PENSION PLANS AND POST-RETIREMENT BENEFITS

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

PENSION PLANS AND POST-RETIREMENT BENEFITS

PENSION PLANS AND POST-RETIREMENT BENEFITS

Evergy and certain of its subsidiaries maintain, and Evergy Kansas Central and Evergy Metro participate in, qualified non-contributory defined benefit pension plans covering the majority of Evergy Kansas Central's and Evergy Metro's employees as well as certain non-qualified plans covering certain active and retired officers. Evergy is also responsible for its indirect 94% ownership share of Wolf Creek's defined benefit plans, consisting of Evergy Kansas South's and Evergy Metro's respective 47% ownership shares.

For the majority of employees, pension benefits under these plans reflect the employees' compensation, years of service and age at retirement. However, for the plan covering Evergy Kansas Central's employees, the benefits for non-union employees hired between 2002 and the second quarter of 2018 and union employees hired beginning in 2012 are derived from a cash balance account formula. The plan was closed to future non-union employees in 2018. For the plans covering Evergy Metro's employees, the benefits for union employees hired beginning in 2014 are derived from a cash balance account formula and the plans were closed to future non-union employees in 2014.

Evergy and its subsidiaries also provide certain post-retirement health care and life insurance benefits for substantially all retired employees of Evergy Kansas Central and Evergy Metro and their respective shares of Wolf Creek's post-retirement benefit plans.

The Evergy Companies record pension and post-retirement expense in accordance with rate orders from the KCC and MPSC that allow the difference between pension and post-retirement costs under GAAP and costs for ratemaking to be recognized as a regulatory asset or liability.  This difference between financial and regulatory accounting methods is due to timing and will be eliminated over the life of the plans.

For 2020, Evergy and Evergy Metro recorded pension settlement charges of $11.2 million and $14.3 million, respectively. For 2019, Evergy and Evergy Metro recorded pension settlement charges of $15.6 million and $23.0 million, respectively. These settlement charges were the result of accelerated pension distributions primarily related to voluntary severance programs. Evergy and Evergy Metro deferred substantially all of the charges to a regulatory asset and expect to recover these amounts over future periods pursuant to regulatory agreements.

The following pension benefits tables provide information relating to the funded status of all defined benefit pension plans on an aggregate basis as well as the components of net periodic benefit costs. For financial reporting purposes, the market value of plan assets is the fair value. Net periodic benefit costs reflect total plan benefit costs prior to the effects of capitalization and sharing with joint owners of power plants. Evergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.

	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Change in projected benefit obligation (PBO)	(millions)
PBO at January 1, 2020	$	2,718.2	$	1,323.4	$	1,371.4	$	264.3	$	138.7	$	125.6
Service cost	78.9		27.1		51.8		2.7		1.1		1.6
Interest cost	96.8		47.0		49.1		9.2		4.8		4.4
Contribution by participants	—		—		—		9.3		1.8		7.5
Plan amendments	4.2		8.1		(3.9)		1.0		0.5		0.5
Actuarial loss	273.9		127.0		144.8		19.6		11.0		8.6
Benefits paid	(202.5)		(102.3)		(99.0)		(25.7)		(11.1)		(14.6)
Settlements	(62.9)		—		(62.9)		—		—		—
Other	(5.5)		(0.7)		(4.8)		—		—		—
PBO at December 31, 2020	$	2,901.1	$	1,429.6	$	1,446.5	$	280.4	$	146.8	$	133.6
Change in plan assets
Fair value of plan assets at January 1, 2020	$	1,732.8	$	842.1	$	890.7	$	239.9	$	120.5	$	119.4
Actual return on plan assets	209.9		99.7		110.2		20.7		13.7		7.0
Contributions by employer and participants	123.4		45.8		77.6		11.7		2.1		9.6
Benefits paid	(198.6)		(99.9)		(98.7)		(24.0)		(10.5)		(13.5)
Settlements	(62.9)		—		(62.9)		—		—		—
Other	(5.5)		(0.7)		(4.8)		—		—		—
Fair value of plan assets at December 31, 2020	$	1,799.1	$	887.0	$	912.1	$	248.3	$	125.8	$	122.5
Funded status at December 31, 2020	$	(1,102.0)	$	(542.6)	$	(534.4)	$	(32.1)	$	(21.0)	$	(11.1)

