Pension, OPEB and Savings Plans (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Defined Benefit Plans Disclosures

The following table provides a roll-forward of the changes in Servco’s benefit obligation and the fair value of its plan assets during the years ended December 31, 2018 and 2017. It also provides the funded status of the plans and the amounts recognized and amounts not recognized on the Consolidated Balance Sheets at the end of both years.




	Pension Benefits						Other Benefits
	2018			2017			2018			2017
	Millions
Change in Benefit Obligation
Benefit Obligation at Beginning of Year	$	320		$	262		$	542		$	452
Service Cost	30			27			18			15
Interest Cost	12			11			20			19
Actuarial (Gain) Loss	(38		)	22			(73		)	60
Gross Benefits Paid	(3		)	(2		)	(6		)	(4		)
Plan Amendments	—			—			—			—
Benefit Obligation at End of Year (A)	$	321		$	320		$	501		$	542
Change in Plan Assets
Fair Value of Assets at Beginning of Year	$	191		$	134		$	—		$	—
Actual Return on Plan Assets	(16		)	24			—			—
Employer Contributions	40			35			6			4
Gross Benefits Paid	(3		)	(2		)	(6		)	(4		)
Fair Value of Assets at End of Year	$	212		$	191		$	—		$	—
Funded Status
Funded Status (Plan Assets less Benefit Obligation)	$	(109	)	$	(129	)	$	(501	)	$	(542	)
Additional Amounts Recognized in the Consolidated Balance Sheets
Accrued Pension Costs of Servco	$	(109	)	$	(129	)	N/A			N/A
OPEB Costs of Servco	N/A			N/A			(501		)	(542		)
Amounts Recognized (B)	$	(109	)	$	(129	)	$	(501	)	$	(542	)


(A)	Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation of retirement.


(B)	Amounts equal to the accrued pension and OPEB costs of Servco are offset in Long-Term Receivable of VIE on PSEG’s Consolidated Balance Sheets.

The following table provides a roll-forward of the changes in the benefit obligation and the fair value of plan assets during each of the two years in the periods ended December 31, 2018 and 2017. It also provides the funded status of the plans and the amounts recognized and amounts not recognized on the Consolidated Balance Sheets at the end of both years.




	Pension Benefits						Other Benefits
	2018			2017			2018			2017
	Millions
Change in Benefit Obligation
Benefit Obligation at Beginning of Year (A)	$	6,359		$	5,772		$	1,976		$	1,754
Service Cost	130			114			18			17
Interest Cost	208			204			66			63
Actuarial (Gain) Loss	(460		)	564			(222		)	199
Gross Benefits Paid	(316		)	(295		)	(76		)	(57		)
Plan Amendments	—			—			(559		)	—
Benefit Obligation at End of Year (A)	$	5,921		$	6,359		$	1,203		$	1,976
Change in Plan Assets
Fair Value of Assets at Beginning of Year	$	5,812		$	5,193		$	511		$	420
Actual Return on Plan Assets	(388		)	903			(36		)	77
Employer Contributions	12			11			89			71
Gross Benefits Paid	(316		)	(295		)	(76		)	(57		)
Fair Value of Assets at End of Year	$	5,120		$	5,812		$	488		$	511
Funded Status
Funded Status (Plan Assets less Benefit Obligation)	$	(801	)	$	(547	)	$	(715	)	$	(1,465	)
Additional Amounts Recognized in the Consolidated Balance Sheets
Current Accrued Benefit Cost	(10		)	(10		)	(11		)	(10		)
Noncurrent Accrued Benefit Cost	(791		)	(537		)	(704		)	(1,455		)
Amounts Recognized	$	(801	)	$	(547	)	$	(715	)	$	(1,465	)
Additional Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Regulated Assets and Deferred Assets (B)
Prior Service Cost	$	(28	)	$	(46	)	$	(561	)	$	(3	)
Net Actuarial Loss	2,005			1,721			420			629
Total	$	1,977		$	1,675		$	(141	)	$	626


(A)	Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation of retirement.

(B)

Includes $619 million ($360 million, after-tax) and $683 million ($406 million, after-tax) in Accumulated Other Comprehensive Loss related to Pension and OPEB as of December 31, 2018 and 2017, respectively. Also includes Regulatory Assets of $1,090 million and Deferred Assets of $127 million as of December 31, 2018 and Regulatory Assets of $1,485 million and Deferred Assets of $133 million as of December 31, 2017.

Components Of Net Periodic Benefit Cost

The following table provides the components of net periodic benefit cost relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis for PSEG, excluding Servco for the years ended December 31, 2018, 2017 and 2016. Amounts shown do not reflect the impacts of capitalization and co-owner allocations. Effective with the adoption of ASU 2017-07 on January 1, 2018, only the service cost component is eligible for capitalization, when applicable. For additional information, see Note 2. Recent Accounting Standards.




