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Retirement Benefits (Tables) | 12 Months Ended
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Dec. 31, 2012
Schedule Of SERP Trust Assets, ABO And Contributions |
In Millions
Years Ended December 31 | 2012 | 2011 |
CMS Energy, including Consumers |  |  |  |  |  |  |
Trust assets |  | $ | 128 |  | $ | 114 |
ABO |  |  | 130 |  |  | 117 |
Contributions |  |  | 13 |  |  | 27 |
Consumers |  |  |  |  |  |  |
Trust assets |  | $ | 87 |  | $ | 75 |
ABO |  |  | 86 |  |  | 76 |
Contributions |  |  | 9 |  |  | 20 |
Schedule Of Effect Of One-Percentage-Point Change In Assumed Health Care Cost Trend Rates |
In Millions
| One Percentage | One Percentage |
Years Ended December 31 | Point Increase | Point Decrease |
CMS Energy, including Consumers |  |  |  |  |  |  |
Effect on total service and interest cost component |  | $ | 23 |  | $ | (19) |
Effect on PBO |  |  | 281 |  |  | (242) |
Consumers |  |  |  |  |  |  |
Effect on total service and interest cost component |  | $ | 22 |  | $ | (18) |
Effect on PBO |  |  | 273 |  |  | (235) |
Schedule Of Assumptions Used |
| Pension and DB SERP |  | OPEB |
December 31 | 2012 |  | 2011 |  | 2010 |  |  | 2012 |  | 2011 |  | 2010 |  |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted average for benefit obligations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discount rate1 |  | 4.10 | % |  | 4.90 | % |  | 5.40 | % |  |  | 4.40 | % |  | 5.10 | % |  | 5.60 | % |
Mortality table2 |  | 2000 |  |  | 2000 |  |  | 2000 |  |  |  | 2000 |  |  | 2000 |  |  | 2000 |  |
Rate of compensation increase |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pension |  | 3.00 | % |  | 3.50 | % |  | 4.00 | % |  |  |  |  |  |  |  |  |  |  |
DB SERP |  | 5.50 | % |  | 5.50 | % |  | 5.50 | % |  |  |  |  |  |  |  |  |  |  |
Weighted average for net periodic benefit cost obligations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discount rate1 |  | 4.90 | % |  | 5.40 | % |  | 5.85 | % |  |  | 5.10 | % |  | 5.60 | % |  | 6.00 | % |
Expected long-term rate of return on plan assets3 |  | 7.75 | % |  | 8.00 | % |  | 8.00 | % |  |  | 7.25 | % |  | 7.50 | % |  | 7.50 | % |
Mortality table2 |  | 2000 |  |  | 2000 |  |  | 2000 |  |  |  | 2000 |  |  | 2000 |  |  | 2000 |  |
Rate of compensation increase |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pension |  | 3.50 | % |  | 4.00 | % |  | 4.00 | % |  |  |  |  |  |  |  |  |  |  |
DB SERP |  | 5.50 | % |  | 5.50 | % |  | 5.50 | % |  |  |  |  |  |  |  |  |  |  |
1 The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ Pension Plan and OPEB plan and the yields on high quality corporate bonds rated Aa or better. 2 The mortality assumption was based on the RP-2000 mortality tables with projection of future mortality improvements using Scale AA, which aligned with the IRS prescriptions for cash funding valuations under the Pension Protection Act of 2006. 3 CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on Pension Plan assets was 7.75 percent in 2012. The actual return on Pension Plan assets was 14.1 percent in 2012, four percent in 2011, and 13 percent in 2010.
