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Pension Plan and Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]  
Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Pension Plans
SERP’s funded status at December 31, 2019, and 2018 is presented in the following table:
 
 
 
SERP BENEFITS

 
FOR THE YEAR ENDED DEC. 31,
 
(THOUSANDS)
2019

 
2018

Change in benefit obligation
 
 
 
Benefit obligation at beginning of period
$
78,414

 
$
84,339

Service cost
330

 
542

Interest cost
3,326

 
3,077

Actuarial loss (gain)
11,608

 
(5,163
)
Benefits paid
(4,550
)
 
(4,381
)
Benefit obligation at end of period
$
89,128

 
$
78,414

The employee pension plan and Other Benefits plan obligation, plan assets, and funded status at December 31, 2019, and 2018 are presented in the following table:
 
PENSION BENEFITS
 
 
OTHER BENEFITS
 
 
FOR THE YEAR ENDED DEC. 31,
 
 
FOR THE YEAR ENDED DEC. 31,
 
(THOUSANDS)
2019

 
2018

 
2019

 
2018

Change in benefit obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of period
$
530,936

 
$
567,215

 
$
40,455

 
$
43,203

Service cost
8,414

 
9,507

 
1,191

 
1,320

Interest cost
22,485

 
20,860

 
1,646

 
1,465

Plan participants’ contributions
—

 
—

 
1,229

 
1,224

Actuarial loss (gain)
73,655

 
(42,935
)
 
13,897

 
(1,106
)
Expenses paid
(2,933
)
 
(2,786
)
 
—

 
—

Benefits paid
(22,234
)
 
(20,925
)
 
(5,696
)
 
(5,651
)
Benefit obligation at end of period
610,323

 
530,936

 
52,722

 
40,455

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of period
391,933

 
444,089

 
—

 
—

Actual return on plan assets
81,081

 
(28,884
)
 
—

 
—

Employer contributions
12,250

 
—

 
—

 
—

Expenses paid
(2,933
)
 
(2,786
)
 
—

 
—

Adjustment
—

 
439

 
—

 
—

Benefits paid
(22,234
)
 
(20,925
)
 
—

 
—

Fair value of plan assets at end of period
460,097

 
391,933

 
—

 
—

Unfunded status
$
(150,226
)

$
(139,003
)
 
$
(52,722
)

$
(40,455
)
Accumulated Benefit Obligation
SERP’s accumulated benefit obligation at December 31, 2019, and 2018 is presented in the following table:
 
SERP BENEFITS
 
 
AT DEC. 31,
 
(THOUSANDS)
2019

 
2018

Accumulated benefit obligation
$
89,128

 
$
78,414

The employee pension plan accumulated benefit obligation at December 31, 2019, and 2018 is presented in the following table:
 
PENSION BENEFITS
 
 
AT DEC. 31,
 
(THOUSANDS)
2019

 
2018

Accumulated benefit obligation
$
568,354

 
$
491,522
Schedule of Amounts Recognized in Balance Sheet
The current and non-current portions of the SERP liability for Cleco and Cleco Power at December 31, 2019, and 2018 are as follows:
Cleco
 
 
 
 
AT DEC. 31,
 
(THOUSANDS)
2019

 
2018

Current
$
4,599

 
$
4,478

Non-current
$
84,529

 
$
73,936

The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at December 31, 2019, and 2018 are as follows:
Cleco
 
 
 
 
AT DEC. 31,
 
(THOUSANDS)
2019

 
2018

Current
$
4,401

 
$
4,130

Non-current
$
48,321

 
$
36,325
Amounts Recognized in Other Comprehensive Income
The following table presents net actuarial gains/losses and prior service costs/credits included in other comprehensive income or regulatory assets related to current year gains and losses as a result of being amortized as a component of net periodic benefit costs for SERP for December 31, 2019, and 2018:
 
 
 
SERP BENEFITS

 
FOR THE YEAR ENDED DEC. 31,
 
(THOUSANDS)
2019

 
2018

Net actuarial loss (gain) occurring during year
$
11,608

 
$
(5,163
)
Net actuarial loss amortized during year
$
1,544

 
$
2,913

Prior service credit amortized during year
$
(160
)
 