	Pension Benefits Years Ended December 31,									Other Benefits Years Ended December 31,
	2018			2017			2016			2018			2017			2016
	Millions
Components of Net Periodic Benefit (Credits) Costs
Service Cost (included in O&M Expense)	$	130		$	114		$	109		$	18		$	17		$	17
Non-Service Components of Pension and OPEB (Credits) Costs
Interest Cost	208			204			202			66			63			59
Expected Return on Plan Assets	(441		)	(394		)	(394		)	(41		)	(34		)	(31		)
Amortization of Net
Prior Service Credit	(18		)	(18		)	(19		)	(1		)	(11		)	(14		)
Actuarial Loss	85			97			158			64			51			40
Non-Service Components of Pension and OPEB (Credits) Costs	(166		)	(111		)	(53		)	88			69			54
Total Benefit (Credits) Costs	$	(36	)	$	3		$	56		$	106		$	86		$	71

Schedule Of Pension And OPEB Costs

Pension costs and OPEB costs for PSEG, PSE&G and Power are detailed as follows:




	Pension Benefits Years Ended December 31,								Other Benefits Years Ended December 31,
	2018			2017			2016		2018		2017		2016
	Millions
PSE&G	$	(31	)	$	(4	)	$	29	$	68	$	54	$	43
Power	(9		)	1			16		32		27		23
Other	4			6			11		6		5		5
Total Benefit (Credits) Costs	$	(36	)	$	3		$	56	$	106	$	86	$	71

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

The following table provides the pre-tax changes recognized in Accumulated Other Comprehensive Income (Loss), Regulatory Assets and Deferred Assets:




	Pension						OPEB
	2018			2017			2018			2017
	Millions
Net Actuarial (Gain) Loss in Current Period	$	369		$	55		$	(145	)	$	156
Amortization of Net Actuarial Gain (Loss)	(85		)	(97		)	(64		)	(50		)
Prior Service Cost (Credit) in current period	—			—			(559		)	—
Amortization of Prior Service Credit	18			18			1			11
Total	$	302		$	(24	)	$	(767	)	$	117

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

Amounts that are expected to be amortized from Accumulated Other Comprehensive Loss, Regulatory Assets and Deferred Assets into Net Periodic Benefit Cost in 2019 are as follows:




	Pension Benefits			Other Benefits
	2019			2019
	Millions
Actuarial Loss	$	107		$	50
Prior Service Credit	$	(18	)	$	(128	)

Schedule of Assumptions Used

The following assumptions were used to determine the benefit obligations of Servco:




	Pension Benefits						Other Benefits
	2018		2017		2016		2018			2017			2016
Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31
Discount Rate	4.60	%	3.90	%	4.61	%	4.67		%	3.96		%	4.71		%
Rate of Compensation Increase	3.25	%	3.25	%	3.25	%	3.25		%	3.25		%	3.25		%
Assumed Health Care Cost Trend Rates as of December 31
Health Care Costs
Immediate Rate							8.03		%	7.69		%	7.55		%
Ultimate Rate							4.75		%	4.75		%	4.75		%
Year Ultimate Rate Reached							2026			2026			2025
							Millions
Effect of a 1% Increase in the Assumed Rate of Increase in Health Care Benefit Costs
Postretirement Benefit Obligation							$	108		$	131		$	97
Effect of a 1% Decrease in the Assumed Rate of Increase in Health Care Benefit Costs
Postretirement Benefit Obligation							$	(83	)	$	(99	)	$	(75	)

The following assumptions were used to determine the benefit obligations and net periodic benefit costs:




	Pension Benefits						Other Benefits
	2018		2017		2016		2018			2017			2016
Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31
Discount Rate	4.41	%	3.73	%	4.29	%	4.31		%	3.76		%	4.37		%
Rate of Compensation Increase	3.90	%	3.90	%	3.61	%	3.90		%	3.90		%	3.61		%
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31
Discount Rate	3.73	%	4.29	%	4.54	%	3.76		%	4.37		%	4.58		%
Service Cost Interest Rate	3.88	%	4.53	%	4.81	%	3.90		%	4.64		%	4.87		%
Interest Cost Interest Rate	3.35	%	3.63	%	3.75	%	3.39		%	3.69		%	3.76		%
Expected Return on Plan Assets	7.80	%	7.80	%	8.00	%	7.80		%	7.80		%	8.00		%
Rate of Compensation Increase	3.90	%	3.61	%	3.61	%	3.90		%	3.61		%	3.61		%
Assumed Health Care Cost Trend Rates as of December 31
Health Care Costs
Immediate Rate							7.28		%	7.93		%	7.55		%
Ultimate Rate							4.75		%	4.75		%	4.75		%
Year Ultimate Rate Reached							2026			2026			2025
							Millions
Effect of a 1% Increase in the Assumed Rate of Increase in Health Care Benefit Costs
Total of Service Cost and Interest Cost							$	1		$	13		$	11
Postretirement Benefit Obligation							$	21		$	240		$	191
Effect of a 1% Decrease in the Assumed Rate of Increase in Health Care Benefit Costs
Total of Service Cost and Interest Cost							$	(1	)	$	(10	)	$	(9	)
Postretirement Benefit Obligation							$	(20	)	$	(198	)	$	(160	)

