its employees and has a postretirement benefit plan covering non-union employees hired before October 2015 and union employees hired before January 2020. Ameren Missouri and Ameren Illinois each participate in Ameren’s single-employer pension and other postretirement plans. All non-union employees participate in a cash balance pension plan. Ameren Missouri union employees hired after June 2013, and Ameren Illinois union employees hired after mid-October 2012, participate in a cash balance pension plan. Ameren uses a measurement date of December 31 for its pension and postretirement benefit plans. Ameren’s qualified pension plan is the Ameren Retirement Plan. Ameren’s other postretirement plan is the Ameren Retiree Welfare Benefit Plan. Ameren also has an unfunded nonqualified pension plan, the Ameren Supplemental Retirement Plan, which is available to provide certain management employees and retirees with a supplemental benefit when their qualified pension plan benefits are capped in compliance with Internal Revenue Code limitations. Only Ameren subsidiaries participate in the plans listed above.
Ameren’s pension and other postretirement benefit plans were overfunded by $717 million and $249 million in the aggregate as of December 31, 2021 and 2020, respectively. These net assets are recorded in “Pension and other postretirement benefits,” “Other current liabilities,” and “Other deferred credits and liabilities” on Ameren’s consolidated balance sheet. The increase in the overfunded pension and postretirement benefit plans during 2021 was primarily the result of an increase in the return on plan assets of the pension and postretirement trusts and a 25 basis point increase in the pension and other postretirement benefit plan discount rates used to determine the present value of the obligation. The overfunded pension and other postretirement benefit plans also resulted in regulatory liabilities on Ameren’s, Ameren Missouri’s, and Ameren Illinois’ balance sheets.
The following table presents the net benefit liability/(asset) recorded on the balance sheets as of December 31, 2021 and 2020:
20212020
Ameren(a)
$(717)$(249)
Ameren Missouri(a)
(189)(25)
Ameren Illinois(a)
(416)(210)
(a)Liabilities associated with pension and other postretirement benefits are recorded in “Other current liabilities” and “Other deferred credits and liabilities” on Ameren’s, Ameren Missouri’s, and Ameren Illinois’ balance sheets.
Ameren recognizes the overfunded and underfunded status of its pension and postretirement plans as an asset or a liability on its consolidated balance sheet, with offsetting entries to accumulated OCI and regulatory assets or liabilities. The following table presents the funded status of Ameren’s pension and postretirement benefit plans as of December 31, 2021 and December 31, 2020. It also provides the amounts included in regulatory assets or liabilities and accumulated OCI at December 31, 2021 and December 31, 2020, that have not been recognized in net periodic benefit costs.
20212020
Pension
Benefits		Postretirement
Benefits		Pension
Benefits		Postretirement
Benefits
Accumulated benefit obligation at end of year$5,174 $(a)$5,213 $(a)
Change in benefit obligation:
Net benefit obligation at beginning of year$5,510 $1,204 $4,967 $1,110 
Service cost134 23 110 19 
Interest cost152 33 174 39 
Participant contributions— 9 — 8 
Actuarial (gain) loss(82)(80)508 91 
Benefits paid(257)(60)(249)(63)
Net benefit obligation at end of year5,457 1,129 5,510 1,204 
Change in plan assets:
Fair value of plan assets at beginning of year5,510 1,453 4,564 1,297 
Actual return on plan assets432 154 1,143 209 
Employer contributions60 2 52 2 
Participant contributions— 9 — 8 
Benefits paid(257)(60)(249)(63)
Fair value of plan assets at end of year5,745 1,558 5,510 1,453 
Funded status – surplus(288)(429)— (249)
Accrued benefit asset at December 31$(288)$(429)$— $(249)
Amounts recognized in the balance sheet consist of:
Noncurrent asset$(327)$(429)$(39)$(249)
Current liability(b)
2 — 2 — 
Noncurrent liability(c)
37 — 37 — 
Net asset recognized$(288)$(429)$— $(249)
Amounts recognized in regulatory assets or liabilities consist of:
Net actuarial gain$(415)$(343)$(138)$(200)
Prior service credit— (33)— (37)
Amounts recognized in accumulated OCI (pretax) consist of:
Net actuarial (gain) loss(8)1 5 6 
Total$(423)$(375)$(133)$(231)
(a)Not applicable.
(b)Included in “Other current liabilities” on Ameren’s consolidated balance sheet.
(c)Included in “Other deferred credits and liabilities” on Ameren’s consolidated balance sheet.
The following table presents the assumptions used to determine our benefit obligations at December 31, 2021 and 2020:
  Pension BenefitsPostretirement Benefits
  2021202020212020
Discount rate at measurement date3.00 %2.75 %3.00 %2.75 %
Increase in future compensation3.50 3.50 3.50 3.50 
Cash balance pension plan interest crediting rate5.00 5.00 (a)(a)
Medical cost trend rate (initial)(b)
(a)(a)5.00 5.00 
Medical cost trend rate (ultimate)(b)
(a)(a)5.00 5.00 
(a)Not applicable.