Schedule Of Net Benefit Costs |
In Millions
| Pension and DB SERP |
Years Ended December 31 | 2012 | 2011 | 2010 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Net periodic pension and DB SERP cost |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 49 |  | $ | 49 |  | $ | 45 |
Interest expense |  |  | 105 |  |  | 106 |  |  | 104 |
Expected return on plan assets |  |  | (125) |  |  | (112) |  |  | (92) |
Amortization of: |  |  |  |  |  |  |  |  |  |
Net loss |  |  | 79 |  |  | 65 |  |  | 52 |
Prior service cost |  |  | 5 |  |  | 5 |  |  | 5 |
Net periodic pension and DB SERP cost |  | $ | 113 |  | $ | 113 |  | $ | 114 |
Regulatory adjustment1 |  |  | - |  |  | - |  |  | 30 |
Net periodic pension and DB SERP cost after regulatory adjustment |  | $ | 113 |  | $ | 113 |  | $ | 144 |
Consumers |  |  |  |  |  |  |  |  |  |
Net periodic pension and DB SERP cost |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 48 |  | $ | 48 |  | $ | 44 |
Interest expense |  |  | 100 |  |  | 101 |  |  | 99 |
Expected return on plan assets |  |  | (122) |  |  | (109) |  |  | (89) |
Amortization of: |  |  |  |  |  |  |  |  |  |
Net loss |  |  | 77 |  |  | 63 |  |  | 50 |
Prior service cost |  |  | 5 |  |  | 5 |  |  | 5 |
Net periodic pension and DB SERP cost |  | $ | 108 |  | $ | 108 |  | $ | 109 |
Regulatory adjustment1 |  |  | - |  |  | - |  |  | 30 |
Net periodic pension and DB SERP cost after regulatory adjustment |  | $ | 108 |  | $ | 108 |  | $ | 139 |
In Millions
| OPEB |
Years Ended December 31 | 2012 | 2011 | 2010 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Net periodic OPEB cost |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 32 |  | $ | 27 |  | $ | 26 |
Interest expense |  |  | 82 |  |  | 77 |  |  | 80 |
Expected return on plan assets |  |  | (66) |  |  | (66) |  |  | (60) |
Amortization of: |  |  |  |  |  |  |  |  |  |
Net loss |  |  | 46 |  |  | 30 |  |  | 32 |
Prior service credit |  |  | (20) |  |  | (20) |  |  | (17) |
Net periodic OPEB cost |  | $ | 74 |  | $ | 48 |  | $ | 61 |
Regulatory adjustment1 |  |  | - |  |  | - |  |  | 5 |
Net periodic OPEB cost after regulatory adjustment |  | $ | 74 |  | $ | 48 |  | $ | 66 |
Consumers |  |  |  |  |  |  |  |  |  |
Net periodic OPEB cost |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 31 |  | $ | 26 |  | $ | 25 |
Interest expense |  |  | 79 |  |  | 74 |  |  | 77 |
Expected return on plan assets |  |  | (61) |  |  | (61) |  |  | (56) |
Amortization of: |  |  |  |  |  |  |  |  |  |
Net loss |  |  | 47 |  |  | 31 |  |  | 33 |
Prior service credit |  |  | (20) |  |  | (20) |  |  | (16) |
Net periodic OPEB cost |  | $ | 76 |  | $ | 50 |  | $ | 63 |
Regulatory adjustment1 |  |  | - |  |  | - |  |  | 5 |
Net periodic OPEB cost after regulatory adjustment |  | $ | 76 |  | $ | 50 |  | $ | 68 |
1 Regulatory adjustments are the differences between amounts included in rates and the periodic benefit cost calculated. These regulatory adjustments were offset by surcharge revenues, which resulted in no impact to net income for the years presented. The pension and OPEB regulatory asset was less than $1 million at December 31, 2012 and 2011.
