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Pension, OPEB and Savings Plans (Tables)
 12 Months Ended
Dec. 31, 2019
Defined Benefit Plan [Abstract]  
Schedule of Defined Benefit Plans Disclosures
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, 2019 and 2018. 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
 
 
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
Millions
 
 
Change in Benefit Obligation
 
 
 
 
 
 
 
 
 
 
Benefit Obligation at Beginning of Year (A)
 
$
5,921

 
$
6,359

 
$
1,203

 
$
1,976

 
 
Service Cost
 
123

 
130

 
10

 
18

 
 
Interest Cost
 
218

 
208

 
45

 
66

 
 
Actuarial (Gain) Loss
 
955

 
(460
)
 
109

 
(222
)
 
 
Gross Benefits Paid
 
(325
)
 
(316
)
 
(82
)
 
(76
)
 
 
Plan Amendments
 
—

 
—

 
—

 
(559
)
 
 
Benefit Obligation at End of Year (A)
 
$
6,892

 
$
5,921

 
$
1,285

 
$
1,203

 
 
Change in Plan Assets
 
 
 
 
 
 
 
 
 
 
Fair Value of Assets at Beginning of Year
 
$
5,120

 
$
5,812

 
$
488

 
$
511

 
 
Actual Return on Plan Assets
 
1,122

 
(388
)
 
107

 
(36
)
 
 
Employer Contributions
 
12

 
12

 
27

 
89

 
 
Gross Benefits Paid
 
(325
)
 
(316
)
 
(82
)
 
(76
)
 
 
Fair Value of Assets at End of Year
 
$
5,929

 
$
5,120

 
$
540

 
$
488

 
 
Funded Status
 
 
 
 
 
 
 
 
 
 
Funded Status (Plan Assets less Benefit Obligation)
 
$
(963
)
 
$
(801
)
 
$
(745
)
 
$
(715
)
 
 
Additional Amounts Recognized in the Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
Current Accrued Benefit Cost
 
$
(11
)
 
$
(10
)
 
$
(11
)
 
$
(11
)
 
 
Noncurrent Accrued Benefit Cost
 
(952
)
 
(791
)
 
(734
)
 
(704
)
 
 
Amounts Recognized
 
$
(963
)
 
$
(801
)
 
$
(745
)
 
$
(715
)
 
 
Additional Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Regulated Assets and Deferred Assets (B)
 
 
 
 
Prior Service Credit
 
$
(10
)
 
$
(28
)
 
$
(433
)
 
$
(561
)
 
 
Net Actuarial Loss
 
2,150

 
2,005

 
409

 
420

 
 
Total
 
$
2,140

 
$
1,977

 
$
(24
)
 
$
(141
)
 
 
 
 
 
 
 
 
 
 
 
 
(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 or retirement.
(B)
Includes $695 million ($499 million, after-tax) and $619 million ($360 million, after-tax) in Accumulated Other Comprehensive Loss related to Pension and OPEB as of December 31, 2019 and 2018, respectively. Also includes Regulatory Assets of $1,284 million and Deferred Assets of $137 million as of December 31, 2019 and Regulatory Assets of $1,090 million and Deferred Assets of $127 million as of December 31, 2018.
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, 2019 and 2018. 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
 
 
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
Millions
 
 
Change in Benefit Obligation
 
 
 
 
 
 
 
 
 
 
Benefit Obligation at Beginning of Year
 
$
321

 
$
320

 
$
501

 
$
542

 
 
Service Cost
 
26

 
30

 
16

 
18

 
 
Interest Cost
 
14

 
12

 
22

 
20

 
 
Actuarial (Gain) Loss
 
96

 
(38
)
 
96

 
(73
)
 
 
Gross Benefits Paid
 
(4
)
 
(3
)
 
(6
)
 
(6
)
 
 
Plan Amendments
 
—

 
—

 
(3
)
 
—

 
 
Benefit Obligation at End of Year (A)
 
$
453

 
$
321

 
$
626

 
$
501

 
 
