Retirement Benefits

6 Months Ended

Jun. 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						Six Months Ended
June 30	2012			2011			2012			2011
CMS Energy, including Consumers
Net periodic pension cost
Service cost		$     12			$     12			$     24			$     24
Interest expense		25			25			50			50
Expected return on plan assets		(32	)		(28	)		(63	)		(56	)
Amortization of:
Net loss		19			15			38			31
Prior service cost		2			2			3			3
Net periodic pension cost		$     26			$     26			$     52			$     52
Consumers
Net periodic pension cost
Service cost		$     11			$     11			$     23			$     23
Interest expense		24			25			48			49
Expected return on plan assets		(31	)		(28	)		(61	)		(55	)
Amortization of:
Net loss		19			16			37			31
Prior service cost		2			2			3			3
Net periodic pension cost		$     25			$     26			$     50			$     51

CMS Energy's and Consumers' expected long-term rate of return on Pension Plan assets is 7.75 percent. For the twelve months ended June 30, 2012, the actual return on Pension Plan assets was 4.7 percent, and for the twelve months ended June 30, 2011, the actual return was 19.5 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						Six Months Ended
June 30	2012			2011			2012			2011
CMS Energy, including Consumers
Net periodic OPEB cost
Service cost		$       8			$       6			$     16			$     13
Interest expense		20			19			41			38
Expected return on plan assets		(16	)		(16	)		(33	)		(33	)
Amortization of:
Net loss		12			8			23			16
Prior service credit		(5	)		(5	)		(10	)		(10	)
Net periodic OPEB cost		$     19			$     12			$     37			$     24
Consumers
Net periodic OPEB cost
Service cost		$       8			$       7			$     16			$     13
Interest expense		20			19			40			37
Expected return on plan assets		(16	)		(16	)		(31	)		(31	)
Amortization of:
Net loss		12			8			23			16
Prior service credit		(5	)		(5	)		(10	)		(10	)
Net periodic OPEB cost		$     19			$     13			$     38			$     25

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						Six Months Ended
June 30	2012			2011			2012			2011
CMS Energy, including Consumers
Net periodic pension cost
Service cost		$     12			$     12			$     24			$     24
Interest expense		25			25			50			50
Expected return on plan assets		(32	)		(28	)		(63	)		(56	)
Amortization of:
Net loss		19			15			38			31
Prior service cost		2			2			3			3
Net periodic pension cost		$     26			$     26			$     52			$     52
Consumers
Net periodic pension cost
Service cost		$     11			$     11			$     23			$     23
Interest expense		24			25			48			49
Expected return on plan assets		(31	)		(28	)		(61	)		(55	)
Amortization of:
Net loss		19			16			37			31
Prior service cost		2			2			3			3
Net periodic pension cost		$     25			$     26			$     50			$     51

CMS Energy's and Consumers' expected long-term rate of return on Pension Plan assets is 7.75 percent. For the twelve months ended June 30, 2012, the actual return on Pension Plan assets was 4.7 percent, and for the twelve months ended June 30, 2011, the actual return was 19.5 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						Six Months Ended
June 30	2012			2011			2012			2011
CMS Energy, including Consumers
Net periodic OPEB cost
Service cost		$       8			$       6			$     16			$     13
Interest expense		20			19			41			38
Expected return on plan assets		(16	)		(16	)		(33	)		(33	)
Amortization of:
Net loss		12			8			23			16
Prior service credit		(5	)		(5	)		(10	)		(10	)
Net periodic OPEB cost		$     19			$     12			$     37			$     24
Consumers
Net periodic OPEB cost
Service cost		$       8			$       7			$     16			$     13
Interest expense		20			19			40			37
Expected return on plan assets		(16	)		(16	)		(31	)		(31	)
Amortization of:
Net loss		12			8			23			16
Prior service credit		(5	)		(5	)		(10	)		(10	)
Net periodic OPEB cost		$     19			$     13			$     38			$     25