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Retirement Benefits
 6 Months Ended
Jun. 30, 2022
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.
In March 2022, CMS Energy and Consumers determined it was probable that 2022 lump-sum payments to participants under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once it is probable such settlements will meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A as of March 31, 2022 and June 30, 2022. For the six months ended June 30, 2022, CMS Energy, including Consumers, recognized a settlement loss of $8 million; of this amount, $8 million was deferred as a regulatory asset. Consumers recognized a settlement loss of $8 million, all of which was deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over eight years.
As a result of the remeasurements, the non-current asset for DB Pension Plan A increased by $113 million from December 31, 2021 at CMS Energy, with an offsetting decrease in the associated regulatory asset of $110 million and a $3 million gain to accumulated other comprehensive loss. At Consumers, the non‑current asset increased by $110 million and the associated regulatory asset decreased by $110 million.
Costs: Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans:
In Millions
DB Pension PlansOPEB Plan
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
June 3020222021202220212022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$11 $13 $23 $27 $5 $5 $9 $9 
Interest cost20 15 38 30 7 5 14 11 
Expected return on plan assets(52)(52)(104)(104)(29)(27)(58)(54)
Amortization of:
Net loss10 26 27 51 1 2 1 4 
Prior service cost (credit)1 1 2 2 (14)(13)(26)(26)
Settlement loss2 2 4 3 — — — — 
Net periodic cost (credit)$(8)$5 $(10)$9 $(30)$(28)$(60)$(56)
Consumers
Net periodic cost (credit)
Service cost$11 $13 $23 $26 $5 $5 $9 $9 
Interest cost20 14 36 28 7 5 14 11 
Expected return on plan assets(50)(49)(99)(98)(27)(26)(54)(51)
Amortization of:
Net loss9 24 25 49 — 2 — 4 
Prior service cost (credit)1 1 2 2 (13)(13)(25)(26)
Settlement loss2 2 4 3 — — — — 
Net periodic cost (credit)$(7)$5 $(9)$10 $(28)$(27)$(56)$(53)
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.
In March 2022, CMS Energy and Consumers determined it was probable that 2022 lump-sum payments to participants under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once it is probable such settlements will meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A as of March 31, 2022 and June 30, 2022. For the six months ended June 30, 2022, CMS Energy, including Consumers, recognized a settlement loss of $8 million; of this amount, $8 million was deferred as a regulatory asset. Consumers recognized a settlement loss of $8 million, all of which was deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over eight years.
As a result of the remeasurements, the non-current asset for DB Pension Plan A increased by $113 million from December 31, 2021 at CMS Energy, with an offsetting decrease in the associated regulatory asset of $110 million and a $3 million gain to accumulated other comprehensive loss. At Consumers, the non‑current asset increased by $110 million and the associated regulatory asset decreased by $110 million.
Costs: Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans:
In Millions
DB Pension PlansOPEB Plan
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
June 3020222021202220212022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$11 $13 $23 $27 $5 $5 $9 $9 
Interest cost20 15 38 30 7 5 14 11 
Expected return on plan assets(52)(52)(104)(104)(29)(27)(58)(54)
Amortization of:
Net loss10 26 27 51 1 2 1 4 
Prior service cost (credit)1 1 2 2 (14)(13)(26)(26)
Settlement loss2 2 4 3 — — — — 
Net periodic cost (credit)$(8)$5 $(10)$9 $(30)$(28)$(60)$(56)
Consumers
Net periodic cost (credit)
Service cost$11 $13 $23 $26 $5 $5 $9 $9 
Interest cost20 14 36 28 7 5 14 11 
Expected return on plan assets(50)(49)(99)(98)(27)(26)(54)(51)
Amortization of:
Net loss9 24 25 49 — 2 — 4 
Prior service cost (credit)1 1 2 2 (13)(13)(25)(26)
Settlement loss2 2 4 3 — — — — 
Net periodic cost (credit)$(7)$5 $(9)$10 $(28)$(27)$(56)$(53)