(b)Initial and ultimate medical cost trend rate for certain Medicare-eligible participants was 2.50% and 3.00% at December 31, 2021 and 2020, respectively.
Ameren determines discount rate assumptions by identifying a theoretical settlement portfolio of high-quality corporate bonds sufficient to provide for a plan’s projected benefit payments. The settlement portfolio of bonds is selected from a pool of approximately 820 high-quality corporate bonds. A single discount rate is then determined; that rate results in a discounted value of the plan’s benefit payments that equates
to the market value of the selected bonds. During 2021, Ameren elected to continue to use the Society of Actuaries mortality table and the Society of Actuaries 2020 Mortality Improvement Scale.
Funding
Pension benefits are based on the employees’ years of service, age, and compensation. Ameren’s pension plans are funded in compliance with income tax regulations, federal funding requirements, and other regulatory requirements. As a result, Ameren expects to fund its pension plans at a level equal to the greater of the pension cost or the legally required minimum contribution. Based on its assumptions at December 31, 2021, its investment performance in 2021, and its pension funding policy, Ameren, Ameren Missouri, and Ameren Illinois do not expect to make material contributions in the aggregate over the next five years. These estimated contributions may change based on actual investment performance, changes in interest rates, changes in our assumptions, changes in government regulations, and any voluntary contributions. Our funding policy for postretirement benefits is primarily to fund the Voluntary Employee Beneficiary Association (VEBA) trusts to match the annual postretirement expense.
The following table presents the cash contributions made to our defined benefit retirement plans and to our postretirement plan during 2021, 2020, and 2019:
Pension BenefitsPostretirement Benefits
202120202019202120202019
Ameren Missouri$22 $17 $3 $1 $1 $1 
Ameren Illinois28 27 19 1 1 1 
Ameren Services10 8 1 — — 1 
Ameren$60 $52 $23 $2 $2 $3 
Investment Strategy and Policies
Ameren manages plan assets in accordance with the “prudent investor” guidelines contained in ERISA. The investment committee, which includes members of senior management, approves and implements investment strategy and asset allocation guidelines for the plan assets. The investment committee’s goals are twofold: first, to ensure that sufficient funds are available to provide the benefits at the time they are payable; and second, to maximize total return on plan assets and to minimize expense volatility consistent with its tolerance for risk. Ameren delegates the task of investment management to specialists in each asset class. As appropriate, Ameren provides each investment manager with guidelines that specify allowable and prohibited investment types. The investment committee regularly monitors manager performance and compliance with investment guidelines.
The expected return on plan assets assumption is based on historical and projected rates of return for current and planned asset classes in the investment portfolio. Projected rates of return for each asset class were estimated after an analysis of historical experience, future expectations, and the volatility of the various asset classes. After considering the target asset allocation for each asset class, we reviewed the overall expected rate of return for the portfolio for historical and expected experience of active portfolio management results compared with benchmark returns and for the effect of expenses paid from plan assets. Ameren will use an expected return on plan assets for its pension and postretirement plan assets of 6.50% in 2022.
Ameren’s investment committee strives to assemble a portfolio of diversified assets that does not create a significant concentration of risks. The investment committee develops asset allocation guidelines between asset classes, and it creates diversification through investments in assets that differ by type (equity, debt, real estate), duration, market capitalization, country, style (growth or value), and industry, among other factors. The diversification of assets is displayed in the target allocation table below. The investment committee also routinely rebalances the plan assets to adhere to the diversification goals. The investment committee’s strategy reduces the concentration of investment risk; however, Ameren is still subject to overall market risk.
Effective January 2020, Ameren’s investment committee developed and implemented a liability hedging investment strategy for its qualified pension plans designed to reduce interest rate risk as part of an objective for its long-term investment strategy. The plan invests in derivative instruments mainly consisting of interest rate futures intended to extend the duration of the pension plan assets so that the assets are more closely aligned with the duration of the liabilities. In addition, part of Ameren’s investment strategy includes participation in a securities lending program, which allows it to lend eligible securities to third party borrowers. All loans are collateralized by at least 102% of the loaned asset’s market value and the collateral is invested in the form of cash, government obligations, and U.S. agency obligations. Ameren’s fair value of securities loaned was $374 million and $365 million as of December 31, 2021 and 2020, respectively. Cash and securities obtained as collateral exceeded the fair value of the securities loaned as of December 31, 2021 and 2020.
