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Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2013

Defined Benefit Plan Disclosure [Line Items]

Schedule Of SERP Trust Assets, ABO And Contributions



In Millions
Years Ended December 31	2013			2012
CMS Energy, including Consumers
Trust assets		$	136		$	128
ABO			122			130
Contributions			16			13
Consumers
Trust assets		$	96		$	87
ABO			82			86
Contributions			13			9

Schedule Of Effect Of One-Percentage-Point Change In Assumed Health Care Cost Trend Rates



In Millions
	One Percentage			One Percentage
Years Ended December 31	Point Increase			Point Decrease
CMS Energy, including Consumers
Effect on total service and interest cost component		$	16		$	(14)
Effect on PBO			151			(133)
Consumers
Effect on total service and interest cost component		$	16		$	(13)
Effect on PBO			147			(130)

Schedule Of Assumptions Used



	Pension and DB SERP									OPEB
December 31	2013			2012			2011			2013			2012			2011
CMS Energy, including Consumers
Weighted average for benefit obligations
Discount rate1		4.90	%		4.10	%		4.90	%		5.10	%		4.40	%		5.10	%
Mortality table2		2000			2000			2000			2000			2000			2000
Rate of compensation increase
Pension		3.00	%		3.00	%		3.50	%
DB SERP		5.50	%		5.50	%		5.50	%
Weighted average for net periodic benefit cost obligations
Discount rate1		4.10	%		4.90	%		5.40	%		4.40	%		5.10	%		5.60	%
Expected long-term rate of return on plan assets3		7.75	%		7.75	%		8.00	%		7.25	%		7.25	%		7.50	%
Mortality table2		2000			2000			2000			2000			2000			2000
Rate of compensation increase
Pension		3.00	%		3.50	%		4.00	%
DB SERP		5.50	%		5.50	%		5.50	%

1The 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’ Pension Plan and OPEB Plan and the yields on high quality corporate bonds rated Aa or better.

2The mortality assumption was based on the RP-2000 mortality tables with projection of future mortality improvements using Scale AA, which aligned with the IRS prescriptions for cash funding valuations under the Pension Protection Act of 2006.

3CMS 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 Pension Plan assets was 7.75 percent in 2013. The actual return on Pension Plan assets was 12.5 percent in 2013, 14.1 percent in 2012, and 4.0 percent in 2011.

Schedule Of Net Benefit Costs



In Millions
	Pension and DB SERP									OPEB
Years Ended December 31	2013			2012			2011			2013			2012			2011
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost		$	54		$	49		$	49		$	29		$	32		$	27
Interest expense			100			105			106			65			82			77
Expected return on plan assets			(127)			(125)			(112)			(77)			(66)			(66)
Amortization of:
Net loss			101			79			65			26			46			30
Prior service cost (credit)			3			5			5			(31)			(20)			(20)
Net periodic cost (credit)		$	131		$	113		$	113		$	12		$	74		$	48
Consumers
Net periodic cost (credit)
Service cost		$	52		$	48		$	48		$	28		$	31		$	26
Interest expense			96			100			101			63			79			74
Expected return on plan assets			(124)			(122)			(109)			(72)			(61)			(61)
Amortization of:
Net loss			98			77			63			27			47			31
Prior service cost (credit)			3			5			5			(30)			(20)			(20)
Net periodic cost (credit)		$	125		$	108		$	108		$	16		$	76		$	50

