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Pension Benefits (Tables) | 12 Months Ended
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Dec. 31, 2020
Retirement Benefits [Abstract] |
Total Periodic Benefit Costs | The components of the Companies’ total periodic benefit costs for 2020, 2019 and 2018 were as follows:
| Con Edison | CECONY
(Millions of Dollars) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018
Service cost – including administrative expenses | $293 | $250 | $290 | $274 | $232 | $272
Interest cost on projected benefit obligation | 549 | 601 | 561 | 515 | 564 | 525
Expected return on plan assets | (1,034) | (988) | (1,033) | (980) | (936) | (979)
Recognition of net actuarial loss | 699 | 518 | 688 | 661 | 492 | 651
Recognition of prior service credit | (16) | (17) | (17) | (19) | (19) | (19)
TOTAL PERIODIC BENEFIT COST | $491 | $364 | $489 | $451 | $333 | $450
Cost capitalized | (130) | (108) | (127) | (123) | (102) | (119)
Reconciliation to rate level | (250) | (15) | (92) | (239) | (12) | (100)
Total expense recognized | $111 | $241 | $270 | $89 | $219 | $231
The components of the Companies’ total periodic postretirement benefit costs for 2020, 2019 and 2018 were as follows:
| Con Edison | CECONY
(Millions of Dollars) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018
Service cost | $21 | $18 | $20 | $16 | $13 | $14
Interest cost on accumulated other postretirement benefit obligation | 37 | 44 | 42 | 31 | 36 | 34
Expected return on plan assets | (66) | (66) | (73) | (54) | (54) | (63)
Recognition of net actuarial loss/(gain) | 37 | (9) | 8 | 36 | (10) | 3
Recognition of prior service credit | (3) | (2) | (6) | (2) | (2) | (2)
TOTAL PERIODIC POSTRETIREMENT BENEFIT COST/(CREDIT) | $26 | $(15) | $(9) | $27 | $(17) | $(14)
Cost capitalized | (9) | (7) | (8) | (7) | (5) | (6)
Reconciliation to rate level | (17) | 12 | 8 | (25) | 7 | 9
Total credit recognized | $— | $(10) | ($9) | $(5) | $(15) | ($11)
Schedule of Funded Status | The funded status at December 31, 2020, 2019 and 2018 was as follows:
| Con Edison | CECONY
(Millions of Dollars) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018
CHANGE IN PROJECTED BENEFIT OBLIGATION |  |  |  |  |  |
Projected benefit obligation at beginning of year | $16,792 | $14,449 | $15,536 | $15,750 | $13,542 | $14,567
Service cost – excluding administrative expenses | 288 | 245 | 286 | 269 | 228 | 267
Interest cost on projected benefit obligation | 549 | 601 | 561 | 515 | 564 | 525
Net actuarial loss/(gain) | 2,281 | 2,191 | (1,219) | 2,154 | 2,076 | (1,159)
Plan amendments | — |  | 15 |  | — |  | — |  | — |  | — |
Benefits paid | (945) | (709) | (715) | (867) | (660) | (658)
PROJECTED BENEFIT OBLIGATION AT END OF YEAR | $18,965 | $16,792 | $14,449 | $17,821 | $15,750 | $13,542
CHANGE IN PLAN ASSETS |  |  |  |  |  |
Fair value of plan assets at beginning of year | $15,608 | $13,450 | $14,274 | $14,790 | $12,744 | $13,519
Actual return on plan assets | 1,927 | 2,556 | (536) | 1,830 | 2,425 | (507)
Employer contributions | 475 | 350 | 473 | 435 | 318 | 434
Benefits paid | (945) | (709) | (715) | (867) | (660) | (658)
Administrative expenses | (43) | (39) | (46) | (41) | (37) | (44)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | $17,022 | $15,608 | $13,450 | $16,147 | $14,790 | $12,744
FUNDED STATUS | $(1,943) | $(1,184) | $(999) | $(1,674) | $(960) | $(798)
Unrecognized net loss | $3,330 | $2,604 | $2,464 | $3,145 | $2,466 | $2,338
Unrecognized prior service costs/(credits) | (156) | (173) | (205) | (183) | (202) | (222)
Accumulated benefit obligation | 16,768 | 15,015 | 13,030 | 15,676 | 14,010 | 12,161
The funded status of the programs at December 31, 2020, 2019 and 2018 were as follows:
| Con Edison | CECONY
(Millions of Dollars) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018
