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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]  
Employee Benefit Plans Employee Benefit Plans
Defined Benefit Plans

Domestic Operations

PacifiCorp, MidAmerican Energy and NV Energy sponsor defined benefit pension plans that cover a majority of all employees of BHE and its domestic energy subsidiaries. These pension plans include noncontributory defined benefit pension plans, supplemental executive retirement plans ("SERP") and restoration plans. PacifiCorp, MidAmerican Energy and NV Energy also provide certain postretirement healthcare and life insurance benefits through various plans to eligible retirees.

On November 1, 2020, BHE completed its acquisition of substantially all of the natural gas transmission and storage business of DEI and Dominion Questar, exclusive of the Questar Pipeline Group (the "GT&S Transaction"). Defined benefit pension and postretirement benefits provided to the employees of BHE GT&S, which were part of the GT&S Transaction completed on November 1, 2020, are administered in the respective plans sponsored by MidAmerican Energy. Initial pension and postretirement plan liabilities of $81 million and $37 million, respectively, resulted from the GT&S Transaction.

Net Periodic Benefit Cost

For purposes of calculating the expected return on plan assets, a market-related value is used. The market-related value of plan assets is generally calculated by spreading the difference between expected and actual investment returns over a five-year period beginning after the first year in which they occur.
Net periodic benefit cost (credit) for the plans included the following components for the years ended December 31 (in millions):
PensionOther Postretirement
202120202019202120202019
Service cost$30 $17 $16 $12 $7 $8 
Interest cost78 93 111 19 21 27 
Expected return on plan assets(134)(140)(154)(22)(34)(40)
Settlement3 — — — — — 
Net amortization25 32 31 (3)(4)(6)
Net periodic benefit cost (credit)$2 $2 $4 $6 $(10)$(11)

Funded Status

The following table is a reconciliation of the fair value of plan assets for the years ended December 31 (in millions):
PensionOther Postretirement
2021202020212020
Plan assets at fair value, beginning of year$2,824 $2,656 $744 $742 
Employer contributions13 13 14 3 
Participant contributions— — 9 8 
Actual return on plan assets234 373 53 40 
Settlement(134)— — — 
Benefits paid (142)(218)(51)(49)
Plan assets at fair value, end of year$2,795 $2,824 $769 $744 

The following table is a reconciliation of the benefit obligations for the years ended December 31 (in millions):
PensionOther Postretirement
2021202020212020
Benefit obligation, beginning of year$3,077 $2,878 $758 $673 
Service cost30 17 12 7 
Interest cost78 93 19 21 
Participant contributions— — 9 8 
Actuarial (gain) loss(132)226 (35)61 
Amendment— — 2 — 
Settlement(134)— — — 
Acquisition— 81 — 37 
Benefits paid(142)(218)(51)(49)
Benefit obligation, end of year$2,777 $3,077 $714 $758 
Accumulated benefit obligation, end of year$2,713 $2,999 
The funded status of the plans and the amounts recognized on the Consolidated Balance Sheets as of December 31 are as follows (in millions):
PensionOther Postretirement
2021202020212020
Plan assets at fair value, end of year$2,795 $2,824 $769 $744 
Benefit obligation, end of year2,777 3,077 714 758 
Funded status$18 $(253)$55 $(14)
Amounts recognized on the Consolidated Balance Sheets:
Other assets$204 $43 $60 $20 
Other current liabilities(13)(13)— — 
Other long-term liabilities(173)(283)(5)(34)
Amounts recognized$18 $(253)$55 $(14)

The SERPs and restoration plan have no plan assets; however, the Company has Rabbi trusts that hold corporate-owned life insurance and other investments to provide funding for the future cash requirements of the SERPs and restoration plan. The cash surrender value of all of the policies included in the Rabbi trusts, net of amounts borrowed against the cash surrender value, plus the fair market value of other Rabbi trust investments, was $343 million and $303 million as of December 31, 2021 and 2020, respectively. These assets are not included in the plan assets in the above table, but are reflected in noncurrent investments and restricted cash and investments on the Consolidated Balance Sheets.

The fair value of plan assets, projected benefit obligation and accumulated benefit obligation for (1) pension and other postretirement benefit plans with a projected benefit obligation in excess of the fair value of plan assets and (2) pension plans with an accumulated benefit obligation in excess of the fair value of plan assets as of December 31 are as follows (in millions):
PensionOther Postretirement
2021202020212020
Fair value of plan assets$— $1,782 $137 $417 
Projected benefit obligation$186 $2,069 $142 $451 
Fair value of plan assets$— $1,064 
Accumulated benefit obligation$185 $1,341 

Unrecognized Amounts

The portion of the funded status of the plans not yet recognized in net periodic benefit cost as of December 31 is as follows (in millions):
PensionOther Postretirement
2021202020212020
Net loss (gain)$343 $612 $(34)$34 
Prior service credit(1)(1)(1)(9)
Regulatory deferrals11 2 2 3 
Total$353 $613 $(33)$28 
A reconciliation of the amounts not yet recognized as components of net periodic benefit cost for the years ended December 31, 2021 and 2020 is as follows (in millions):
Accumulated
Other
RegulatoryRegulatoryComprehensive
AssetLiabilityLossTotal
Pension
Balance, December 31, 2019$661 $(33)$24 $652 
Net (gain) loss arising during the year(30)13 10 (7)
Net amortization(31)— (1)(32)
Total(61)13 9 (39)
Balance, December 31, 2020600 (20)33 613 
Net gain arising during the year(177)(44)(10)(231)
Settlement(9)5 — (4)
Net amortization(24)— (1)(25)
Total(210)(39)(11)(260)
Balance, December 31, 2021$390 $(59)$22 $353 

Accumulated
Other
RegulatoryRegulatoryComprehensive
AssetLiabilityLossTotal
Other Postretirement
Balance, December 31, 2019$4 $(32)$(3)$(31)
Net loss arising during the year36 12 7 55 
Net amortization7 (3)— 4 
Total43 9 7 59 
Balance, December 31, 202047 (23)4 28 
Net gain arising during the year(40)(22)(3)(65)
Net prior service cost arising during the year1 — — 1 
Net amortization3 — — 3 
Total(36)(22)(3)(61)
Balance, December 31, 2021$11 $(45)$1 $(33)
    
Plan Assumptions

Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost were as follows:

PensionOther Postretirement
202120202019202120202019
Benefit obligations as of December 31:
Discount rate2.98 %2.60 %3.32 %2.95 %2.59 %3.24 %
Rate of compensation increase2.75 %2.75 %2.75 %N/AN/AN/A
Interest crediting rates for cash balance plan
2019N/AN/A3.22 %N/AN/AN/A
2020N/A2.44 %2.94 %N/AN/AN/A
20212.45 %2.25 %2.94 %N/AN/AN/A
20222.56 %2.25 %3.02 %N/AN/AN/A
20232.56 %2.65 %3.02 %N/AN/AN/A
2024 and beyond2.83 %2.65 %3.02 %N/AN/AN/A
Net periodic benefit cost for the years ended December 31:
Discount rate2.60 %3.32 %4.25 %2.59 %3.24 %4.21 %
Expected return on plan assets5.39 %5.94 %6.48 %3.35 %5.42 %6.39 %
Rate of compensation increase2.75 %2.75 %2.75 %N/AN/AN/A
Interest crediting rate for cash balance plan2.45 %2.44 %3.22 %N/AN/AN/A

In establishing its assumption as to the expected return on plan assets, the Company utilizes the asset allocation and return assumptions for each asset class based on historical performance and forward-looking views of the financial markets.
20212020
Assumed healthcare cost trend rates as of December 31:
Healthcare cost trend rate assumed for next year6.00 %6.30 %
Rate that the cost trend rate gradually declines to 5.00 %5.00 %
Year that the rate reaches the rate it is assumed to remain at20252025

Contributions and Benefit Payments

Employer contributions to the pension and other postretirement benefit plans are expected to be $13 million and $5 million, respectively, during 2022. Funding to the established pension trusts is based upon the actuarially determined costs of the plans and the requirements of the IRC, the Employee Retirement Income Security Act of 1974 and the Pension Protection Act of 2006, as amended. The Company considers contributing additional amounts from time to time in order to achieve certain funding levels specified under the Pension Protection Act of 2006, as amended. The Company evaluates a variety of factors, including funded status, income tax laws and regulatory requirements, in determining contributions to its other postretirement benefit plans.
The expected benefit payments to participants in the Company's pension and other postretirement benefit plans for 2022 through 2026 and for the five years thereafter are summarized below (in millions):
Projected Benefit
Payments
Other
PensionPostretirement
2022$210 $54 
2023203 54 
2024195 54 
2025193 53 
2026193 51 
2027-2031837 229 

Plan Assets

Investment Policy and Asset Allocations

The Company's investment policy for its pension and other postretirement benefit plans is to balance risk and return through a diversified portfolio of debt securities, equity securities and other alternative investments. Maturities for debt securities are managed to targets consistent with prudent risk tolerances. The plans retain outside investment advisors to manage plan investments within the parameters outlined by the Berkshire Hathaway Energy Company Investment Committee. The investment portfolio is managed in line with the investment policy with sufficient liquidity to meet near-term benefit payments.