Change in Plan Assets
 
 
 
 
 
 
 
 
 
 
Fair Value of Assets at Beginning of Year
 
$
212

 
$
191

 
$
—

 
$
—

 
 
Actual Return on Plan Assets
 
46

 
(16
)
 
—

 
—

 
 
Employer Contributions
 
28

 
40

 
6

 
6

 
 
Gross Benefits Paid
 
(4
)
 
(3
)
 
(6
)
 
(6
)
 
 
Fair Value of Assets at End of Year
 
$
282

 
$
212

 
$
—

 
$
—

 
 
Funded Status
 
 
 
 
 
 
 
 
 
 
Funded Status (Plan Assets less Benefit Obligation)
 
$
(171
)
 
$
(109
)
 
$
(626
)
 
$
(501
)
 
 
Additional Amounts Recognized in the Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
Accrued Pension Costs of Servco
 
$
(171
)
 
$
(109
)
 
N/A

 
N/A

 
 
OPEB Costs of Servco
 
N/A

 
N/A

 
(626
)
 
(501
)
 
 
Amounts Recognized (B)
 
$
(171
)
 
$
(109
)
 
$
(626
)
 
$
(501
)
 
 
 
 
 
 
 
 
 
 
 
 
(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 or 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.
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, 2019, 2018 and 2017. 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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits Years Ended December 31,
 
Other Benefits Years Ended December 31,
 
 
 
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
 
 
 
Millions
 
 
Components of Net Periodic Benefit (Credits) Costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service Cost (included in O&M Expense)
 
$
123

 
$
130

 
$
114

 
$
10

 
$
18

 
$
17

 
 
Non-Service Components of Pension and OPEB (Credits) Costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Cost
 
218

 
208

 
204

 
45

 
66

 
63

 
 
Expected Return on Plan Assets
 
(408
)
 
(441
)
 
(394
)
 
(36
)
 
(41
)
 
(34
)
 
 
Amortization of Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior Service Credit
 
(18
)
 
(18
)
 
(18
)
 
(128
)
 
(1
)
 
(11
)
 
 
Actuarial Loss
 
96

 
85

 
97

 
50

 
64

 
51

 
 
Non-Service Components of Pension and OPEB (Credits) Costs
 
(112
)
 
(166
)
 
(111
)
 
(69
)
 
88

 
69

 
 
Total Benefit (Credits) Costs
 
$
11

 
$
(36
)
 
$
3

 
$
(59
)
 
$
106

 
$
86

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule Of Pension And OPEB Costs
Pension costs and OPEB costs for PSEG, PSE&G and PSEG Power are detailed as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
Years Ended December 31,
 
Other Benefits
Years Ended December 31,
 
 
 
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
 
 
 
Millions
 
 
PSE&G
 
$
—

 
$
(31
)
 
$
(4
)
 
$
(62
)
 
$
68

 
$
54

 
 
PSEG Power
 
4

 
(9
)
 
1

 
3

 
32

 
27

 
 
Other
 
7

 
4

 
6

 
—

 
6

 
5

 
 
Total Benefit (Credits) Costs
 
$
11

 
$
(36
)
 
$
3

 
$
(59
)
 
$
106

 
$
86

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
Millions
 
 
Net Actuarial (Gain) Loss in Current Period
 
$
241

 
$
369

 
$
39

 
$
(145
)
 
 
Amortization of Net Actuarial Gain (Loss)
 
(96
)
 
(85
)
 
(50
)
 
(64
)
 
 
Prior Service Cost (Credit) in current period
 
—

 
—

 
—

 
(559
)
 
 
Amortization of Prior Service Credit
 
18

 
18

 
128

 
1

 
 
Total
 
$
163

 
$
302

 
$
117

 
$
(767
)
 
 
 
 
 
 
 
 
 
 
 
 
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 2020 are as follows:
 
 
 
 
 
 
 
 
 
 
Pension
Benefits
 
Other
Benefits
 
 
 
 
2020
 
2020
 
 
 