	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Amounts recognized in the consolidated balance sheets					(millions)
Non-current asset	$	—	$	—	$	—	$	21.3	$	—	$	21.3
Current pension and other post-retirement liability	(4.4)		(2.5)		(0.8)		(1.6)		(0.8)		(0.9)
Noncurrent pension liability and other post-retirement liability	(1,097.6)		(540.1)		(533.6)		(51.8)		(20.2)		(31.5)
Net amount recognized before regulatory treatment	(1,102.0)		(542.6)		(534.4)		(32.1)		(21.0)		(11.1)
Accumulated OCI or regulatory asset/liability	566.9		408.0		216.9		4.0		1.0		(7.7)
Net amount recognized at December 31, 2020	$	(535.1)	$	(134.6)	$	(317.5)	$	(28.1)	$	(20.0)	$	(18.8)
Amounts in accumulated OCI or regulatory asset/liability not yet recognized as a component of net periodic benefit cost:
Actuarial (gain) loss	$	551.8	$	388.9	$	218.6	$	2.2	$	(0.3)	$	—
Prior service cost	15.1		19.1		(1.7)		1.8		1.3		(7.7)
Net amount recognized at December 31, 2020	$	566.9	$	408.0	$	216.9	$	4.0	$	1.0	$	(7.7)

	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Change in projected benefit obligation (PBO)	(millions)
PBO at January 1, 2019	$	2,553.4	$	1,258.9	$	1,272.4	$	249.3	$	133.6	$	115.7
Service cost	79.1		29.0		50.1		2.5		1.1		1.4
Interest cost	108.0		53.7		53.3		10.5		5.6		4.9
Contribution by participants	—		—		—		8.8		1.9		6.9
Actuarial loss	262.4		120.3		140.5		20.9		9.5		11.4
Benefits paid	(180.5)		(136.9)		(42.3)		(27.7)		(13.0)		(14.7)
Settlements	(96.6)		—		(96.6)		—		—		—
Other	(7.6)		(1.6)		(6.0)		—		—		—
PBO at December 31, 2019	$	2,718.2	$	1,323.4	$	1,371.4	$	264.3	$	138.7	$	125.6
Change in plan assets
Fair value of plan assets at January 1, 2019	$	1,603.4	$	804.6	$	798.8	$	223.3	$	109.7	$	113.6
Actual return on plan assets	284.0		130.5		153.5		30.0		20.0		10.0
Contributions by employer and participants	125.2		43.0		82.2		13.2		3.5		9.7
Benefits paid	(175.6)		(134.4)		(41.2)		(26.6)		(12.7)		(13.9)
Settlements	(96.6)		—		(96.6)		—		—		—
Other	(7.6)		(1.6)		(6.0)		—		—		—
Fair value of plan assets at December 31, 2019	$	1,732.8	$	842.1	$	890.7	$	239.9	$	120.5	$	119.4
Funded status at December 31, 2019	$	(985.4)	$	(481.3)	$	(480.7)	$	(24.4)	$	(18.2)	$	(6.2)