The following table presents our target allocations and our pension and postretirement plans’ asset categories as of December 31, 2021 and 2020:
Asset
Category
Target Allocation
2021(a)
Percentage of Plan Assets at December 31,
20212020
Pension Plan:
Cash and cash equivalents
0% – 5%
3 %1 %
Equity securities:
U.S. large-capitalization
11% – 21%
23 %26 %
U.S. small- and mid-capitalization
3% – 13%
9 %9 %
International
9% – 19%
15 %15 %
Global
7% – 17%
11 %9 %
Total equity
45% – 55%
58 %59 %
Debt securities
35% – 45%
35 %36 %
Real estate
0% – 10%
4 %4 %
Private equity
0% – 5%
(b)(b)
Diversified credit
0% – 10%
(b)(b)
Total 100 %100 %
Postretirement Plans:
Cash and cash equivalents
0% – 7%
3 %3 %
Equity securities:
U.S. large-capitalization
23% – 33%
30 %31 %
U.S. small- and mid-capitalization
3% – 13%
9 %8 %
International
9% – 19%
13 %15 %
Global
5% – 15%
10 %10 %
Total equity
55% – 65%
62 %64 %
Debt securities
33% – 43%
35 %33 %
Total 100 %100 %
(a)These target allocations reflect targets that were approved in 2021 to take effect in the subsequent year.
(b)Less than 1% of plan assets.
In general, the United States large-capitalization equity investments are passively managed or indexed, whereas the international, global, United States small-capitalization, and United States mid-capitalization equity investments are actively managed by investment managers. Debt securities include a broad range of fixed-income vehicles. Debt security investments in high-yield securities and non-United-States-dollar-denominated securities are owned by the plans, but in limited quantities to reduce risk. Most of the debt security investments are under active management by investment managers. Real estate investments include private real estate vehicles; however, Ameren does not, by policy, hold direct investments in real estate property. In addition to the derivative investments included in the liability hedging investment strategy described above, Ameren’s investment committee also allows investment managers to use derivatives, such as index futures, foreign exchange futures, and options, in certain situations to increase or to reduce market exposure in an efficient and timely manner.
Fair Value Measurements of Plan Assets
Investments in the pension and postretirement benefit plans were stated at fair value as of December 31, 2021. Fair value is defined as the price that would be received for an asset in the principal or most advantageous market for the asset in an orderly transaction between market participants on the measurement date. Cash and cash equivalents have initial maturities of three months or less and are recorded at cost plus accrued interest. Investments traded in active markets on national or international securities exchanges are valued at closing prices on the measurement date or, if that is not a business day, on the last business day before that date. Securities traded in over-the-counter markets are valued by quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. Investments measured under NAV as a practical expedient are based on the fair values of the underlying assets provided by the funds and their administrators. The fair value of real estate investments is based on NAV; it is determined by annual appraisal reports prepared by an independent real estate appraiser. Investments measured at NAV often provide for daily, monthly, or quarterly redemptions with 60 or less days of notice depending on the fund. For some funds, redemption may also require approval from the fund’s board of directors. Derivative contracts are valued at fair value, as determined by the investment managers (or independent third parties on behalf of the investment managers), who use proprietary models and take into consideration exchange quotations on underlying instruments, dealer quotations, and other market information.
The following table sets forth, by level within the fair value hierarchy discussed in Note 8 – Fair Value Measurements, the pension plans’ assets measured at fair value and NAV as of December 31, 2021 and 2020:
December 31, 2021December 31, 2020
Level 1Level 2NAVTotalLevel 1Level 2NAVTotal
Cash and cash equivalents$— $— $116 $116 $— $— $145 $145 
Equity securities:
U.S. large-capitalization— — 1,381 1,381 — — 1,511 1,511 
U.S. small- and mid-capitalization558 — — 558 513 — — 513 
International372 — 531 903 375 — 492 867 
Global— — 621 621 — — 546 546 
Debt securities:
Corporate bonds— 545 27 572 — 506 17 523 
Municipal bonds— 50 — 50 — 50 — 50 
U.S. Treasury and agency securities— 1,450 — 1,450 3 1,325 — 1,328 
Other17 11 — 28 (5)8 — 3 
Real estate— — 228 228 — — 208 208 
Private equity— — 1 1 — — 2 2 
Total$947 $2,056 $2,905 $5,908 $886 $1,889 $2,921 $5,696 
Less: Medical benefit assets(a)
(234)(219)
Plus: Net receivables(b)
71 33 
Fair value of pension plans’ assets$5,745 $5,510 
(a)Medical benefit (health and welfare) component for accounts maintained in accordance with Section 401(h) of the Internal Revenue Code to fund a portion of the postretirement obligation.
(b)Receivables related to pending securities sales, offset by payables related to pending securities purchases.
