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Pension Plan and Employee Benefits
 3 Months Ended
Mar. 31, 2024
Retirement Benefits [Abstract]  
Pension Plan and Employee Benefits
Note 8 — 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, 2023, management estimates that pension contributions totaling $94.2 million will be required through 2028, of which $25.7 million will be required in 2024. In April 2024, Cleco made a $3.5 million payment towards its 2024 contribution requirement. Cleco was not required to make any contributions to the pension plan in 2023.
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 months ended March 31, 2024, and 2023 were as follows:
PENSION BENEFITSOTHER BENEFITS
FOR THE THREE MONTHS ENDED MAR. 31,FOR THE THREE MONTHS ENDED MAR. 31,
(THOUSANDS)2024202320242023
Components of periodic benefit costs
Service cost$1,189 $1,173 $479 $365 
Interest cost6,535 6,606 583 566 
Expected return on plan assets(7,607)(7,386)— — 
Amortizations
Net loss (gain)— — 164 (13)
Net periodic benefit cost$117 $393 $1,226 $918 
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 months ended March 31, 2024, and 2023 was $0.5 million and $0.4 million, respectively.
The current and non-current portions of the pension benefits liability for Cleco and Cleco Power at December 31, 2023, and 2022 are as follows:

(THOUSANDS)AT MAR. 31, 2024AT DEC. 31, 2023
Current$25,685 $25,685 
Non-current$91,752 $91,638 

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 months ended March 31, 2024, and 2023, was $1.1 million and $0.9 million, respectively. The current and non-current portions of the Other Benefits liability for Cleco and
Cleco Power at March 31, 2024, and December 31, 2023, were as follows:

Cleco
(THOUSANDS)AT MAR. 31, 2024AT DEC. 31, 2023
Current$5,241 $5,241 
Non-current$41,665 $41,815 

Cleco Power
(THOUSANDS)AT MAR. 31, 2024AT DEC. 31, 2023
Current$4,479 $4,479 
Non-current$32,110 $32,289 

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 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 months ended March 31, 2024, and 2023, were as follows:

FOR THE THREE MONTHS ENDED MAR. 31,
(THOUSANDS)20242023
Components of periodic benefit costs
Service cost $34 $35 
Interest cost836 901 
Amortizations
Prior period service credit(54)(54)
Net gain
(21)(15)
Net periodic benefit cost$795 $867 

The expense related to SERP reflected on Cleco Power’s Condensed Consolidated Statements of Income for both the three months ended March 31, 2024, and 2023, was $0.1 million.
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 March 31, 2024, and December 31, 2023, were as follows:

Cleco
(THOUSANDS)AT MAR. 31, 2024AT DEC. 31, 2023
Current$4,593 $4,593 
Non-current$62,592 $62,868 

Cleco Power
(THOUSANDS)AT MAR. 31, 2024AT DEC. 31, 2023
Current$613 $613 
Non-current$8,308 $8,394 
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 months ended March 31, 2024, and 2023, was as follows:

 FOR THE THREE MONTHS ENDED MAR. 31,
(THOUSANDS)20242023
401(k) Plan expense
$3,075 $2,154 

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 months ended March 31, 2024, and 2023, was as follows:

 FOR THE THREE MONTHS ENDED MAR. 31,
(THOUSANDS)20242023
401(k) Plan expense
$1,601 $902