	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Amounts recognized in the consolidated balance sheets					(millions)
Non-current asset	$	—	$	—	$	—	$	15.0	$	—	$	15.0
Current pension and other post-retirement liability	(5.6)		(3.0)		(1.3)		(1.9)		(1.0)		(0.9)
Noncurrent pension liability and other post- retirement liability	(979.8)		(478.3)		(479.4)		(37.5)		(17.2)		(20.3)
Net amount recognized before regulatory treatment	(985.4)		(481.3)		(480.7)		(24.4)		(18.2)		(6.2)
Accumulated OCI or regulatory asset/liability	454.1		354.9		192.3		(4.4)		(2.9)		(13.0)
Net amount recognized at December 31, 2019	$	(531.3)	$	(126.4)	$	(288.4)	$	(28.8)	$	(21.1)	$	(19.2)
Amounts in accumulated OCI or regulatory asset/liability not yet recognized as a component of net periodic benefit cost:
Actuarial (gain) loss	$	439.7	$	342.3	$	189.4	$	(5.7)	$	(4.2)	$	(4.9)
Prior service cost	14.4		12.6		2.9		1.3		1.3		(8.1)
Net amount recognized at December 31, 2019	$	454.1	$	354.9	$	192.3	$	(4.4)	$	(2.9)	$	(13.0)

Actuarial losses for the Evergy Companies' pension benefit plans for 2020 and 2019 were primarily driven by a decrease in the discount rate used to measure the benefit obligation of approximately 70 basis points in each of 2020 and 2019 as a result of lower market interest rates.

As of December 31, 2020 and 2019, Evergy's pension benefits include non-qualified benefit obligations of $52.1 million and $49.4 million, respectively, which are funded by trusts containing assets of $46.3 million and $45.5 million, respectively. As of December 31, 2020 and 2019, Evergy Kansas Central's pension benefits include non-qualified benefit obligations of $27.0 million and $26.0 million, respectively, which are funded by trusts containing

assets of $32.7 million and $31.7 million, respectively. The assets in the aforementioned trusts are not included in the table above. See Note 14 for more information on these amounts.

	Pension Benefits						Post-Retirement Benefits
Year Ended December 31, 2020	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Components of net periodic benefit costs	(millions)
Service cost	$	78.9	$	27.1	$	51.8	$	2.7	$	1.1	$	1.6
Interest cost	96.8		47.0		49.1		9.2		4.8		4.4
Expected return on plan assets	(105.6)		(53.1)		(54.7)		(9.3)		(6.6)		(2.7)
Prior service cost	1.8		1.6		0.8		0.5		0.5		—
Recognized net actuarial (gain) loss	46.4		33.9		45.7		0.2		—		(0.6)
Settlement and special termination benefits	11.2		—		14.3		—		—		—
Net periodic benefit costs before regulatory adjustment and intercompany allocations	129.5		56.5		107.0		3.3		(0.2)		2.7
Regulatory adjustment	29.6		5.9		(11.6)		(4.0)		(3.0)		(0.2)
Intercompany allocations	n/a		(0.2)		(22.6)		n/a		0.1		(0.3)
Net periodic benefit costs (income)	159.1		62.2		72.8		(0.7)		(3.1)		2.2
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities
Current year net loss	169.7		80.4		89.3		8.2		3.9		4.3
Amortization of gain (loss)	(59.2)		(33.8)		(60.0)		(0.2)		—		0.6
Prior service cost	4.1		8.1		(3.9)		0.9		0.5		0.4
Amortization of prior service cost	(1.8)		(1.6)		(0.8)		(0.5)		(0.5)		—
Total recognized in OCI or regulatory asset/liability	112.8		53.1		24.6		8.4		3.9		5.3
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability	$	271.9	$	115.3	$	97.4	$	7.7	$	0.8	$	7.5