The following table sets forth, by level within the fair value hierarchy discussed in Note 8 – Fair Value Measurements, the postretirement benefit plans’ assets measured at fair value and NAV as of December 31, 2021 and 2020:
December 31, 2021December 31, 2020
Level 1Level 2NAVTotalLevel 1Level 2NAVTotal
Cash and cash equivalents$24 $— $— $24 $38 $— $— $38 
Equity securities:
U.S. large-capitalization283 — 115 398 279 — 107 386 
U.S. small- and mid-capitalization113 — — 113 104 — — 104 
International60 — 117 177 75 — 107 182 
Global— — 132 132 — — 120 120 
Debt securities:
Municipal bonds— 133 — 133 — 106 — 106 
Other— — 335 335 — — 295 295 
Total$480 $133 $699 $1,312 $496 $106 $629 $1,231 
Plus: Medical benefit assets(a)
234 219 
Plus: Net receivables(b)
  12 3 
Fair value of postretirement benefit plans’ assets  $1,558 $1,453 
(a)Medical benefit (health and welfare) component for accounts maintained in accordance with Section 401(h) of the Internal Revenue Code to fund a portion of the postretirement obligation. These 401(h) assets are included in the pension plan assets shown above.
(b)Receivables related to pending securities sales, offset by payables related to pending securities purchases.
Net Periodic Benefit Cost
The following table presents the components of the net periodic benefit cost of Ameren’s pension and postretirement benefit plans during 2021, 2020, and 2019:
Pension BenefitsPostretirement Benefits
202120202019202120202019
Service cost(a)
$134 $110 $88 $23 $19 $18 
Non-service cost components:
Interest cost152 174 187 33 39 43 
Expected return on plan assets(297)(291)(276)(80)(80)(77)
Amortization of:
Prior service credit— (1)(1)(4)(4)(5)
Actuarial (gain) loss73 60 25 (6)(9)(15)
Total non-service cost components(b)
$(72)$(58)$(65)$(57)$(54)$(54)
Net periodic benefit cost (income)$62 $52 $23 $(34)$(35)$(36)
(a)    Service cost, net of capitalization, is reflected in “Operating Expenses - Other operations and maintenance” on Ameren’s statement of income.
(b)    Non-service cost components are reflected in “Other Income, Net” on Ameren’s consolidated statement of income. See Note 6 – Other Income, Net for additional information.
The Ameren Companies are responsible for their share of the pension and postretirement benefit costs. The following table presents the pension costs and the postretirement benefit costs incurred for the years ended December 31, 2021, 2020, and 2019:
  Pension CostsPostretirement Costs
  202120202019202120202019
Ameren Missouri(a)
$29 $22 $5 $(4)$(5)$(6)
Ameren Illinois34 32 20 (31)(31)(30)
Other(1)(2)(2)1 1 — 
Ameren$62 $52 $23 $(34)$(35)$(36)
(a)Does not include the impact of the tracker for the difference between the level of pension and postretirement benefit costs incurred by Ameren Missouri and the level of such costs included in customer rates.
The expected pension and postretirement benefit payments from qualified trust and company funds, which reflect expected future service, as of December 31, 2021, are as follows:
  Pension BenefitsPostretirement Benefits
  Paid from
Qualified
Trust Funds		Paid from
Company
Funds		Paid from
Qualified
Trust Funds		Paid from
Company
Funds
2022$267 $2 $59 $2 
2023274 2 60 2 
2024279 3 61 2 
2025284 3 61 2 
2026288 3 60 2 
2027 – 20311,476 12 296 9 
The following table presents the assumptions used to determine net periodic benefit cost for our pension and postretirement benefit plans for the years ended December 31, 2021, 2020, and 2019:
  Pension BenefitsPostretirement Benefits
  202120202019202120202019
Discount rate at measurement date2.75 %3.50 %4.25 %2.75 %3.50 %4.25 %
Expected return on plan assets6.50 7.00 7.00 6.50 7.00 7.00 
Increase in future compensation3.50 3.50 3.50 3.50 3.50 3.50 
Cash balance pension plan interest crediting rate5.00 5.00 5.00 (a)(a)(a)
Medical cost trend rate (initial)(b)
(a)(a)(a)5.00 5.00 5.00 
Medical cost trend rate (ultimate)(b)
(a)(a)(a)5.00 5.00 5.00 
(a)Not applicable.
(b)Initial and ultimate medical cost trend rate for certain Medicare-eligible participants is 3.00%.
Other
Ameren sponsors a 401(k) plan for eligible employees. The Ameren 401(k) plan covered all eligible Ameren employees at December 31, 2021. The plan allows employees to contribute a portion of their compensation in accordance with specific guidelines. Ameren matches a percentage of the employee contributions up to certain limits. The following table presents the portion of the matching contribution to the Ameren 401(k) plan attributable to each of the Ameren Companies for the years ended December 31, 2021, 2020, and 2019:
202120202019
Ameren Missouri$21 $20 $19 
Ameren Illinois16 17 16 
Other1 1 — 
Ameren$38 $38 $35