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Stock-Based Incentive Compensation Plans and Employee Benefit Plans
 12 Months Ended
Dec. 31, 2022
Disclosure of Stock-Based Incentive Compensation Plans and Employee Benefit Plans [Abstract]  
Stock-Based Incentive Compensation Plans and Employee Benefit Plans Stock-Based Incentive Compensation Plans and Employee Benefit Plans
(a) Stock-Based Incentive Compensation Plans (CenterPoint Energy)

CenterPoint Energy has LTIPs that provide for the issuance of stock-based incentives, including stock options, performance awards, restricted stock unit awards and restricted and unrestricted stock awards to officers, employees and non-employee directors. Approximately 30 million shares of Common Stock are authorized under these plans for awards. CenterPoint Energy issues new shares of its Common Stock to satisfy stock-based payments related to LTIPs. Equity awards are granted to employees without cost to the participants.

Compensation costs for the performance and stock unit awards granted under LTIPs are measured using fair value and expected achievement levels on the grant date. For performance awards with operational goals, the achievement levels are revised as goals are evaluated. The fair value of awards granted to employees is based on the closing stock price of CenterPoint Energy’s Common Stock on the grant date. The compensation expense is recorded on a straight-line basis over the vesting period. Forfeitures are estimated on the date of grant based on historical averages and estimates are updated periodically throughout the vesting period. 
 
The performance awards granted in 2022, 2021 and 2020 are distributed based upon the achievement of certain objectives over a three-year performance cycle. The stock unit awards granted in 2020 are service based, and the stock unit awards granted in 2022 and 2021 are service based, subject to the achievement of a performance goal. The stock unit awards generally vest at the end of a three-year period, provided, however, that stock unit awards granted to non-employee directors vested immediately upon grant. Upon vesting, shares under the performance and stock unit awards are issued to the participants along with the value of dividend equivalents earned over the performance cycle or vesting period.

The following table summarizes CenterPoint Energy’s expenses related to LTIPs for 2022, 2021 and 2020:
Year Ended December 31,
202220212020
(in millions)
LTIP compensation expense (1)
$51 $48 $38 
Income tax benefit recognized12 11 9 
Actual tax benefit realized for tax deductions6 4 5 

(1)Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income and shown prior to any amounts capitalized.
 
The following tables summarize CenterPoint Energy’s LTIP activity for 2022
 Year Ended December 31, 2022
 Shares
(Thousands)		Weighted-Average
Grant Date
Fair Value		Remaining Average
Contractual
Life (Years)
Aggregate
Intrinsic
Value (2) (Millions)
Performance Awards (1)
Outstanding and nonvested as of December 31, 20214,663 $24.48   
Granted1,781 28.12   
Forfeited or canceled(856)29.92   
Vested and released to participants(431)31.20   
Outstanding and nonvested as of December 31, 20225,157 $24.26 1.0$106 
Stock Unit Awards
Outstanding and nonvested as of December 31, 20212,367 $24.75 
Granted441 28.44 
Forfeited or canceled(60)24.98 
Vested and released to participants(452)28.35 
Outstanding and nonvested as of December 31, 20222,296 $25.03 0.9$69 
 
(1)Reflects maximum performance achievement.
(2)Reflects the impact of current expectations of achievement and stock price.

The weighted average grant date fair values per unit of awards granted were as follows for 2022, 2021 and 2020:
 Year Ended December 31,
 202220212020
(in millions, except for per unit amounts)
Performance Awards
Weighted-average grant date fair value per unit of awards granted$28.12 $21.89 $23.82 
Total intrinsic value of awards received by participants13 7 9 
Vested grant date fair value13 8 9 
Stock Unit Awards
Weighted-average grant date fair value per unit of awards granted$28.44 $24.20 $21.53 
Total intrinsic value of awards received by participants14 11 12 
Vested grant date fair value13 11 12 
 
As of December 31, 2022, there was $50 million of total unrecognized compensation cost related to nonvested performance and stock unit awards which is expected to be recognized over a weighted-average period of 1.6 years.