	Pension Benefits						Post-Retirement Benefits
Year Ended December 31, 2019	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Components of net periodic benefit costs	(millions)
Service cost	$	79.1	$	29.0	$	50.1	$	2.5	$	1.1	$	1.4
Interest cost	108.0		53.7		53.3		10.5		5.6		4.9
Expected return on plan assets	(106.3)		(54.8)		(48.9)		(10.0)		(6.7)		(3.3)
Prior service cost	1.9		1.7		0.9		0.5		0.5		—
Recognized net actuarial (gain) loss	33.0		25.5		49.8		(1.2)		(0.6)		(1.4)
Settlement and special termination benefits	15.6		—		23.0		—		—		—
Net periodic benefit costs before regulatory adjustment and intercompany allocations	131.3		55.1		128.2		2.3		(0.1)		1.6
Regulatory adjustment	37.4		3.0		(19.2)		(3.4)		(3.0)		0.4
Intercompany allocations	n/a		—		(34.4)		n/a		—		(0.4)
Net periodic benefit costs (income)	168.7		58.1		74.6		(1.1)		(3.1)		1.6
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities
Current year net (gain) loss	84.7		44.6		35.9		0.9		(3.8)		4.7
Amortization of gain (loss)	(48.6)		(25.5)		(72.8)		1.2		0.6		1.4
Amortization of prior service cost	(1.9)		(1.7)		(0.9)		(0.5)		(0.5)		—
Total recognized in OCI or regulatory asset/liability	34.2		17.4		(37.8)		1.6		(3.7)		6.1
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability	$	202.9	$	75.5	$	36.8	$	0.5	$	(6.8)	$	7.7

	Pension Benefits						Post-Retirement Benefits
Year Ended December 31, 2018	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Components of net periodic benefit costs	(millions)
Service cost	$	60.7	$	32.2	$	48.6	$	2.3	$	1.3	$	2.0
Interest cost	82.5		50.7		49.9		8.0		5.0		4.8
Expected return on plan assets	(86.4)		(55.9)		(55.5)		(8.8)		(7.0)		(2.8)
Prior service cost	0.7		0.7		0.7		0.5		0.5		0.1
Recognized net actuarial (gain) loss	32.6		32.6		45.1		(0.6)		(0.6)		(0.2)
Net periodic benefit costs before regulatory adjustment and intercompany allocations	90.1		60.3		88.8		1.4		(0.8)		3.9
Regulatory adjustment	8.3		8.8		0.7		(1.7)		(2.0)		(0.1)
Intercompany allocations	n/a		—		(21.6)		n/a		—		(1.1)
Net periodic benefit costs (income)	98.4		69.1		67.9		(0.3)		(2.8)		2.7
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities
Current year net (gain) loss	67.2		(13.2)		25.9		4.9		11.7		(14.0)
Amortization of gain (loss)	(32.6)		(32.6)		(45.1)		0.6		0.6		0.2
Prior service cost	13.4		11.4		2.0		—		—		—
Amortization of prior service cost	(0.7)		(0.7)		(0.7)		(0.5)		(0.5)		(0.1)
Total recognized in OCI or regulatory asset/liability	47.3		(35.1)		(17.9)		5.0		11.8		(13.9)
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability	$	145.7	$	34.0	$	50.0	$	4.7	$	9.0	$	(11.2)

For financial reporting purposes, the estimated prior service cost and net actuarial (gain) loss for the defined benefit plans are amortized from accumulated other comprehensive income (OCI) or a regulatory asset into net periodic benefit cost. The Evergy Companies amortize prior service cost on a straight-line basis over the average future service of the active employees (plan participants) benefiting under the plan. Evergy and Evergy Kansas Central amortize the net actuarial (gain) loss on a straight-line basis over the average future service of active plan participants benefiting under the plan without application of an amortization corridor. Evergy Metro amortizes the net actuarial (gain) loss on a rolling five-year average basis.

Pension and other post-retirement benefit plans with the PBO, accumulated benefit obligation (ABO) or accumulated other post-retirement benefit obligation (APBO) in excess of the fair value of plan assets at year-end are detailed in the following tables.

