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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Employee Benefit Plans EMPLOYEE BENEFIT PLANS
DEFINED BENEFIT RETIREMENT PLANS
Duke Energy and certain subsidiaries maintain, and the Subsidiary Registrants participate in, qualified, non-contributory defined benefit retirement plans. The Duke Energy plans cover most employees using a cash balance formula. Under a cash balance formula, a plan participant accumulates a retirement benefit consisting of pay credits based upon a percentage of current eligible earnings, age or age and years of service and interest credits. Certain employees are eligible for benefits that use a final average earnings formula. Under these final average earnings formulas, a plan participant accumulates a retirement benefit equal to the sum of percentages of their (i) highest three-, four-, or five-year average earnings, (ii) highest three-, four-, or five-year average earnings in excess of covered compensation per year of participation (maximum of 35 years) or (iii) highest three-year average earnings times years of participation in excess of 35 years. Duke Energy also maintains, and the Subsidiary Registrants participate in, non-qualified, non-contributory defined benefit retirement plans that cover certain executives. The qualified and non-qualified, non-contributory defined benefit plans are closed to new participants.
Duke Energy uses a December 31 measurement date for its defined benefit retirement plan assets and obligations. Actuarial losses experienced by the defined benefit retirement plans in remeasuring plan assets as of December 31, 2021, were primarily attributable to actual investment performance that was less than expected investment performance. Actuarial gains experienced by the defined benefit retirement plans in remeasuring plan obligations as of December 31, 2021, were primarily attributable to the increase in the discount rate used to measure plan obligations. Actuarial gains experienced by the defined benefit retirement plans in remeasuring plan assets as of December 31, 2020, were attributable to actual investment performance that exceeded expected investment performance. Actuarial losses experienced by the defined benefit retirement plans in remeasuring plan obligations as of December 31, 2020, were primarily attributable to the decrease in the discount rate used to measure plan obligations.
Net periodic benefit costs disclosed in the tables below represent the cost of the respective benefit plan for the periods presented prior to capitalization of amounts reflected as Net property, plant and equipment, on the Consolidated Balance Sheets. Only the service cost component of net periodic benefit costs is eligible to be capitalized. The remaining non-capitalized portions of net periodic benefit costs are classified as either: (1) service cost, which is recorded in Operations, maintenance and other on the Consolidated Statements of Operations; or as (2) components of non-service cost, which is recorded in Other income and expenses, net on the Consolidated Statements of Operations. Amounts presented in the tables below for the Subsidiary Registrants represent the amounts of pension and other post-retirement benefit cost allocated by Duke Energy for employees of the Subsidiary Registrants. Additionally, the Consolidated Statements of Operations of the Subsidiary Registrants also include allocated net periodic benefit costs for their proportionate share of pension and post-retirement benefit cost for employees of Duke Energy’s shared services affiliate that provide support to the Subsidiary Registrants. However, in the tables below, these amounts are only presented within the Duke Energy column (except for amortization of settlement charges). These allocated amounts are included in the governance and shared service costs discussed in Note 13.
Duke Energy’s policy is to fund amounts on an actuarial basis to provide assets sufficient to meet benefit payments to be paid to plan participants. Duke Energy does not anticipate making any contributions in 2022. The following table includes information related to the Duke Energy Registrants’ contributions to its qualified defined benefit pension plans.