Schedule Of Benefit Obligations In Excess Of Fair Value Of Plan Assets



In Millions
	Pension							DB SERP						OPEB
Years Ended December 31	2013			2012				2013			2012			2013			2012
CMS Energy, including Consumers
Benefit obligation at beginning of period		$	2,354		$	2,072			$	144		$	127		$	1,729		$	1,641
Service cost			53			48				1			1			29			32
Interest cost			94			99				6			6			65			82
Plan amendments			-			-				-			-			(208)	2		-
Actuarial (gain) loss			(308)			249				(12)			16			(440)			25
Benefits paid			(120)			(114)				(7)			(6)			(52)	3		(51)	3
Benefit obligation at end of period		$	2,073		$	2,354			$	132		$	144		$	1,123		$	1,729	4
Plan assets at fair value at beginning of period		$	1,727		$	1,626			$	-		$	-		$	1,047		$	924
Actual return on plan assets			206			215				-			-			150			108
Company contribution			150			-				7			6			72			65
Actual benefits paid			(119)			(114)				(7)			(6)			(51)	3		(50)	3
Plan assets at fair value at end of period		$	1,964		$	1,727			$	-		$	-		$	1,218		$	1,047
Funded status		$	(109)	1	$	(627)	1		$	(132)		$	(144)		$	95		$	(682)
Consumers
Benefit obligation at beginning of period									$	100		$	85		$	1,670		$	1,585
Service cost										1			1			28			31
Interest cost										4			4			63			79
Plan amendments										-			-			(200)	2		-
Actuarial (gain) loss										(8)			13			(424)			24
Benefits paid										(4)			(3)			(49)	3		(49)	3
Benefit obligation at end of period									$	93		$	100		$	1,088		$	1,670	4
Plan assets at fair value at beginning of period									$	-		$	-		$	978		$	861
Actual return on plan assets										-			-			141			101
Company contribution										4			3			71			64
Actual benefits paid										(4)			(3)			(49)	3		(48)	3
Plan assets at fair value at end of period									$	-		$	-		$	1,141		$	978
Funded status									$	(93)		$	(100)		$	53		$	(692)

1At December 31, 2013, $86 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. At December 31, 2012, $590 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses.

2 Plan amendments resulted from changing the Medicare drug program provided through the OPEB Plan from an employer-sponsored prescription drug plan with a retiree drug subsidy to an EGWP to begin on January 1, 2015, and from certain benefit changes to the OPEB Plan, to begin on January 1, 2016.

3CMS Energy received payments of $5 million in each of 2013, 2012, and 2011 for the Medicare Part D subsidies. Consumers received payments of $4 million in 2013 and $5 million in each of 2012 and 2011 for the Medicare Part D subsidies. The Medicare Part D subsidy payments are used to pay OPEB Plan benefits.

4The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 established a prescription drug benefit under Medicare (Medicare Part D) and a federal subsidy, which is tax-exempt, to sponsors of retiree health care benefit plans that provide a benefit that is actuarially equivalent to Medicare Part D. In 2010, the Health Care Acts repealed these tax-exempt deductions for years beginning after December 31, 2012. The Medicare Part D subsidy annualized reduction in net OPEB cost for CMS Energy was $20 million for 2012 and $26 million for 2011. Consumers’ Medicare Part D subsidy annualized reduction in net OPEB costs was $19 million for 2012 and $25 million for 2011. The reduction for CMS Energy and Consumers included $7 million for 2012 and $9 million for 2011 in capitalized OPEB costs.

Schedule Of Retirement Benefit Plan Assets (Liabilities)



In Millions
Years Ended December 31	2013			2012
CMS Energy, including Consumers
Current assets (liabilities)
DB SERP		$	(8)		$	(7)
Non-current assets (liabilities)
DB SERP			(124)			(137)
OPEB			95			(682)
Pension			(109)			(627)
Consumers
Current assets (liabilities)
DB SERP		$	(5)		$	(4)
Non-current assets (liabilities)
DB SERP			(88)			(96)
OPEB			53			(692)
Pension			(86)			(590)

Schedule Of Accumulated And Projected Benefit Obligations



In Millions
Years Ended December 31	2013			2012
CMS Energy, including Consumers
Pension PBO		$	2,073		$	2,354
Pension ABO			1,843			2,054
Fair value of Pension Plan assets			1,964			1,727

Schedule Of Net Periodic Benefit Cost Not Yet Recognized Including Regulatory Assets