The target allocations (percentage of plan assets) for the Company's pension and other postretirement benefit plan assets are as follows as of December 31, 2021:
Other
PensionPostretirement
%%
PacifiCorp:
Debt securities(1)
55-85
70-80
Equity securities(1)
25-35
20-30
Limited partnership interests
0-10
0-1
MidAmerican Energy:
Debt securities(1)
60-80
25-35
Equity securities(1)
20-40
65-75
Other
0-15
0-5
NV Energy:
Debt securities(1)
85-100
67-88
Equity securities(1)
0-15
12-33

(1)For purposes of target allocation percentages and consistent with the plans' investment policy, investment funds are allocated based on the underlying investments in debt and equity securities.
Fair Value Measurements

The following table presents the fair value of plan assets, by major category, for the Company's defined benefit pension plans (in millions):
Input Levels for Fair Value Measurements(1)
Level 1Level 2Total
As of December 31, 2021:
Cash equivalents$— $64 $64 
Debt securities:
United States government obligations142 — 142 
Corporate obligations— 912 912 
Municipal obligations— 66 66 
Agency, asset and mortgage-backed obligations— 93 93 
Equity securities:
United States companies135 — 135 
Total assets in the fair value hierarchy$277 $1,135 1,412 
Investment funds(2) measured at net asset value
1,349 
Limited partnership interests(3) measured at net asset value
34 
Total assets measured at fair value$2,795 
As of December 31, 2020:
Cash equivalents$— $79 $79 
Debt securities:
United States government obligations52 — 52 
Corporate obligations— 748 748 
Municipal obligations— 69 69 
Equity securities:
United States companies224 — 224 
Total assets in the fair value hierarchy$276 $896 1,172 
Investment funds(2) measured at net asset value
1,521 
Limited partnership interests(3) measured at net asset value
88 
Real estate funds measured at net asset value43 
Total assets measured at fair value$2,824 

(1)Refer to Note 15 for additional discussion regarding the three levels of the fair value hierarchy.
(2)Investment funds are comprised of mutual funds and collective trust funds. These funds consist of equity and debt securities of approximately 54% and 46%, respectively, for 2021 and 69% and 31%, respectively, for 2020. Additionally, these funds are invested in United States and international securities of approximately 89% and 11%, respectively, for 2021 and 79% and 21%, respectively, for 2020.
(3)Limited partnership interests include several funds that invest primarily in real estate, buyout, growth equity and venture capital.
The following table presents the fair value of plan assets, by major category, for the Company's defined benefit other postretirement plans (in millions):
Input Levels for Fair Value Measurements(1)
Level 1Level 2Total
As of December 31, 2021:
Cash equivalents$12 $4 $16 
Debt securities:
United States government obligations27 — 27 
Corporate obligations— 85 85 
Municipal obligations— 43 43 
Agency, asset and mortgage-backed obligations— 38 38 
Equity securities:
United States companies4 — 4 
Investment funds(2)
394 — 394 
Total assets in the fair value hierarchy$437 $170 607 
Investment funds(2) measured at net asset value
161 
Limited partnership interests(3) measured at net asset value
1 
Total assets measured at fair value$769 
As of December 31, 2020:
Cash equivalents$20 $2 $22 
Debt securities:
United States government obligations15 — 15 
Corporate obligations— 102 102 
Municipal obligations— 82 82 
Agency, asset and mortgage-backed obligations— 47 47 
Equity securities:
United States companies6 — 6 
Investment funds(2)
299 — 299 
Total assets in the fair value hierarchy$340 $233 573 
Investment funds(2) measured at net asset value
167 
Limited partnership interests(3) measured at net asset value
4 
Total assets measured at fair value$744 

(1)Refer to Note 15 for additional discussion regarding the three levels of the fair value hierarchy.
(2)Investment funds are comprised of mutual funds and collective trust funds. These funds consist of equity and debt securities of approximately 55% and 45%, respectively, for 2021 and 40% and 60%, respectively, for 2020. Additionally, these funds are invested in United States and international securities of approximately 88% and 12%, respectively, for 2021 and 79% and 21%, respectively, for 2020.
(3)Limited partnership interests include several funds that invest primarily in real estate, buyout, growth equity and venture capital.

For level 1 investments, a readily observable quoted market price or net asset value of an identical security in an active market is used to record the fair value. For level 2 investments, the fair value is determined using pricing models based on observable market inputs. Shares of mutual funds not registered under the Securities Act of 1933, private equity limited partnership interests, common and commingled trust funds and investment entities are reported at fair value based on the net asset value per unit, which is used for expedience purposes. A fund's net asset value is based on the fair value of the underlying assets held by the fund less its liabilities.
Foreign Operations

Certain wholly-owned subsidiaries of Northern Powergrid participate in the Northern Powergrid group of the United Kingdom industry-wide Electricity Supply Pension Scheme (the "UK Plan"), which provides pension and other related defined benefits, based on final pensionable pay, to the employees of Northern Powergrid. The UK Plan is closed to employees hired after July 23, 1997. Employees hired after that date are covered by a defined contribution plan sponsored by a wholly-owned subsidiary of Northern Powergrid.

Net Periodic Benefit Cost

For purposes of calculating the expected return on pension plan assets, a market-related value is used. The market-related value of plan assets is calculated by including the difference between expected and actual investment returns after the first year in which they occur.

Net periodic benefit cost for the UK Plan included the following components for the years ended December 31 (in millions):

202120202019
Service cost$16 $16 $16 
Interest cost31 40 49 
Expected return on plan assets(111)(101)(100)
Settlement10 17 26 
Net amortization55 43 46 
Net periodic benefit cost$1 $15 $37 
    
Funded Status

The following table is a reconciliation of the fair value of plan assets for the years ended December 31 (in millions):
20212020
Plan assets at fair value, beginning of year$2,334 $2,151 
Employer contributions28 56 
Participant contributions1 1 
Actual return on plan assets148 181 
Settlement(51)(63)
Benefits paid(72)(67)
Foreign currency exchange rate changes(25)75 
Plan assets at fair value, end of year$2,363 $2,334 
The following table is a reconciliation of the benefit obligation for the years ended December 31 (in millions):
20212020
Benefit obligation, beginning of year$2,205 $2,019 
Service cost16 16 
Interest cost31 40 
Participant contributions1 1 
Actuarial (gain) loss(105)188 
Settlement(51)(63)
Benefits paid(72)(67)
Foreign currency exchange rate changes(22)71 
Benefit obligation, end of year$2,003 $2,205 
Accumulated benefit obligation, end of year$1,778 $1,963 

The funded status of the UK Plan and the amounts recognized on the Consolidated Balance Sheets as of December 31 are as follows (in millions):
20212020
Plan assets at fair value, end of year$2,363 $2,334 
Benefit obligation, end of year2,003 2,205 
Funded status$360 $129 
Amounts recognized on the Consolidated Balance Sheets:
Other assets$360 $129 

Unrecognized Amounts

The portion of the funded status of the UK Plan not yet recognized in net periodic benefit cost as of December 31 is as follows (in millions):
20212020
Net loss$400 $612 
Prior service cost5 6 
Total$405 $618 

A reconciliation of the amounts not yet recognized as components of net periodic benefit cost, which are included in accumulated other comprehensive loss on the Consolidated Balance Sheets, for the years ended December 31 is as follows (in millions):
20212020
Balance, beginning of year$618 $549 
Net loss arising during the year(143)108 
Settlement(10)(17)
Net amortization(55)(43)
Foreign currency exchange rate changes(5)21 
Total (213)69 
Balance, end of year$405 $618 
Plan Assumptions