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions) EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Contributions Made:
2021$— $— $— $— $— $— $— $— 
2020— — — — — — — — 
201977 7 57 4 53 2 2 1 
QUALIFIED PENSION PLANS
Components of Net Periodic Pension Costs
Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$176 $56 $50 $29 $21 $5 $10 $6 
Interest cost on projected benefit obligation220 51 70 30 39 13 18 7 
Expected return on plan assets(558)(141)(187)(84)(102)(28)(40)(20)
Amortization of actuarial loss133 29 38 18 20 7 13 10 
Amortization of prior service credit(29)(8)(2)(1)(1)(1)(2)(9)
Amortization of settlement charges9 5 2 2 1 — — 1 
Net periodic pension costs(a)(b)
$(49)$(8)$(29)$(6)$(22)$(4)$(1)$(5)
Year Ended December 31, 2020
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$165 $51 $48 $27 $21 $5 $9 $6 
Interest cost on projected benefit obligation269 62 85 38 46 15 22 9 
Expected return on plan assets(572)(145)(190)(87)(101)(28)(42)(21)
Amortization of actuarial loss128 28 41 18 23 6 12 9 
Amortization of prior service credit(32)(8)(3)(2)(1)— (2)(9)
Amortization of settlement charges18 9 7 6 1 — 1 1 
Net periodic pension costs(a)(b)
$(24)$(3)$(12)$— $(11)$(2)$— $(5)
Year Ended December 31, 2019
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$158 $49 $46 $26 $20 $4 $9 $5 
Interest cost on projected benefit obligation317 75 100 45 54 18 26 10 
Expected return on plan assets(567)(147)(178)(88)(89)(28)(43)(22)
Amortization of actuarial loss108 24 39 15 24 4 8 8 
Amortization of prior service credit(32)(8)(3)(2)(1)— (2)(9)
Amortization of settlement charge6 2 1 1 — 2 — — 
Net periodic pension costs(a)(b)
$(10)$(5)$5 $(3)$8 $— $(2)$(8)
(a)    Duke Energy amounts exclude $3 million, $4 million and $4 million for the years ended December 2021, 2020 and 2019, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b)    Duke Energy Ohio amounts exclude $1 million, $2 million and $2 million for the years ended December 2021, 2020 and 2019, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
Amounts Recognized in Accumulated Other Comprehensive Income and Regulatory Assets
Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Regulatory assets, net decrease$(261)$(57)$(128)$(31)$(97)$(17)$(19)$(5)
Accumulated other comprehensive loss (income)
Deferred income tax expense$1 $— $— $— $— $— $— $— 
Amortization of prior year service credit1 — — — — — — — 
Amortization of prior year actuarial losses(8)— (1)— — — — — 
Net amount recognized in accumulated other comprehensive income$(6)$— $(1)$— $— $— $— $— 
Year Ended December 31, 2020
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Regulatory assets, net (decrease) increase$(62)$(39)$(26)$(30)$4 $(2)$5 $(1)
Accumulated other comprehensive loss (income)
Deferred income tax expense$2 $— $1 $— $1 $— $— $— 
Amortization of prior year service credit1 — — — — — — — 
Amortization of prior year actuarial losses(11)— (1)— (3)— — — 
Net amount recognized in accumulated other comprehensive income$(8)$— $— $— $(2)$— $— $— 
Reconciliation of Funded Status to Net Amount Recognized
Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Change in Projected Benefit Obligation
Obligation at prior measurement date $8,634 $1,988 $2,715 $1,193 $1,507 $502 $715 $293 
Service cost168 54 48 28 20 5 9 6 
Interest cost220 51 70 30 39 13 18 7 
Actuarial gain(200)(42)(108)(18)(89)(10)(10)(5)
Benefits paid(615)(148)(161)(80)(81)(50)(52)(28)
Transfers— — (4)— (4)(10)— — 
Obligation at measurement date$8,207 $1,903 $2,560 $1,153 $1,392 $450 $680 $273 
Accumulated Benefit Obligation at measurement date$8,144 $1,904 $2,529 $1,154 $1,361 $439 $672 $274 
Change in Fair Value of Plan Assets
Plan assets at prior measurement date$9,337 $2,381 $3,049 $1,422 $1,605 $472 $684 $343 
Actual return on plan assets513 132 169 79 90 26 37 19 
Benefits paid(615)(148)(161)(80)(81)(50)(52)(28)
Transfers— — (4)— (4)(10)— — 
Plan assets at measurement date$9,235 $2,365 $3,053 $1,421 $1,610 $438 $669 $334 
Funded status of plan$1,028 $462 $493 $268 $218 $(12)$(11)$61 
Year Ended December 31, 2020