$
(160
)
The following table presents the net actuarial gains/losses and prior service costs/credits included in other comprehensive income for Other Benefits and in regulatory assets for pension related to current year gains and losses as a result of being included in net periodic benefit costs for the employee pension plan and Other Benefits plan for December 31, 2019, and 2018:
 
PENSION BENEFITS
 
 
OTHER BENEFITS
 
 
FOR THE YEAR ENDED DEC. 31,
 
 
FOR THE YEAR ENDED DEC. 31,
 
(THOUSANDS)
2019

 
2018

 
2019

 
2018

Net actuarial loss (gain) occurring during period
$
19,075

 
$
9,722

 
$
13,897

 
$
(1,106
)
Net actuarial loss amortized during period
$
7,849

 
$
12,313

 
$
21

 
$
135

Prior service credit amortized during period
$
(71
)
 
$
(71
)
 
$
—

 
$
—
Amounts Recognized in Accumulated Other Comprehensive Income
The following table presents net actuarial losses and prior service credit in accumulated other comprehensive income and regulatory assets that have not been recognized as components of net periodic benefit costs and the amounts expected to be recognized in 2020 for SERP at December 31, 2020, 2019, and 2018:
 
 

 
SERP BENEFITS
 
 
AT DEC. 31,
 
(THOUSANDS)
2020

 
2019

 
2018

Net actuarial loss
$
3,171

 
$
28,731

 
$
17,261

Prior service credit
$
(160
)
 
$
(1,678
)
 
$
(1,837
)
The following table presents net actuarial gains/losses and prior service costs/credits in accumulated other comprehensive income for Other Benefits and in regulatory assets for pension that have not been recognized as components of net periodic benefit costs and the amounts expected to be recognized in 2020 for the employee pension plan and Other Benefits plans at December 31, 2020, 2019, and 2018:
 
 
 
PENSION BENEFITS
 
 
 
 
OTHER BENEFITS
 
 
AT DEC. 31,
 
 
AT DEC. 31,
 
(THOUSANDS)
2020

 
2019

 
2018

 
2020

 
2019

 
2018

Net actuarial loss
$
14,824

 
$
151,603

 
$
140,377

 
$
1,355

 
$
15,732

 
$
1,814

Prior service credit
$
(60
)
 
$
(60
)
 
$
(131
)
 
$
—


$
—

 
$
—
Components of Net Periodic Pension and Other Benefit Costs
The components of the net SERP costs for 2019, 2018, and 2017 are as follows:
 
 
 
SERP BENEFITS
 
 
FOR THE YEAR ENDED DEC. 31,
 
(THOUSANDS)
2019

 
2018

 
2017

Components of periodic benefit costs
 
 
 
 
 
Service cost
$
330

 
$
542

 
$
494

Interest cost
3,326

 
3,077

 
3,239

Amortizations
 
 
 
 
 
Prior service credit
(160
)
 
(160
)
 
(190
)
Net loss
1,544

 
2,913

 
2,105

Net periodic benefit cost
5,040

 
6,372

 
5,648

Special/contractual termination benefits
—

 
—

 
315

Total benefit cost
$
5,040

 
$
6,372

 
$
5,963

The components of net periodic pension and Other Benefits costs for 2019, 2018, and 2017 are as follows:
 
 
 
PENSION BENEFITS
 
 
 
 
OTHER BENEFITS
 
 
FOR THE YEAR ENDED DEC. 31,
 
 
FOR THE YEAR ENDED DEC. 31,
 
(THOUSANDS)
2019

 
2018

 
2017

 
2019

 
2018

 
2017

Components of periodic benefit costs
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
8,414

 
$
9,507

 
$
9,039

 
$
1,191

 
$
1,320

 
$
1,446

Interest cost
22,485

 
20,860

 
21,648

 
1,646

 
1,465

 
1,569

Expected return on plan assets
(26,502
)
 
(23,773
)
 
(24,064
)
 
—

 
—

 
—

Amortizations
 
 
 
 
 
 
 
 
 
 
 
Prior service credit
(71
)
 
(71
)
 
(71
)
 
—

 
—

 
—

Net loss (gain)
7,849

 
12,312

 
10,008

 
21

 
135

 
(50
)
Net periodic benefit cost
$
12,175

 
$
18,835

 
$
16,560

 
$
2,858

 
$
2,920

 
$
2,965
Weighted-Average Assumptions Used to Determine Benefit Obligation and Net Periodic Costs
The assumptions used to determine the benefit obligation and the periodic costs are as follows:
 