 
Millions
 
 
Actuarial Loss
 
$
92

 
$
47

 
 
Prior Service Credit
 
$
(10
)
 
$
(128
)
 
 
 
 
 
 
 
 
Schedule of Assumptions Used
The following assumptions were used to determine the benefit obligations and net periodic benefit costs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
Other Benefits
 
 
 
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
 
Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31
 
 
 
 
Discount Rate
 
3.30
%
 
4.41
%
 
3.73
%
 
3.20
%
 
4.31
%
 
3.76
%
 
 
Rate of Compensation Increase
 
3.90
%
 
3.90
%
 
3.90
%
 
3.90
%
 
3.90
%
 
3.90
%
 
 
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31
 
 
 
 
Discount Rate
 
4.41
%
 
3.73
%
 
4.29
%
 
4.31
%
 
3.76
%
 
4.37
%
 
 
Service Cost Interest Rate
 
4.58
%
 
3.88
%
 
4.53
%
 
4.48
%
 
3.90
%
 
4.64
%
 
 
Interest Cost Interest Rate
 
4.03
%
 
3.35
%
 
3.63
%
 
3.91
%
 
3.39
%
 
3.69
%
 
 
Expected Return on Plan Assets
 
7.80
%
 
7.80
%
 
7.80
%
 
7.79
%
 
7.80
%
 
7.80
%
 
 
Rate of Compensation Increase
 
3.90
%
 
3.90
%
 
3.61
%
 
3.90
%
 
3.90
%
 
3.61
%
 
 
Assumed Health Care Cost Trend Rates as of December 31
 
 
 
 
 
 
 
 
 
 
Health Care Costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Immediate Rate
 
 
 
 
 
 
 
6.68
%
 
7.28
%
 
7.93
%
 
 
Ultimate Rate
 
 
 
 
 
 
 
4.75
%
 
4.75
%
 
4.75
%
 
 
Year Ultimate Rate Reached
 
 
 
 
 
 
 
2029

 
2026

 
2026

 
 
 
 
 
 
 
 
 
 
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

 
$
1

 
$
13

 
 
Postretirement Benefit Obligation
 
 
 
 
 
 
 
$
20

 
$
21

 
$
240

 
 
Effect of a 1% Decrease in the Assumed Rate of Increase in Health Care Benefit Costs
 
 
 
 
Total of Service Cost and Interest Cost
 
 
 
 
 
 
 
$
(1
)
 
$
(1
)
 
$
(10
)
 
 
Postretirement Benefit Obligation
 
 
 
 
 
 
 
$
(18
)
 
$
(20
)
 
$
(198
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

The following assumptions were used to determine the benefit obligations of Servco:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
Other Benefits
 
 
 
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
 
Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31
 
 
 
 
Discount Rate
 
3.52
%
 
4.60
%
 
3.90
%
 
3.60
%
 
4.67
%
 
3.96
%
 
 
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
 
 
 
 
 
 
 
6.94
%
 
8.03
%
 
7.69
%
 
 
Ultimate Rate
 
 
 
 
 
 
 
4.75
%
 
4.75
%
 
4.75
%
 
 
Year Ultimate Rate Reached
 
 
 
 
 
 
 
2029

 
2026

 
2026

 
 
 
 
 
 
 
 
 
 
Millions
 
 
Effect of a 1% Increase in the Assumed Rate of Increase in Health Care Benefit Costs
 
 
 
 
Postretirement Benefit Obligation
 
 
 
 
 
 
 
$
135

 
$
108

 
$
131

 
 
Effect of a 1% Decrease in the Assumed Rate of Increase in Health Care Benefit Costs
 
 
 
 
Postretirement Benefit Obligation
 
 
 
 
 
 
 
$
(104
)
 
$
(83
)
 
$
(99
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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, 2019 and 2018, including the fair value measurements and the levels of inputs used in determining those fair values.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recurring Fair Value Measurements as of December 31, 2019
 
 
 
 
 
 
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)
 
$
202

 
$
—

 
$
202

 
$
—

 
 
Commingled Bonds (A)
 
80

 
—

 
80

 
—

 
 
Total
 
$
282

 
$
—

 
$
282

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
(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, 2019 and 2018, including the fair value measurements and the levels of inputs used in determining those fair values.