Schedule Of Benefit Obligations In Excess Of Fair Value Of Plan Assets |
In Millions
| Pension Plan |
Years Ended December 31 | 2012 | 2011 |
CMS Energy, including Consumers |  |  |  |  |  |  |
Benefit obligation at beginning of period |  | $ | 2,072 |  | $ | 1,896 |
Service cost |  |  | 48 |  |  | 48 |
Interest cost |  |  | 99 |  |  | 100 |
Actuarial loss |  |  | 249 |  |  | 107 |
Benefits paid |  |  | (114) |  |  | (79) |
Benefit obligation at end of period |  |  | 2,354 |  |  | 2,072 |
Plan assets at fair value at beginning of period |  | $ | 1,626 |  | $ | 1,401 |
Actual return on plan assets |  |  | 215 |  |  | 54 |
Company contribution |  |  | - |  |  | 250 |
Actual benefits paid |  |  | (114) |  |  | (79) |
Plan assets at fair value at end of period |  |  | 1,727 |  |  | 1,626 |
Funded status1 |  | $ | (627) |  | $ | (446) |
In Millions
| DB SERP |  | OPEB |  |
Years Ended December 31 | 2012 | 2011 |  | 2012 | 2011 |  |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at beginning of period |  | $ | 127 |  | $ | 118 |  |  | $ | 1,641 |  | $ | 1,410 |  |
Service cost |  |  | 1 |  |  | 1 |  |  |  | 32 |  |  | 27 |  |
Interest cost |  |  | 6 |  |  | 6 |  |  |  | 82 |  |  | 77 |  |
Actuarial loss |  |  | 16 |  |  | 8 |  |  |  | 25 |  |  | 180 |  |
Benefits paid |  |  | (6) |  |  | (6) |  |  |  | (51) | 2 |  | (53) | 2 |
Benefit obligation at end of period |  | $ | 144 |  | $ | 127 |  |  | $ | 1,729 | 3 | $ | 1,641 | 3 |
Plan assets at fair value at beginning of period |  | $ | - |  | $ | - |  |  | $ | 924 |  | $ | 887 |  |
Actual return on plan assets |  |  | - |  |  | - |  |  |  | 108 |  |  | 23 |  |
Company contribution |  |  | 6 |  |  | 6 |  |  |  | 65 |  |  | 67 |  |
Actual benefits paid |  |  | (6) |  |  | (6) |  |  |  | (50) | 2 |  | (53) | 2 |
Plan assets at fair value at end of period |  | $ | - |  | $ | - |  |  | $ | 1,047 |  | $ | 924 |  |
Funded status |  | $ | (144) |  | $ | (127) |  |  | $ | (682) |  | $ | (717) |  |
Consumers |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at beginning of period |  | $ | 85 |  | $ | 77 |  |  | $ | 1,585 |  | $ | 1,358 |  |
Service cost |  |  | 1 |  |  | 1 |  |  |  | 31 |  |  | 26 |  |
Interest cost |  |  | 4 |  |  | 4 |  |  |  | 79 |  |  | 74 |  |
Actuarial loss |  |  | 13 |  |  | 6 |  |  |  | 24 |  |  | 178 |  |
Benefits paid |  |  | (3) |  |  | (3) |  |  |  | (49) | 2 |  | (51) | 2 |
Benefit obligation at end of period |  | $ | 100 |  | $ | 85 |  |  | $ | 1,670 | 3 | $ | 1,585 | 3 |
Plan assets at fair value at beginning of period |  | $ | - |  | $ | - |  |  | $ | 861 |  | $ | 825 |  |
Actual return on plan assets |  |  | - |  |  | - |  |  |  | 101 |  |  | 21 |  |
Company contribution |  |  | 3 |  |  | 3 |  |  |  | 64 |  |  | 66 |  |
Actual benefits paid |  |  | (3) |  |  | (3) |  |  |  | (48) | 2 |  | (51) | 2 |
Plan assets at fair value at end of period |  | $ | - |  | $ | - |  |  | $ | 978 |  | $ | 861 |  |
Funded status |  | $ | (100) |  | $ | (85) |  |  | $ | (692) |  | $ | (724) |  |
1 At December 31, 2012, $590 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. At December 31, 2011, $414 million of the funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. 2 CMS Energy received payments of $5 million in each of 2012, 2011, and 2010 for the Medicare Part D subsidies. Consumers received payments of $5 million in each of 2012, 2011, and 2010 for the Medicare Part D subsidies. The Medicare Part D subsi dy payments are used to pay OPEB plan benefits. 3 The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 established a prescription drug benefit under Medicare (Medicare Part D) and a federal subsidy, which is tax-exempt, to sponsors of retiree health care benefit plans that provide a benefit that is actuarially equivalent to Medicare Part D. In 2010, the Health Care Acts repealed these tax-exempt deductions for years beginning after December 31, 2012. The Medicare Part D annualized reduction in net OPEB cost for CMS Energy was $20 million for 2012, $26 million for 2011, and $28 million for 2010. Consumers’ Medicare Part D annualized reduction in net OPEB costs was $19 million for 2012, $25 million for 2011, and $26 million for 2010. The reduction for CMS Energy and Consumers included $7 million for 2012, $9 million for 2011, and $10 million for 2010 in capitalized OPEB costs.