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Change in Projected Benefit Obligation
Obligation at prior measurement date $8,321 $1,923 $2,608 $1,170 $1,424 $481 $693 $292 
Service cost157 49 46 26 20 4 8 5 
Interest cost269 62 85 38 46 15 22 9 
Actuarial loss433 83 144 50 93 21 46 14 
Benefits paid(541)(137)(160)(83)(76)(34)(49)(27)
Benefits paid – settlements(5)— — — — — (5)— 
Transfers— 8 (8)(8)— 15 — — 
Obligation at measurement date$8,634 $1,988 $2,715 $1,193 $1,507 $502 $715 $293 
Accumulated Benefit Obligation at measurement date$8,577 $1,989 $2,684 $1,194 $1,476 $493 $709 $294 
Change in Fair Value of Plan Assets
Plan assets at prior measurement date$8,910 $2,263 $2,898 $1,364 $1,515 $443 $667 $335 
Actual return on plan assets973 247 319 149 166 48 71 35 
Benefits paid(541)(137)(160)(83)(76)(34)(49)(27)
Benefits paid – settlements(5)— — — — — (5)— 
Transfers— 8 (8)(8)— 15 — — 
Plan assets at measurement date$9,337 $2,381 $3,049 $1,422 $1,605 $472 $684 $343 
Funded status of plan$703 $393 $334 $229 $98 $(30)$(31)$50 
Amounts Recognized in the Consolidated Balance Sheets
December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Prefunded pension(a)
$1,071 $462 $494 $268 $219 $74 $100 $61 
Noncurrent pension liability(b)
$43 $— $1 $— $1 $86 $111 $— 
Net asset (liability) recognized$1,028 $462 $493 $268 $218 $(12)$(11)$61 
Regulatory assets$1,649 $324 $563 $252 $311 $93 $190 $75 
Accumulated other comprehensive (income) loss 
Deferred income tax benefit$(20)$— $— $— $— $— $— $— 
Prior service credit(1)— — — — — — — 
Net actuarial loss92 — 1 — — — — — 
Net amounts recognized in accumulated other comprehensive loss$71 $— $1 $— $— $— $— $— 
December 31, 2020
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Prefunded pension(a)
$780 $393 $379 $229 $143 $58 $79 $50 
Noncurrent pension liability(b)
$77 $— $45 $— $45 $88 $110 $— 
Net asset (liability) recognized$703 $393 $334 $229 $98 $(30)$(31)$50 
Regulatory assets$1,910 $381 $691 $283 $408 $110 $209 $80 
Accumulated other comprehensive (income) loss
Deferred income tax benefit$(21)$— $— $— $— $— $— $— 
Prior service credit(2)— — — — — — — 
Net actuarial loss100 — 2 — — — — — 
Net amounts recognized in accumulated other comprehensive loss$77 $— $2 $— $— $— $— $— 
(a)    Included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets.
(b)    Included in Accrued pension and other post-retirement benefit costs on the Consolidated Balance Sheets.
Information for Plans with Accumulated Benefit Obligation in Excess of Plan Assets
December 31, 2021
DukeDuke
EnergyEnergy
(in millions)OhioIndiana
Projected benefit obligation$153 $284 
Accumulated benefit obligation143 275 
Fair value of plan assets67 173 
December 31, 2020
DukeDukeDuke
DukeProgressEnergyEnergyEnergy
(in millions)EnergyEnergyFloridaOhioIndiana
Projected benefit obligation$4,914 $828 $828 $184 $293 
Accumulated benefit obligation4,856 796 796 176 285 
Fair value of plan assets4,837 783 783 96 183 
Assumptions Used for Pension Benefits Accounting
The discount rate used to determine the current year pension obligation and following year’s pension expense is based on a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high-quality corporate bonds that generate sufficient cash flow to provide for projected benefit payments of the plan. The selected bond portfolio is derived from a universe of non-callable corporate bonds rated Aa quality or higher. After the bond portfolio is selected, a single interest rate is determined that equates the present value of the plan’s projected benefit payments discounted at this rate with the market value of the bonds selected.
The average remaining service period for participants in active plans and life expectancy of participants in inactive plans is 14 years for Duke Energy, Duke Energy Progress and Duke Energy Ohio, 15 years for Progress Energy and Duke Energy Florida, 13 years for Duke Energy Carolinas and Duke Energy Indiana and nine years for Piedmont.
The following tables present the assumptions or range of assumptions used for pension benefit accounting.