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recurring Fair Value Measurements as of December 31, 2019
 
 
 
 
 
 
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)
 
$
104

 
$
103

 
$
1

 
$
—

 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
  Common Stock (B)
 
1,487

 
1,487

 
—

 
—

 
 
  Commingled (C)
 
1,707

 
1,042

 
665

 
—

 
 
  Preferred Stock (B)
 
19

 
19

 
—

 
—

 
 
  Other (D)
 
3

 
3

 
—

 
—

 
 
Debt Securities (E)
 
 
 
 
 
 
 
 
 
 
  U.S. Treasury
 
544

 
—

 
544

 
—

 
 
  Government—Other
 
284

 
—

 
284

 
—

 
 
  Corporate
 
837

 
—

 
837

 
—

 
 
 Commingled
 
3

 
3

 
—

 
—

 
 
 Other (Future Contracts)
 
(3
)
 
(3
)
 
—

 
—

 
 
Subtotal Fair Value
 
$
4,985

 
$
2,654

 
$
2,331

 
$
—

 
 
Measured at net asset value practical expedient
 
 
 
 
 
 
 
 
 
 
Commingled—Equities (F)
 
1,154

 
 
 


 
 
 
 
Real Estate Investment (G)
 
302

 
 
 
 
 
 
 
 
Private Equity (H)
 
8

 
 
 
 
 
 
 
 
Total Fair Value (I)
 
$
6,449

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 (H)
 
10

 
 
 
 
 
 
 
 
Total Fair Value (I)
 
$
5,595

 


 


 


 
 
 
 
 
 
 
 
 
 
 
 

(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 the frequency of publishing NAV (monthly). 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 Morgan Stanley Capital International Index.
(G)
The unlisted real estate fund invests in office, apartment, industrial and retail space. The fund is valued using the NAV per unit of funds. The investment value of the real estate properties are determined on a quarterly basis by independent market appraisers engaged by the board of directors of the fund. The ability to redeem funds is subject to the availability of cash arising from net investment income, allocations and the sale of investments in the normal course of business. The fund’s NAV is published quarterly. In addition, redemptions require one quarter advance notice prior to redemption and are fulfilled quarterly. The fund, therefore, does not meet the definition of readily determinable fair value. The purpose of the fund is to acquire, own, hold for investment and ultimately dispose of investments in real estate and real estate-related assets with the intention of achieving current income, capital appreciation or both.
(H)
Private equity investments primarily include various limited partnerships that invest in either operating companies through acquisitions or developing a portfolio of non-U.S. distressed investments to maximize total return on capital. These investments are valued at NAV (or its equivalent) on a quarterly 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 are not included in the fair value hierarchy in accordance with the guidance on NAV practical expedient.
(I)
Excludes net receivables of $15 million and $14 million as of December 31, 2019 and 2018, 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
The following tables present information about the investments measured at fair value on a recurring basis as of December 31, 2019 and 2018, including the fair value measurements and the levels of inputs used in determining those fair values.



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recurring Fair Value Measurements as of December 31, 2019
 
 
 
 
 
 
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)
 
$
104

 
$
103

 
$
1

 
$
—

 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
  Common Stock (B)
 
1,487

 
1,487

 
—

 
—

 
 
  Commingled (C)
 
1,707

 
1,042

 
665

 
—

 
 
  Preferred Stock (B)
 
19

 
19

 
—

 
—

 
 
  Other (D)
 
3

 
3

 
—

 
—

 
 
Debt Securities (E)
 
 
 
 
 
 
 
 
 
 
  U.S. Treasury
 
544

 
—

 
544

 
—

 
 
  Government—Other
 
284

 
—

 
284

 
—

 
 