Schedule Of Accumulated And Projected Benefit Obligations |
In Millions
Years Ended December 31 | 2012 | 2011 |
CMS Energy, including Consumers |  |  |  |  |  |  |
Pension PBO |  | $ | 2,354 |  | $ | 2,072 |
Pension ABO |  |  | 2,054 |  |  | 1,765 |
Fair value of Pension Plan assets |  |  | 1,727 |  |  | 1,626 |
Schedule Of Net Periodic Benefit Cost Not Yet Recognized Including Regulatory Assets |
In Millions
| Pension and DB SERP |  | OPEB |
Years Ended December 31 | 2012 | 2011 |  | 2012 | 2011 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |  |  |  |  |
Regulatory assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | 1,095 |  | $ | 1,014 |  |  | $ | 704 |  | $ | 766 |
Prior service cost (credit) |  |  | 13 |  |  | 17 |  |  |  | (112) |  |  | (132) |
AOCI |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss (gain) |  |  | 98 |  |  | 81 |  |  |  | (7) |  |  | (5) |
Prior service cost (credit) |  |  | - |  |  | 2 |  |  |  | (3) |  |  | (3) |
Total amounts recognized in regulatory assets and AOCI |  | $ | 1,206 |  | $ | 1,114 |  |  | $ | 582 |  | $ | 626 |
Consumers |  |  |  |  |  |  |  |  |  |  |  |  |  |
Regulatory assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | 1,095 |  | $ | 1,014 |  |  | $ | 704 |  | $ | 766 |
Prior service cost (credit) |  |  | 13 |  |  | 17 |  |  |  | (112) |  |  | (132) |
AOCI |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  |  | 38 |  |  | 27 |  |  |  | - |  |  | - |
Total amounts recognized in regulatory assets and AOCI |  | $ | 1,146 |  | $ | 1,058 |  |  | $ | 592 |  | $ | 634 |
Schedule Of Allocation Of Plan Assets |
In Millions
| Pension Plan |
December 31, 2012 | Total | Level 1 | Level 2 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Asset category |  |  |  |  |  |  |  |  |  |
Cash and short-term investments1 |  | $ | 33 |  | $ | 33 |  | $ | - |
U.S. government and agencies securities2 |  |  | 26 |  |  | - |  |  | 26 |
Corporate debt3 |  |  | 277 |  |  | - |  |  | 277 |
State and municipal bonds5 |  |  | 8 |  |  | - |  |  | 8 |
Foreign corporate bonds6 |  |  | 27 |  |  | - |  |  | 27 |
Mutual funds8 |  |  | 319 |  |  | 319 |  |  | - |
Pooled funds9 |  |  | 1,037 |  |  | - |  |  | 1,037 |
Total |  | $ | 1,727 |  | $ | 352 |  | $ | 1,375 |
In Millions
| Pension Plan |
December 31, 2011 | Total | Level 1 | Level 2 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Asset category |  |  |  |  |  |  |  |  |  |
Cash and short-term investments1 |  | $ | 241 |  | $ | 241 |  | $ | - |
U.S. government and agencies securities2 |  |  | 24 |  |  | - |  |  | 24 |
Corporate debt3 |  |  | 236 |  |  | - |  |  | 236 |
State and municipal bonds5 |  |  | 10 |  |  | - |  |  | 10 |
Foreign corporate bonds6 |  |  | 23 |  |  | - |  |  | 23 |
Mutual funds8 |  |  | 257 |  |  | 257 |  |  | - |
Pooled funds9 |  |  | 835 |  |  | - |  |  | 835 |
Total |  | $ | 1,626 |  | $ | 498 |  | $ | 1,128 |
In Millions
| OPEB Plan |
December 31, 2012 | Total | Level 1 | Level 2 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Asset category |  |  |  |  |  |  |  |  |  |
Cash and short-term investments1 |  | $ | 118 |  | $ | 118 |  | $ | - |