December 31,
202120202019
Benefit Obligations
Discount rate2.90%2.60%3.30%
Interest crediting rate4.00%4.00%4.00%
Salary increase 3.50 %–4.00%3.50 %–4.00%3.50 %–4.00%
Net Periodic Benefit Cost
Discount rate2.60%3.30%4.30%
Interest crediting rate4.00%4.00%4.00%
Salary increase3.50 %–4.00%3.50 %–4.00%3.50 %–4.00%
Expected long-term rate of return on plan assets6.50%6.85%6.85%
Expected Benefit Payments
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Years ending December 31,
2022$652 $174 $177 $95 $81 $37 $48 $27 
2023653 173 180 97 82 36 48 24 
2024645 171 181 96 84 35 47 23 
2025632 168 180 94 85 34 47 20 
2026605 155 176 90 86 33 45 21 
2027-20312,705 655 818 389 426 149 218 85 
NON-QUALIFIED PENSION PLANS
The accumulated benefit obligation, which equals the projected benefit obligation for non-qualified pension plans, was $300 million for Duke Energy, $12 million for Duke Energy Carolinas, $104 million for Progress Energy, $31 million for Duke Energy Progress, $41 million for Duke Energy Florida, $3 million for Duke Energy Ohio, $2 million for Duke Energy Indiana and $3 million for Piedmont as of December 31, 2021.
Employer contributions, which equal benefits paid for non-qualified pension plans, were $24 million for Duke Energy, $1 million for Duke Energy Carolinas, $8 million for Progress Energy, $3 million for Duke Energy Progress and $3 million for Duke Energy Florida for the year ended December 31, 2021. Employer contributions were not material for Duke Energy Ohio, Duke Energy Indiana or Piedmont for the year ended December 31, 2021.
Net periodic pension costs for non-qualified pension plans were not material for the years ended December 31, 2021, 2020 or 2019.
OTHER POST-RETIREMENT BENEFIT PLANS
Duke Energy provides, and the Subsidiary Registrants participate in, some health care and life insurance benefits for retired employees on a contributory and non-contributory basis. Employees are eligible for these benefits if they have met age and service requirements at retirement, as defined in the plans. The health care benefits include medical, dental, vision and prescription drug coverage and are subject to certain limitations, such as deductibles and copayments.
Duke Energy did not make any pre-funding contributions to its other post-retirement benefit plans during the years ended December 31, 2021, 2020 or 2019.
Components of Net Periodic Other Post-Retirement Benefit Costs
Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$4 $1 $1 $— $— $— $1 $— 
Interest cost on accumulated post-retirement benefit obligation18 4 7 4 3 1 1 1 
Expected return on plan assets(11)(7)— — — — — (2)
Amortization of actuarial loss2 — 1 — 1 — 4 — 
Amortization of prior service credit(13)(4)(2)(1)(1)(1)(1)(2)
Net periodic post-retirement benefit costs (a)(b)
$— $(6)$7 $3 $3 $— $5 $(3)
Year Ended December 31, 2020
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$4 $1 $1 $— $— $— $1 $— 
Interest cost on accumulated post-retirement benefit obligation23 5 10 5 4 1 2 1 
Expected return on plan assets(13)(8)— — — — — (2)
Amortization of actuarial loss2 — 1 — 1 — 4 — 
Amortization of prior service credit(14)(4)(3)(1)(2)(1)(1)(2)
Net periodic post-retirement benefit costs(a)(b)
$2 $(6)$9 $4 $3 $— $6 $(3)
Year Ended December 31, 2019
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$4 $1 $1 $— $1 $— $1 $— 
Interest cost on accumulated post-retirement benefit obligation30 7 12 7 5 1 3 1 
Expected return on plan assets(12)(7)— — — — — (1)
Amortization of actuarial loss4 2 1 — 1 — 4 — 
Amortization of prior service credit(19)(5)(8)(1)(7)(1)(1)(2)
Net periodic post-retirement benefit costs(a)(b)
$7 $(2)$6 $6 $— $— $7 $(2)
(a)    Duke Energy amounts exclude $5 million, $6 million and $6 million for the years ended December 2021, 2020 and 2019, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b)    Duke Energy Ohio amounts exclude $1 million, $1 million and $2 million for the years ended December 2021, 2020 and 2019, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
Amounts Recognized in Accumulated Other Comprehensive Income and Regulatory Assets and Liabilities
Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Regulatory assets, net (decrease) increase$(15)$— $(18)$(9)$(9)$4 $(4)$— 
Regulatory liabilities, net increase$23 $12 $— $— $— $4 $1 $2 
Accumulated other comprehensive (income) loss
Amortization of prior year actuarial gain$(1)$— $— $— $— $— $— $— 
Net amount recognized in accumulated other comprehensive income$(1)$— $— $— $— $— $— $— 
Year Ended December 31, 2020
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Regulatory assets, net increase (decrease)$9 $— $9 $6 $3 $— $(4)$— 
Regulatory liabilities, net decrease$(10)$(7)$— $— $— $— $(1)$— 
Accumulated other comprehensive (income) loss
Amortization of prior year service credit$1 $— $— $— $— $— $— $— 
Net amount recognized in accumulated other comprehensive income$1 $— $— $— $— $— $— $— 
Reconciliation of Funded Status to Accrued Other Post-Retirement Benefit Costs
Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Change in Projected Benefit Obligation
Accumulated post-retirement benefit obligation at prior measurement date$709 $174 $299 $166 $130 $27 $61 $30 
Service cost4 1 1 — — — 1 — 
Interest cost18 4 7 4 3 1 1 1 
Plan participants' contributions14 3 5 3 2 1 2 — 
Actuarial gains(47)(14)(20)(10)(10)(1)(2)(2)
Benefits paid(73)(19)(29)(16)(13)(3)(9)(2)
Accumulated post-retirement benefit obligation at measurement date$625 $149 $263 $147 $112 $25 $54 $27 
Change in Fair Value of Plan Assets
Plan assets at prior measurement date$237 $139 $(1)$(2)$(1)$9 $7 $37 
Actual return on plan assets15 9 — — — 1 — 3 
Benefits paid(73)(19)(29)(16)(13)(3)(9)(2)
Employer contributions18 3 24 13 10 1 6 1 
Plan participants' contributions14 3 5 3 2 1 2 — 
Plan assets at measurement date$211 $135 $(1)$(2)$(2)$9 $6 $39 
Funded status of plan$(414)$(14)$(264)$(149)$(114)$(16)$(48)$12 
Year Ended December 31, 2020
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Change in Projected Benefit Obligation
Accumulated post-retirement benefit obligation at prior measurement date$723 $175 $303 $168 $135 $29 $64 $30 
Service cost4 1 1 — — — 1 — 
Interest cost23 5 10 5 4 1 2 1 
Plan participants' contributions15 3 5 3 2 1 2 — 
Actuarial losses19 8 8 5 2 — 1 1 
Benefits paid(75)(18)(28)(15)(13)(4)(9)(2)
Accumulated post-retirement benefit obligation at measurement date$709 $174 $299 $166 $130 $27 $61 $30 
Change in Fair Value of Plan Assets
Plan assets at prior measurement date$220 $130 $(1)$(1)$— $9 $5 $34 
Actual return on plan assets24 14 — — — — 1 4 
Benefits paid(75)(18)(28)(15)(13)(4)(9)(2)
Employer contributions53 10 23 11 10 3 8 1 
Plan participants' contributions15 3 5 3 2 1 2 — 
Plan assets at measurement date$237 $139 $(1)$(2)$(1)$9 $7 $37 
Funded status of plan$(472)$(35)$(300)$(168)$(131)$(18)$(54)$7 
Amounts Recognized in the Consolidated Balance Sheets
December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Prefunded post-retirement benefit$12 $— $— $— $— $1 $— $12 
Current post-retirement liability(a)
9 — 5 3 2 1 — — 
Noncurrent post-retirement liability(b)
417 14 259 146 112 16 48 — 
Net liability (asset) recognized$414 $14 $264 $149 $114 $16 $48 $(12)
Regulatory assets$129 $— $126 $79 $47 $4 $28 $— 
Regulatory liabilities$162 $44 $— $— $— $21 $63 $5 
Accumulated other comprehensive (income) loss
Deferred income tax expense$3 $— $— $— $— $— $— $— 
Prior service credit(1)— — — — — — — 
Net actuarial gain(14)— — — — — — — 
Net amounts recognized in accumulated other comprehensive income$(12)$— $— $— $— $— $— $— 
December 31, 2020
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Prefunded post-retirement benefit$8 $— $— $— $— $1 $— $7 
Current post-retirement liability(a)
9 — 6 4 2 2 — — 
Noncurrent post-retirement liability(b)
471 35 294 164 129 17 54 — 
Net liability (asset) recognized$472 $35 $300 $168 $131 $18 $54 $(7)
Regulatory assets$144 $— $144 $88 $56 $— $32 $— 
Regulatory liabilities$139 $32 $— $— $— $17 $62 $3 
Accumulated other comprehensive (income) loss
Deferred income tax expense$3 $— $— $— $— $— $— $— 
Prior service credit(1)— — — — — — — 
Net actuarial gain(13)— — — — — — — 
Net amounts recognized in accumulated other comprehensive income$(11)$— $— $— $— $— $— $— 
(a)    Included in Other within Current Liabilities on the Consolidated Balance Sheets. 