(b) Pension Benefits (CenterPoint Energy)

CenterPoint Energy maintains a non-contributory qualified defined benefit pension plan covering eligible employees, with benefits determined using a cash balance formula. In addition to the non-contributory qualified defined benefit pension plan, CenterPoint Energy maintains unfunded non-qualified benefit restoration plans which allow participants to receive the benefits to which they would have been entitled under CenterPoint Energy’s non-contributory qualified pension plan except for federally mandated limits on qualified plan benefits or on the level of compensation on which qualified plan benefits may be calculated.

As a result of the Merger, CenterPoint Energy now also maintains three additional qualified defined benefit pension plans, two of which are closed to new participants and one of which is completely frozen, and a non-qualified supplemental retirement plan. The defined benefit pension plans cover eligible full-time regular employees and retirees of Vectren and are primarily non-contributory.

In December 2022, the CenterPoint Energy pension plan completed an annuity lift-out, a transaction that provided for the purchase of an irrevocable group annuity contract to fund pension plan annuities of retirees from previously divested
businesses, as part of a de-risking strategy. This annuity lift-out reduced the plan’s pension obligation by $138 million and plan assets by $136 million which were transferred to an insurance company. The $138 million transferred benefit obligation represented 9.4% of CenterPoint Energy’s total benefit obligation as of its last remeasurement prior to the transaction. As a result of this transaction: CenterPoint Energy incurred a settlement charge of $47 million; CenterPoint Energy was relieved of all responsibility for these pension obligations’ and an insurance company is now required to pay and administer the retirement benefits owed to 1,119 retirees and beneficiaries, with no changes to the amount, timing or form of retirement benefit payments.

CenterPoint Energy’s net periodic cost includes the following components relating to pension, including the non-qualified benefit plans:
 Year Ended December 31,
 202220212020
 (in millions)
Service cost (1)
$29 $39 $43 
Interest cost (2)
73 59 75 
Expected return on plan assets (2)
(87)(103)(112)
Amortization of net loss (2)
31 36 41 
Settlement cost (2) (3)
126 38 2 
Net periodic cost$172 $69 $49 
 
(1)Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals and amounts capitalized.
(2)Amounts presented in the table above are included in Other, net in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals.
(3)A one-time, non-cash settlement cost is required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. In 2022, 2021 and 2020, CenterPoint Energy recognized non-cash settlement cost due to lump sum settlement payments. The transfer of assets related to the 2022 Annuity Lift-Out is considered a lump sum settlement payment.

CenterPoint Energy used the following assumptions to determine net periodic cost relating to pension benefits:
 Year Ended December 31,
 202220212020
Discount rate2.80 %2.45 %3.20 %
Expected return on plan assets5.00 5.00 5.75 
Rate of increase in compensation levels4.95 5.05 4.95 

In determining net periodic benefit cost, CenterPoint Energy uses fair value, as of the beginning of the year, as its basis for determining expected return on plan assets.
The following table summarizes changes in the benefit obligation, plan assets, the amounts recognized in the Consolidated Balance Sheets as well as the key assumptions of CenterPoint Energy’s pension plans. The measurement dates for plan assets and obligations were December 31, 2022 and 2021.
 December 31,
 20222021
 (in millions, except for actuarial assumptions)
Change in Benefit Obligation 
Benefit obligation, beginning of year$2,298 $2,507 
Service cost29 38 
Interest cost73 59 
Benefits paid (4)
(509)(285)
Actuarial (gain) loss (1)
(338)(22)
Plan amendment— 1 
Benefit obligation, end of year1,553 2,298 
Change in Plan Assets  
Fair value of plan assets, beginning of year2,072 2,135 
Employer contributions35 61 
Benefits paid (4)
(509)(285)
Actual investment return (386)161 
Fair value of plan assets, end of year1,212 2,072 
Funded status, end of year$(341)$(226)
Amounts Recognized in Balance Sheets  
Non-current assets$— $6 
Current liabilities-other(7)(7)
Other liabilities-benefit obligations(334)(225)
Net liability, end of year$(341)$(226)
Actuarial Assumptions
Discount rate (2)
5.15 %2.80 %
Expected return on plan assets (3)
6.50 5.00 
Rate of increase in compensation levels4.99 4.95 
Interest crediting rate3.00 2.25 

(1)Significant sources of gain for 2022 include the increase in discount rate from 2.80% to 5.15%, partially offset by significant sources of loss that include expected return on assets exceeding actual return on plan assets during 2022.
(2)The discount rate assumption was determined by matching the projected cash flows of CenterPoint Energy’s plans against a hypothetical yield curve of high-quality corporate bonds represented by a series of annualized individual discount rates from one-half to 99 years.
(3)The expected rate of return assumption was developed using the targeted asset allocation of CenterPoint Energy’s plans and the expected return for each asset class.
(4)Benefits paid for 2022 includes $136 million related to the 2022 Annuity Lift-Out.

