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Pension Plan and Employee Benefits
 9 Months Ended
Sep. 30, 2023
Retirement Benefits [Abstract]  
Pension Plan and Employee Benefits
Note 9 — Pension Plan and Employee Benefits

Pension Plan and Other Benefits Plan
Employees hired before August 1, 2007, are covered by a non-contributory, defined benefit pension plan. Based on the funding assumptions at December 31, 2022, management estimates that pension contributions totaling $74.5 million will be required through 2027. Cleco expects to make a $25.7 million minimum required contribution to the pension plan in 2024. Cleco is not required to make any contributions to the pension plan in 2023.
Cleco Power is the plan sponsor and Support Group is the plan administrator. Benefits under the plan reflect an employee’s years of service, age at retirement, and accrued benefit at retirement.
Cleco’s retirees may be eligible to receive Other Benefits. Dependents of Cleco’s retirees may also be eligible to receive Other Benefits with the exception of life insurance benefits.
The non-service components of net periodic pension and Other Benefits cost are included in Other income (expense), net within Cleco’s and Cleco Power’s Condensed Consolidated Statements of Income. The components of net periodic pension and Other Benefits cost for the three and nine months ended September 30, 2023, and 2022 were as follows:
PENSION BENEFITSOTHER BENEFITS
FOR THE THREE MONTHS ENDED SEPT. 30,FOR THE THREE MONTHS ENDED SEPT. 30,
(THOUSANDS)2023202220232022
Components of periodic benefit costs
Service cost$1,173 $2,043 $365 $546 
Interest cost6,606 4,960 566 368 
Expected return on plan assets(7,386)(6,177)— — 
Amortizations
Net loss (gain)— 3,083 (13)298 
Net periodic benefit cost$393 $3,909 $918 $1,212 

PENSION BENEFITSOTHER BENEFITS
FOR THE NINE MONTHS ENDED SEPT. 30,FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)2023202220232022
Components of periodic benefit costs
Service cost$3,520 $6,130 $1,094 $1,639 
Interest cost19,817 14,881 1,698 1,103 
Expected return on plan assets(22,158)(18,531)— — 
Amortizations
Net loss (gain)— 9,252 (39)894 
Net periodic benefit cost$1,179 $11,732 $2,753 $3,636 

Because Cleco Power is the pension plan sponsor and the related trust holds the assets, the net unfunded status of the pension plan is reflected at Cleco Power. The liability of Cleco’s other subsidiaries is transferred, with a like amount of assets, to Cleco Power monthly. The expense of the pension plan related to Cleco’s other subsidiaries for the three and nine months ended September 30, 2023, was $0.4 million and $1.2 million, respectively. The expense of the pension plan related to Cleco’s other subsidiaries for the three and nine months ended September 30, 2022, was $0.7 million and $2.1 million, respectively.
Cleco Holdings is the plan sponsor for the other benefit plans. There are no assets set aside in a trust, and the liabilities are reported on the individual subsidiaries’ financial statements. The expense related to other benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2023, was $0.9 million and $2.6 million, respectively. The expense related to other benefits reflected in Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2022, was $1.1 million and $3.3 million, respectively. The current and non-current portions of the Other Benefits liability for Cleco and Cleco Power at September 30, 2023, and December 31, 2022, were as follows:

Cleco
(THOUSANDS)AT SEPT. 30, 2023AT DEC. 31, 2022
Current$5,017 $5,017 
Non-current$37,236 $38,366 

Cleco Power
(THOUSANDS)AT SEPT. 30, 2023AT DEC. 31, 2022
Current$4,310 $4,310 
Non-current$29,110 $30,082 

SERP
Certain Cleco officers are covered by SERP. Cleco does not fund the SERP liability, but instead pays for current benefits out
of cash available of the respective company of the employed officer. Because the SERP is a non-qualified plan, Cleco has purchased life insurance policies on certain SERP participants as a mechanism to provide a source of funding. These policies are held in a rabbi trust formed by Cleco Power. The rabbi trust is the named beneficiary of the life insurance policies and, therefore, receives the proceeds upon the death of the insured participants. The life insurance policies may be used to reimburse Cleco for benefits paid from general funds, pay the SERP participants’ death benefits, or pay future SERP payments. Market conditions could have a significant impact on the cash surrender value of these life insurance policies. Because SERP is a non-qualified plan, the assets of the trust could be used to satisfy general creditors of Cleco Power in the event of insolvency. Cleco Power is the plan sponsor and Support Group is the plan administrator.
The non-service components of net periodic benefit cost related to SERP are included in Other income (expense), net within Cleco’s and Cleco Power’s Condensed Consolidated Statements of Income. The components of the net periodic benefit cost related to SERP for the three and nine months ended September 30, 2023, and 2022 were as follows:

FOR THE THREE MONTHS ENDED SEPT. 30,FOR THE NINE MONTHS ENDED SEPT. 30,
(THOUSANDS)2023202220232022
Components of periodic benefit costs
Service cost $35 $57 $106 $170 
Interest cost901 670 2,703 2,009 
Amortizations
Prior period service credit(54)(54)(161)(161)
Net (gain) loss(16)262 (47)787 
Net periodic benefit cost$866 $935 $2,601 $2,805 

The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2023, was $0.1 million and $0.4 million, respectively. The expense related to SERP
reflected on Cleco Power’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2022, was $0.1 million and $0.4 million, respectively.
Liabilities relating to SERP are reported on the individual subsidiaries’ financial statements. The current and non-current portions of the SERP liability for Cleco and Cleco Power at September 30, 2023, and December 31, 2022, were as follows:

Cleco
(THOUSANDS)AT SEPT. 30, 2023AT DEC. 31, 2022
Current$4,713 $4,713 
Non-current$63,270 $63,714 

Cleco Power
(THOUSANDS)AT SEPT. 30, 2023AT DEC. 31, 2022
Current$672 $672 
Non-current$8,817 $9,087 
401(k) Plan
Cleco’s 401(k) Plan is intended to provide active, eligible employees with voluntary, long-term savings and investment opportunities. The 401(k) Plan is a defined contribution plan and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974. In accordance with the 401(k) Plan, employer contributions are made in the form of cash. Cash contributions are invested in proportion to the participant’s voluntary contribution investment choices. Participation in the Plan is voluntary, and active Cleco employees are eligible to participate. Cleco’s 401(k) Plan expense for the three and nine months ended September 30, 2023, and 2022 was as follows:

 FOR THE THREE MONTHS ENDED SEPT. 30,FOR THE NINE MONTHS
ENDED SEPT. 30,
(THOUSANDS)2023202220232022
401(k) Plan expense
$1,741 $1,838 $5,821 $5,540 

Cleco Power is the plan sponsor for the 401(k) Plan. The expense of the 401(k) Plan related to Cleco’s other subsidiaries for the three and nine months ended September 30, 2023, and 2022 was as follows:

 FOR THE THREE MONTHS ENDED SEPT. 30,FOR THE NINE MONTHS
ENDED SEPT. 30,
(THOUSANDS)2023202220232022
401(k) Plan expense
$592 $643 $2,164 $2,092