(b)    Included in Accrued pension and other post-retirement benefit costs on the Consolidated Balance Sheets.
Assumptions Used for Other Post-Retirement Benefits Accounting
The discount rate used to determine the current year other post-retirement benefits obligation and following year’s other post-retirement benefits expense is based on a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high-quality corporate bonds that generate sufficient cash flow to provide for projected benefit payments of the plan. The selected bond portfolio is derived from a universe of non-callable corporate bonds rated Aa quality or higher. After the bond portfolio is selected, a single interest rate is determined that equates the present value of the plan’s projected benefit payments discounted at this rate with the market value of the bonds selected.
The average remaining service period of active covered employees is four years for Duke Energy, seven years for Duke Energy Florida, six years for Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Indiana and Piedmont and five years for Duke Energy Ohio.
The following tables present the assumptions used for other post-retirement benefits accounting.
December 31,
202120202019
Benefit Obligations
Discount rate2.90 %2.60 %3.30 %
Net Periodic Benefit Cost
Discount rate2.60 %3.30 %4.30 %
Expected long-term rate of return on plan assets6.50 %6.85 %6.85 %
Assumed Health Care Cost Trend Rate
December 31,
20212020
Health care cost trend rate assumed for next year6.25 %6.25 %
Rate to which the cost trend is assumed to decline (the ultimate trend rate)4.75 %4.75 %
Year that rate reaches ultimate trend20282028
Expected Benefit Payments
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Years ending December 31,
2022$70 $17 $26 $15 $12 $3 $7 $2 
202362 15 25 14 11 3 6 2 
202458 14 23 13 11 3 6 2 
202554 13 22 12 10 2 5 2 
202650 12 21 12 9 2 5 2 
2027-2031207 50 87 49 38 8 19 10 
PLAN ASSETS
Description and Allocations
Duke Energy Master Retirement Trust
Assets for both the qualified pension and other post-retirement benefits are maintained in the Duke Energy Master Retirement Trust. Approximately 98% of the Duke Energy Master Retirement Trust assets were allocated to qualified pension plans and approximately 2% were allocated to other post-retirement plans (comprised of 401(h) accounts), as of December 31, 2021, and 2020. The investment objective of the Duke Energy Master Retirement Trust is to invest in a diverse portfolio of assets that is expected to generate positive surplus return over time (i.e., asset growth greater than liability growth) subject to a prudent level of portfolio risk, for the purpose of enhancing the security of benefits for plan participants.
As of December 31, 2021, Duke Energy assumes pension and other post-retirement plan assets will generate a long-term rate of return of 6.5%. The expected long-term rate of return was developed using a weighted average calculation of expected returns based primarily on future expected returns across asset classes considering the use of active asset managers, where applicable. The asset allocation targets were set after considering the investment objective and the risk profile. Equity securities are held for their higher expected returns. Debt securities are primarily held to hedge the qualified pension plan. Return seeking debt securities, hedge funds and other global securities are held for diversification. Investments within asset classes are diversified to achieve broad market participation and reduce the impact of individual managers or investments.