December 31, 2020	Evergy		Evergy Kansas Central		Evergy Metro
	(millions)
ABO for all defined benefit pension plans	$	2,534.1	$	1,281.6	$	1,227.4
Pension plans with the PBO in excess of plan assets
Projected benefit obligation	$	2,901.1	$	1,429.6	$	1,446.5
Fair value of plan assets	1,799.1		887.0		912.1
Pension plans with the ABO in excess of plan assets
Accumulated benefit obligation	$	2,534.1	$	1,281.6	$	1,227.4
Fair value of plan assets	1,799.1		887.0		912.1
Other post-retirement benefit plans with the APBO in excess of plan assets
Accumulated other post-retirement benefit obligation	$	280.4	$	146.8	$	133.6
Fair value of plan assets	248.3		125.8		122.5

December 31, 2019	Evergy		Evergy Kansas Central		Evergy Metro
	(millions)
ABO for all defined benefit pension plans	$	2,390.5	$	1,196.8	$	1,170.2
Pension plans with the PBO in excess of plan assets
Projected benefit obligation	$	2,718.2	$	1,323.4	$	1,371.4
Fair value of plan assets	1,732.8		842.1		890.7
Pension plans with the ABO in excess of plan assets
Accumulated benefit obligation	$	2,390.5	$	1,196.8	$	1,170.2
Fair value of plan assets	1,732.8		842.1		890.7
Other post-retirement benefit plans with the APBO in excess of plan assets
Accumulated other post-retirement benefit obligation	$	264.3	$	138.7	$	125.6
Fair value of plan assets	239.9		120.5		119.4

The expected long-term rate of return on plan assets represents the Evergy Companies' estimate of the long-term return on plan assets and is based on historical and projected rates of return for current and planned asset classes in the plans' investment portfolios. Assumed projected rates of return for each asset class were selected after analyzing historical experience and future expectations of the returns of various asset classes. Based on the target asset allocation for each asset class, the overall expected rate of return for the portfolios was developed and adjusted for the effect of projected benefits paid from plan assets and future plan contributions.

The following tables provide the weighted-average assumptions used to determine benefit obligations and net costs for the Evergy Companies' pension and post-retirement benefit plans.

Weighted-average assumptions used to determine the benefit obligation at December 31, 2020	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Discount rate	2.95	%	2.93	%	2.97	%	2.84	%	2.80	%	2.88	%
Rate of compensation increase	3.71	%	3.76	%	3.71	%	3.75	%	n/a		3.75	%
Interest crediting rate for cash balance plans	4.12	%	4.00	%	4.46	%	n/a		n/a		n/a
Weighted-average assumptions used to determine the benefit obligation at December 31, 2019	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Discount rate	3.62	%	3.61	%	3.64	%	3.56	%	3.54	%	3.58	%
Rate of compensation increase	3.74	%	3.78	%	3.71	%	3.75	%	n/a		3.75	%
Interest crediting rate for cash balance plans	4.32	%	4.21	%	4.50	%	n/a		n/a		n/a

Weighted-average assumptions used to determine net costs for the year ended December 31, 2020	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Discount rate	3.62	%	3.61	%	3.64	%	3.56	%	3.54	%	3.58	%
Expected long-term return on plan assets	6.63	%	6.70	%	6.56	%	4.19	%	6.00	%	2.37	%
Rate of compensation increase	3.74	%	3.75	%	3.71	%	3.75	%	n/a		3.75	%
Interest crediting rate for cash balance plans	4.32	%	4.21	%	4.50	%	n/a		n/a		n/a
Weighted-average assumptions used to determine net costs for the year ended December 31, 2019	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Discount rate	4.35	%	4.35	%	4.36	%	4.33	%	4.33	%	4.33	%
Expected long-term return on plan assets	6.61	%	6.75	%	6.47	%	4.44	%	6.00	%	2.94	%
Rate of compensation increase	3.76	%	4.03	%	3.64	%	3.50	%	n/a		3.50	%
Interest crediting rate for cash balance plans	4.32	%	4.21	%	4.50	%	n/a		n/a		n/a

Evergy expects to contribute $131.6 million to the pension plans in 2021 to meet Employee Retirement Income Security Act of 1974, as amended (ERISA) funding requirements and regulatory orders, of which $41.2 million is expected to be paid by Evergy Kansas Central and $90.4 million is expected to be paid by Evergy Metro. The Evergy Companies' funding policy is to contribute amounts sufficient to meet the ERISA funding requirements and MPSC and KCC rate orders plus additional amounts as considered appropriate; therefore, actual contributions may differ from expected contributions. Also in 2021, Evergy expects to contribute $4.1 million to the post-retirement benefit plans, of which $0.6 million is expected to be paid by Evergy Kansas Central and $3.5 million is expected to be paid by Evergy Metro.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid through 2030.