CHANGE IN BENEFIT OBLIGATION |  |  |  |  |  |
Benefit obligation at beginning of year | $1,357 | $1,114 | $1,219 | $1,154 | $913 | $985
Service cost | 21 | 18 | 20 | 16 | 13 | 14
Interest cost on accumulated postretirement benefit obligation | 37 | 44 | 42 | 31 | 36 | 34
Amendments | — |  | (14) |  | — |  | — |  | — |  | — |
Net actuarial loss/(gain) | 74 | 264 | (70) | 63 | 252 | (32)
Benefits paid and administrative expenses, net of subsidies | (117) | (110) | (135) | (107) | (100) | (125)
Participant contributions | 53 | 41 | 38 | 52 | 40 | 37
BENEFIT OBLIGATION AT END OF YEAR | $1,425 | $1,357 | $1,114 | $1,209 | $1,154 | $913
CHANGE IN PLAN ASSETS |  |  |  |  |  |
Fair value of plan assets at beginning of year | $1,026 | $885 | $1,039 | $872 | $759 | $893
Actual return on plan assets | 142 | 198 | (66) | 117 | 165 | (54)
Employer contributions | 7 | 7 | 6 | 4 | 6 | 6
Employer group waiver plan subsidies | 20 | 23 | 34 | 19 | 22 | 32
Participant contributions | 53 | 40 | 37 | 51 | 40 | 37
Benefits paid | (133) | (127) | (165) | (123) | (120) | (155)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | $1,115 | $1,026 | $885 | $940 | $872 | $759
FUNDED STATUS | $(310) | $(331) | $(229) | $(269) | $(282) | $(154)
Unrecognized net loss/(gain) | $115 | $155 | $14 | $114 | $149 | $(2)
Unrecognized prior service costs | (16) | (19) | (8) | (1) | (3) | (5)
Schedule of Assumptions | The actuarial assumptions were as follows:
| 2020 | 2019 | 2018
Weighted-average assumptions used to determine benefit obligations at December 31: |  |  |
Discount rate | 2.55 | % | 3.35 | % | 4.25 | %
Interest crediting rate for cash balance plan | 3.00 | % | 3.30 | % | 4.00 | %
Rate of compensation increase |  |  |
CECONY | 3.80 | % | 3.80 | % | 4.25 | %
O&R | 3.20 | % | 3.20 | % | 4.00 | %
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: |  |  |
Discount rate | 3.35 | % | 4.25 | % | 3.70 | %
Interest crediting rate for cash balance plan | 3.30 | % | 4.00 | % | 4.10 | %
Expected return on plan assets | 7.00 | % | 7.00 | % | 7.50 | %
Rate of compensation increase |  |  |
CECONY | 3.80 | % | 4.25 | % | 4.25 | %
O&R | 3.20 | % | 4.00 | % | 4.00 | %
The actuarial assumptions were as follows:
| 2020 | 2019 | 2018
Weighted-average assumptions used to determine benefit obligations at December 31: |  |  |
Discount Rate |  |  |
CECONY | 2.25 | % | 3.10 | % | 4.15 | %
O&R | 2.55 | % | 3.35 | % | 4.30 | %
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: |  |  |
Discount Rate |  |  |
CECONY | 3.10 | % | 4.15 | % | 3.55 | %
O&R | 3.35 | % | 4.30 | % | 3.70 | %
Expected Return on Plan Assets | 6.80 | % | 6.80 | % | 7.50 | %
Schedule of Expected Benefit Payments | Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years:
(Millions of Dollars) | 2021 | 2022 | 2023 | 2024 | 2025 | 2026-2030
Con Edison | $764 | $776 | $793 | $807 | $821 | $4,295
CECONY | 706 | 718 | 733 | 747 | 760 | 3,992
Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years, net of receipt of governmental subsidies and participant contributions:
(Millions of Dollars) | 2021 | 2022 | 2023 | 2024 | 2025 | 2026-2030
Con Edison | $84 | $84 | $84 | $84 | $84 | $409
CECONY | 76 | 75 | 75 | 75 | 75 | 358
Schedule of Plan Assets Allocations | The asset allocations for the pension plan at the end of 2020, 2019 and 2018, and the target allocation for 2021 are as follows:
| Target Allocation Range |  | Plan Assets at December 31,
Asset Category | 2021 |  | 2020 |  | 2019 |  | 2018
Equity Securities | 45% - 55% |  | 51 | % |  | 51 | % |  | 51 | %
Debt Securities | 33% - 43% |  | 38 | % |  | 38 | % |  | 39 | %
Real Estate | 10% - 14% |  | 11 | % |  | 11 | % |  | 10 | %
Total | 100% |  | 100 | % |  | 100 | % |  | 100 | %