Effective January 1, 2022, the target asset allocation for the Duke Energy Retirement Master Trust is 60% liability hedging assets and 40% return-seeking assets. Duke Energy periodically reviews its asset allocation targets, and over time, as the funded status of the benefit plans increase, the level of asset risk relative to plan liabilities may be reduced to better manage Duke Energy's benefit plan liabilities and reduce funded status volatility.
The Duke Energy Master Retirement Trust is authorized to engage in the lending of certain plan assets. Securities lending is an investment management enhancement that utilizes certain existing securities of the Duke Energy Master Retirement Trust to earn additional income. Securities lending involves the loaning of securities to approved parties. In return for the loaned securities, the Duke Energy Master Retirement Trust receives collateral in the form of cash and securities as a safeguard against possible default of any borrower on the return of the loan under terms that permit the Duke Energy Master Retirement Trust to sell the securities. The Duke Energy Master Retirement Trust mitigates credit risk associated with securities lending arrangements by monitoring the fair value of the securities loaned, with additional collateral obtained or refunded as necessary. The fair value of securities on loan was approximately $542 million and $482 million at December 31, 2021, and 2020, respectively. Cash and securities obtained as collateral exceeded the fair value of the securities loaned at December 31, 2021, and 2020, respectively. Securities lending income earned by the Duke Energy Master Retirement Trust was immaterial for the years ended December 31, 2021, 2020 and 2019, respectively.
Qualified pension and other post-retirement benefits for the Subsidiary Registrants are derived from the Duke Energy Master Retirement Trust, as such, each are allocated their proportionate share of the assets discussed below.
The following table includes the target asset allocations by asset class at December 31, 2021, and the actual asset allocations for the Duke Energy Master Retirement Trust.
Actual Allocation at
TargetDecember 31,
Allocation20212020
Global equity securities27 %24 %30 %
Global private equity securities1 %1 %1 %
Debt securities62 %62 %55 %
Return seeking debt securities4 %4 %5 %
Hedge funds2 %3 %3 %
Real estate and cash4 %6 %6 %
Total100 %100 %100 %
Other post-retirement assets
Duke Energy's other post-retirement assets are comprised of Voluntary Employees' Beneficiary Association (VEBA) trusts and 401(h) accounts held within the Duke Energy Master Retirement Trust. Duke Energy's investment objective is to achieve sufficient returns, subject to a prudent level of portfolio risk, for the purpose of promoting the security of plan benefits for participants.
The following table presents target and actual asset allocations for the VEBA trusts at December 31, 2021.
Actual Allocation at
TargetDecember 31,
Allocation20212020
U.S. equity securities30 %19 %36 %
Non-U.S. equity securities5 %5 %6 %
Real estate2 %3 %2 %
Debt securities45 %18 %42 %
Cash18 %55 %14 %
Total100 %100 %100 %
Fair Value Measurements
Duke Energy classifies recurring and non-recurring fair value measurements based on the fair value hierarchy as discussed in Note 16.
Valuation methods of the primary fair value measurements disclosed below are as follows:
Investments in equity securities
Investments in equity securities are typically valued at the closing price in the principal active market as of the last business day of the reporting period. Principal active markets for equity prices include published exchanges such as NASDAQ and NYSE. Foreign equity prices are translated from their trading currency using the currency exchange rate in effect at the close of the principal active market. Prices have not been adjusted to reflect after-hours market activity. The majority of investments in equity securities are valued using Level 1 measurements. When the price of an institutional commingled fund is unpublished, it is not categorized in the fair value hierarchy, even though the funds are readily available at the fair value.
Investments in corporate debt securities and U.S. government securities
Most debt investments are valued based on a calculation using interest rate curves and credit spreads applied to the terms of the debt instrument (maturity and coupon interest rate) and consider the counterparty credit rating. Most debt valuations are Level 2 measurements. If the market for a particular fixed-income security is relatively inactive or illiquid, the measurement is Level 3. U.S. Treasury debt is typically Level 2.
Investments in short-term investment funds
Investments in short-term investment funds are valued at the net asset value of units held at year end and are readily redeemable at the measurement date. Investments in short-term investment funds with published prices are valued as Level 1. Investments in short-term investment funds with unpublished prices are valued as Level 2.
