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Benefit Plans and Other Postretirement Benefits
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Benefit Plans and Other Postretirement Benefits Benefit Plans and Other Postretirement Benefits
NRG sponsors and operates defined benefit pension and other postretirement plans. NRG pension benefits are available to eligible non-union and union employees through various defined benefit pension plans. These benefits are based on pay, service history and age at retirement. Most pension benefits are provided through tax-qualified plans. NRG also provides postretirement health and welfare benefits for certain groups of employees. Cost sharing provisions vary by the terms of any applicable collective bargaining agreements.
NRG maintains three separate qualified pension plans, the NRG Pension Plan for Bargained Employees, the NRG Pension Plan and the Pension Plan for Employees of Direct Energy Marketing Limited (“DEML”). Participation in the NRG Pension Plan for Bargained Employees depends upon whether an employee is covered by a bargaining agreement. The NRG Pension Plan was frozen for non-union employees on December 31, 2018. In 2024, the Company commenced the termination process for the defined benefit component of the Pension Plan for Employees of DEML and expects to complete the transaction in 2025.
NRG expects to contribute $16 million to the Company's pension plans in 2025.
NRG Defined Benefit Plans
The annual net periodic benefit cost/(credit) related to NRG's pension and other postretirement benefit plans include the following components:
 Year Ended December 31,
 Pension Benefits
 (In millions)202420232022
Service cost benefits earned$3 $5 $7 
Interest cost on benefit obligation48 50 41 
Expected return on plan assets(47)(39)(47)
Amortization of unrecognized net loss2 6 3 
Curtailment and special termination benefits (income)/expense(6)(1)14 
Net periodic benefit cost$— $21 $18 
 Year Ended December 31,
 Other Postretirement Benefits
(In millions)202420232022
Interest cost on benefit obligation$3 $4 $2 
Amortization of unrecognized prior service cost(3)(8)(8)
Amortization of unrecognized net loss(1)1 2 
Net periodic benefit credit$(1)$(3)$(4)
A comparison of the pension benefit obligation, other postretirement benefit obligations and related plan assets for NRG's plans on a combined basis is as follows:
 As of December 31,
 Pension BenefitsOther Postretirement
Benefits
(In millions)2024202320242023
Benefit obligation at January 1$1,023 $1,036 $75 $84 
Service cost3 5 — — 
Interest cost48 50 3 4 
Actuarial loss/(gain)(35)22 (1)(5)
Employee and retiree contributions— — 3 4 
Annuity purchase settlement(50)— — — 
Curtailment and special termination benefit loss— (2)— (1)
Benefit payments(83)(89)(10)(11)
Foreign exchange translation(5)1 — — 
Benefit obligation at December 31901 1,023 70 75 
Fair value of plan assets at January 1851 844 — — 
Actual return on plan assets16 93 — — 
Employee and retiree contributions— — 3 4 
Employer contributions38 2 7 7 
Annuity purchase settlement(50)— — — 
Benefit payments(83)(89)(10)(11)
Foreign exchange translation(5)1 — — 
Fair value of plan assets at December 31767 851 — — 
Funded status at December 31 — excess of obligation over assets
$(134)$(172)$(70)$(75)
During the year ended December 31, 2024, the actuarial gain of $35 million on pension benefits was primarily driven by increasing discount rates.
During the year ended December 31, 2023, the actuarial loss of $22 million on pension benefits was primarily driven by decreasing discount rates.