Schedule of Allocation of Plan Assets

The following tables present information about Servco’s investments measured at fair value on a recurring basis as of December 31, 2018 and 2017, including the fair value measurements and the levels of inputs used in determining those fair values.




	Recurring Fair Value Measurements as of December 31, 2018
			Quoted Market Prices for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
	Millions
Commingled Equities (A)	$	141	$	—	$	141	$	—
Commingled Bonds (A)	71		—		71		—
Total	$	212	$	—	$	212	$	—




	Recurring Fair Value Measurements as of December 31, 2017
			Quoted Market Prices for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
	Millions
Commingled Equities (A)	$	137	$	—	$	137	$	—
Commingled Bonds (A)	54		—		54		—
Total	$	191	$	—	$	191	$	—


(A)	Investments in commingled equity and bond funds have a readily determinable fair value as they publish a daily NAV available to investors which is the basis for current transactions and contain certain redemption restrictions requiring advance notice of one to two days for withdrawals (Level 2).

The following tables present information about the investments measured at fair value on a recurring basis as of December 31, 2018 and 2017, including the fair value measurements and the levels of inputs used in determining those fair values.




	Recurring Fair Value Measurements as of December 31, 2018
			Quoted Market Prices for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
	Millions
Cash Equivalents (A)	$	99	$	88	$	11	$	—
Equity Securities
Common Stock (B)	1,156		1,156		—		—
Commingled (C)	1,338		960		378		—
Preferred Stock (B)	7		7		—		—
Other (D)	1		1		—		—
Debt Securities (E)
U.S. Treasury	526		—		526		—
Government—Other	302		—		302		—
Corporate	948		—		948		—
Subtotal Fair Value	$	4,377	$	2,212	$	2,165	$	—
Measured at net asset value practical expedient
Commingled—Equities (F)	1,208
Private Equity (G)	10
Total Fair Value (H)	$	5,595




	Recurring Fair Value Measurements as of December 31, 2017
			Quoted Market Prices for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
	Millions
Cash Equivalents (A)	$	133	$	117	$	16	$	—
Equity Securities
Common Stock (B)	1,275		1,275		—		—
Commingled (C)	1,401		1,218		183		—
Preferred Stock (B)	6		6		—		—
Debt Securities (E)
U.S. Treasury	571		—		571		—
Government—Other	272		—		272		—
Corporate	963		—		963		—
Subtotal Fair Value	$	4,621	$	2,616	$	2,005	$	—
Measured at net asset value practical expedient
Commingled—Equities (F)	1,675
Private Equity (G)	14
Total Fair Value (H)	$	6,310


(A)	The Collective Investment Fund publishes a daily net asset value (NAV) which participants may use for daily redemptions without restrictions (Level 1). Certain temporary investments are valued using inputs such as time-to-maturity, coupon rate, quality rating and current yield (Level 2).


(B)	Common stocks and preferred stocks are measured using observable data in active markets and considered Level 1.


(C)	Commingled Funds that allow daily redemption at their daily published NAV without restrictions are classified as Level 1. Commingled Funds that publish daily NAV but with certain near-term redemption restrictions which prevent redemption at the published daily NAV are classified as Level 2.


(D)	Investment in a publicly traded limited partnership.

(E)

Debt securities include mainly investment grade corporate and municipal bonds, U.S. Treasury obligations and Federal Agency asset-backed securities with a wide range of maturities. These investments are valued using an evaluated pricing approach that varies by asset class and reflects observable market information such as the most recent exchange price or quoted bid for similar securities. Market-based standard inputs typically include benchmark yields, reported trades, broker/dealer quotes and issuer spreads or the most recent quotes for similar securities which are a Level 2 measure.

(F)

Certain commingled equity funds are not included in the fair value hierarchy as they are measured at fair value using the NAV per share (or its equivalent) practical expedient. These funds do not meet the definition of readily determinable fair value due to limitations in published NAV (last business day of the month) and include certain redemption restrictions ranging from one to fifteen days advance notice prior to redemption days and limitations on withdrawals over 25% of the total fund. The objectives of these funds are mainly tracking the S&P Index or achieving long-term growth through investment in foreign equity securities and the MSCI Emerging Markets Index.