	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
	(millions)
2021	$	187.6	$	96.2	$	90.2	$	16.7	$	9.5	$	7.2
2022	189.6		95.5		92.8		16.4		9.3		7.1
2023	192.6		95.7		95.6		16.1		9.1		6.9
2024	193.2		95.2		96.7		15.7		8.8		6.9
2025	195.5		94.5		99.4		15.3		8.6		6.8
2026-2030	957.0		442.8		506.5		73.1		39.8		33.3

As of December 31, 2020, Evergy Kansas Central and Evergy Metro each maintained separate trusts for both their qualified pension and post-retirement benefits. These plans are managed in accordance with prudent investor guidelines contained in the ERISA requirements.

The primary objective of the Evergy Kansas Central pension plan is to provide a source of retirement income for its participants and beneficiaries, and the primary financial objective of the plan is to improve its funded status. The primary objective of the Evergy Kansas Central post-retirement benefit plan is growth in assets and the preservation of principal, while minimizing interim volatility, to meet anticipated claims of plan participants.

The primary objective of the Evergy Metro pension plans is to meet or exceed the target rate of return for the plan within a reasonable and prudent level of risk. The primary objective of the Evergy Metro post-retirement benefit plans is to preserve capital, maintain sufficient liquidity and earn a consistent rate of return.

The investment strategies of both the Evergy Kansas Central and Evergy Metro pension and post-retirement plans support the above objectives of the plans. The portfolios are invested, and periodically rebalanced, to achieve the targeted allocations detailed below. The following table provides the target asset allocations by asset class for the Evergy Kansas Central and Evergy Metro pension and other post-retirement plan assets. [to be updated]

	Pension Benefits		Post-Retirement Benefits
	Evergy Kansas Central	Evergy Metro	Evergy Kansas Central	Evergy Metro
Domestic equities	29%	30%	33%	3%
International equities	20%	24%	22%	—%
Bonds	36%	33%	45%	85%
Mortgage & asset backed securities	—%	—%	—%	4%
Real estate investments	4%	5%	—%	—%
Other investments	11%	9%	—%	7%

Fair Value Measurements

Evergy classifies recurring and non-recurring fair value measurements based on the fair value hierarchy as discussed in Note 14. The following are descriptions of the valuation methods of the primary fair value measurements disclosed below.

Domestic equities - consist of individually held domestic equity securities and domestic equity mutual funds. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1. Funds that are valued by fund administrators using the net asset value (NAV) per fund share, derived from the quoted prices in active markets of the underlying securities are not classified within the fair value hierarchy.

International equities - consist of individually held international equity securities and international equity mutual funds. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1. Funds that are valued by fund administrators using the NAV per fund share, derived from the quoted prices in active markets of the underlying securities are not classified within the fair value hierarchy.

Bond funds - consist of funds maintained by investment companies that invest in various types of fixed income securities consistent with the funds' stated objectives. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1. Funds that are valued by fund administrators using the NAV per fund share, derived from the quoted prices in active markets of the underlying securities, are not classified within the fair value hierarchy.

Corporate bonds - consists of individually held, primarily domestic, corporate bonds that are traded in less than active markets or priced with models using highly observable inputs that are categorized as Level 2.

U.S. Treasury and agency bonds - consists of individually held U.S. Treasury securities and U.S. agency bonds. U.S. Treasury securities, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as a Level 1. U.S. agency bonds, which are publicly quoted, are traded in less than active markets or priced with models using highly observable inputs and are categorized as Level 2.

