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Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2015

Defined Benefit Plan Disclosure [Line Items]

Schedule Of SERP Trust Assets, ABO And Contributions



In Millions
Years Ended December 31	2015			2014
CMS Energy, including Consumers
Trust assets		$	148		$	131
ABO			140			145
Contributions			25			-
Consumers
Trust assets		$	106		$	93
ABO			97			99
Contributions			17			-

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



In Millions
	One Percentage			One Percentage
Year Ended December 31, 2015	Point Increase			Point Decrease
CMS Energy, including Consumers
Effect on total service and interest cost component		$	11		$	(9)
Effect on PBO			168			(137)
Consumers
Effect on total service and interest cost component		$	11		$	(9)
Effect on PBO			164			(133)

Schedule Of Assumptions Used



December 31	2015			2014			2013
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan		4.52	%		4.10	%		4.90	%
DB SERP		4.43			4.10			4.90
OPEB Plan		4.70			4.30			5.10
Rate of compensation increase
DB Pension Plan		3.00			3.00			3.00
DB SERP		5.50			5.50			5.50
Weighted average for net periodic benefit cost1
Discount rate2,3
DB Pension Plan		4.10			4.90			4.10
DB SERP		4.10			4.90			4.10
OPEB Plan		4.30			5.10			4.40
Expected long-term rate of return on plan assets4
DB Pension Plan		7.50			7.50			7.75
OPEB Plan		7.25			7.25			7.25
Rate of compensation increase
DB Pension Plan		3.00			3.00			3.00
DB SERP		5.50			5.50			5.50

The mortality assumption for 2015 and 2014 for benefit obligations was based on the RP-2014 mortality table, with projection scales MP-2015 for 2015 and MP-2014 for 2014. The mortality assumption for 2013 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. The mortality assumption for net periodic benefit cost for 2015 was based on the RP-2014 mortality table with projection scale MP-2014, and for 2014 and 2013 was based on the RP-2000 mortality table.

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

In January 2016, CMS Energy and Consumers changed the method in which they determine the discount rate used to calculate the service cost and interest expense components of net periodic benefit costs for the DB Pension and OPEB Plans. Historically, the discount rate used for this purpose represented a single weighted-average rate derived from the yield curve used to determine the benefit obligation. CMS Energy and Consumers have elected to use instead a full-yield-curve approach in the estimation of service cost and interest expense; this approach is more accurate in that it applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment. CMS Energy and Consumers expect that this change will result in a decrease in the service cost and interest expense components of net periodic benefit costs for the DB Pension and OPEB Plans, with an offsetting impact to the actuarial gain or loss recorded in, and later amortized from, the associated regulatory asset and AOCI. This change represents a change in accounting estimate and will not impact years prior to 2016.

⁴

CMS 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 DB Pension Plan assets was 7.5 percent in 2015. The actual return (loss) on DB Pension Plan assets was (2.0) percent in 2015, 7.4 percent in 2014, and 12.5 percent in 2013.

Schedule Of Net Benefit Costs



In Millions
	DB Pension Plan and DB SERP									OPEB Plan
Years Ended December 31	2015			2014			2013			2015			2014			2013
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost		$	50		$	42		$	54		$	25		$	20		$	29
Interest expense			108			105			100			58			56			65
Expected return on plan assets			(138)			(135)			(127)			(91)			(88)			(77)
Amortization of:
Net loss			97			60			101			21			2			26
Prior service cost (credit)			1			1			3			(41)			(41)			(31)
Net periodic cost (credit)		$	118		$	73		$	131		$	(28)		$	(51)		$	12
Consumers
Net periodic cost (credit)
Service cost		$	49		$	41		$	52		$	25		$	20		$	28
Interest expense			103			100			96			56			54			63
Expected return on plan assets			(134)			(131)			(124)			(86)			(83)			(72)
Amortization of:
Net loss			93			59			98			22			3			27
Prior service cost (credit)			1			1			3			(40)			(40)			(30)
Net periodic cost (credit)		$	112		$	70		$	125		$	(23)		$	(46)		$	16

Schedule Of Net Loss And Prior Service Cost (Credit) That Will Be Amortized In Next Fiscal Year



