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Retirement Benefits (Tables)
12 Months Ended
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]  
Schedule of SERP Trust Assets, ABO and Contributions Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Trust assets$132 $137 
ABO115 118 
Consumers
Trust assets$98 $101 
ABO83 85 
Schedule of Assumptions Used Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202320222021
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.05 %5.24 %3.02 %
DB Pension Plan B4.95 5.14 2.79 
DB SERP4.94 5.13 2.78 
OPEB Plan5.02 5.21 2.99 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.60 
DB SERP3
— 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,4
DB Pension Plan A5.27 %3.09 %2.83 %
DB SERP5.18 3.09 2.84 
OPEB Plan5.31 3.23 3.03 
Interest cost discount rate2,4
DB Pension Plan A5.12 2.44 1.97 
DB Pension Plan B5.06 2.21 1.70 
DB SERP5.06 2.21 1.72 
OPEB Plan5.10 2.45 1.99 
Expected long-term rate of return on plan assets5
DB Pension Plans7.20 6.50 6.75 
OPEB Plan7.20 6.50 6.75 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.50 
DB SERP5.50 5.50 5.50 
1The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2023 and 2022 and improvement scale MP-2020 for 2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3The DB SERP no longer requires rate of compensation increase as the last active participant retired in 2023.
4CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.20 percent in 2023. The actual return (loss) on the assets of the DB Pension Plans was 12.6 percent in 2023, (15.9) percent in 2022, and 12.0 percent in 2021.
Schedule of Net Benefit 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 Plans and DB SERPOPEB Plan
Years Ended December 31202320222021202320222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$29 $41 $53 $12 $17 $18 
Interest cost112 84 63 44 28 23 
Settlement loss— — — — 
Expected return on plan assets(220)(206)(208)(103)(115)(109)
Amortization of:
Net loss12 40 100 12 
Prior service cost (credit)(41)(51)(53)
Settlement loss11 — — — 
Net periodic cost (credit)$(52)$(27)$19 $(76)$(120)$(113)
Consumers
Net periodic credit
Service cost$28 $39 $51 $11 $17 $17 
Interest cost105 79 59 42 27 23 
Expected return on plan assets(208)(194)(197)(95)(107)(102)
Amortization of:
Net loss11 37 96 12 — 
Prior service cost (credit)(40)(50)(51)
Settlement loss11 — — — 
Net periodic credit$(49)$(26)$19 $(70)$(113)$(105)
Schedule of Funded Status of Retirement Benefit Plans Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefit plans with their retirement benefit plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202320222023202220232022
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,169 $3,070 $117 $149 $889 $1,166 
Service cost29 41 — — 12 17 
Interest cost106 81 44 28 
Plan amendments— — — — — — 
Actuarial loss (gain)52 
1
(811)
1
(25)
1
(274)
1
Benefits paid(161)(212)(10)(10)(54)(48)
Benefit obligation at end of period$2,195 $2,169 $114 $117 $900 $889 
Plan assets at fair value at beginning of period$2,820 $3,599 $— $— $1,446 $1,787 
Actual return on plan assets345 (567)— — 165 (294)
Company contribution— — 10 10 — — 
Actual benefits paid(161)(212)(10)(10)(52)(47)
Plan assets at fair value at end of period$3,004 $2,820 $— $— $1,559 $1,446 
Funded status$809 
2
$651 
2
$(114)$(117)$659 $557 
Consumers
Benefit obligation at beginning of period$85 $109 $856 $1,122 
Service cost— — 11 17 
Interest cost42 27 
Plan amendments— — — — 
Actuarial loss (gain)(19)10 
1
(265)
1
Benefits paid(7)(7)(52)(45)
Benefit obligation at end of period$83 $85 $867 $856 
Plan assets at fair value at beginning of period$— $— $1,350 $1,668 
Actual return on plan assets— — 154 (273)
Company contribution— — 
Actual benefits paid(7)(7)(51)(45)
Plan assets at fair value at end of period$— $— $1,453 $1,350 
Funded status$(83)$(85)$586 $494 
1The actuarial losses for 2023 for the DB Pension Plans and OPEB Plan were primarily the result of lower discount rates. The actuarial gains for 2022 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $781 million at December 31, 2023 and $632 million at December 31, 2022.