PENSION BENEFITS
 
 
OTHER BENEFITS
 
 
AT DEC. 31,
 
 
AT DEC. 31,
 
 
2019

 
2018

 
2019

 
2018

Weighted-average assumptions used to determine the benefit obligation
 
 
 
 
 
 
 
Discount rate
3.43
%
 
4.35
%
 
3.25
%
 
4.16
%
Rate of compensation increase
2.81
%
 
2.93
%
 
N/A

 
N/A

 
 
 
PENSION BENEFITS
 
 
 
 
OTHER BENEFITS
 
 
FOR THE YEAR ENDED DEC. 31,
 
 
FOR THE YEAR ENDED DEC. 31,
 
 
2019

 
2018

 
2017

 
2019

 
2018

 
2017

Weighted-average assumptions used to determine the net benefit cost
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.35
%
 
3.73
%
 
4.27
%
 
4.16
%
 
3.47
%
 
3.81
%
Expected return on plan assets
6.55
%
 
5.86
%
 
6.08
%
 
N/A

 
N/A

 
N/A

Rate of compensation increase
2.81
%
 
2.93
%
 
2.98
%
 
N/A

 
N/A

 
N/A

The assumptions used to determine the benefit obligation and the periodic costs are as follows:
 
SERP BENEFITS
 
 
AT DEC. 31,
 
 
2019

 
2018

Weighted-average assumptions used to determine the benefit obligation
 
 
 
Discount rate
3.37
%
 
4.34
%
Rate of compensation increase
5.00
%
 
5.00
%
 
 
 
 
 
SERP BENEFITS
 
 
JAN. 1, 2019 -
DEC. 31, 2019

 
JAN. 1, 2018 -
DEC. 31, 2018

 
MAR. 31, 2017 -
DEC. 31, 2017

 
JAN. 1, 2017 -
MAR. 30, 2017

Weighted-average assumptions used to determine the net benefit cost
 
 
 
 
 
 
 
Discount rate
4.34
%
 
3.70
%
 
4.08
%
 
4.22
%
Rate of compensation increase
5.00
%
 
5.00
%
 
5.00
%
 
5.00
%
Fair Value Allocation of Pension Plan Assets
The following chart shows the dynamic asset allocation based on the funded ratio at December 31, 2019:
 
PERCENT OF TOTAL PLAN ASSETS
 
 
 
 
AT DEC. 31, 2019
 
 
MINIMUM

 
TARGET

 
MAXIMUM

Return-seeking
 

 
 

 
 

Domestic equity
 
 
19
%
 
 
International equity
 
 
20
%
 
 
Multi-asset credit
 
 
6
%
 
 
Real estate
 
 
5
%
 
 
Total return-seeking
45
%
 
50
%
 
55
%
Liability hedging*
45
%
 
50
%
 
55
%
*Liability hedging has no target subcategories.
The following tables disclose the pension plan’s fair value of financial assets measured on a recurring basis:
(THOUSANDS)
 
AT DEC. 31, 2019

 
QUOTED PRICES
IN ACTIVE
MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1)

 
SIGNIFICANT
OTHER
OBSERVABLE
INPUTS
(LEVEL 2)

 
SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)

Asset Description
 
 
 
 
 
 
 
 
Cash equivalents
 
$
4,810

 
$
—

 
$
4,810

 
$
—

Government securities
19,517

 
—

 
19,517

 
—

Mutual funds
 
 


 

 

Domestic
 
102,184

 
102,184

 
—

 
—

International
 
53,041

 
53,041

 
—

 
—

Real estate funds
 
18,017

 
—

 
—

 
18,017

Corporate debt
 
157,109

 
—

 
157,109

 
—

Total
 
$
354,678

 
$
155,225

 
$
181,436

 
$
18,017

 
 
 
 
 
 
 
 
 
 
Investments measured at net asset value*
103,326

 
 
 
 
 
 
 
Interest accrual
2,093

 
 
 
 
 
 
 
Total net assets
$
460,097

 
 
 
 
 
 
 
*Investments measured at net asset value consist of Common/collective trust.