(G)

Private equity investments primarily include various limited partnerships that invest in either operating companies through acquisitions or developing a portfolio of non-US distressed investments to maximize total return on capital. These investments are valued at NAV (or its equivalent) on an annual basis and have significant redemption restrictions preventing redemption until fund liquidation and limited ability to sell these investments. Fund liquidation is not expected to occur for several more years. These investments have been removed from the fair value hierarchy in accordance with the guidance on NAV practical expedient.


(H)	Excludes net receivables of $14 million and $13 million at December 31, 2018 and 2017, respectively, which consist of interest, dividends and receivables and payables related to pending securities sales and purchases.

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets




	Recurring Fair Value Measurements as of December 31, 2018
			Quoted Market Prices for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
	Millions
Cash Equivalents (A)	$	99	$	88	$	11	$	—
Equity Securities
Common Stock (B)	1,156		1,156		—		—
Commingled (C)	1,338		960		378		—
Preferred Stock (B)	7		7		—		—
Other (D)	1		1		—		—
Debt Securities (E)
U.S. Treasury	526		—		526		—
Government—Other	302		—		302		—
Corporate	948		—		948		—
Subtotal Fair Value	$	4,377	$	2,212	$	2,165	$	—
Measured at net asset value practical expedient
Commingled—Equities (F)	1,208
Private Equity (G)	10
Total Fair Value (H)	$	5,595




	Recurring Fair Value Measurements as of December 31, 2017
			Quoted Market Prices for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
	Millions
Cash Equivalents (A)	$	133	$	117	$	16	$	—
Equity Securities
Common Stock (B)	1,275		1,275		—		—
Commingled (C)	1,401		1,218		183		—
Preferred Stock (B)	6		6		—		—
Debt Securities (E)
U.S. Treasury	571		—		571		—
Government—Other	272		—		272		—
Corporate	963		—		963		—
Subtotal Fair Value	$	4,621	$	2,616	$	2,005	$	—
Measured at net asset value practical expedient
Commingled—Equities (F)	1,675
Private Equity (G)	14
Total Fair Value (H)	$	6,310


(A)	The Collective Investment Fund publishes a daily net asset value (NAV) which participants may use for daily redemptions without restrictions (Level 1). Certain temporary investments are valued using inputs such as time-to-maturity, coupon rate, quality rating and current yield (Level 2).


(B)	Common stocks and preferred stocks are measured using observable data in active markets and considered Level 1.


(C)	Commingled Funds that allow daily redemption at their daily published NAV without restrictions are classified as Level 1. Commingled Funds that publish daily NAV but with certain near-term redemption restrictions which prevent redemption at the published daily NAV are classified as Level 2.


(D)	Investment in a publicly traded limited partnership.

(E)

(F)

(G)


(H)	Excludes net receivables of $14 million and $13 million at December 31, 2018 and 2017, respectively, which consist of interest, dividends and receivables and payables related to pending securities sales and purchases.

Schedule Of Percentage Of Fair Value Of Total Plan Assets

The following table provides the percentage of fair value of total plan assets for each major category of plan assets held for the qualified pension and OPEB plans of Servco as of the measurement date, December 31:




	As of December 31,
Investments	2018		2017
Equity Securities	67	%	72	%
Debt Securities	33		28
Total Percentage	100	%	100	%

The following table provides the percentage of fair value of total plan assets for each major category of plan assets held for the qualified pension and OPEB plans as of the measurement date, December 31:




	As of December 31,
Investments	2018		2017
Equity Securities	66	%	69	%
Debt Securities	32		29
Other Investments	2		2
Total Percentage	100	%	100	%

Schedule of Expected Benefit Payments

The following pension benefit and postretirement benefit payments are expected to be paid to plan participants.




Year	Pension Benefits		Other Benefits
	Millions
2019	$	345	$	91
2020	341		95
2021	352		87
2022	364		88
2023	373		89
2024-2028	2,004		428
Total	$	3,779	$	878

The following pension benefit and postretirement benefit payments are expected to be paid to Servco’s plan participants:




Year	Pension Benefits		Other Benefits
	Millions
2019	$	4	$	6
2020	6		8
2021	7		10
2022	9		12
2023	11		14
2024-2028	91		99
Total	$	128	$	149

Schedule Of Amount Paid For Employer Matching Contributions

The amount paid for employer matching contributions to the plans for PSEG, PSE&G and Power are detailed as follows:




	Thrift Plan and Savings Plan
	Years Ended December 31,
	2018		2017		2016
	Millions
PSE&G	$	26	$	25	$	24
Power	10		11		12
Other	5		5		5
Total Employer Matching Contributions	$	41	$	41	$	41