Schedule of Retirement Benefit Plan Assets (Liabilities)
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120232022
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$809 $651 
OPEB Plan659 557 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP104 107 
Consumers
Non-current assets
DB Pension Plans$781 $632 
OPEB Plan586 494 
Current liabilities
DB SERP
Non-current liabilities
DB SERP76 78 
Schedule of Net Periodic Benefit Cost Not Yet Recognized Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets see Note 2, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312023202220232022
CMS Energy, including Consumers
Regulatory assets
Net loss$634 $724 $191 $251 
Prior service cost (credit)16 21 (100)(140)
Regulatory assets$650 $745 $91 $111 
AOCI
Net loss (gain)65 69 (3)
Prior service cost (credit)(2)(3)
Total amounts recognized in regulatory assets and AOCI$716 $815 $86 $110 
Consumers
Regulatory assets
Net loss$634 $724 $191 $251 
Prior service cost (credit)16 21 (100)(140)
Regulatory assets$650 $745 $91 $111 
AOCI
Net loss20 20 — — 
Total amounts recognized in regulatory assets and AOCI$670 $765 $91 $111 
Schedule of Allocation of Plan Assets Presented in the following tables are the fair values of the assets of CMS Energy’s DB Pension Plans and OPEB Plan, by asset category and by level within the fair value hierarchy. For additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
DB Pension Plans
December 31, 2023December 31, 2022
TotalLevel 1Level 2TotalLevel 1
CMS Energy, including Consumers
Cash and short-term investments$178 $178 $— $122 $122 
Mutual funds47 47 — 263 263 
$225 $225 $— $385 $385 
Pooled funds2,779 2,435 
Total$3,004 $2,820 
In Millions
OPEB Plan
December 31, 2023December 31, 2022
TotalLevel 1Level 2TotalLevel 1
CMS Energy, including Consumers
Cash and short-term investments$82 $82 $— $28 $28 
U.S. government and agencies securities16 — 16 — — 
Corporate debt67 — 67 — — 
State and municipal bonds— — — 
Foreign corporate bonds15 — 15 — — 
Common stocks161 161 — 69 69 
Mutual funds60 60 — 754 754 
$402 $303 $99 $851 $851 
Pooled funds1,157 595 
Total$1,559 $1,446 
Schedule of Asset Allocation Presented in the following table are the investment components of the assets of CMS Energy’s DB Pension Plans and OPEB Plan as of December 31, 2023:
DB Pension PlansOPEB Plan
Fixed-income securities42.0 %40.0 %
Equity securities38.0 42.0 
Real asset investments9.0 8.0 
Return-seeking fixed income6.0 5.0 
Liquid alternative investments4.0 4.0 
Cash and cash equivalents1.0 1.0 
100.0 %100.0 %
Schedule of Expected Benefit Payments Presented in the following table are the expected benefit payments for each of the next five years and the fiveyear period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2024$158 $10 $55 
2025160 10 57 
2026159 10 58 
2027159 10 60 
2028159 61 
2029-2033785 43 315 
Consumers
2024$148 $$53 
2025151 54 
2026150 56 
2027150 57 
2028150 59 
2029-2033741 29 301 
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of SERP Trust Assets, ABO and Contributions Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Trust assets$132 $137 
ABO115 118 
Consumers
Trust assets$98 $101 
ABO83 85 
Schedule of Assumptions Used Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202320222021
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.05 %5.24 %3.02 %
DB Pension Plan B4.95 5.14 2.79 
DB SERP4.94 5.13 2.78 
OPEB Plan5.02 5.21 2.99 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.60 
DB SERP3
— 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,4
DB Pension Plan A5.27 %3.09 %2.83 %
DB SERP5.18 3.09 2.84 
OPEB Plan5.31 3.23 3.03 
Interest cost discount rate2,4
DB Pension Plan A5.12 2.44 1.97 
DB Pension Plan B5.06 2.21 1.70 
DB SERP5.06 2.21 1.72 
OPEB Plan5.10 2.45 1.99 
Expected long-term rate of return on plan assets5
DB Pension Plans7.20 6.50 6.75 
OPEB Plan7.20 6.50 6.75 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.50 
DB SERP5.50 5.50 5.50 
1The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2023 and 2022 and improvement scale MP-2020 for 2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3The DB SERP no longer requires rate of compensation increase as the last active participant retired in 2023.
4CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.20 percent in 2023. The actual return (loss) on the assets of the DB Pension Plans was 12.6 percent in 2023, (15.9) percent in 2022, and 12.0 percent in 2021.