In Millions
	Pension and DB SERP						OPEB
Years Ended December 31	2013			2012			2013			2012
CMS Energy, including Consumers
Regulatory assets (liabilities)
Net loss		$	625		$	1,095		$	184		$	704
Prior service cost (credit)			9			13			(282)			(112)
Regulatory assets (liabilities)		$	634		$	1,108		$	(98)		$	592
AOCI
Net loss (gain)			69			98			(26)			(7)
Prior service cost (credit)			-			-			(10)			(3)
Total amounts recognized in regulatory assets (liabilities) and AOCI		$	703		$	1,206		$	(134)		$	582
Consumers
Regulatory assets (liabilities)
Net loss		$	625		$	1,095		$	184		$	704
Prior service cost (credit)			9			13			(282)			(112)
Regulatory assets (liabilities)		$	634		$	1,108		$	(98)		$	592
AOCI
Net loss			25			38			-			-
Total amounts recognized in regulatory assets (liabilities) and AOCI		$	659		$	1,146		$	(98)		$	592

Schedule Of Allocation Of Plan Assets



In Millions
	Pension Plan
	December 31, 2013									December 31, 2012
	Total			Level 1			Level 2			Total			Level 1			Level 2
CMS Energy, including Consumers
Asset category
Cash and short-term investments		$	109		$	109		$	-		$	33		$	33		$	-
U.S. government and agencies securities			25			-			25			26			-			26
Corporate debt			188			-			188			277			-			277
State and municipal bonds			5			-			5			8			-			8
Foreign corporate bonds			20			-			20			27			-			27
Mutual funds			449			449			-			319			319			-
Pooled funds			1,168			-			1,168			1,037			-			1,037
Total		$	1,964		$	558		$	1,406		$	1,727		$	352		$	1,375



In Millions
	OPEB Plan
	December 31, 2013									December 31, 2012
	Total			Level 1			Level 2			Total			Level 1			Level 2
CMS Energy, including Consumers
Asset category
Cash and short-term investments		$	44		$	44		$	-		$	118		$	118		$	-
U.S. government and agencies securities			3			-			3			4			-			4
Corporate debt			26			-			26			38			-			38
State and municipal bonds			1			-			1			1			-			1
Foreign corporate bonds			3			-			3			4			-			4
Common stocks			71			71			-			75			75			-
Mutual funds			343			343			-			300			300			-
Pooled funds			727			-			727			507			-			507
Total		$	1,218		$	458		$	760		$	1,047		$	493		$	554
Consumers
Asset category
Cash and short-term investments		$	41		$	41		$	-		$	111		$	111		$	-
U.S. government and agencies securities			3			-			3			3			-			3
Corporate debt			25			-			25			35			-			35
State and municipal bonds			1			-			1			1			-			1
Foreign corporate bonds			3			-			3			3			-			3
Common stocks			66			66			-			70			70			-
Mutual funds			321			321			-			281			281			-
Pooled funds			681			-			681			474			-			474
Total		$	1,141		$	428		$	713		$	978		$	462		$	516

Schedule Of Plan Contributions



In Millions
Years Ended December 31	2013			2012
CMS Energy, including Consumers
OPEB1
VEBA trust		$	55		$	45
401(h) component			17			20
		$	72		$	65
Pension2		$	150		$	-
Consumers
OPEB1
VEBA trust		$	55		$	45
401(h) component			16			19
		$	71		$	64
Pension2		$	147		$	-

CMS Energy, including Consumers, plans to contribute $75 million to the OPEB Plan in 2014, of which Consumers plans to contribute $74 million.

CMS Energy, including Consumers, does not presently plan to contribute to the Pension Plan in 2014.

Schedule Of Expected Benefit Payments



In Millions
	Pension			DB SERP			OPEB1
CMS Energy, including Consumers
2014		$	119		$	8		$	58
2015			127			8			59
2016			134			8			61
2017			139			8			64
2018			144			8			66
2019-2023			760			48			364
Consumers
2014		$	116		$	4		$	56
2015			124			5			57
2016			131			5			59
2017			136			5			61
2018			140			5			64
2019-2023			740			27			349

CMS Energy’s and Consumers’ OPEB benefit payments are net of employee contributions and expected Medicare Part D subsidy payments for 2014. CMS Energy and Consumers plan to change the Medicare drug program provided through the OPEB Plan from an employer-sponsored drug plan to an EGWP to begin on January 1, 2015; therefore, no Medicare Part D subsidy is expected after 2014. For CMS Energy, subsidies to be received are estimated to be $6 million for 2014. For Consumers, subsidies to be received are estimated to be $5 million for 2014.

Consumers Energy Company [Member]