Assumptions used to determine benefit obligations and net periodic benefit cost were as follows:
202120202019
Benefit obligations as of December 31:
Discount rate1.95 %1.40 %2.10 %
Rate of compensation increase3.45 %3.05 %3.30 %
Rate of future price inflation2.95 %2.55 %2.80 %
Net periodic benefit cost for the years ended December 31:
Discount rate1.40 %2.10 %2.90 %
Expected return on plan assets4.85 %5.00 %5.10 %
Rate of compensation increase3.05 %3.30 %3.55 %
Rate of future price inflation2.55 %2.80 %3.05 %
    
Contributions and Benefit Payments

Employer contributions to the UK Plan are expected to be £12 million during 2022. The expected benefit payments to participants in the UK Plan for 2022 through 2026 and for the five years thereafter, excluding lump sum settlement elections and using the foreign currency exchange rate as of December 31, 2021, are summarized below (in millions):
2022$73 
202375 
202477 
202579 
202681 
2027-2031436 
    
Plan Assets

Investment Policy and Asset Allocations

The investment policy for the UK Plan is to balance risk and return through a diversified portfolio of debt securities, equity securities, real estate and other asset classes. Maturities for debt securities are managed to targets consistent with prudent risk tolerances. The UK Plan retains outside investment advisors to manage plan investments within the parameters set by the trustees of the UK Plan in consultation with Northern Powergrid. The investment portfolio is managed in line with the investment policy with sufficient liquidity to meet near-term benefit payments. The return on assets assumption is based on a weighted-average of the expected historical performance for the types of assets in which the UK Plan invests.

The target allocations (percentage of plan assets) for the UK Plan assets are as follows as of December 31, 2021:
%
Debt securities(1)
60-70
Equity securities(1)
10-20
Real estate funds and other
15-25

(1)For purposes of target allocation percentages and consistent with the plans' investment policy, investment funds have been allocated based on the underlying investments in debt and equity securities.
Fair Value Measurements

The following table presents the fair value of the UK Plan assets, by major category (in millions):
Input Levels for Fair Value Measurements(1)
Level 1Level 2Level 3Total
As of December 31, 2021:
Cash equivalents$5 $27 $— $32 
Debt securities:
United Kingdom government obligations1,308 — — 1,308 
Equity securities:
Investment funds(2)
— 646 — 646 
Real estate funds— — 269 269 
Total$1,313 $673 $269 2,255 
Investment funds(2) measured at net asset value
108 
Total assets measured at fair value$2,363 
As of December 31, 2020:
Cash equivalents$5 $49 $— $54 
Debt securities:
United Kingdom government obligations1,102 — — 1,102 
Equity securities:
Investment funds(2)
— 833 — 833 
Real estate funds— — 237 237 
Total$1,107 $882 $237 2,226 
Investment funds(2) measured at net asset value
108 
Total assets measured at fair value$2,334 

(1)Refer to Note 15 for additional discussion regarding the three levels of the fair value hierarchy.
(2)Investment funds are comprised of mutual funds and collective trust funds. These funds consist of equity and debt securities of approximately 23% and 77%, respectively, for 2021 and 40% and 60%, respectively, for 2020.

The fair value of the UK Plan's assets are determined similar to the plan assets of the domestic plans as previously discussed.

The following table reconciles the beginning and ending balances of the UK Plan assets measured at fair value using significant Level 3 inputs for the years ended December 31 (in millions):
Real Estate Funds
202120202019
Beginning balance$237 $243 $239 
Actual return on plan assets still held at period end 35 (13)(5)
Foreign currency exchange rate changes(3)7 9 
Ending balance$269 $237 $243 

Defined Contribution Plans

The Company sponsors various defined contribution plans covering substantially all employees. The Company's contributions vary depending on the plan, but matching contributions are based on each participant's level of contribution, and certain participants receive contributions based on eligible pre-tax annual compensation. Contributions cannot exceed the maximum allowable for tax purposes. The Company's contributions to these plans were $137 million, $127 million and $115 million for the years ended December 31, 2021, 2020 and 2019, respectively.
PAC  
Defined Benefit Plan Disclosure [Line Items]  
Employee Benefit Plans Employee Benefit Plans
PacifiCorp sponsors defined benefit pension and other postretirement benefit plans that cover certain of its employees, as well as a defined contribution 401(k) employee savings plan ("401(k) Plan"). In addition, PacifiCorp contributes to a joint trustee pension plan and a subsidiary previously contributed to a multiemployer pension plan for benefits offered to certain bargaining units.

Defined Benefit Plans

PacifiCorp's pension plans include non-contributory defined benefit pension plans, collectively the PacifiCorp Retirement Plan ("Retirement Plan"), and the Supplemental Executive Retirement Plan ("SERP"). The Retirement Plan is closed to all non-union employees hired after January 1, 2008. All non-union Retirement Plan participants hired prior to January 1, 2008 that did not elect to receive equivalent fixed contributions to the 401(k) Plan effective January 1, 2009 earned benefits based on a cash balance formula through December 31, 2016. Effective January 1, 2017, non-union employee participants with a cash balance benefit in the Retirement Plan are no longer eligible to receive pay credits in their cash balance formula. In general for union employees, benefits under the Retirement Plan were frozen at various dates from December 31, 2007 through December 31, 2011 as they are now being provided with enhanced 401(k) Plan benefits. However, certain limited union Retirement Plan participants continue to earn benefits under the Retirement Plan based on the employee's years of service and a final average pay formula. The SERP was closed to new participants as of March 21, 2006 and froze future accruals for active participants as of December 31, 2014.

PacifiCorp's other postretirement benefit plan provides healthcare and life insurance benefits to eligible retirees.

Pension Settlement

Pension settlement accounting was triggered in 2021 as a result of the amount of lump sum distributions in the Retirement Plan during 2021 exceeding the service and interest cost threshold. This resulted in an interim July 31, 2021 remeasurement of the pension plan assets and projected benefit obligation. As a result of the settlement accounting, PacifiCorp recognized settlement losses of $6 million, net of regulatory deferrals during the year ended December 31, 2021.

Net Periodic Benefit Cost

For purposes of calculating the expected return on plan assets, a market-related value is used. The market-related value of plan assets is calculated by spreading the difference between expected and actual investment returns over a five-year period beginning after the first year in which they occur.

Net periodic benefit cost (credit) for the plans included the following components for the years ended December 31 (in millions):
PensionOther Postretirement
202120202019202120202019
Service cost$— $— $— $2 $2 $2 
Interest cost29 36 44 7 9 12 
Expected return on plan assets(51)(56)(67)(9)(14)(21)
Settlement6 — — — — — 
Net amortization21 18 11 1 3 — 
Net periodic benefit cost (credit)$5 $(2)$(12)$1 $— $(7)
Funded Status

The following table is a reconciliation of the fair value of plan assets for the years ended December 31 (in millions):
PensionOther Postretirement
2021202020212020
Plan assets at fair value, beginning of year$1,064 $1,036 $327 $334 
Employer contributions(1)
5 5 1 — 
Participant contributions— — 6 4 
Actual return on plan assets109 124 14 15 
Settlement(2)
(52)— — — 
Benefits paid(68)(101)(24)(26)
Plan assets at fair value, end of year$1,058 $1,064 $324 $327 
(1)Amounts represent employer contributions to the SERP.

(2)Benefits paid in the form of lump sum distributions that gave rise to the settlement accounting described above.

The following table is a reconciliation of the benefit obligations for the years ended December 31 (in millions):
PensionOther Postretirement
2021202020212020
Benefit obligation, beginning of year$1,202 $1,167 $307 $304 
Service cost
— — 2 2 
Interest cost
29 36 7 9 
Participant contributions— — 6 4 
Actuarial (gain) loss(63)100 (10)14 
Settlement(1)
(52)— — — 
Benefits paid(68)(101)(24)(26)
Benefit obligation, end of year$1,048 $1,202 $288 $307 
Accumulated benefit obligation, end of year$1,048 $1,202 
(1)Benefits paid in the form of lump sum distributions that gave rise to the settlement accounting described above.