Duke Energy Master Retirement Trust
The following tables provide the fair value measurement amounts for the Duke Energy Master Retirement Trust qualified pension and other post-retirement assets.
December 31, 2021
Total FairNot
(in millions)ValueLevel 1Level 2Level 3
Categorized(b)
Equity securities$2,575 $2,547 $— $— $28 
Corporate debt securities4,189 — 4,189 — — 
Short-term investment funds382 272 110 — — 
Partnership interests95 — — 95 — 
Hedge funds216 — — — 216 
U.S. government securities1,618 — 1,618 — — 
Governments bonds – foreign78 — 78 — — 
Cash144 144 — — — 
Government and commercial mortgage backed securities2 — 2 — — 
Net pending transactions and other investments53 12 41 — — 
Total assets(a)
$9,352 $2,975 $6,038 $95 $244 
(a)    Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont were allocated approximately 26%, 32%, 15%, 17%, 5%, 7% and 4%, respectively, of the Duke Energy Master Retirement Trust at December 31, 2021. Accordingly, all amounts included in the table above are allocable to the Subsidiary Registrants using these percentages.
(b)    Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy.
December 31, 2020
Total FairNot
(in millions)ValueLevel 1Level 2Level 3
Categorized(b)
Equity securities$3,202 $3,162 $— $— $40 
Corporate debt securities4,162 — 4,162 — — 
Short-term investment funds397 247 150 — — 
Partnership interests97 — — — 97 
Hedge funds198 — — — 198 
U.S. government securities1,164 — 1,164 — — 
Governments bonds – foreign73 — 73 — — 
Cash98 98 — — — 
Net pending transactions and other investments88 34 54 — — 
Total assets(a)
$9,479 $3,541 $5,603 $— $335 
(a)    Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont were allocated approximately 26%, 32%, 15%, 17%, 5%, 7% and 4%, respectively, of the Duke Energy Master Retirement Trust at December 31, 2020. Accordingly, all amounts included in the table above are allocable to the Subsidiary Registrants using these percentages.
(b)    Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy.
The following table provides a reconciliation of beginning and ending balances of Duke Energy Master Retirement Trust qualified pension and other post-retirement assets at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3).
(in millions)20212020
Balance at January 1$— $11 
Sales— (12)
Total gains and other, net— 1 
Transfer of Level 3 assets from other classifications95 — 
Balance at December 31$95 $— 
Other post-retirement assets
The following tables provide the fair value measurement amounts for VEBA trust assets.
December 31, 2021
Total Fair
(in millions)ValueLevel 2
Cash and cash equivalents$14 $14 
Real estate2 2 
Equity securities18 18 
Debt securities11 11 
Total assets$45 $45 
December 31, 2020
Total Fair
(in millions)ValueLevel 2
Cash and cash equivalents$5 $5 
Real estate1 1 
Equity securities23 23 
Debt securities19 19 
Total assets$48 $48 
EMPLOYEE SAVINGS PLANS
Retirement Savings Plan
Duke Energy or its affiliates sponsor, and the Subsidiary Registrants participate in, employee savings plans that cover substantially all U.S. employees. Most employees participate in a matching contribution formula where Duke Energy provides a matching contribution generally equal to 100% of employee before-tax and Roth 401(k) contributions of up to 6% of eligible pay per pay period. Dividends on Duke Energy shares held by the savings plans are charged to retained earnings when declared and shares held in the plans are considered outstanding in the calculation of basic and diluted EPS.
For new and rehired employees who are not eligible to participate in Duke Energy’s defined benefit plans, an additional employer contribution of 4% of eligible pay per pay period, which is subject to a three-year vesting schedule, is provided to the employee’s savings plan account. Certain Piedmont employees whose participation in a prior Piedmont defined benefit plan (that was frozen as of December 31, 2017) are eligible for employer transition credit contributions of 3% to 5% of eligible pay per period, for each pay period during the three-year period ending December 31, 2020.
The following table includes pretax employer matching contributions made by Duke Energy and expensed by the Subsidiary Registrants.
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Years ended December 31,
2021$229 $70 $60 $39 $21 $5 $12 $11 
2020213 67 57 38 19 5 11 13 
2019214 66 58 38 20 5 11 13