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Retirement Benefits
 9 Months Ended
Sep. 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, June 30, 2022, and September 30, 2022. For the nine months ended September 30, 2022, CMS Energy, including Consumers, recognized a settlement loss of $19 million; of this amount, $19 million was deferred as a regulatory asset. Consumers recognized a settlement loss of $19 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 $69 million from December 31, 2021 at CMS Energy, with an offsetting decrease in the associated regulatory asset of $67 million and a $2 million gain to accumulated other comprehensive loss. At Consumers, the non‑current asset increased by $67 million and the associated regulatory asset decreased by $67 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 EndedNine Months EndedThree Months EndedNine Months Ended
September 3020222021202220212022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$9 $14 $32 $41 $4 $5 $13 $14 
Interest cost21 14 59 44 7 6 21 17 
Expected return on plan assets(51)(51)(155)(155)(29)(28)(87)(82)
Amortization of:
Net loss5 25 32 76 — 2 1 6 
Prior service cost (credit)1 1 3 3 (12)(14)(38)(40)
Settlement loss2 1 6 4 — — — — 
Net periodic cost (credit)$(13)$4 $(23)$13 $(30)$(29)$(90)$(85)
Consumers
Net periodic cost (credit)
Service cost$9 $14 $32 $40 $4 $4 $13 $13 
Interest cost20 14 56 42 6 6 20 17 
Expected return on plan assets(48)(49)(147)(147)(26)(26)(80)(77)
Amortization of:
Net loss5 24 30 73 — 2 — 6 
Prior service cost (credit)1 1 3 3 (13)(12)(38)(38)
Settlement loss2 1 6 4 — — — — 
Net periodic cost (credit)$(11)$5 $(20)$15 $(29)$(26)$(85)$(79)
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, June 30, 2022, and September 30, 2022. For the nine months ended September 30, 2022, CMS Energy, including Consumers, recognized a settlement loss of $19 million; of this amount, $19 million was deferred as a regulatory asset. Consumers recognized a settlement loss of $19 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 $69 million from December 31, 2021 at CMS Energy, with an offsetting decrease in the associated regulatory asset of $67 million and a $2 million gain to accumulated other comprehensive loss. At Consumers, the non‑current asset increased by $67 million and the associated regulatory asset decreased by $67 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 EndedNine Months EndedThree Months EndedNine Months Ended
September 3020222021202220212022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$9 $14 $32 $41 $4 $5 $13 $14 
Interest cost21 14 59 44 7 6 21 17 
Expected return on plan assets(51)(51)(155)(155)(29)(28)(87)(82)
Amortization of:
Net loss5 25 32 76 — 2 1 6 
Prior service cost (credit)1 1 3 3 (12)(14)(38)(40)
Settlement loss2 1 6 4 — — — — 
Net periodic cost (credit)$(13)$4 $(23)$13 $(30)$(29)$(90)$(85)
Consumers
Net periodic cost (credit)
Service cost$9 $14 $32 $40 $4 $4 $13 $13 
Interest cost20 14 56 42 6 6 20 17 
Expected return on plan assets(48)(49)(147)(147)(26)(26)(80)(77)
Amortization of:
Net loss5 24 30 73 — 2 — 6 
Prior service cost (credit)1 1 3 3 (13)(12)(38)(38)
Settlement loss2 1 6 4 — — — — 
Net periodic cost (credit)$(11)$5 $(20)$15 $(29)$(26)$(85)$(79)