The funded status of the plans and the amounts recognized on the Consolidated Balance Sheets as of December 31 are as follows (in millions):
PensionOther Postretirement
2021202020212020
Plan assets at fair value, end of year$1,058 $1,064 $324 $327 
Less - Benefit obligation, end of year
1,048 1,202 288 307 
Funded status$10 $(138)$36 $20 
Amounts recognized on the Consolidated Balance Sheets:
Other assets$63 $8 $36 $20 
Accrued employee expenses(4)(4)— — 
Other long-term liabilities(49)(142)— — 
Amounts recognized$10 $(138)$36 $20 
The SERP has no plan assets; however, PacifiCorp has a Rabbi trust that holds corporate-owned life insurance and other investments to provide funding for the future cash requirements of the SERP. The cash surrender value of all of the policies included in the Rabbi trust, net of amounts borrowed against the cash surrender value, plus the fair market value of other Rabbi trust investments, was $69 million and $61 million as of December 31, 2021 and 2020, respectively. These assets are not included in the plan assets in the above table, but are reflected in noncurrent other assets as of December 31, 2021 and 2020, respectively, on the Consolidated Balance Sheets.

As of December 31, 2021, the fair value of the plan assets for the Retirement Plan was in excess of both the projected benefit obligation and the accumulated benefit obligation.

Unrecognized Amounts

The portion of the funded status of the plans not yet recognized in net periodic benefit cost as of December 31 is as follows (in millions):
PensionOther Postretirement
2021202020212020
Net loss (gain)$298 $455 $(28)$(13)
Regulatory deferrals(1)
11 2 2 3 
Total$309 $457 $(26)$(10)
(1)Includes $9 million of deferrals associated with 2021 pension settlement losses.

A reconciliation of the amounts not yet recognized as components of net periodic benefit cost for the years ended December 31, 2021 and 2020 is as follows (in millions):
Accumulated
Other
RegulatoryComprehensive
AssetLossTotal
Pension
Balance, December 31, 2019$422 $21 $443 
Net loss arising during the year27 5 32 
Net amortization(17)(1)(18)
Total10 4 14 
Balance, December 31, 2020432 25 457 
Net gain arising during the year(120)(1)(121)
Net amortization(20)(1)(21)
Settlement(6)— (6)
Total(146)(2)(148)
Balance, December 31, 2021$286 $23 $309 
Regulatory
Liability
Other Postretirement
Balance, December 31, 2019$(20)
Net loss arising during the year13 
Net amortization(3)
Total10 
Balance, December 31, 2020(10)
Net gain arising during the year(15)
Net amortization(1)
Total(16)
Balance, December 31, 2021$(26)

Plan Assumptions

Assumptions used to determine benefit obligations and net periodic benefit cost were as follows:
PensionOther Postretirement
202120202019202120202019
Benefit obligations as of December 31:
Discount rate2.90 %2.50 %3.25 %2.90 %2.50 %3.20 %
Rate of compensation increaseN/AN/AN/AN/AN/AN/A
Interest crediting rates for cash balance plan - non-union
2019N/AN/A3.40 %N/AN/AN/A
2020N/A2.27 %2.27 %N/AN/AN/A
20210.82 %0.82 %2.27 %N/AN/AN/A
20220.88 %0.82 %2.10 %N/AN/AN/A
20230.88 %2.00 %2.10 %N/AN/AN/A
2024 and beyond1.90 %2.00 %2.10 %N/AN/AN/A
Interest crediting rates for cash balance plan - union
2019N/AN/A3.15 %N/AN/AN/A
2020N/A2.16 %2.16 %N/AN/AN/A
20211.42 %1.42 %2.16 %N/AN/AN/A
20221.94 %1.42 %2.70 %N/AN/AN/A
20231.94 %2.40 %2.70 %N/AN/AN/A
2024 and beyond2.30 %2.40 %2.70 %N/AN/AN/A
Net periodic benefit cost for the years ended December 31:
Discount rate2.50 %3.25 %4.25 %2.50 %3.20 %4.25 %
Expected return on plan assets6.00 6.50 7.00 2.90 4.92 6.86 

In establishing its assumption as to the expected return on plan assets, PacifiCorp utilizes the asset allocation and return assumptions for each asset class based on historical performance and forward-looking views of the financial markets.

As a result of a plan amendment effective on January 1, 2017, the benefit obligation for the Retirement Plan is no longer affected by future increases in compensation. As a result of a labor settlement reached with UMWA in December 2014, the benefit obligation for the other postretirement plan is no longer affected by healthcare cost trends.
Contributions and Benefit Payments

Employer contributions to the pension and other postretirement benefit plans are expected to be $4 million and $— million, respectively, during 2022. Funding to PacifiCorp's Retirement Plan trust is based upon the actuarially determined costs of the plan and the requirements of the Internal Revenue Code, the Employee Retirement Income Security Act of 1974 ("ERISA") and the Pension Protection Act of 2006, as amended ("PPA of 2006"). PacifiCorp considers contributing additional amounts from time to time in order to achieve certain funding levels specified under the PPA of 2006. PacifiCorp evaluates a variety of factors, including funded status, income tax laws and regulatory requirements, in determining contributions to its other postretirement benefit plan.

The expected benefit payments to participants in PacifiCorp's pension and other postretirement benefit plans for 2022 through 2026 and for the five years thereafter are summarized below (in millions):
Projected Benefit Payments
PensionOther Postretirement
2022$96 $24 
202385 23 
202479 22 
202576 21 
202671 20 
2027-2031304 87 

Plan Assets

Investment Policy and Asset Allocations

PacifiCorp's investment policy for its pension and other postretirement benefit plans is to balance risk and return through a diversified portfolio of debt securities, equity securities and other alternative investments. Maturities for debt securities are managed to targets consistent with prudent risk tolerances. The plans retain outside investment advisors to manage plan investments within the parameters outlined by the Berkshire Hathaway Energy Company Investment Committee. The investment portfolio is managed in line with the investment policy with sufficient liquidity to meet near-term benefit payments.

In 2020, the assets of the PacifiCorp Master Retirement Trust were transferred into the BHE Master Retirement Trust.

The target allocations (percentage of plan assets) for PacifiCorp's pension and other postretirement benefit plan assets are as follows as of December 31, 2021:
Pension(1)
Other Postretirement(1)
%%
Debt securities(2)
55 - 85
70 - 80
Equity securities(2)
25- 35
20 - 30
Other
0 - 10
0 - 1

(1)The trust in which the PacifiCorp Retirement Plan is invested includes a separate account that is used to fund benefits for the other postretirement benefit plan. In addition to this separate account, the assets for the other postretirement benefit plan are held in Voluntary Employees' Beneficiary Association ("VEBA") trusts, each of which has its own investment allocation strategies. Target allocations for the other postretirement benefit plan include the separate account of the Retirement Plan trust and the VEBA trusts.
(2)For purposes of target allocation percentages and consistent with the plans' investment policy, investment funds are allocated based on the underlying investments in debt and equity securities.
Fair Value Measurements

