Retirement Benefits

9 Months Ended

Sep. 30, 2012

Retirement Benefits

10:RETIREMENT BENEFITS

CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.

Presented in the following tables are the costs and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans:

In Millions
	Pension
	Three Months Ended						Nine Months Ended
September 30	2012			2011			2012			2011
CMS Energy, including Consumers
Net periodic pension cost
Service cost		$	12		$	12		$	36		$	36
Interest expense			24			25			74			75
Expected return on plan assets			(31)			(28)			(94)			(84)
Amortization of:
Net loss			19			16			57			47
Prior service cost			1			1			4			4
Net periodic pension cost		$	25		$	26		$	77		$	78
Consumers
Net periodic pension cost
Service cost		$	12		$	12		$	35		$	35
Interest expense			24			24			72			73
Expected return on plan assets			(30)			(27)			(91)			(82)
Amortization of:
Net loss			18			15			55			46
Prior service cost			1			1			4			4
Net periodic pension cost		$	25		$	25		$	75		$	76

CMS Energy’s and Consumers’ expected long-term rate of return on Pension Plan assets is 7.75 percent.  For the twelve months ended September 30, 2012, the actual return on Pension Plan assets was 18.6 percent, and for the twelve months ended September 30, 2011, the actual return was 2.0 percent.  The expected rate of return is an assumption about long-term asset performance that CMS Energy and Consumers review annually for reasonableness and appropriateness.

In Millions
	OPEB
	Three Months Ended						Nine Months Ended
September 30	2012			2011			2012			2011
CMS Energy, including Consumers
Net periodic OPEB cost
Service cost		$	8		$	7		$	24		$	20
Interest expense			21			20			62			58
Expected return on plan assets			(17)			(17)			(50)			(50)
Amortization of:
Net loss			12			7			35			23
Prior service credit			(5)			(5)			(15)			(15)
Net periodic OPEB cost		$	19		$	12		$	56		$	36
Consumers
Net periodic OPEB cost
Service cost		$	7		$	7		$	23		$	20
Interest expense			20			19			60			56
Expected return on plan assets			(15)			(15)			(46)			(46)
Amortization of:
Net loss			12			7			35			23
Prior service credit			(5)			(5)			(15)			(15)
Net periodic OPEB cost		$	19		$	13		$	57		$	38

Consumers Energy Company [Member]

Retirement Benefits

10:RETIREMENT BENEFITS

CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.

Presented in the following tables are the costs and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans:

In Millions
	Pension
	Three Months Ended						Nine Months Ended
September 30	2012			2011			2012			2011
CMS Energy, including Consumers
Net periodic pension cost
Service cost		$	12		$	12		$	36		$	36
Interest expense			24			25			74			75
Expected return on plan assets			(31)			(28)			(94)			(84)
Amortization of:
Net loss			19			16			57			47
Prior service cost			1			1			4			4
Net periodic pension cost		$	25		$	26		$	77		$	78
Consumers
Net periodic pension cost
Service cost		$	12		$	12		$	35		$	35
Interest expense			24			24			72			73
Expected return on plan assets			(30)			(27)			(91)			(82)
Amortization of:
Net loss			18			15			55			46
Prior service cost			1			1			4			4
Net periodic pension cost		$	25		$	25		$	75		$	76

CMS Energy’s and Consumers’ expected long-term rate of return on Pension Plan assets is 7.75 percent.  For the twelve months ended September 30, 2012, the actual return on Pension Plan assets was 18.6 percent, and for the twelve months ended September 30, 2011, the actual return was 2.0 percent.  The expected rate of return is an assumption about long-term asset performance that CMS Energy and Consumers review annually for reasonableness and appropriateness.

In Millions
	OPEB
	Three Months Ended						Nine Months Ended
September 30	2012			2011			2012			2011
CMS Energy, including Consumers
Net periodic OPEB cost
Service cost		$	8		$	7		$	24		$	20
Interest expense			21			20			62			58
Expected return on plan assets			(17)			(17)			(50)			(50)
Amortization of:
Net loss			12			7			35			23
Prior service credit			(5)			(5)			(15)			(15)
Net periodic OPEB cost		$	19		$	12		$	56		$	36
Consumers
Net periodic OPEB cost
Service cost		$	7		$	7		$	23		$	20
Interest expense			20			19			60			56
Expected return on plan assets			(15)			(15)			(46)			(46)
Amortization of:
Net loss			12			7			35			23
Prior service credit			(5)			(5)			(15)			(15)
Net periodic OPEB cost		$	19		$	13		$	57		$	38