The following table displays pension benefits related to CenterPoint Energy’s pension plans that have accumulated benefit obligations in excess of plan assets:
 December 31,
 20222021
 Pension
(Qualified)		Pension
(Non-qualified)		Pension
(Qualified)		Pension
(Non-qualified)
 (in millions)
Accumulated benefit obligation$1,497 $51 $2,216 $62 
Projected benefit obligation1,502 51 2,237 62 
Fair value of plan assets1,212 — 2,072 — 
The accumulated benefit obligation for all defined benefit pension plans on CenterPoint Energy’s Consolidated Balance Sheets was $1,548 million and $2,278 million as of December 31, 2022 and 2021, respectively.
 
(c) Postretirement Benefits

CenterPoint Energy provides certain healthcare and life insurance benefits for eligible retired employees on both a contributory and non-contributory basis. The Registrants’ employees (other than employees of Vectren and its subsidiaries) who were hired before January 1, 2018 and who have met certain age and service requirements at retirement, as defined in the plans, are eligible to participate in these benefit plans, provided, however, that life insurance benefits are available only for eligible retired employees who retired before January 1, 2022. Employees hired on or after January 1, 2018 are not eligible for these benefits, except that such employees represented by IBEW Local Union 66 are eligible to participate in certain of the benefits, subject to the applicable age and service requirements. With respect to retiree medical and prescription drug benefits, and, effective January 1, 2021, dental and vision benefits, employees represented by the IBEW Local Union 66 who retire on or after January 1, 2017, and their dependents, receive any such benefits exclusively through the NECA/IBEW Family Medical Care Plan pursuant to the terms of the applicable collective bargaining agreement. Houston Electric and CERC are required to fund a portion of their obligations in accordance with rate orders. All other obligations are funded on a pay-as-you-go basis.

CenterPoint Energy, through Vectren, also maintains a postretirement benefit plan that provides health care and life insurance benefits, which are a combination of self-insured and fully insured programs, to eligible Vectren retirees on both a contributory and non-contributory basis.

Postretirement benefits are accrued over the active service period of employees. The net postretirement benefit cost includes the following components:
 Year Ended December 31,
 202220212020
 CenterPoint EnergyHouston ElectricCERCCenterPoint EnergyHouston ElectricCERCCenterPoint EnergyHouston ElectricCERC
 (in millions)
Service cost (1)
$2 $— $1 $2 $— $1 $2 $— $1 
Interest cost (2)
9 439 4 3 11 5 4 
Expected return on plan assets (2)
(5)(4)(1)(4)(3)(1)(5)(4)(1)
Amortization of prior service cost (credit) (2)
(3)(4)2(4)(5)1 (4)(5)1 
Amortization of net loss (2)(4)(2)(1)— — — — — — 
Net postretirement benefit cost (credit)$(1)$(6)$4 $3 $(4)$4 $4 $(4)$5 

(1)Amounts presented in the table above are included in Operation and maintenance expense in each of the Registrants’ respective Statements of Consolidated Income, net of regulatory deferrals and amounts capitalized.
(2)Amounts presented in the table above are included in Other, net in each of the Registrants’ respective Statements of Consolidated Income, net of regulatory deferrals.