The following table presents the fair value of plan assets, by major category, for PacifiCorp's defined benefit pension plan (in millions):
Input Levels for Fair Value Measurements
Level 1(1)
Level 2(1)
Level 3(1)
Total
As of December 31, 2021:
Cash equivalents$— $15 $— $15 
Debt securities:
United States government obligations51 — — 51 
Corporate obligations— 299 — 299 
Municipal obligations— 22 — 22 
Agency, asset and mortgage-backed obligations— 38 — 38 
Equity securities:
United States companies61 — — 61 
Total assets in the fair value hierarchy$112 $374 $— $486 
Investment funds(2) measured at net asset value
538 
Limited partnership interests(3) measured at net asset value
34 
Investments at fair value$1,058 
As of December 31, 2020:
Cash equivalents$— $32 $— $32 
Debt securities:
United States government obligations14 — — 14 
International government obligations— — — — 
Corporate obligations— 231 — 231 
Municipal obligations— 21 — 21 
Equity securities:
United States companies91 — — 91 
Total assets in the fair value hierarchy$105 $284 $— $389 
Investment funds(2) measured at net asset value
587 
Limited partnership interests(3) measured at net asset value
88 
Investments at fair value$1,064 
(1)Refer to Note 13 for additional discussion regarding the three levels of the fair value hierarchy.
(2)Investment funds are substantially comprised of mutual funds and collective trust funds. These funds consist of equity and debt securities of approximately 59% and 41%, respectively, for 2021 and 78% and 22%, respectively, for 2020, and are invested in United States and international securities of approximately 84% and 16%, respectively, for 2021 and 74% and 26%, respectively, for 2020.
(3)Limited partnership interests include several funds that invest primarily in real estate.
The following table presents the fair value of plan assets, by major category, for PacifiCorp's defined benefit other postretirement plan (in millions):
Input Levels for Fair Value Measurements
Level 1(1)
Level 2(1)
Level 3(1)
Total
As of December 31, 2021:
Cash and cash equivalents$4 $1 $— $5 
Debt securities:
United States government obligations24 — — 24 
Corporate obligations— 79 — 79 
Municipal obligations— 15 — 15 
Agency, asset and mortgage-backed obligations— 35 — 35 
Equity securities:
United States companies4 — — 4 
Total assets in the fair value hierarchy$32 $130 $— 162 
Investment funds(2) measured at net asset value
161 
Limited partnership interests(3) measured at net asset value
1 
Investments at fair value$324 
As of December 31, 2020:
Cash and cash equivalents$8 $1 $— $9 
Debt securities:
United States government obligations11 — — 11 
Corporate obligations— 86 — 86 
Municipal obligations— 16 — 16 
Agency, asset and mortgage-backed obligations— 44 — 44 
Equity securities:
United States companies4 — — 4 
Total assets in the fair value hierarchy$23 $147 $— 170 
Investment funds(2) measured at net asset value
153 
Limited partnership interests(3) measured at net asset value
4 
Investments at fair value$327 

(1)Refer to Note 13 for additional discussion regarding the three levels of the fair value hierarchy.
(2)Investment funds are substantially comprised of mutual funds and collective trust funds. These funds consist of equity and debt securities of approximately 39% and 61%, respectively, for 2021 and 38% and 62%, respectively, for 2020, and are invested in United States and international securities of approximately 90% and 10%, respectively, for 2021 and 93% and 7%, respectively, for 2020.
(3)Limited partnership interests include several funds that invest primarily in real estate, buyout, growth equity and venture capital.

For level 1 investments, a readily observable quoted market price or net asset value of an identical security in an active market is used to record the fair value. For level 2 investments, the fair value is determined using pricing models based on observable market inputs. Shares of mutual funds not registered under the Securities Act of 1933, private equity limited partnership interests, common and commingled trust funds and investment entities are reported at fair value based on the net asset value per unit, which is used for expedience purposes. A fund's net asset value is based on the fair value of the underlying assets held by the fund less its liabilities.

Multiemployer and Joint Trustee Pension Plans

PacifiCorp contributes to the PacifiCorp/IBEW Local 57 Retirement Trust Fund ("Local 57 Trust Fund") (plan number 001) and its subsidiary, Energy West Mining Company, previously contributed to the UMWA 1974 Pension Plan (plan number 002). Contributions to these pension plans are based on the terms of collective bargaining agreements.
As a result of the Utah Mine Disposition and UMWA labor settlement, PacifiCorp's subsidiary, Energy West Mining Company, triggered involuntary withdrawal from the UMWA 1974 Pension Plan in June 2015 when the UMWA employees ceased performing work for the subsidiary. PacifiCorp recorded its estimate of the withdrawal obligation in December 2014 when withdrawal was considered probable and deferred the portion of the obligation considered probable of recovery to a regulatory asset. PacifiCorp has subsequently revised its estimate due to changes in facts and circumstances for a withdrawal occurring by July 2015. As communicated in a letter received in August 2016, the plan trustees determined a withdrawal liability of $115 million. Energy West Mining Company began making installment payments in November 2016 and has the option to elect a lump sum payment to settle the withdrawal obligation. The ultimate amount paid by Energy West Mining Company to settle the obligation is dependent on a variety of factors, including the results of ongoing negotiations with the plan trustees.

The Local 57 Trust Fund is a joint trustee plan such that the board of trustees is represented by an equal number of trustees from PacifiCorp and the union. The Local 57 Trust Fund was established pursuant to the provisions of the Taft-Hartley Act and although formed with the ability for other employers to participate in the plan, there are no other employers that participate in this plan.

The risk of participating in multiemployer pension plans generally differs from single-employer plans in that assets are pooled such that contributions by one employer may be used to provide benefits to employees of other participating employers and plan assets cannot revert to employers. If an employer ceases participation in the plan, the employer may be obligated to pay a withdrawal liability based on the participants' unfunded, vested benefits in the plan. This occurred as a result of Energy West Mining Company's withdrawal from the UMWA 1974 Pension Plan. If participating employers withdraw from a multiemployer plan, the unfunded obligations of the plan may be borne by the remaining participating employers.

The following table presents PacifiCorp's participation in individually significant joint trustee and multiemployer pension plans for the years ended December 31 (dollars in millions):
PPA of 2006 zone status or
plan funded status percentage for
plan years beginning July 1,
Contributions(1)
Plan nameEmployer Identification Number202120202019Funding improvement plan
Surcharge imposed under PPA of 2006(1)
202120202019
Year contributions to plan exceeded more than 5% of total contributions(2)
Local 57 Trust Fund87-0640888
At least
80%
At least 80%
At least 80%
NoneNone$6 $6 $7 2019, 2018, 2017

(1)    PacifiCorp's minimum contributions to the plan are based on the amount of wages paid to employees covered by the Local 57 Trust Fund collective bargaining agreements, subject to ERISA minimum funding requirements.
(2)    For the Local 57 Trust Fund, information is for plan years beginning July 1, 2019, 2018 and 2017. Information for the plan year beginning July 1, 2020 is not yet available.

The current collective bargaining agreements governing the Local 57 Trust Fund expire in 2023.

Defined Contribution Plan
PacifiCorp's 401(k) Plan covers substantially all employees. PacifiCorp's matching contributions are based on each participant's level of contribution and, as of January 1, 2021, all participants receive contributions based on eligible pre-tax annual compensation. Contributions cannot exceed the maximum allowable for tax purposes. PacifiCorp's contributions to the 401(k) Plan were $40 million, $41 million and $40 million for the years ended December 31, 2021, 2020 and 2019, respectively.
MEC  
Defined Benefit Plan Disclosure [Line Items]  
Employee Benefit Plans Employee Benefit Plans
Defined Benefit Plan

MidAmerican Energy sponsors a noncontributory defined benefit pension plan covering a majority of all employees of BHE and its domestic energy subsidiaries other than PacifiCorp and NV Energy, Inc. Benefit obligations under the plan are based on a cash balance arrangement for salaried employees and most union employees and final average pay formulas for other union employees. MidAmerican Energy also maintains noncontributory, nonqualified defined benefit supplemental executive retirement plans ("SERP") for certain active and retired participants. In 2021, the defined benefit pension plan recorded a settlement gain of $5 million for previously unrecognized gains as a result of excess lump sum distributions over the defined threshold for the year ended December 31, 2021.

MidAmerican Energy also sponsors certain postretirement healthcare and life insurance benefits covering substantially all retired employees of BHE and its domestic energy subsidiaries other than PacifiCorp and NV Energy, Inc. Under the plans, a majority of all employees of the participating companies may become eligible for these benefits if they reach retirement age. New employees are not eligible for benefits under the plans. MidAmerican Energy has been allowed to recover accrued pension and other postretirement benefit costs in its electric and gas service rates.

On November 1, 2020, BHE completed its acquisition of substantially all of the natural gas transmission and storage business of Dominion Energy, Inc. and Dominion Energy Questar Corporation, exclusive of Dominion Energy Questar Pipeline, LLC and related entities (the "GT&S Transaction"). Defined benefit pension and postretirement benefits provided to the employees of GT&S are administered in the respective plans sponsored by MidAmerican Energy. Initial pension and postretirement plan liabilities of $81 million and $37 million, respectively, resulted from the GT&S Transaction and are included in plan obligations and affiliate receivables on MidAmerican Energy's Balance Sheet.

Net Periodic Benefit Cost

For purposes of calculating the expected return on pension plan assets, a market-related value is used. The market-related value of plan assets is calculated by spreading the difference between expected and actual investment returns on equity investments over a five-year period beginning after the first year in which they occur.