(THOUSANDS)
 
AT DEC. 31, 2018

 
QUOTED PRICES
IN ACTIVE
MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1)

 
SIGNIFICANT
OTHER
OBSERVABLE
INPUTS
(LEVEL 2)

 
SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)

Asset Description
 
 
 
 
 
 
 
 
Cash equivalents
 
$
2,471

 
$
—

 
$
2,471

 
$
—

Common stock
 
13,111

 
13,111

 
—

 
—

Government securities
19,831

 
—

 
19,831

 
—

Mutual funds
 
 
 
 
 
 
 
Domestic
 
79,210

 
79,210

 
—

 
—

International
 
43,418

 
43,418

 
—

 
—

Real estate funds
 
20,298

 
—

 
—

 
20,298

Corporate debt
 
138,391

 
—

 
138,391

 
—

Total
 
$
316,730

 
$
135,739

 
$
160,693

 
$
20,298

 
 
 
 
 
 
 
 
 
 
Investments measured at net asset value*
73,100

 
 
 
 
 
 
 
Interest accrual
2,103

 
 
 
 
 
 
 
Total net assets
$
391,933


 
 
 
 
 
 
*Investments measured at net asset value consist of Common/collective trust.
Pension Plan Unobservable Input Reconciliation
The following is a reconciliation of the beginning and ending balances of the pension plan’s real estate funds measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2019, and 2018:
(THOUSANDS)
 
Balance, Dec. 31, 2017
$
19,195

Realized losses
29

Unrealized gains
391

Purchases
710

Sales
(27
)
Balance, Dec. 31, 2018
$
20,298

Realized gains
370

Unrealized losses
(1,727
)
Purchases
759

Sales
(1,683
)
Balance, Dec. 31, 2019
$
18,017
Assumed Health Care Cost Trend Rates
A one-percentage point change in assumed health care cost trend rates would have the following effects on Other Benefits:
 
ONE-PERCENTAGE POINT
 
(THOUSANDS)
INCREASE

 
DECREASE

Effect on total of service and interest cost components
$
14

 
$
(16
)
Effect on postretirement benefit obligation
$
205

 
$
(229
)
Projected Benefit Payments and Projected Receipts
The projected benefit payments for the employee pension plan and Other Benefits obligation plan for each year through 2024 and the next five years thereafter are listed in the following table:
(THOUSANDS)
PENSION BENEFITS

 
OTHER
BENEFITS,
GROSS

For the year ending Dec. 31,
 
 
 
2020
$
24,065

 
$
4,472

2021
$
25,293

 
$
4,498

2022
$
26,541

 
$
4,554

2023
$
27,709

 
$
4,536

2024
$
28,741

 
$
4,531

Next five years
$
158,810

 
$
21,706

The projected benefit payments for SERP for each year through 2024 and the next five years thereafter are shown in the following table:
(THOUSANDS)
2020

 
2021

 
2022

 
2023

 
2024

 
NEXT FIVE
YEARS

SERP
$
4,662

 
$
4,689

 
$
4,698

 
$
4,710

 
$
4,753

 
$
24,861
401(k) Plan Expense
Cleco’s 401(k) Plan expense for the years ended December 31, 2019, 2018, and 2017 was as follows:
 
FOR THE YEAR ENDED DEC. 31,
 
(THOUSANDS)
2019

 
2018

 
2017

401(k) Plan expense
$
7,861

 
$
5,884

 
$
5,386

The expense of the 401(k) Plan related to Cleco’s other subsidiaries for the years ended December 31, 2019, 2018, and 2017 was as follows:
 
FOR THE YEAR ENDED DEC. 31,
 
(THOUSANDS)
2019

 
2018

 
2017

401(k) Plan expense
$
3,408

 
$
1,066

 
$
888
CLECO POWER  
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]  
Schedule of Amounts Recognized in Balance Sheet
Cleco Power
 
 
 
 
AT DEC. 31,
 
(THOUSANDS)
2019

 
2018

Current
$
3,815

 
$
3,584

Non-current
$
42,080

 
$
31,694

Cleco Power
 
 
 
 
AT DEC. 31,
 
(THOUSANDS)
2019

 
2018

Current
$
760

 
$
930

Non-current
$
13,964

 
$
12,025