The following assumptions were used to determine net periodic cost relating to postretirement benefits:
 Year Ended December 31,
 202220212020
CenterPoint EnergyHouston ElectricCERCCenterPoint EnergyHouston ElectricCERCCenterPoint EnergyHouston ElectricCERC
Discount rate2.85 %2.85 %2.85 %2.50 %2.50 %2.50 %3.25 %3.25 %3.25 %
Expected return on plan assets
3.22 3.32 2.86 3.20 3.30 2.85 3.95 4.05 3.35 
The following table summarizes changes in the benefit obligation, plan assets, the amounts recognized in consolidated balance sheets and the key assumptions of the postretirement plans. The measurement dates for plan assets and benefit obligations were December 31, 2022 and 2021.
 December 31,
 20222021
 CenterPoint EnergyHouston ElectricCERCCenterPoint EnergyHouston ElectricCERC
 (in millions, except for actuarial assumptions)
Change in Benefit Obligation  
Benefit obligation, beginning of year$336 $148 $118 $366 $168 $122 
Service cost2 — 1 2 — 1 
Interest cost9 4 3 9 4 3 
Participant contributions6 2 3 7 2 3 
Benefits paid(20)(7)(8)(21)(9)(8)
Early Retiree Reinsurance Program— — — 20 — 11 
Plan amendment3 — 2 — 5 — 
Actuarial (gain) loss (1)(73)(32)(27)(47)(22)(14)
Benefit obligation, end of year263 115 92 336 148 118 
Change in Plan Assets   
Fair value of plan assets, beginning of year132 104 29 134 106 28 
Employer contributions8 1 4 7 1 4 
Participant contributions6 2 3 7 2 3 
Benefits paid(20)(7)(8)(21)(9)(8)
Actual investment return (17)(16)(3)5 4 2 
Fair value of plan assets, end of year109 84 25 132 104 29 
Funded status, end of year$(154)$(31)$(67)$(204)$(44)$(89)
Amounts Recognized in Balance Sheets   
Current liabilities — other$(7)$— $(4)$(7)$— $(4)
Other liabilities — benefit obligations(147)(31)(64)(197)(44)(85)
Net liability, end of year$(154)$(31)$(68)$(204)$(44)$(89)
Actuarial Assumptions
Discount rate (2)5.15 %5.15 %5.15 %2.85 %2.85 %2.85 %
Expected return on plan assets (3)3.66 3.75 3.35 3.22 3.32 2.86 
Medical cost trend rate assumed for the next year - Pre-656.50 6.50 6.50 6.00 6.00 6.00 
Medical/prescription drug cost trend rate assumed for the next year - Post-6523.66 23.66 23.66 18.71 18.71 18.71 
Prescription drug cost trend rate assumed for the next year - Pre-658.00 8.00 8.00 8.00 8.00 8.00 
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)4.50 4.50 4.50 4.50 4.50 4.50 
Year that the cost trend rates reach the ultimate trend rate - Pre-65203220322032202920292029
Year that the cost trend rates reach the ultimate trend rate - Post-65203220322032203020302030

(1)Significant sources of gain for 2022 include updated life insurance rates and the increase in discount rate from 2.85% to 5.15%, offset by significant sources of loss including an increase in crediting rate and updated claims.
(2)The discount rate assumption was determined by matching the projected cash flows of the plans against a hypothetical yield curve of high-quality corporate bonds represented by a series of annualized individual discount rates from one-half to 99 years.
(3)The expected rate of return assumption was developed using the targeted asset allocation of the plans and the expected return for each asset class.
(d) Accumulated Other Comprehensive Income (Loss) (CenterPoint Energy and CERC)

CenterPoint Energy recognizes the funded status of its pension and other postretirement plans on its Consolidated Balance Sheets. To the extent this obligation exceeds amounts previously recognized in the Statements of Consolidated Income, CenterPoint Energy records a regulatory asset for that portion related to its rate regulated utilities. To the extent that excess liability does not relate to a rate regulated utility, the offset is recorded as a reduction to equity in accumulated other comprehensive income.

