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Pensions and Other Postemployment Benefits
 9 Months Ended
Sep. 30, 2012
Compensation and Retirement Disclosure [Abstract]  
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
FirstEnergy provides noncontributory qualified defined benefit pension plans that cover substantially all of its employees and non-qualified pension plans that cover certain employees. The plans provide defined benefits based on years of service and compensation levels. In addition, FirstEnergy provides a minimum amount of noncontributory life insurance to retired employees in addition to optional contributory insurance. Health care benefits, which include certain employee contributions, deductibles and co-payments, are also available upon retirement to certain employees, their dependents and, under certain circumstances, their survivors. FirstEnergy recognizes the expected cost of providing pensions and OPEB to employees and their beneficiaries and covered dependents from the time employees are hired until they become eligible to receive those benefits. FirstEnergy also has obligations to former or inactive employees after employment, but before retirement, for disability-related benefits.
FirstEnergy’s pensions and OPEB funding policy is based on actuarial computations using the projected unit credit method. During the nine months ended September 30, 2012, FirstEnergy made a voluntary $600 million contribution to its qualified pension plan. No additional contributions are expected to be made in 2012.
The components of the consolidated net periodic cost for pensions and OPEB costs (including amounts capitalized) were as follows:
Components of Net Periodic Benefit Costs (Credits)
 
Pensions
 
OPEB
For the Three Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
 
 
(In millions)
Service cost
 
$
40

 
$
34

 
$
3

 
$
3

Interest cost
 
97

 
96

 
12

 
12

Expected return on plan assets
 
(121
)
 
(115
)
 
(9
)
 
(10
)
Amortization of prior service cost
 
3

 
4

 
(51
)
 
(51
)
Net periodic costs (credits)
 
$
19

 
$
19

 
$
(45
)
 
$
(46
)

Components of Net Periodic Benefit Costs (Credits)
 
Pensions
 
OPEB
For the Nine Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
 
 
(In millions)
Service cost
 
$
120

 
$
97

 
$
9

 
$
9

Interest cost
 
291

 
276

 
36

 
35

Expected return on plan assets
 
(363
)
 
(332
)
 
(27
)
 
(30
)
Amortization of prior service cost
 
9

 
12

 
(153
)
 
(150
)
Other adjustments (settlements, curtailments, etc)
 
—

 
7

 
—

 
—

Net periodic costs (credits)
 
$
57

 
$
60

 
$
(135
)
 
$
(136
)


Pension and OPEB obligations are allocated to the FE subsidiaries that employ the plan participants. The net periodic pension and OPEB costs (net of amounts capitalized) recognized in earnings by FE and its subsidiaries were as follows:
Net Periodic Benefit Costs (Credits)
 
Pensions
 
OPEB
For the Three Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
 
 
(In millions)
FirstEnergy
 
$
14

 
$
14

 
$
(30
)
 
$
(31
)
FES
 
12

 
7

 
(8
)
 
(8
)
OE
 
(1
)
 
(2
)
 
(5
)
 
(5
)
JCP&L
 
(2
)
 
(3
)
 
(3
)
 
(2
)

Net Periodic Benefit Costs (Credits)
 
Pensions
 
OPEB
For the Nine Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
 
 
(In millions)
FirstEnergy
 
$
41

 
$
48

 
$
(92
)
 
$
(97
)
FES
 
33

 
21

 
(24
)
 
(24
)
OE
 
(3
)
 
(6
)
 
(16
)
 
(16
)
JCP&L
 
(5
)
 
(8
)
 
(7
)
 
(7
)