MidAmerican Energy bills to and is reimbursed currently for affiliates' share of the net periodic benefit costs from all plans in which such affiliates participate. In 2021, 2020 and 2019, MidAmerican Energy's share of the pension net periodic benefit (credit) cost was $(20) million, $(13) million and $(8) million, respectively. MidAmerican Energy's share of the other postretirement net periodic benefit (credit) cost in 2021, 2020 and 2019 totaled $1 million, $(5) million and $1 million, respectively.

Net periodic benefit cost for the plans of MidAmerican Energy and the aforementioned affiliates included the following components for the years ended December 31 (in millions):
PensionOther Postretirement
202120202019202120202019
Service cost$20 $8 $6 $9 $4 $5 
Interest cost22 25 30 8 7 10 
Expected return on plan assets(37)(40)(41)(10)(14)(13)
Settlement(5)— — — — — 
Net amortization1 1 1 (4)(5)(3)
Net periodic benefit cost (credit)$1 $(6)$(4)$3 $(8)$(1)
Funded Status

The following table is a reconciliation of the fair value of plan assets for the years ended December 31 (in millions):
PensionOther Postretirement
2021202020212020
Plan assets at fair value, beginning of year$718 $717 $278 $272 
Employer contributions8 6 10 3 
Participant contributions— — 1 1 
Actual return on plan assets58 55 34 15 
Settlement(46)— — — 
Benefits paid(34)(60)(15)(13)
Plan assets at fair value, end of year$704 $718 $308 $278 

The following table is a reconciliation of the benefit obligations for the years ended December 31 (in millions):
PensionOther Postretirement
2021202020212020
Benefit obligation, beginning of year$845 $763 $304 $226 
Service cost20 8 9 4 
Interest cost22 25 8 7 
Participant contributions— — 1 1 
Actuarial (gain) loss(25)28 (18)42 
Plan amendments— — 1 — 
Settlement(46)— — — 
Acquisition(1)81 (5)37 
Benefits paid(34)(60)(15)(13)
Benefit obligation, end of year$781 $845 $285 $304 
Accumulated benefit obligation, end of year$721 $773 

The funded status of the plans and the amounts recognized on the Balance Sheets as of December 31 are as follows (in millions):
PensionOther Postretirement
2021202020212020
Plan assets at fair value, end of year$704 $718 $308 $278 
Less - Benefit obligation, end of year781 845 285 304 
Funded status$(77)$(127)$23 $(26)
Amounts recognized on the Balance Sheets:
Other assets$34 $— $23 $— 
Other current liabilities(7)(7)— — 
Other liabilities(104)(120)— (26)
Amounts recognized$(77)$(127)$23 $(26)
The SERP has no plan assets; however, MidAmerican Energy and BHE have Rabbi trusts that hold corporate-owned life insurance and other investments to provide funding for the future cash requirements of the SERP. The cash surrender value of all of the policies included in MidAmerican Energy's Rabbi trusts, net of amounts borrowed against the cash surrender value, plus the fair market value of other Rabbi trust investments, was $143 million and $130 million as of December 31, 2021 and 2020. These assets are not included in the plan assets in the above table, but are reflected in investments and restricted investments on the Balance Sheets. The accumulated benefit obligation and projected benefit obligation for the SERP was $111 million and $111 million for 2021 and $117 million and $117 million for 2020, respectively.

Unrecognized Amounts

The portion of the funded status of the plans not yet recognized in net periodic benefit cost as of December 31 is as follows (in millions):
PensionOther Postretirement
2021202020212020
Net (gain) loss$(25)$18 $2 $45 
Prior service (credit) cost— — (3)(9)
Total$(25)$18 $(1)$36 

MidAmerican Energy sponsors pension and other postretirement benefit plans on behalf of certain of its affiliates in addition to itself, and therefore, the portion of the funded status of the respective plans that has not yet been recognized in net periodic benefit cost is attributable to multiple entities. Additionally, substantially all of MidAmerican Energy's portion of such amounts is either refundable to or recoverable from its customers and is reflected as regulatory liabilities and regulatory assets.

A reconciliation of the amounts not yet recognized as components of net periodic benefit cost for the years ended December 31, 2021 and 2020 is as follows (in millions):
Regulatory
Asset
Regulatory
Liability
Receivables
(Payables)
with Affiliates
Total
Pension
Balance, December 31, 2019$19 $(32)$18 $5 
Net (gain) loss arising during the year3 12 (1)14 
Net amortization(1)— — (1)
Total2 12 (1)13 
Balance, December 31, 202021 (20)17 18 
Net loss (gain) arising during the year2 (40)(9)(47)
Net amortization(1)— — (1)
Settlement— 5 — 5 
Total1 (35)(9)(43)
Balance, December 31, 2021$22 $(55)$8 $(25)
Regulatory
Asset
Receivables
(Payables)
with Affiliates
Total
Other Postretirement
Balance, December 31, 2019$7 $(17)$(10)
Net gain arising during the year34 7 41 
Net amortization4 1 5 
Total38 8 46 
Balance, December 31, 202045 (9)36 
Net loss arising during the year(29)(13)(42)
Net prior service cost arising during the year1 — 1 
Net amortization3 1 4 
Total(25)(12)(37)
Balance, December 31, 2021$20 $(21)$(1)

Plan Assumptions

Assumptions used to determine benefit obligations and net periodic benefit cost were as follows:
PensionOther Postretirement
202120202019202120202019
Benefit obligations as of December 31:
Discount rate3.05 %2.75 %3.40 %2.95 %2.65 %3.20 %
Rate of compensation increase2.75 %2.75 %2.75 %N/AN/AN/A
Interest crediting rates for cash balance plan
2019N/AN/A3.40 %N/AN/AN/A
2020N/A2.27 %2.27 %N/AN/AN/A
20211.19 %0.99 %2.27 %N/AN/AN/A
20221.19 %0.99 %2.27 %N/AN/AN/A
20231.19 %0.99 %2.27 %N/AN/AN/A
2024 and beyond1.19 %0.99 %2.27 %N/AN/AN/A
Net periodic benefit cost for the years ended December 31:
Discount rate2.75 %3.40 %4.25 %2.65 %3.20 %4.15 %
Expected return on plan assets(1)
5.60 %6.25 %6.50 %4.00 %6.00 %6.25 %
Rate of compensation increase2.75 %2.75 %2.75 %N/AN/AN/A
Interest crediting rates for cash balance plan1.19 %2.27 %3.40 %N/AN/AN/A
(1)Amounts reflected are pretax values. Assumed after-tax returns for a taxable, non-union other postretirement plan were 2.39% for 2021, 4.62% for 2020 and 4.62% for 2019.

In establishing its assumption as to the expected return on plan assets, MidAmerican Energy utilizes the asset allocation and return assumptions for each asset class based on historical performance and forward-looking views of the financial markets.
20212020
Assumed healthcare cost trend rates as of December 31:
Healthcare cost trend rate assumed for next year5.90 %6.20 %
Rate that the cost trend rate gradually declines to5.00 %5.00 %
Year that the rate reaches the rate it is assumed to remain at20252025
Contributions and Benefit Payments

Employer contributions to the pension and other postretirement benefit plans are expected to be $7 million and $3 million, respectively, during 2022. Funding to MidAmerican Energy's qualified pension benefit plan trust is based upon the actuarially determined costs of the plan and the requirements of the Internal Revenue Code, the Employee Retirement Income Security Act of 1974 and the Pension Protection Act of 2006, as amended. MidAmerican Energy considers contributing additional amounts from time to time in order to achieve certain funding levels specified under the Pension Protection Act of 2006, as amended. MidAmerican Energy evaluates a variety of factors, including funded status, income tax laws and regulatory requirements, in determining contributions to its other postretirement benefit plans.

Net periodic benefit costs assigned to MidAmerican Energy affiliates are reimbursed currently in accordance with its intercompany administrative services agreement. The expected benefit payments to participants in MidAmerican Energy's pension and other postretirement benefit plans for 2022 through 2026 and for the five years thereafter are summarized below (in millions):
Projected Benefit Payments
PensionOther Postretirement
2022$56 $21 
202355 22 
202454 22 
202552 22 
202651 22 
2027-2031229 98 

Plan Assets

Investment Policy and Asset Allocations

MidAmerican Energy's investment policy for its pension and other postretirement benefit plans is to balance risk and return through a diversified portfolio of debt securities, equity securities and other alternative investments. Maturities for debt securities are managed to targets consistent with prudent risk tolerances. The plans retain outside investment advisors to manage plan investments within the parameters outlined by the Berkshire Hathaway Energy Company Investment Committee. The investment portfolio is managed in line with the investment policy with sufficient liquidity to meet near-term benefit payments.