Amounts recognized in NRG's balance sheets were as follows:
 As of December 31,
 Pension BenefitsOther Postretirement
Benefits
(In millions)2024202320242023
Other current liabilities$— $— $5 $5 
Other non-current liabilities134 172 65 70 

Amounts recognized in NRG's accumulated OCI that have not yet been recognized as components of net periodic benefit cost were as follows:
 As of December 31,
 Pension BenefitsOther Postretirement
Benefits
(In millions)2024202320242023
Net loss/(gain)$73 $73 $(14)$(14)
Prior service cost/(credit)— — (1)(4)
Total accumulated OCI$73 $73 $(15)$(18)
Other changes in plan assets and benefit obligations recognized in OCI were as follows:
 Year Ended December 31,
 Pension BenefitsOther Postretirement
Benefits
(In millions)2024202320242023
Net actuarial (gain)/loss$(4)$(31)$(1)$(5)
Amortization of net actuarial loss(2)(6)1 (1)
Settlement (gain)/loss6 — — — 
Amortization of prior service cost— — 3 8 
Effect of settlement/curtailment— (1)— (1)
Total recognized in OCI$— $(38)$3 $1 
Net periodic benefit cost/(credit)
— 21 (1)(3)
Net recognized in net periodic pension (credit)/cost and OCI
$— $(17)$2 $(2)

The following table presents the balances of significant components of NRG's pension plan:
 As of December 31,
 Pension Benefits
(In millions)20242023
Projected benefit obligation$901 $1,023 
Accumulated benefit obligation895 1,015 
Fair value of plan assets767 851 

NRG's market-related value of its plan assets is the fair value of the assets. The fair values of the Company's pension plan assets by asset category and their level within the fair value hierarchy are as follows:
 Fair Value Measurements as of December 31, 2024
(In millions)Quoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant
Observable Inputs
(Level 2)		Total
Common/collective trust investment — U.S. equity$— $142 $142 
Common/collective trust investment — non-U.S. equity— 105 105 
Common/collective trust investment — non-core assets— 50 50 
Common/collective trust investment — fixed income— 199 199 
Short-term investment fund25 — 25 
Subtotal fair value$25 $496 $521 
Measured at net asset value practical expedient:
Common/collective trust investment — non-U.S. equity29 
Common/collective trust investment — fixed income177 
Common/collective trust investment — non-core assets12 
Partnerships/joint ventures28 
Total fair value$767 
 Fair Value Measurements as of December 31, 2023
(In millions)Quoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant
Observable Inputs
(Level 2)		Total
Common/collective trust investment — U.S. equity$— $156 $156 
Common/collective trust investment — non-U.S. equity— 58 58 
Common/collective trust investment — non-core assets— 81 81 
Common/collective trust investment — fixed income— 188 188 
Short-term investment fund19 — 19 
Subtotal fair value$19 $483 $502 
Measured at net asset value practical expedient:
Common/collective trust investment — non-U.S. equity32 
Common/collective trust investment — fixed income243 
Common/collective trust investment — non-core assets47 
Partnerships/joint ventures27 
Total fair value$851 
In accordance with ASC 820, the Company determines the level in the fair value hierarchy within which each fair value measurement in its entirety falls, based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value of the common/collective trust investments is valued at fair value which is equal to the sum of the market value of all of the fund's underlying investments. Certain common/collective trust investments have readily determinable fair value as they publish daily net asset value, or NAV, per share and are categorized as Level 2. Certain other common/collective trust investments and partnerships/joint ventures use NAV per share, or its equivalent, as a practical expedient for valuation, and thus have been removed from the fair value hierarchy table.
