Retirement Benefits

3 Months Ended

Mar. 31, 2015

Retirement Benefits

8:RETIREMENT BENEFITS

CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.

Following amendments to the OPEB Plan in 2013, Consumers’ OPEB costs decreased substantially and, as a result, the OPEB Plan was fully funded at December 31, 2013.  In September 2014, the MPSC approved a settlement agreement addressing Consumers’ OPEB Plan funding.  In accordance with the settlement agreement, Consumers contributed $25 million to the plan in October 2014 and $29 million in February 2015.  Consumers has suspended further contributions until the MPSC determines funding requirements in future general rate cases.

Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans:

In Millions
	DB Pension Plan						OPEB Plan
Three Months Ended March 31	2015			2014			2015			2014
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost		$	12		$	10		$	6		$	5
Interest expense			25			25			15			14
Expected return on plan assets			(34)			(34)			(23)			(22)
Amortization of:
Net loss			23			15			5			-
Prior service credit			-			-			(10)			(10)
Net periodic cost (credit)		$	26		$	16		$	(7)		$	(13)
Consumers
Net periodic cost (credit)
Service cost		$	12		$	10		$	6		$	5
Interest expense			25			24			14			13
Expected return on plan assets			(33)			(33)			(22)			(21)
Amortization of:
Net loss			22			14			6			1
Prior service credit			-			-			(10)			(10)
Net periodic cost (credit)		$	26		$	15		$	(6)		$	(12)

Consumers Energy Company [Member]

Retirement Benefits

8:RETIREMENT BENEFITS

CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.

Following amendments to the OPEB Plan in 2013, Consumers’ OPEB costs decreased substantially and, as a result, the OPEB Plan was fully funded at December 31, 2013.  In September 2014, the MPSC approved a settlement agreement addressing Consumers’ OPEB Plan funding.  In accordance with the settlement agreement, Consumers contributed $25 million to the plan in October 2014 and $29 million in February 2015.  Consumers has suspended further contributions until the MPSC determines funding requirements in future general rate cases.

Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans:

In Millions
	DB Pension Plan						OPEB Plan
Three Months Ended March 31	2015			2014			2015			2014
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost		$	12		$	10		$	6		$	5
Interest expense			25			25			15			14
Expected return on plan assets			(34)			(34)			(23)			(22)
Amortization of:
Net loss			23			15			5			-
Prior service credit			-			-			(10)			(10)
Net periodic cost (credit)		$	26		$	16		$	(7)		$	(13)
Consumers
Net periodic cost (credit)
Service cost		$	12		$	10		$	6		$	5
Interest expense			25			24			14			13
Expected return on plan assets			(33)			(33)			(22)			(21)
Amortization of:
Net loss			22			14			6			1
Prior service credit			-			-			(10)			(10)
Net periodic cost (credit)		$	26		$	15		$	(6)		$	(12)