The target allocations (percentage of plan assets) for MidAmerican Energy's pension and other postretirement benefit plan assets are as follows as of December 31, 2021:
Pension
Other
Postretirement
%%
Debt securities(1)
60-80
25-35
Equity securities(1)
20-40
65-75
Other
0-15
0-5
(1)For purposes of target allocation percentages and consistent with the plans' investment policy, investment funds are allocated based on the underlying investments in debt and equity securities.
Fair Value Measurements

The following table presents the fair value of plan assets, by major category, for MidAmerican Energy's defined benefit pension plan (in millions):
Input Levels for Fair Value Measurements(1)
Level 1Level 2Level 3Total
As of December 31, 2021:
Cash equivalents$— $27 $— $27 
Debt securities:
United States government obligations33 — — 33 
International government obligations— — — — 
Corporate obligations— 242 — 242 
Municipal obligations— 18 — 18 
Agency, asset and mortgage-backed obligations— 17 — 17 
Equity securities:
United States companies35 — — 35 
Total assets in the hierarchy
$68 $304 $— 372 
Investment funds(2) measured at net asset value
332 
Total assets measured at fair value$704 
As of December 31, 2020:
Cash equivalents$— $26 $— $26 
Debt securities:
United States government obligations14 — — 14 
International government obligations— — — — 
Corporate obligations— 160 — 160 
Municipal obligations— 17 — 17 
Agency, asset and mortgage-backed obligations— — — — 
Equity securities:
United States companies65 — — 65 
Total assets in the hierarchy
$79 $203 $— 282 
Investment funds(2) measured at net asset value
393 
Real estate funds measured at net asset value
43 
Total assets measured at fair value$718 
(1)Refer to Note 12 for additional discussion regarding the three levels of the fair value hierarchy.
(2)Investment funds are comprised of mutual funds and collective trust funds. These funds consist of equity and debt securities of approximately 56% and 44%, respectively, for 2021 and 65% and 35%, respectively, for 2020. Additionally, these funds are invested in United States and international securities of approximately 90% and 10%, respectively, for 2021 and 82% and 18%, respectively, for 2020.
The following table presents the fair value of plan assets, by major category, for MidAmerican Energy's defined benefit other postretirement plans (in millions):
Input Levels for Fair Value Measurements(1)
Level 1Level 2Level 3Total
As of December 31, 2021:
Cash equivalents$8 $— $— $8 
Debt securities:
United States government obligations3 — — 3 
Corporate obligations— 6 — 6 
Municipal obligations— 28 — 28 
Agency, asset and mortgage-backed obligations— 3 — 3 
Equity securities:
Investment funds(2)
260 — — 260 
Total assets measured at fair value
$271 $37 $— $308 
As of December 31, 2020:
Cash equivalents$11 $— $— $11 
Debt securities:
United States government obligations3 — — 3 
Corporate obligations— 7 — 7 
Municipal obligations— 65 — 65 
Agency, asset and mortgage-backed obligations— 3 — 3 
Equity securities:
Investment funds(2)
189 — — 189 
Total assets measured at fair value
$203 $75 $— $278 
(1)Refer to Note 12 for additional discussion regarding the three levels of the fair value hierarchy.
(2)Investment funds are comprised of mutual funds and collective trust funds. These funds consist of equity and debt securities of approximately 82% and 18%, respectively, for 2021 and 56% and 44%, respectively, for 2020. Additionally, these funds are invested in United States and international securities of approximately 82% and 18%, respectively, for 2021 and 56% and 44%, respectively, for 2020.

For level 1 investments, a readily observable quoted market price or net asset value of an identical security in an active market is used to record the fair value. For level 2 investments, the fair value is determined using pricing models based on observable market inputs. Shares of mutual funds not registered under the Securities Act of 1933, private equity limited partnership interests, common and commingled trust funds and investment entities are reported at fair value based on the net asset value per unit, which is used for expedience purposes. A fund's net asset value is based on the fair value of the underlying assets held by the fund less its liabilities.

Defined Contribution Plan
MidAmerican Energy sponsors a defined contribution plan ("401(k) plan") covering substantially all employees. MidAmerican Energy's matching contributions are based on each participant's level of contribution, and certain participants receive contributions based on eligible pretax annual compensation. Contributions cannot exceed the maximum allowable for tax purposes. Certain participants now receive enhanced benefits in the 401(k) plan and no longer accrue benefits in the noncontributory defined benefit pension plans. MidAmerican Energy's contributions to the plan were $27 million, $26 million, and $23 million for the years ended December 31, 2021, 2020 and 2019, respectively.
MidAmerican Funding, LLC  
Defined Benefit Plan Disclosure [Line Items]  
Employee Benefit Plans Employee Benefit Plans
Refer to Note 10 of MidAmerican Energy's Notes to Financial Statements for additional information regarding MidAmerican Funding's pension, supplemental retirement and postretirement benefit plans.

Pension and postretirement costs allocated by MidAmerican Funding to its parent and other affiliates in each of the years ended December 31, were as follows (in millions):
202120202019
Pension costs$21 $7 $4 
Other postretirement costs2 (3)(2)
NPC  
Defined Benefit Plan Disclosure [Line Items]  
Employee Benefit Plans Employee Benefit Plans Nevada Power is a participant in benefit plans sponsored by NV Energy. The NV Energy Retirement Plan includes a qualified pension plan ("Qualified Pension Plan") and a supplemental executive retirement plan and a restoration plan (collectively, "Non‑Qualified Pension Plans") that provide pension benefits for eligible employees. The NV Energy Comprehensive Welfare Benefit and Cafeteria Plan provides certain postretirement health care and life insurance benefits for eligible retirees ("Other Postretirement Plans") on behalf of Nevada Power. Nevada Power did not make any contributions to the Qualified Pension Plan for the years ended December 31, 2021, 2020 and 2019. Nevada Power contributed $1 million to the Non-Qualified Pension Plans for the years ended December 31, 2021, 2020 and 2019. Nevada Power did not make any contributions to the Other Postretirement Plans for the years ended December 31, 2021, 2020 and 2019. Amounts attributable to Nevada Power were allocated from NV Energy based upon the current, or in the case of retirees, previous, employment location. Offsetting regulatory assets and liabilities have been recorded related to the amounts not yet recognized as a component of net periodic benefit costs that will be included in regulated rates. Net periodic benefit costs not included in regulated rates are included in accumulated other comprehensive loss, net.
Amounts receivable from (payable to) NV Energy are included on the Consolidated Balance Sheets and consist of the following as of December 31 (in millions):
20212020
Qualified Pension Plan -
Other non-current assets$42 $8 
Non-Qualified Pension Plans:
Other current liabilities(1)(1)
Other long-term liabilities(8)(9)
Other Postretirement Plans -
Other non-current assets8 4 
SPPC  
Defined Benefit Plan Disclosure [Line Items]  
Employee Benefit Plans Employee Benefit PlansSierra Pacific is a participant in benefit plans sponsored by NV Energy. The NV Energy Retirement Plan includes a qualified pension plan ("Qualified Pension Plan") and a supplemental executive retirement plan and a restoration plan (collectively, "Non‑Qualified Pension Plans") that provide pension benefits for eligible employees. The NV Energy Comprehensive Welfare Benefit and Cafeteria Plan provides certain postretirement health care and life insurance benefits for eligible retirees ("Other Postretirement Plans") on behalf of Sierra Pacific. Sierra Pacific did not make any contributions to the Qualified Pension Plan for the years ended December 31, 2021, 2020 and 2019. Sierra Pacific contributed $1 million to the Non-Qualified Pension Plans for the years ended December 31, 2021, 2020 and 2019. Sierra Pacific contributed $1 million to the Other Post Retirement Plan for the year ended December 31, 2021. Sierra Pacific did not make any contributions to the Other Post Retirement Plans for the years ended December 31, 2020 and 2019. Amounts attributable to Sierra Pacific were allocated from NV Energy based upon the current, or in the case of retirees, previous, employment location. Offsetting regulatory assets and liabilities have been recorded related to the amounts not yet recognized as a component of net periodic benefit costs that will be included in regulated rates. Net periodic benefit costs not included in regulated rates are included in accumulated other comprehensive loss, net.
Amounts receivable from (payable to) NV Energy are included on the Consolidated Balance Sheets and consist of the following as of December 31 (in millions):
20212020
Qualified Pension Plan -
Other non-current assets$62 $26 
Non-Qualified Pension Plans:
Other current liabilities(1)(1)
Other long-term liabilities(7)(8)
Other Postretirement Plans -
Other long-term liabilities(10)(13)
EEGH  
Defined Benefit Plan Disclosure [Line Items]  
Employee Benefit Plans Employee Benefit Plans
As discussed in Note 3, in November 2020, the GT&S Transaction was completed and the assets and obligations of the pension and other postretirement employee benefit plans associated with the operations sold and relating to services provided before closing were retained by DEI. As a result, just prior to completing the sale, net benefit plan assets of $895 million were distributed through an equity transaction with DEI.