In Millions
	DB Pension Plan			OPEB Plan
CMS Energy, including Consumers
Regulatory asset		$	72		$	(18)
AOCI			1			(2)
Consumers
Regulatory asset		$	72		$	(18)

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



In Millions
	DB Pension Plan							DB SERP						OPEB Plan
Years Ended December 31	2015			2014				2015			2014			2015			2014
CMS Energy, including Consumers
Benefit obligation at beginning of period		$	2,547		$	2,073			$	156		$	132		$	1,378		$	1,123
Service cost			49			41				1			1			25			20
Interest cost			102			99				6			6			58			56
Plan amendments			13			-				-			-			(25)			-
Actuarial (gain) loss			(153)			458	1			(5)			24			(152)			230	1
Benefits paid			(155)			(124)				(8)			(7)			(57)	2		(51)	2
Benefit obligation at end of period		$	2,403		$	2,547			$	150		$	156		$	1,227		$	1,378
Plan assets at fair value at beginning of period		$	1,979		$	1,964			$	-		$	-		$	1,265		$	1,218
Actual return on plan assets			(36)			139				-			-			(29)			72
Company contribution			225			-				8			7			29			25
Actual benefits paid			(155)			(124)				(8)			(7)			(57)	2		(50)	2
Plan assets at fair value at end of period		$	2,013		$	1,979			$	-		$	-		$	1,208		$	1,265
Funded status		$	(390)	3	$	(568)	3		$	(150)		$	(156)		$	(19)		$	(113)
Consumers
Benefit obligation at beginning of period									$	111		$	93		$	1,336		$	1,088
Service cost										1			1			25			20
Interest cost										4			4			56			54
Plan amendments										-			-			(24)			-
Actuarial (gain) loss										(5)			17			(150)			223	1
Benefits paid										(5)			(4)			(55)	2		(49)	2
Benefit obligation at end of period									$	106		$	111		$	1,188		$	1,336
Plan assets at fair value at beginning of period									$	-		$	-		$	1,186		$	1,141
Actual return on plan assets										-			-			(27)			68
Company contribution										5			4			29			25
Actual benefits paid										(5)			(4)			(55)	2		(48)	2
Plan assets at fair value at end of period									$	-		$	-		$	1,133		$	1,186
Funded status									$	(106)		$	(111)		$	(55)		$	(150)

The actuarial loss for 2014 was primarily the result of lowering the discount rates used in calculating the plans’ obligations and using the RP-2014 mortality table during the annual measurement of benefit obligations.

CMS Energy received less than $1 million in 2015, $4 million in 2014, and $5 million in 2013 for the Medicare Part D subsidies. Consumers received less than $1 million in 2015 and $4 million in each of 2014 and 2013 for the Medicare Part D subsidies. The Medicare Part D subsidy payments are used to pay OPEB Plan benefits.

At December 31, 2015, $368 million of the total funded status of the DB Pension Plan was attributable to Consumers, based on an allocation of expenses. At December 31, 2014, $532 million of the total funded status of the DB Pension Plan was attributable to Consumers, based on an allocation of expenses.

Schedule Of Retirement Benefit Plan Assets (Liabilities)



In Millions
December 31	2015			2014
CMS Energy, including Consumers
Current assets (liabilities)
DB SERP		$	(8)		$	(8)
Non-current assets (liabilities)
DB Pension Plan			(390)			(568)
DB SERP			(142)			(148)
OPEB Plan			(19)			(113)
Consumers
Current assets (liabilities)
DB SERP		$	(5)		$	(5)
Non-current assets (liabilities)
DB Pension Plan			(368)			(532)
DB SERP			(101)			(106)
OPEB Plan			(55)			(150)

Schedule Of Accumulated And Projected Benefit Obligations



In Millions
December 31	2015			2014
CMS Energy, including Consumers
DB Pension Plan PBO		$	2,403		$	2,547
DB Pension Plan ABO			2,140			2,257
Fair value of DB Pension Plan assets			2,013			1,979