Amounts recognized in accumulated other comprehensive loss (gain) consist of the following:
 December 31,
 20222021
 Pension
Benefits		Postretirement
Benefits		Pension
Benefits		Postretirement
Benefits
CenterPoint EnergyCenterPoint EnergyCERCCenterPoint EnergyCenterPoint EnergyCERC
 (in millions)
Unrecognized actuarial loss (gain)$70 $(36)$(28)$99 $(23)$(18)
Unrecognized prior service cost— 13 11 — 13 12 
Net amount recognized in accumulated other comprehensive loss (gain)
$70 $(23)$(17)$99 $(10)$(6)

The changes in plan assets and benefit obligations recognized in other comprehensive income during 2022 are as follows:
 Pension
Benefits		Postretirement
Benefits
CenterPoint EnergyCenterPoint EnergyCERC
(in millions)
Net loss (gain)$45 $(13)$(16)
Amortization of net loss(7)(1)(1)
Amortization of prior service cost— 1 1 
Settlement(67)— — 
Total recognized in comprehensive income$(29)$(13)$(16)
Total recognized in net periodic costs and Other comprehensive income$142 $(19)$(15)

(e) Pension Plan Assets (CenterPoint Energy)

In managing the investments associated with the benefit plans, CenterPoint Energy’s objective is to achieve and maintain a fully funded plan. This objective is expected to be achieved through an investment strategy that manages liquidity requirements while maintaining a long-term horizon in making investment decisions and efficient and effective management of plan assets.

As part of the investment strategy discussed above, CenterPoint Energy maintained the following weighted average allocation targets for its pension plans as of December 31, 2022:
MinimumMaximum
U.S. equity17 %27 %
International equity9 %19 %
Real estate2 %11 %
Fixed income54 %64 %
Cash— %2 %
The following tables set forth by level, within the fair value hierarchy (see Note 10), CenterPoint Energy’s pension plan assets at fair value as of December 31, 2022 and 2021:
Fair Value Measurements as of December 31,
20222021
 (Level 1)(Level 2)(Level 3)Total(Level 1)(Level 2)(Level 3)Total
(in millions)
Cash$7 $— $— $7 $26 $— $— $26 
Corporate bonds:   
Investment grade or above— 467 — 467 — 833 — 833 
Equity securities:     
U.S. companies29 — — 29 89 — — 89 
Cash received as collateral from securities lending
47 — — 47 80 — — 80 
U.S. treasuries and government agencies163 — — 163 285 — — 285 
Mortgage backed securities— 6 — 6 — 7 — 7 
Asset backed securities— 2 — 2 — 3 — 3 
Municipal bonds— 24 — 24 — 40 — 40 
Mutual funds (2)
— — — — — — — — 
International government bonds— 10 — 10 — 20 — 20 
Obligation to return cash received as collateral from securities lending
(47)— — (47)(80)— — (80)
Total investments at fair value$199 $509 $— $708 $400 $903 $— $1,303 
Investments measured by net asset value per share or its equivalent (1) (2)
504 769 
Total Investments
$1,212 $2,072 

(1)Represents investments in pooled investment funds and common collective trust funds.
(2)The amounts invested in pooled investment funds were allocated to real estate. The amounts invested common collective trust funds were allocated as follows:
As of December 31,
20222021
Common Collective Trust FundsCommon Collective Trust Funds
International equities40 %41 %
U.S. equities56 %58 %
Fixed income4 %1 %

Level 2 investments, which do not have a quoted price in active market, are valued using the market data provided by independent pricing services or major market makers, to arrive at a price a dealer would pay for the security.

The pension plans utilized both exchange traded and over-the-counter financial instruments such as futures, interest rate options and swaps that were marked to market daily with the gains/losses settled in the cash accounts. The pension plans did not include any holdings of CenterPoint Energy Common Stock as of December 31, 2022 or 2021.

(f) Postretirement Plan Assets

In managing the investments associated with the postretirement plans, the Registrants’ primary objective is to preserve and improve the funded status of the plan, while minimizing volatility. This objective is expected to be achieved through an investment strategy that manages liquidity requirements while maintaining a long-term horizon in making investment decisions and efficient and effective management of plan assets.
As part of the investment strategy discussed above, the Registrants maintained the following weighted average allocation targets for the postretirement plans as of December 31, 2022:
CenterPoint EnergyHouston ElectricCERC
MinimumMaximumMinimumMaximumMinimumMaximum
U.S. equities13 %23 %13 %23 %15 %25 %
International equities3 %13 %3 %13 %2 %12 %
Fixed income69 %79 %69 %79 %68 %78 %
Cash— %2 %— %2 %— %2 %