The asset allocations for CECONY’s other postretirement benefit plans at the end of 2020, 2019 and 2018, and the target allocation for 2021 are as follows:
| Target Allocation Range | Plan Assets at December 31,
Asset Category | 2021 | 2020 | 2019 |  | 2018
Equity Securities | 42%-80% | 54 | % | 54 | % |  | 52 | %
Debt Securities | 20%-58% | 46 | % | 46 | % |  | 48 | %
Total | 100% | 100 | % | 100 | % |  | 100 | %
Schedule of Fair Value of Plan Assets | The fair values of the pension plan assets at December 31, 2020 by asset category are as follows:
(Millions of Dollars) | Level 1 |  | Level 2 |  | Total
Investments within the fair value hierarchy |  |  |  |  |
U.S. Equity (a) | $4,202 |  | $— |  |  | $4,202
International Equity (b) | 3,693 |  | — |  |  | 3,693
U.S. Government Issued Debt (c) | — |  |  | 1,424 |  | 1,424
Corporate Bonds Debt (d) | — |  |  | 3,535 |  | 3,535
Structured Assets Debt (e) | — |  |  | 188 |  | 188
Other Fixed Income Debt (f) | — |  |  | 1,067 |  | 1,067
Cash and Cash Equivalents (g) | 51 |  |  | 408 |  | 459
Total investments within the fair value hierarchy | $7,946 |  | $6,622 |  | $14,568
Investments measured at NAV per share (m) |  |  |  |  |
Private Equity (h) |  |  |  |  | 635
Real Estate (i) |  |  |  |  | 1,880
Hedge Funds (j) |  |  |  |  | 292
Total investments valued using NAV per share |  |  |  |  | $2,807
Funds for retiree health benefits (k) | (116) |  | (97) |  | (213)
Funds for retiree health benefits measured at NAV per share (k)(m) |  |  |  |  | (41)
Total funds for retiree health benefits |  |  |  |  | $(254)
Investments (excluding funds for retiree health benefits) | $7,830 |  | $6,525 |  | $17,121
Pending activities (l) |  |  |  |  | (99)
Total fair value of plan net assets |  |  |  |  | $17,022
(a)U.S. Equity includes both actively- and passively-managed assets with investments in domestic equity index funds and actively-managed small-capitalization equities. (b)International Equity includes international equity index funds and actively-managed international equities. (c)U.S. Government Issued Debt includes agency and treasury securities. (d)Corporate Bonds Debt consists of debt issued by various corporations. (e)Structured Assets Debt includes commercial-mortgage-backed securities and collateralized mortgage obligations. (f)Other Fixed Income Debt includes municipal bonds, sovereign debt and regional governments. (g)Cash and Cash Equivalents include short term investments, money markets, foreign currency and cash collateral. (h)Private Equity consists of global equity funds that are not exchange-traded. (i)Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type. (j)Hedge Funds are within a commingled structure which invests in various hedge fund managers who can invest in all financial instruments. (k)The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan’s investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan’s obligations and are included in the Companies’ other postretirement benefit obligation. See Note F. (l)Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received and reflects adjustments for available estimates at year end. (m)In accordance with ASU 2015-07, Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its equivalent), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair values of the pension plan assets at December 31, 2019 by asset category are as follows:
(Millions of Dollars) | Level 1 |  | Level 2 |  | Total
Investments within the fair value hierarchy |  |  |  |  |
U.S. Equity (a) | $3,652 |  | $— |  |  | $3,652
International Equity (b) | 3,354 |  | — |  |  | 3,354
U.S. Government Issued Debt (c) | — |  |  | 1,496 |  | 1,496
Corporate Bonds Debt (d) | — |  |  | 3,260 |  | 3,260
Structured Assets Debt (e) | — |  |  | 173 |  | 173
Other Fixed Income Debt (f) | — |  |  | 955 |  | 955
Cash and Cash Equivalents (g) | — |  |  | 326 |  | 326