Mortgage and asset backed securities - consists of individually held securities that are traded in less than active markets or valued with models using highly observable inputs that are categorized as Level 2.

Real estate investments - consists of traded real estate investment trusts valued at the closing price reported on the major market on which the trusts are traded and are categorized as Level 1 and institutional trust funds valued at NAV per fund share and are not categorized in the fair value hierarchy.

Combination debt/equity/other fund - consists of a fund that invests in various types of debt, equity and other asset classes consistent with the fund's stated objectives. The fund, which is publicly quoted, is valued based on quoted prices in active markets and is categorized as Level 1.

Alternative investments - consists of investments in institutional trust and hedge funds that are valued by fund administrators using the NAV per fund share, derived from the underlying investments of the fund, and are not classified within the fair value hierarchy.

Short-term investments - consists of fund investments in high-quality, short-term, U.S. dollar-denominated instruments with an average maturity of 60 days that are valued at NAV per fund share and are not categorized in the fair value hierarchy.

Cash and cash equivalents - consists of investments with original maturities of three months or less when purchased that are traded in active markets and are categorized as Level 1.

The fair values of the Evergy Companies' pension plan assets at December 31, 2020 and 2019, by asset category are in the following tables.

				Fair Value Measurements Using
Description	December 31 2020			Level 1			Level 2			Level 3			Assets measured at NAV
		(millions)
Evergy Kansas Central Pension Plans
Domestic equities		$	248.5		$	151.3		$	—		$	—		$	97.2
International equities		171.2			103.8			—			—			67.4
Bond funds		281.2			230.7			—			—			50.5
Real estate investments		46.7			—			—			—			46.7
Combination debt/equity/other fund		30.4			30.4			—			—			—
Alternative investment funds		83.6			—			—			—			83.6
Short-term investments		25.4			—			—			—			25.4
Total		$	887.0		$	516.2		$	—		$	—		$	370.8
Evergy Metro Pension Plans
Domestic equities		$	247.4		$	191.9		$	—		$	—		$	55.5
International equities		220.8			153.4			—			—			67.4
Bond funds		78.1			21.1			—			—			57.0
Corporate bonds		133.6			—			133.6			—			—
U.S. Treasury and agency bonds		73.8			61.5			12.3			—			—
Mortgage and asset backed securities		5.0			—			5.0			—			—
Real estate investments		40.2			1.6			—			—			38.6
Combination debt/equity/other fund		15.6			15.6			—			—			—
Alternative investment funds		39.7			—			—			—			39.7
Cash and cash equivalents		57.3			57.3			—			—			—
Short-term investments		1.4			—			—			—			1.4
Other		(0.8)			—			(0.8)			—			—
Total		$	912.1		$	502.4		$	150.1		$	—		$	259.6

				Fair Value Measurements Using
Description	December 31 2019			Level 1			Level 2			Level 3			Assets measured at NAV
		(millions)
Evergy Kansas Central Pension Plans
Domestic equities		$	233.8		$	150.6		$	—		$	—		$	83.2
International equities		162.4			101.5			—			—			60.9
Bond funds		281.7			233.0			—			—			48.7
Real estate investments		46.5			—			—			—			46.5
Combination debt/equity/other fund		30.1			30.1			—			—			—
Alternative investment funds		78.5			—			—			—			78.5
Short-term investments		9.1			—			—			—			9.1
Total		$	842.1		$	515.2		$	—		$	—		$	326.9
Evergy Metro Pension Plans
Domestic equities		$	244.8		$	195.3		$	—		$	—		$	49.5
International equities		178.7			117.7			—			—			61.0
Bond funds		71.0			15.6			—			—			55.4
Corporate bonds		123.9			—			123.9			—			—
U.S. Treasury and agency bonds		70.9			53.5			17.4			—			—
Mortgage and asset backed securities		5.7			—			5.7			—			—
Real estate investments		50.8			12.8			—			—			38.0
Combination debt/equity/other fund		11.9			11.9			—			—			—
Alternative investment funds		36.6			—			—			—			36.6
Cash and cash equivalents		92.9			92.9			—			—			—
Short-term investments		1.0			—			—			—			1.0
Other		2.5			—			2.5			—			—
Total		$	890.7		$	499.7		$	149.5		$	—		$	241.5

The fair values of the Evergy Companies' post-retirement plan assets at December 31, 2020 and 2019, by asset category are in the following tables.

