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Retirement Benefits
6 Months Ended
Jun. 30, 2022
Retirement Benefits [Abstract]  
Retirement Benefits RETIREMENT BENEFITS
The Southern Company system has a qualified defined benefit, trusteed, pension plan covering substantially all employees, with the exception of employees at PowerSecure. The qualified pension plan is funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). No mandatory contributions to the qualified pension plan are anticipated for the year ending December 31, 2022. The Southern Company system also provides certain non-qualified defined benefits for a select group of management and highly compensated employees, which are funded on a cash basis. In addition, the Southern Company system provides certain medical care and life insurance benefits for retired employees through other postretirement benefit plans. The traditional electric operating companies fund other postretirement trusts to the extent required by their respective regulatory commissions. Southern Company Gas has a separate unfunded supplemental retirement health care plan that provides medical care and life insurance benefits to employees of discontinued businesses.
During the first quarter 2022, the qualified pension plan achieved the predetermined funding threshold whereby the asset allocation was adjusted to invest a larger portion of the portfolio in fixed rate debt securities.
See Note 11 to the financial statements in Item 8 of the Form 10-K for additional information.
On each Registrant's condensed statements of income, the service cost component of net periodic benefit costs is included in other operations and maintenance expenses and all other components of net periodic benefit costs are included in other income (expense), net. Components of the net periodic benefit costs for the three and six months ended June 30, 2022 and 2021 are presented in the following tables.
Southern
Company
Alabama
Power
Georgia
Power
Mississippi
Power
Southern PowerSouthern Company Gas
(in millions)
Three Months Ended June 30, 2022
Pension Plans
Service cost$103 $24 $26 $$$
Interest cost102 24 30 
Expected return on plan assets(317)(75)(100)(14)(4)(24)
Amortization:
Prior service costs— — — — — 
Regulatory asset— — — — — 
Net loss60 15 19 — 
Net periodic pension cost (income)$(52)$(12)$(24)$(2)$— $(4)
Postretirement Benefits
Service cost$$$$— $— $— 
Interest cost11 — 
Expected return on plan assets(20)(8)(6)(1)— (1)
Amortization:
Regulatory asset— — — — — 
Net loss— — — — — 
Net periodic postretirement benefit cost (income)$(4)$(4)$(1)$— $— $
Six Months Ended June 30, 2022
Pension Plans
Service cost$206 $49 $52 $$$17 
Interest cost204 48 61 14 
Expected return on plan assets(633)(152)(199)(29)(8)(46)
Amortization:
Prior service costs— — — — (1)
Regulatory asset— — — — — 
Net loss120 31 37 
Net periodic pension cost (income)$(103)$(24)$(48)$(5)$$(5)
Postretirement Benefits
Service cost$11 $$$— $— $
Interest cost21 — 
Expected return on plan assets(40)(16)(13)(1)— (3)
Amortization:
Regulatory asset— — — — — 
Net (gain)/loss— — — — (1)
Net periodic postretirement benefit cost (income)$(8)$(8)$(2)$— $— $
Southern
Company
Alabama
Power
Georgia
Power
Mississippi
Power
Southern PowerSouthern Company Gas
(in millions)
Three Months Ended June 30, 2021
Pension Plans
Service cost$108 $25 $28 $$$
Interest cost86 21 26 
Expected return on plan assets(297)(71)(94)(13)(4)(22)
Amortization:
Prior service costs— — — — — 
Regulatory asset— — — — — 
Net loss79 20 25 
Net periodic pension cost (income)$(24)$(5)$(14)$(1)$$— 
Postretirement Benefits
Service cost$$$$— $— $
Interest cost— 
Expected return on plan assets(19)(7)(6)(1)— (2)
Amortization:
Prior service costs(1)— — — — — 
Regulatory asset— — — — — 
Net loss— — — — — 
Net periodic postretirement benefit cost (income)$(4)$(3)$(2)$— $— $
Six Months Ended June 30, 2021
Pension Plans
Service cost$217 $51 $56 $$$18 
Interest cost173 41 52 12 
Expected return on plan assets(595)(143)(188)(27)(7)(43)
Amortization:
Prior service costs— — — — (1)
Regulatory asset— — — — — 
Net loss157 41 50 
Net periodic pension cost (income)$(48)$(10)$(29)$(3)$$— 
Postretirement Benefits
Service cost$12 $$$— $— $
Interest cost17 — 
Expected return on plan assets(38)(14)(13)(1)— (4)
Amortization:
Prior service costs(1)— — — — — 
Regulatory asset— — — — — 
Net (gain)/loss— — — (1)
Net periodic postretirement benefit cost (income)$(8)$(7)$(3)$— $— $