Total investments within the fair value hierarchy | $7,006 |  | $6,210 |  | $13,216
Investments measured at NAV per share (m) |  |  |  |  |
Private Equity (h) |  |  |  |  | 555
Real Estate (i) |  |  |  |  | 1,806
Hedge Funds (j) |  |  |  |  | 270
Total investments valued using NAV per share |  |  |  |  | $2,631
Funds for retiree health benefits (k) | (110) |  | (98) |  | (208)
Funds for retiree health benefits measured at NAV per share (k)(m) |  |  |  |  | (42)
Total funds for retiree health benefits |  |  |  |  | $(250)
Investments (excluding funds for retiree health benefits) | $6,896 |  | $6,112 |  | $15,597
Pending activities (l) |  |  |  |  | 11
Total fair value of plan net assets |  |  |  |  | $15,608
(a) - (m) Reference is made to footnotes (a) through (m) in the above table of pension plan assets at December 31, 2020 by asset category. The fair values of the plans' assets at December 31, 2020 by asset category as defined by the accounting rules for fair value measurements (see Note Q) are as follows:
(Millions of Dollars) | Level 1 |  | Level 2 |  | Total
Equity (a) | $— |  |  | $448 |  | $448
Other Fixed Income Debt (b) | — |  |  | 367 |  | 367
Cash and Cash Equivalents (c) | — |  |  | 27 |  | 27
Total investments | $— |  |  | $842 |  | $842
Funds for retiree health benefits (d) | 116 |  |  | 97 |  | 213
Investments (including funds for retiree health benefits) | $116 |  |  | $939 |  | $1,055
Funds for retiree health benefits measured at net asset value (d)(e) |  |  |  |  | 41
Pending activities (f) |  |  |  |  | 19
Total fair value of plan net assets |  |  |  |  | $1,115
(a)Equity includes a passively managed commingled index fund benchmarked to the MSCI All Country World Index. (b)Other Fixed Income Debt includes a passively managed commingled index fund benchmarked to the Bloomberg Barclays U.S. Long Credit Index and an active separately managed fund indexed to the Bloomberg Barclays U.S. Long Credit Index. (c)Cash and Cash Equivalents include short-term investments and money markets. (d)The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan’s investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan’s obligations and are included in the Companies’ other postretirement benefit obligation. See Note E. (e)In accordance with ASU 2015-07, Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its equivalent), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. (f)Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received, and reflects adjustments for available estimates at year-end. The fair values of the plans' assets at December 31, 2019 by asset category (see Note Q) are as follows:
(Millions of Dollars) | Level 1 |  | Level 2 |  | Total
Equity (a) | $— |  |  | $404 |  | $404
Other Fixed Income Debt (b) | — |  |  | 331 |  | 331
Cash and Cash Equivalents (c) | — |  |  | 23 |  | 23
Total investments | $— |  |  | $758 |  | $758
Funds for retiree health benefits (d) | 110 |  |  | 98 |  | 208
Investments (including funds for retiree health benefits) | $110 |  |  | $856 |  | $966
Funds for retiree health benefits measured at net asset value (d)(e) |  |  |  |  | 42
Pending activities (f) |  |  |  |  | 18
Total fair value of plan net assets |  |  |  |  | $1,026
(a) - (f) Reference is made to footnotes (a) through (f) in the above table of other postretirement benefit plan assets at December 31, 2020 by asset category.
Schedule of Employer Contribution to Defined Savings Plan | The Companies also offer a defined contribution savings plan that covers substantially all employees and made contributions to the plan as follows:
| For the Years Ended December 31,
(Millions of Dollars) | 2020 |  | 2019 |  | 2018
Con Edison | $52 |  | $49 |  | $45
CECONY | 43 |  | 42 |  | 39

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