The following table presents mutual funds by level, within the fair value hierarchy, the Registrants’ postretirement plan assets at fair value as of December 31, 2022 and 2021:
Fair Value Measurements as of December 31,
20222021
Mutual Funds
 
(Level 1)
(Level 2)
(Level 3)		Total
(Level 1)
(Level 2)
(Level 3)		Total
(in millions)
CenterPoint Energy$109 $— $— $109 $133 $— $— $133 
Houston Electric84 — — 84 105 — — 105 
CERC25 — — 25 28 — — 28 

The amounts invested in mutual funds were allocated as follows:
As of December 31,
20222021
CenterPoint EnergyHouston ElectricCERCCenterPoint EnergyHouston ElectricCERC
Fixed income74 %74 %74 %72 %73 %71 %
U.S. equities18 %17 %20 %20 %19 %22 %
International equities8 %8 %6 %8 %8 %7 %

(g) Benefit Plan Contributions

The Registrants made the following contributions in 2022 and are required to make the following minimum contributions in 2023 to the indicated benefit plans below:
Contributions in 2022Expected Minimum Contributions in 2023
CenterPoint EnergyHouston ElectricCERCCenterPoint EnergyHouston ElectricCERC
(in millions)
Qualified pension plans$27 $— $— $— $— $— 
Non-qualified pension plans8 — — 7 — — 
Postretirement benefit plans8 1 4 8 1 4 
The following benefit payments are expected to be paid by the pension and postretirement benefit plans:
 Pension
Benefits		Postretirement Benefits
CenterPoint
Energy		CenterPoint
Energy		Houston ElectricCERC
(in millions)
2023$134 $15 $6 $6 
2024138 17 7 6 
2025137 18 8 6 
2026134 19 9 7 
2027134 20 9 7 
2028-2032608 106 49 35 

(h) Savings Plan

CenterPoint Energy maintains the CenterPoint Energy Savings Plan, a tax-qualified employee savings plan that includes a cash or deferred arrangement under Section 401(k) of the Code, and an employee stock ownership plan under Section 4975(e)(7) of the Code. Under the plan, participating employees may make pre-tax or Roth contributions and, if eligible, after-tax contributions up to certain federally mandated limits. Participating Registrants provide matching contributions and, as of January 1, 2020, for certain eligible employees, nonelective contributions up to certain limits. CenterPoint Energy, through the Merger, also acquired additional defined contribution retirement savings plans sponsored by Vectren and its subsidiaries that are qualified under sections 401(a) and 401(k) of the Code, one of which merged into the CenterPoint Energy Savings Plan as of January 1, 2020 and one of which merged into the CenterPoint Energy Savings Plan as of January 1, 2022. As of January 1, 2022, the CenterPoint Energy Savings Plan is the only remaining qualified defined contribution retirement savings plan maintained by CenterPoint Energy.

The CenterPoint Energy Savings Plan has significant holdings of Common Stock. As of December 31, 2022, 7,335,725 shares of Common Stock were held by the savings plan, which represented approximately 9% of its investments. Given the concentration of the investments in Common Stock, the savings plan and its participants have market risk related to this investment. The savings plan limits the percentage of future contributions that can be invested in Common Stock to 25% and prohibits transfers of account balances where the transfer would result in more than 25% of a participant’s total account balance invested in Common Stock.

CenterPoint Energy allocates the savings plan benefit expense to Houston Electric and CERC related to their respective employees. The following table summarizes the Registrants’ savings plan benefit expense for 2022, 2021 and 2020:
 Year Ended December 31,
 202220212020
 CenterPoint EnergyHouston ElectricCERCCenterPoint EnergyHouston ElectricCERCCenterPoint EnergyHouston ElectricCERC
 (in millions)
Savings plan benefit
 expenses (1)
$72 $23 $22 $58 $20 $23 $58 $18 $25 

(1)Amounts presented in the table above are included in Operation and maintenance expense in the Registrants’ respective Statements of Consolidated Income and shown prior to any amounts capitalized.

(i) Other Benefits Plans

The Registrants participate in CenterPoint Energy’s plans that provide postemployment benefits for certain former or inactive employees, their beneficiaries and covered dependents, after employment but before retirement (primarily healthcare and life insurance benefits for participants in the long-term disability plan).