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



In Millions
	DB Pension Plan and DB SERP						OPEB Plan
Years Ended December 31	2015			2014			2015			2014
CMS Energy, including Consumers
Regulatory assets
Net loss		$	944		$	1,012		$	360		$	419
Prior service cost (credit)			19			7			(227)			(243)
Regulatory assets		$	963		$	1,019		$	133		$	176
AOCI
Net loss (gain)			86			99			(11)			(18)
Prior service cost (credit)			1			1			(8)			(8)
Total amounts recognized in regulatory assets and AOCI		$	1,050		$	1,119		$	114		$	150
Consumers
Regulatory assets
Net loss		$	944		$	1,012		$	360		$	419
Prior service cost (credit)			19			7			(227)			(243)
Regulatory assets		$	963		$	1,019		$	133		$	176
AOCI
Net loss (gain)			29			39			-			-
Total amounts recognized in regulatory assets and AOCI		$	992		$	1,058		$	133		$	176

Schedule Of Allocation Of Plan Assets



In Millions
	DB Pension Plan
	December 31, 2015									December 31, 2014
	Total			Level 1			Level 2			Total			Level 1			Level 2
CMS Energy, including Consumers
Asset category
Cash and short-term investments		$	215		$	215		$	-		$	31		$	31		$	-
U.S. government and agencies securities			19			-			19			30			-			30
Corporate debt			243			-			243			222			-			222
State and municipal bonds			8			-			8			8			-			8
Foreign corporate bonds			16			-			16			21			-			21
Mutual funds			538			538			-			598			598			-
Pooled funds			974			-			974			1,069			-			1,069
Total		$	2,013		$	753		$	1,260		$	1,979		$	629		$	1,350



In Millions
	OPEB Plan
	December 31, 2015									December 31, 2014
	Total			Level 1			Level 2			Total			Level 1			Level 2
CMS Energy, including Consumers
Asset category
Cash and short-term investments		$	51		$	51		$	-		$	19		$	19		$	-
U.S. government and agencies securities			3			-			3			5			-			5
Corporate debt			34			-			34			33			-			33
State and municipal bonds			1			-			1			1			-			1
Foreign corporate bonds			2			-			2			3			-			3
Common stocks			54			54			-			69			69			-
Mutual funds			456			456			-			438			438			-
Pooled funds			607			-			607			697			-			697
Total		$	1,208		$	561		$	647		$	1,265		$	526		$	739
Consumers
Asset category
Cash and short-term investments		$	48		$	48		$	-		$	18		$	18		$	-
U.S. government and agencies securities			3			-			3			4			-			4
Corporate debt			32			-			32			31			-			31
State and municipal bonds			1			-			1			1			-			1
Foreign corporate bonds			2			-			2			3			-			3
Common stocks			51			51			-			65			65			-
Mutual funds			427			427			-			411			411			-
Pooled funds			569			-			569			653			-			653
Total		$	1,133		$	526		$	607		$	1,186		$	494		$	692

Schedule Of Investment Components Of Pooled Funds



	DB Pension Plan						OPEB Plan
December 31	2015			2014			2015			2014
U.S. equity securities		62	%		64	%		58	%		62	%
Foreign equity securities		18			16			13			12
U.S. fixed-income securities		11			9			22			18
Foreign fixed-income securities		6			6			5			5
Alternative investments		3			5			2			3
		100	%		100	%		100	%		100	%

Schedule Of Plan Contributions



In Millions
Years Ended December 31	2015			2014
CMS Energy, including Consumers
OPEB Plan
VEBA trust		$	29		$	16
401(h) component			-			9
		$	29		$	25
DB Pension Plan		$	225		$	-
Consumers
OPEB Plan
VEBA trust		$	29		$	16
401(h) component			-			9
		$	29		$	25
DB Pension Plan		$	209		$	-

Schedule Of Expected Benefit Payments



In Millions
	DB Pension Plan			DB SERP			OPEB Plan
CMS Energy, including Consumers
2016		$	141		$	8		$	53
2017			146			8			57
2018			152			8			59
2019			156			9			63
2020			159			10			65
2021-2025			815			50			353
Consumers
2016		$	137		$	5		$	51
2017			142			5			55
2018			148			5			57
2019			152			5			61
2020			155			6			63
2021-2025			793			30			341

Consumers Energy Company [Member]