				Fair Value Measurements Using
Description	December 31 2020			Level 1			Level 2			Level 3			Assets measured at NAV
		(millions)
Evergy Kansas Central Post-Retirement Benefit Plans
Domestic equities		$	41.9		$	—		$	—		$	—		$	41.9
International equities		27.7			—			—			—			27.7
Bond funds		55.5			—			—			—			55.5
Cash and cash equivalents		0.7			0.7			—			—			—
Total		$	125.8		$	0.7		$	—		$	—		$	125.1
Evergy Metro Post-Retirement Benefit Plans
Domestic equities		$	4.6		$	4.6		$	—		$	—		$	—
International equities		1.2			1.2			—			—			—
Bond funds		79.0			0.2			—			—			78.8
Corporate bonds		17.9			—			17.9			—			—
U.S. Treasury and agency bonds		13.6			5.7			7.9			—			—
Mortgage and asset backed securities		0.5			—			0.5			—			—
Cash and cash equivalents		5.4			5.4			—			—			—
Other		0.3			—			0.3			—			—
Total		$	122.5		$	17.1		$	26.6		$	—		$	78.8

				Fair Value Measurements Using
Description	December 31 2019			Level 1			Level 2			Level 3			Assets measured at NAV
		(millions)
Evergy Kansas Central Post-Retirement Benefit Plans
Domestic equities		$	40.5		$	—		$	—		$	—		$	40.5
International equities		26.0			—			—			—			26.0
Bond funds		52.9			—			—			—			52.9
Cash and cash equivalents		1.1			1.1			—			—			—
Total		$	120.5		$	1.1		$	—		$	—		$	119.4
Evergy Metro Post-Retirement Benefit Plans
Domestic equities		$	3.2		$	3.2		$	—		$	—		$	—
International equities		1.1			1.1			—			—			—
Bond funds		77.5			0.1			—			—			77.4
Corporate bonds		17.8			—			17.8			—			—
U.S. Treasury and agency bonds		11.5			4.1			7.4			—			—
Mortgage and asset backed securities		1.3			—			1.3			—			—
Cash and cash equivalents		6.7			6.7			—			—			—
Other		0.3			—			0.3			—			—
Total		$	119.4		$	15.2		$	26.8		$	—		$	77.4

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The cost trend assumptions are detailed in the following tables.

Assumed annual health care cost growth rates as of December 31, 2020	Evergy		Evergy Kansas Central		Evergy Metro
Health care cost trend rate assumed for next year	6.0	%	6.0	%	6.0	%
Rate to which the cost trend is assumed to decline (the ultimate trend rate)	4.5	%	4.5	%	4.5	%
Year that rate reaches ultimate trend	2027		2027		2027
Assumed annual health care cost growth rates as of December 31, 2019	Evergy		Evergy Kansas Central		Evergy Metro
Health care cost trend rate assumed for next year	6.3	%	6.3	%	6.3	%
Rate to which the cost trend is assumed to decline (the ultimate trend rate)	4.5	%	4.5	%	4.5	%
Year that rate reaches ultimate trend	2027		2027		2027

Employee Savings Plans

Evergy has defined contribution savings plans (401(k)) that cover substantially all employees. Evergy matches employee contributions, subject to limits. The annual costs of the plans are detailed in the following table. Evergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.

	2020		2019		2018
	(millions)
Evergy	$	17.4	$	17.6	$	16.3
Evergy Kansas Central	9.6		9.6		9.9
Evergy Metro	7.8		8.0		8.3