CenterPoint Energy maintains non-qualified deferred compensation plans that provide benefits payable to eligible directors, officers and select employees or their designated beneficiaries at specified future dates or upon termination, retirement or death. Benefit payments are made from the general assets of the participating Registrants or, in the case of certain plans, from a rabbi trust that is a grantor trust and remains subject to the claims of general creditors under applicable state and federal law.
Expenses related to other benefit plans were recorded as follows:
 Year Ended December 31,
 202220212020
 CenterPoint EnergyHouston ElectricCERCCenterPoint EnergyHouston ElectricCERCCenterPoint EnergyHouston ElectricCERC
 (in millions)
Postemployment benefits
$4 $1 $1 $3 $1 $2 $1 $1 $— 
Deferred compensation plans
1 — — 3 — — 4 1 — 

Amounts related to other benefit plans were included in Benefit Obligations in the Registrants’ accompanying Consolidated Balance Sheets as follows:
 December 31, 2022December 31, 2021
 CenterPoint EnergyHouston ElectricCERCCenterPoint EnergyHouston ElectricCERC
 (in millions)
Postemployment benefits$9 $3 $4 $8 $3 $5 
Deferred compensation plans28 4 1 40 6 4 
Split-dollar life insurance arrangements 22 1 — 29 1 — 

(j) Change in Control Agreements and Other Employee Matters

CenterPoint Energy has a change in control plan, which was amended and restated on May 1, 2017. The plan generally provides, to the extent applicable, in the case of a change in control of CenterPoint Energy and covered termination of employment, for severance benefits of up to three times annual base salary plus bonus, and other benefits. Certain CenterPoint Energy officers are participants under the plan.

Certain key employees of a subsidiary of Vectren have employment agreements that provide payments and other benefits upon a covered termination of employment.

As of December 31, 2022, the Registrants’ employees were covered by collective bargaining agreements as follows:
Percentage of Employees Covered
 Agreement ExpirationCenterPoint EnergyHouston ElectricCERC
IBEW Local 66May 202316 %54 %— %
OPEIU Local 12December 20252 %— %2 %
Gas Workers Union Local 340April 20255 %— %13 %
IBEW Locals 1393 and USW Locals 12213 & 7441December 20233 %— %8 %
IBEW Locals 949December 20253 %— %8 %
USW Locals 13-227 June 20276 %— %14 %
USW Locals 13-1July 2027— %— %1 %
IBEW Local 702June 20253 %— %— %
Teamsters Local 135/215September 2024— %— %— %
UWUA Local 175October 20241 %— %4 %
Total
39 %54 %50 %
The collective bargaining agreements with IBEW 1393, USW 12213, USW 7441 related to Natural Gas employees are scheduled to expire in December 2023 and the collective bargaining agreement with IBEW 66 related to Houston Electric employees is scheduled to expire in May 2023; negotiations of these agreements are expected to be completed before the respective expirations.

Board of Directors Actions. On July 22, 2021, CenterPoint Energy announced the decision of the independent directors of the Board to implement a new independent Board leadership and governance structure and appointed a new independent chair
of the Board. To implement this new governance structure, the independent directors of the Board eliminated the Executive Chairman position that was formerly held by Milton Carroll.

On the approval and recommendation of the Compensation Committee and approval of the Board (acting solely through its independent directors), CenterPoint Energy entered into a separation agreement between CenterPoint Energy and Mr. Carroll, dated July 21, 2021. Under the terms of the separation agreement, Mr. Carroll exited the positions of Executive Chairman on July 21, 2021 and Board member on September 30, 2021. Under the terms of the separation agreement, Mr. Carroll received a lump sum cash payment of $28 million and his separation was treated as an “enhanced retirement” for purposes of his outstanding 2019, 2020 and 2021 equity award agreements.

On the approval and recommendation of the Compensation Committee and approval of the Board (acting solely through its independent directors), CenterPoint Energy has entered into a retention incentive agreement with David J. Lesar, President and Chief Executive Officer of CenterPoint Energy, dated July 20, 2021. For information about the classification of this award, see Note 12.