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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 31	2023			2022
CMS Energy, including Consumers
Trust assets		$	132		$	137
ABO		115			118

Consumers
Trust assets		$	98		$	101
ABO		83			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 31	2023		2022		2021
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A	5.05	%	5.24	%	3.02	%
DB Pension Plan B	4.95		5.14		2.79
DB SERP	4.94		5.13		2.78
OPEB Plan	5.02		5.21		2.99
Rate of compensation increase
DB Pension Plan A	3.60		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 A	5.27	%	3.09	%	2.83	%
DB SERP	5.18		3.09		2.84
OPEB Plan	5.31		3.23		3.03
Interest cost discount rate2,4
DB Pension Plan A	5.12		2.44		1.97
DB Pension Plan B	5.06		2.21		1.70
DB SERP	5.06		2.21		1.72
OPEB Plan	5.10		2.45		1.99
Expected long-term rate of return on plan assets5
DB Pension Plans	7.20		6.50		6.75
OPEB Plan	7.20		6.50		6.75
Rate of compensation increase
DB Pension Plan A	3.60		3.60		3.50
DB SERP	5.50		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 SERP										OPEB Plan

Years Ended December 31	2023	2022			2021					2023	2022	2021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost			$	29		$	41	$	53				$	12	$	17	$	18
Interest cost			112			84		63					44		28		23
Settlement loss			—			1		1					—		—		—
Expected return on plan assets			(220)			(206)		(208)					(103)		(115)		(109)
Amortization of:
Net loss			12			40		100					12		1		8
Prior service cost (credit)			4			4		4					(41)		(51)		(53)
Settlement loss			11			9		6					—		—		—

Net periodic cost (credit)			$	(52)		$	(27)	$	19				$	(76)	$	(120)	$	(113)
Consumers
Net periodic credit
Service cost			$	28		$	39	$	51				$	11	$	17	$	17
Interest cost			105			79		59					42		27		23
Expected return on plan assets			(208)			(194)		(197)					(95)		(107)		(102)
Amortization of:
Net loss			11			37		96					12		—		8
Prior service cost (credit)			4			4		4					(40)		(50)		(51)
Settlement loss			11			9		6					—		—		—

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 Plans							DB SERP						OPEB Plan
Years Ended December 31	2023			2022				2023			2022			2023			2022
CMS Energy, including Consumers
Benefit obligation at beginning of period		$	2,169		$	3,070			$	117		$	149		$	889		$	1,166
Service cost		29			41				—			—			12			17
Interest cost		106			81				6			3			44			28
Plan amendments		—			—				—			—			—			—
Actuarial loss (gain)		52		1	(811)		1		1			(25)			9		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 assets		345			(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 cost									4			2			42			27
Plan amendments									—			—			—			—
Actuarial loss (gain)									1			(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									7			7			—			—
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 31	2023			2022
CMS Energy, including Consumers
Non-current assets
DB Pension Plans		$	809		$	651
OPEB Plan		659			557
Current liabilities
DB SERP		10			10
Non-current liabilities

DB SERP		104			107

Consumers
Non-current assets
DB Pension Plans		$	781		$	632
OPEB Plan		586			494
Current liabilities
DB SERP		7			7
Non-current liabilities

DB SERP		76			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 SERP						OPEB Plan
December 31	2023			2022			2023			2022
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)			2
Prior service cost (credit)		1			1			(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 loss		20			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, 2023									December 31, 2022
	Total			Level 1			Level 2			Total			Level 1
CMS Energy, including Consumers
Cash and short-term investments		$	178		$	178		$	—		$	122		$	122




Mutual funds		47			47			—			263			263
		$	225		$	225		$	—		$	385		$	385
Pooled funds		2,779									2,435
Total		$	3,004								$	2,820


In Millions
	OPEB Plan
	December 31, 2023									December 31, 2022
	Total			Level 1			Level 2			Total			Level 1
CMS Energy, including Consumers
Cash and short-term investments		$	82		$	82		$	—		$	28		$	28
U.S. government and agencies securities		16			—			16			—			—
Corporate debt		67			—			67			—			—
State and municipal bonds		1			—			1			—			—
Foreign corporate bonds		15			—			15			—			—
Common stocks		161			161			—			69			69
Mutual funds		60			60			—			754			754
		$	402		$	303		$	99		$	851		$	851
Pooled funds		1,157									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 Plans			OPEB Plan
Fixed-income securities		42.0	%		40.0	%
Equity securities		38.0			42.0
Real asset investments		9.0			8.0
Return-seeking fixed income		6.0			5.0
Liquid alternative investments		4.0			4.0
Cash and cash equivalents		1.0			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 five‑year period thereafter:


In Millions
	DB Pension Plans			DB SERP			OPEB Plan
CMS Energy, including Consumers
2024		$	158		$	10		$	55
2025		160			10			57
2026		159			10			58
2027		159			10			60
2028		159			9			61
2029-2033		785			43			315
Consumers
2024		$	148		$	7		$	53
2025		151			7			54
2026		150			7			56
2027		150			7			57
2028		150			6			59
2029-2033		741			29			301

Consumers Energy Company