  Corporate
 
837

 
—

 
837

 
—

 
 
 Commingled
 
3

 
3

 
—

 
—

 
 
 Other (Future Contracts)
 
(3
)
 
(3
)
 
—

 
—

 
 
Subtotal Fair Value
 
$
4,985

 
$
2,654

 
$
2,331

 
$
—

 
 
Measured at net asset value practical expedient
 
 
 
 
 
 
 
 
 
 
Commingled—Equities (F)
 
1,154

 
 
 


 
 
 
 
Real Estate Investment (G)
 
302

 
 
 
 
 
 
 
 
Private Equity (H)
 
8

 
 
 
 
 
 
 
 
Total Fair Value (I)
 
$
6,449

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 (H)
 
10

 
 
 
 
 
 
 
 
Total Fair Value (I)
 
$
5,595

 


 


 


 
 
 
 
 
 
 
 
 
 
 
 

(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 the frequency of publishing NAV (monthly). 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 Morgan Stanley Capital International Index.
(G)
The unlisted real estate fund invests in office, apartment, industrial and retail space. The fund is valued using the NAV per unit of funds. The investment value of the real estate properties are determined on a quarterly basis by independent market appraisers engaged by the board of directors of the fund. The ability to redeem funds is subject to the availability of cash arising from net investment income, allocations and the sale of investments in the normal course of business. The fund’s NAV is published quarterly. In addition, redemptions require one quarter advance notice prior to redemption and are fulfilled quarterly. The fund, therefore, does not meet the definition of readily determinable fair value. The purpose of the fund is to acquire, own, hold for investment and ultimately dispose of investments in real estate and real estate-related assets with the intention of achieving current income, capital appreciation or both.
(H)
Private equity investments primarily include various limited partnerships that invest in either operating companies through acquisitions or developing a portfolio of non-U.S. distressed investments to maximize total return on capital. These investments are valued at NAV (or its equivalent) on a quarterly 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 are not included in the fair value hierarchy in accordance with the guidance on NAV practical expedient.
(I)
Excludes net receivables of $15 million and $14 million as of December 31, 2019 and 2018, 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
 
2019
 
2018
 
 
Equity Securities
 
72
%
 
67
%
 
 
Debt Securities
 
28

 
33

 
 
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
 
2019
 
2018
 
 
Equity Securities
 
68
%
 
66
%
 
 
Debt Securities
 
26

 
32

 
 
Other Investments
 
6

 
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
 
 
2020
 
 
$
382

 
$
90

 
 
2021
 
 
354

 
85

 
 
2022
 
 
367

 
86

 
 
2023
 
 
378

 
86

 
 
2024
 
 
389

 
86

 
 
2025-2029
 
 
2,074

 
409

 
 
Total
 
 
$
3,944

 
$
842

 
 
 
 
 
 
 
 
 

The following pension benefit and postretirement benefit payments are expected to be paid to Servco’s plan participants:
 
 
 
 
 
 
 
 
 
Year
 
 
Pension
Benefits
 
Other Benefits
 
 
 
 
 
Millions
 
 
2020
 
 
$
6

 
$
7

 
 
2021
 
 
8

 
9

 
 
2022
 
 
10

 
11

 
 
2023
 
 
12

 
13

 
 
2024
 
 
14

 
15

 
 
2025-2029
 
 
109

 
104

 
 
Total
 
 
$
159

 
$
159

 
 
 
 
 
 
 
 
 
Schedule Of Amount Paid For Employer Matching Contributions The amounts paid for employer matching contributions to the plans for PSEG, PSE&G and PSEG Power are detailed as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Thrift Plan and Savings Plan
 
 
 
 
Years Ended December 31,
 
 
 
 
2019
 
2018
 
2017
 
 
 
 
Millions
 
 
PSE&G
 
$
25

 
$
26

 
$
25

 
 
PSEG Power
 
10

 
10

 
11

 
 
Other
 
5

 
5

 
5

 
 
Total Employer Matching Contributions
 
$
40

 
$
41

 
$
41