Retirement Benefits

3 Months Ended

Mar. 31, 2013

Retirement Benefits

7: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 incurred in CMS Energy’s and Consumers’ retirement benefits plans:

In Millions
	Pension
Three Months Ended March 31	2013			2012
CMS Energy, including Consumers
Net periodic pension cost
Service cost		$	13		$	12
Interest expense			24			25
Expected return on plan assets			(32)			(31)
Amortization of:
Net loss			24			19
Prior service cost			1			1
Net periodic pension cost		$	30		$	26
Consumers
Net periodic pension cost
Service cost		$	13		$	12
Interest expense			23			24
Expected return on plan assets			(31)			(30)
Amortization of:
Net loss			23			18
Prior service cost			1			1
Net periodic pension cost		$	29		$	25

CMS Energy’s and Consumers’ expected long-term rate of return on Pension Plan assets is 7.75percent. For the twelve months ended March 31, 2013, the actual return on Pension Plan assets was 10.7 percent, and for the twelve months ended March 31, 2012, the actual return was 7.4 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 March 31	2013			2012
CMS Energy, including Consumers
Net periodic OPEB cost
Service cost		$	9		$	8
Interest expense			19			21
Expected return on plan assets			(19)			(17)
Amortization of:
Net loss			11			11
Prior service credit			(5)			(5)
Net periodic OPEB cost		$	15		$	18
Consumers
Net periodic OPEB cost
Service cost		$	9		$	8
Interest expense			18			20
Expected return on plan assets			(18)			(15)
Amortization of:
Net loss			11			11
Prior service credit			(5)			(5)
Net periodic OPEB cost		$	15		$	19

Consumers Energy Company [Member]

Retirement Benefits

7: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 incurred in CMS Energy’s and Consumers’ retirement benefits plans:

In Millions
	Pension
Three Months Ended March 31	2013			2012
CMS Energy, including Consumers
Net periodic pension cost
Service cost		$	13		$	12
Interest expense			24			25
Expected return on plan assets			(32)			(31)
Amortization of:
Net loss			24			19
Prior service cost			1			1
Net periodic pension cost		$	30		$	26
Consumers
Net periodic pension cost
Service cost		$	13		$	12
Interest expense			23			24
Expected return on plan assets			(31)			(30)
Amortization of:
Net loss			23			18
Prior service cost			1			1
Net periodic pension cost		$	29		$	25

CMS Energy’s and Consumers’ expected long-term rate of return on Pension Plan assets is 7.75percent. For the twelve months ended March 31, 2013, the actual return on Pension Plan assets was 10.7 percent, and for the twelve months ended March 31, 2012, the actual return was 7.4 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 March 31	2013			2012
CMS Energy, including Consumers
Net periodic OPEB cost
Service cost		$	9		$	8
Interest expense			19			21
Expected return on plan assets			(19)			(17)
Amortization of:
Net loss			11			11
Prior service credit			(5)			(5)
Net periodic OPEB cost		$	15		$	18
Consumers
Net periodic OPEB cost
Service cost		$	9		$	8
Interest expense			18			20
Expected return on plan assets			(18)			(15)
Amortization of:
Net loss			11			11
Prior service credit			(5)			(5)
Net periodic OPEB cost		$	15		$	19