The following table presents the significant assumptions used to calculate NRG's benefit obligations:
 As of December 31,
 Pension BenefitsOther Postretirement Benefits
Weighted-Average Assumptions2024202320242023
Discount rate5.63 %4.97 %5.55 %4.96 %
Interest crediting rate5.38 %5.67 %4.54 %4.66 %
Rate of compensation increase3.00 %3.06 %— — 
Health care trend rate— — 
 8.3% grading to 4.5% in 2034
7.7% grading to 4.5% in 2033
The following table presents the significant assumptions used to calculate NRG's benefit expense:
 As of December 31,
 Pension BenefitsOther Postretirement Benefits
Weighted-Average Assumptions202420232022202420232022
Discount rate4.99 %5.18 %
2.89%/4.71%/5.41%
4.96 %5.19 %2.82 %
Interest crediting rate5.67 %5.21 %3.07 %4.66 %4.00 %1.94 %
Expected return on plan assets
6.65 %5.55 %4.99 %— — — 
Rate of compensation increase
3.00 %3.06 %3.06 %— — — 
Health care trend rate— — — 
 7.4% grading to 4.5% in 2033
 7.2% grading to 4.5% in 2028
6.9% grading to 4.4% in 2028
NRG uses December 31 of each respective year as the measurement date for the Company's pension and other postretirement benefit plans. The Company sets the discount rate assumptions on an annual basis for each of NRG's defined benefit retirement plans as of December 31. The discount rate assumptions represent the current rate at which the associated liabilities could be effectively settled at December 31. The Company utilizes the Aon AA Above Median, or AA-AM, yield curve and the AON Canada yield curve to select the appropriate discount rate assumption for its retirement plans. The AA-AM yield curve is a hypothetical AA yield curve represented by a series of annualized individual spot discount rates from 6 months to 99 years. Under the AA-AM yield curve, each bond issue used to build this yield curve must be non-callable, and have an average rating of AA when averaging available Moody's Investor Services, Standard & Poor's and Fitch ratings. The AON Canada yield curve is based on high quality corporate bonds. Under the AON Canada yield curve, expected plan cash flows were discounted using the yield curve, and then a single rate is determined which produces an equivalent present value.
NRG employs a total return investment approach, whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities, plan funded status, and corporate financial condition. The Investment Committee reviews the asset mix periodically and as the plan assets increase in future years, the Investment Committee may examine other asset classes such as real estate or private equity. NRG employs a building block approach to determining the long-term rate of return assumption for plan assets, with proper consideration given to diversification and rebalancing. Historical markets are studied and long-term historical relationships between equities and fixed income are preserved, consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. Peer data and historical returns are reviewed to check for reasonableness and appropriateness.
The target allocations of NRG's pension plan assets were as follows for the year ended December 31, 2024:
U.S. equity20 %
Non-U.S. equity13 %
Non-core assets17 %
Fixed income50 %
Plan assets are currently invested in a diversified blend of equity and fixed-income investments. Furthermore, equity investments are diversified across U.S., non-U.S., global, and emerging market equities, as well as among growth, value, small and large capitalization stocks.
Investment risk and performance are monitored on an ongoing basis through quarterly portfolio reviews of each asset fund class to a related performance benchmark, if applicable, and annual pension liability measurements. Performance benchmarks are composed of the following indices:
Asset ClassIndex
U.S. equitiesDow Jones U.S. Total Stock Market Index
Non-U.S. equities
MSCI All Country World Index
Non-core assets(a)
Various (per underlying asset class)
Fixed income securities
Barclays Short, Intermediate and Long Credits/Barclays Strips 20+ Index and FTSE Canada Universe Bond Index
(a)Non-Core Assets are defined as diversifying asset classes approved by the Investment Committee that are intended to enhance returns and/or reduce volatility of the U.S. and non-U.S. equities. Asset classes considered Non-Core include, but may not be limited to: Emerging Market Equity, Emerging Market Debt, Non-US Developed Market Small Cap, High Yield Fixed Income, Real Estate, Bank Loans, Global Infrastructure and other Alternatives
NRG's expected future benefit payments for each of the next five years, and in the aggregate for the five years thereafter, are as follows:
 PensionOther Postretirement Benefit
 (In millions)Benefit PaymentsBenefit PaymentsMedicare Prescription Drug Reimbursements
2025$93 $5 $— 
202677 5 — 
202775 5 — 
202873 5 — 
202971 5 — 
2030-2034336 28 2 
Defined Contribution Plans
NRG's employees are also eligible to participate in defined contribution 401(k) plans.
The Company's costs related to these plans were as follows:
 Year Ended December 31,
(In millions)202420232022
Cost recognized for defined contribution plans$62 $61 $37 
The Company's costs, which are primarily related to employer matching of a portion of employee contributions to defined contribution plans, increased during 2023 primarily due to an increase in retirement saving plan match and the Vivint acquisition.