Subsequent to the GT&S Transaction

Subsequent to the GT&S Transaction, Eastern Energy Gas is a participant in benefit plans sponsored by MidAmerican Energy Company ("MidAmerican Energy"), an affiliate. The MidAmerican Energy Company Retirement Plan includes a qualified pension plan ("Qualified Pension Plan") that provides pension benefits for eligible employees. The MidAmerican Energy Company Welfare Benefit Plan provides certain postretirement health care and life insurance benefits for eligible retirees ("Other Postretirement Plans") on behalf of Eastern Energy Gas. Eastern Energy Gas made $18 million and $3 million of contributions to the MidAmerican Energy Company Retirement Plan for the years ended December 31, 2021 and 2020, respectively. Eastern Energy Gas made $10 million and $2 million of contributions to the MidAmerican Energy Company Welfare Benefit Plan for the years ended December 31, 2021 and 2020, respectively. Amounts attributable to Eastern Energy Gas were allocated from MidAmerican Energy in accordance with the intercompany administrative service agreement. Offsetting regulatory assets and liabilities have been recorded related to the amounts not yet recognized as a component of net periodic benefit costs that will be included in regulated rates. Net periodic benefit costs not included in regulated rates are included in accumulated other comprehensive loss, net.

Eastern Energy Gas participates in the BHE GT&S, LLC ("BHE GT&S") defined contribution employee savings plan subsequent to the GT&S Transaction. Eastern Energy Gas' matching contributions are based on each participant's level of contribution. Contributions cannot exceed the maximum allowable for tax purposes. Eastern Energy Gas' contributions to the 401(k) plan were $5 million and $1 million for the years ended December 31, 2021 and 2020, respectively.

Prior to the GT&S Transaction

Defined Benefit Plans

Prior to the GT&S Transaction, certain Eastern Energy Gas employees not represented by collective bargaining units were covered by the Dominion Energy Pension Plan, a defined benefit pension plan sponsored by DEI that provides benefits to multiple DEI subsidiaries. As participating employers, Eastern Energy Gas was subject to DEI's funding policy, which was to contribute annually an amount that is in accordance with the Employee Retirement Income Security Act of 1974. Eastern Energy Gas' net periodic pension credit related to this plan was $(14) million and $(8) million for the years ended December 31, 2020 and 2019, respectively. Net periodic pension (credit) cost is reflected in other operations and maintenance expense in the Consolidated Statements of Operations, except for $(14) million of Eastern Energy Gas' costs for the year ended December 31, 2019 that are recorded in net income from discontinued operations. The funded status of various DEI subsidiary groups and employee compensation are the basis for determining the share of total pension costs for participating DEI subsidiaries.

Prior to the GT&S Transaction, certain retiree healthcare and life insurance benefits for Eastern Energy Gas employees not represented by collective bargaining units were covered by the Dominion Energy Retiree Health and Welfare Plan, a plan sponsored by DEI that provides certain retiree healthcare and life insurance benefits to multiple DEI subsidiaries. Eastern Energy Gas' net periodic benefit credit related to this plan was $(5) million and $(4) million for the years ended December 31, 2020 and 2019, respectively. Net periodic benefit (credit) cost is reflected in other operations and maintenance expense in the Consolidated Statements of Operations, except for less than $(1) million of Eastern Energy Gas' costs for the year ended December 31, 2019 that are recorded in net income from discontinued operations. Employee headcount is the basis for determining the share of total other postretirement benefit costs for participating DEI subsidiaries.
Pension benefits for Eastern Energy Gas employees represented by collective bargaining units were covered by a separate pension plan that provides benefits to employees of both EGTS and Hope Gas, Inc. ("Hope"). Employee compensation was the basis for allocating pension costs and obligations between EGTS and Hope. Retiree healthcare and life insurance benefits for Eastern Energy Gas employees represented by collective bargaining units were covered by a separate other postretirement benefit plan that provides benefits to both EGTS and Hope. Employee headcount was the basis for allocating other postretirement benefit costs and obligations between EGTS and Hope.

Eastern Energy Gas included the separate pension and other postretirement benefit plans for East Ohio employees covered by collective bargaining units through November 2019, the effective date of the Dominion Energy Gas Restructuring. See Note 3 for more information on the Dominion Energy Gas Restructuring.

Pension Remeasurement

In the third quarter of 2020, Eastern Energy Gas remeasured a pension plan due to a curtailment resulting from the agreement for DEI to retain the assets and obligations of the pension benefit plan associated with the GT&S Transaction. The remeasurement resulted in an increase in the pension benefit obligation of $3 million and a decrease in the fair value of the pension plan assets of $7 million for Eastern Energy Gas. The impact of the remeasurement on net periodic pension benefit credit was recognized prospectively from the remeasurement date and was not material. The discount rate used for the remeasurement was 3.16%. All other assumptions used for the remeasurement were consistent with the measurement as of December 31, 2019.

Voluntary Retirement Program

In March 2019, Eastern Energy Gas announced a voluntary retirement program to employees that met certain age and service requirements. The voluntary retirement program will not compromise safety or Eastern Energy Gas' ability to comply with applicable laws and regulations. In 2019, upon the determinations made concerning the number of employees that elected to participate in the program, Eastern Energy Gas recorded a charge of $74 million ($58 million after-tax) included within operations and maintenance expense ($41 million), other income ($1 million) and discontinued operations ($32 million) in the Consolidated Statements of Operations.

In the second quarter of 2019, Eastern Energy Gas remeasured its pension and other postretirement benefit plans as a result of the voluntary retirement program. The impact of the remeasurement on net periodic benefit cost (credit) was recognized prospectively from the remeasurement date. The discount rate used for the remeasurement was 4.10% for the Eastern Energy Gas pension plans and 4.05% for the Eastern Energy Gas other postretirement benefit plans. All other assumptions used for the remeasurement were consistent with the measurement as of December 31, 2018.

Net Periodic Benefit Credit

Net periodic benefit credit for the plans included the following components for the years ended December 31 (in millions):

PensionOther Postretirement
2020201920202019
Service cost$5 $6 $1 $1 
Interest cost8 11 4 5 
Expected return on plan assets(47)(54)(16)(16)
Settlement— 1 — 1 
Net amortization5 7 (3)(2)
Net periodic benefit credit$(29)$(29)$(14)$(11)
Significant assumptions used to determine periodic credits for the years ended December 31:

PensionOther Postretirement
2020201920202019
Discount rate
3.16% - 3.63%
4.10% - 4.42%
3.44 %
4.05% - 4.37%
Expected long-term rate of return on plan assets8.60 %8.65 %8.50 %8.50 %
Weighted average rate of increase for compensation4.73 %4.55 %N/AN/A
Healthcare cost trend rate6.50 %6.50 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)5.00 %5.00 %
Year that the rate reached the ultimate trend rate20262025

Defined Contribution Plans

Eastern Energy Gas participated in the DEI defined contribution employee savings plans prior to the GT&S Transaction. Eastern Energy Gas' matching contributions were based on each participant's level of contribution. Contributions could not exceed the maximum allowable for tax purposes. Eastern Energy Gas' contributions to the 401(k) plan were $3 million and $4 million for the years ended December 31, 2020 and 2019, respectively.