Schedule of Net Benefit 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 Plans and DB SERPOPEB Plan
Years Ended December 31202320222021202320222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$29 $41 $53 $12 $17 $18 
Interest cost112 84 63 44 28 23 
Settlement loss— — — — 
Expected return on plan assets(220)(206)(208)(103)(115)(109)
Amortization of:
Net loss12 40 100 12 
Prior service cost (credit)(41)(51)(53)
Settlement loss11 — — — 
Net periodic cost (credit)$(52)$(27)$19 $(76)$(120)$(113)
Consumers
Net periodic credit
Service cost$28 $39 $51 $11 $17 $17 
Interest cost105 79 59 42 27 23 
Expected return on plan assets(208)(194)(197)(95)(107)(102)
Amortization of:
Net loss11 37 96 12 — 
Prior service cost (credit)(40)(50)(51)
Settlement loss11 — — — 
Net periodic credit$(49)$(26)$19 $(70)$(113)$(105)
Schedule of Funded Status of Retirement Benefit Plans Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefit plans with their retirement benefit plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202320222023202220232022
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,169 $3,070 $117 $149 $889 $1,166 
Service cost29 41 — — 12 17 
Interest cost106 81 44 28 
Plan amendments— — — — — — 
Actuarial loss (gain)52 
1
(811)
1
(25)
1
(274)
1
Benefits paid(161)(212)(10)(10)(54)(48)
Benefit obligation at end of period$2,195 $2,169 $114 $117 $900 $889 
Plan assets at fair value at beginning of period$2,820 $3,599 $— $— $1,446 $1,787 
Actual return on plan assets345 (567)— — 165 (294)
Company contribution— — 10 10 — — 
Actual benefits paid(161)(212)(10)(10)(52)(47)
Plan assets at fair value at end of period$3,004 $2,820 $— $— $1,559 $1,446 
Funded status$809 
2
$651 
2
$(114)$(117)$659 $557 
Consumers
Benefit obligation at beginning of period$85 $109 $856 $1,122 
Service cost— — 11 17 
Interest cost42 27 
Plan amendments— — — — 
Actuarial loss (gain)(19)10 
1
(265)
1
Benefits paid(7)(7)(52)(45)
Benefit obligation at end of period$83 $85 $867 $856 
Plan assets at fair value at beginning of period$— $— $1,350 $1,668 
Actual return on plan assets— — 154 (273)
Company contribution— — 
Actual benefits paid(7)(7)(51)(45)
Plan assets at fair value at end of period$— $— $1,453 $1,350 
Funded status$(83)$(85)$586 $494 
1The actuarial losses for 2023 for the DB Pension Plans and OPEB Plan were primarily the result of lower discount rates. The actuarial gains for 2022 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $781 million at December 31, 2023 and $632 million at December 31, 2022.
Schedule of Retirement Benefit Plan Assets (Liabilities)
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120232022
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$809 $651 
OPEB Plan659 557 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP104 107 
Consumers
Non-current assets
DB Pension Plans$781 $632 
OPEB Plan586 494 
Current liabilities
DB SERP
Non-current liabilities
DB SERP76 78 
Schedule of Net Periodic Benefit Cost Not Yet Recognized Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets see Note 2, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312023202220232022
CMS Energy, including Consumers
Regulatory assets
Net loss$634 $724 $191 $251 
Prior service cost (credit)16 21 (100)(140)
Regulatory assets$650 $745 $91 $111 
AOCI
Net loss (gain)65 69 (3)
Prior service cost (credit)(2)(3)
Total amounts recognized in regulatory assets and AOCI$716 $815 $86 $110 
Consumers
Regulatory assets
Net loss$634 $724 $191 $251 
Prior service cost (credit)16 21 (100)(140)
Regulatory assets$650 $745 $91 $111 
AOCI
Net loss20 20 — — 
Total amounts recognized in regulatory assets and AOCI$670 $765 $91 $111 
Schedule of Expected Benefit Payments Presented in the following table are the expected benefit payments for each of the next five years and the fiveyear period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2024$158 $10 $55 
2025160 10 57 
2026159 10 58 
2027159 10 60 
2028159 61 
2029-2033785 43 315 
Consumers
2024$148 $$53 
2025151 54 
2026150 56 
2027150 57 
2028150 59 
2029-2033741 29 301