U.S. government and agencies securities2 |  |  | 4 |  |  | - |  |  | 4 |
Corporate debt4 |  |  | 38 |  |  | - |  |  | 38 |
State and municipal bonds5 |  |  | 1 |  |  | - |  |  | 1 |
Foreign corporate bonds6 |  |  | 4 |  |  | - |  |  | 4 |
Common stocks7 |  |  | 75 |  |  | 75 |  |  | - |
Mutual funds8 |  |  | 300 |  |  | 300 |  |  | - |
Pooled funds10 |  |  | 507 |  |  | - |  |  | 507 |
Total |  | $ | 1,047 |  | $ | 493 |  | $ | 554 |
Consumers |  |  |  |  |  |  |  |  |  |
Asset category |  |  |  |  |  |  |  |  |  |
Cash and short-term investments1 |  | $ | 111 |  | $ | 111 |  | $ | - |
U.S. government and agencies securities2 |  |  | 3 |  |  | - |  |  | 3 |
Corporate debt4 |  |  | 35 |  |  | - |  |  | 35 |
State and municipal bonds5 |  |  | 1 |  |  | - |  |  | 1 |
Foreign corporate bonds6 |  |  | 3 |  |  | - |  |  | 3 |
Common stocks7 |  |  | 70 |  |  | 70 |  |  | - |
Mutual funds8 |  |  | 281 |  |  | 281 |  |  | - |
Pooled funds10 |  |  | 474 |  |  | - |  |  | 474 |
Total |  | $ | 978 |  | $ | 462 |  | $ | 516 |
In Millions
| OPEB Plan |
December 31, 2011 | Total | Level 1 | Level 2 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Asset category |  |  |  |  |  |  |  |  |  |
Cash and short-term investments1 |  | $ | 64 |  | $ | 64 |  | $ | - |
U.S. government and agencies securities2 |  |  | 203 |  |  | - |  |  | 203 |
Corporate debt4 |  |  | 28 |  |  | - |  |  | 28 |
State and municipal bonds5 |  |  | 71 |  |  | - |  |  | 71 |
Foreign corporate bonds6 |  |  | 3 |  |  | - |  |  | 3 |
Common stocks7 |  |  | 113 |  |  | 113 |  |  | - |
Mutual funds8 |  |  | 31 |  |  | 31 |  |  | - |
Pooled funds10 |  |  | 411 |  |  | - |  |  | 411 |
Total |  | $ | 924 |  | $ | 208 |  | $ | 716 |
Consumers |  |  |  |  |  |  |  |  |  |
Asset category |  |  |  |  |  |  |  |  |  |
Cash and short-term investments1 |  | $ | 60 |  | $ | 60 |  | $ | - |
U.S. government and agencies securities2 |  |  | 189 |  |  | - |  |  | 189 |
Corporate debt4 |  |  | 26 |  |  | - |  |  | 26 |
State and municipal bonds5 |  |  | 66 |  |  | - |  |  | 66 |
Foreign corporate bonds6 |  |  | 3 |  |  | - |  |  | 3 |
Common stocks7 |  |  | 105 |  |  | 105 |  |  | - |
Mutual funds8 |  |  | 29 |  |  | 29 |  |  | - |
Pooled funds10 |  |  | 383 |  |  | - |  |  | 383 |
Total |  | $ | 861 |  | $ | 194 |  | $ | 667 |
1 Cash and short-term investments consist of money market funds with daily liquidity.
1 | U.S. government and agencies securities consist of U.S. Treasury notes and other debt securities backed by the U.S. government and related agencies. These securities were valued based on quoted market prices.
2 | At December 31, 2012, corporate debt investments in the Pension Plan comprised investment grade bonds (68 percent) and non-investment grade, high-yield bonds (32 percent) of U.S. issuers from diverse industries. At December 31, 2011, corporate debt investments in the Pension Plan comprised investment grade bonds (69 percent) and non-investment grade, high-yield bonds (31 percent) of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields presently available on comparable securities of issuers with similar credit ratings.
3 | At December 31, 2012, corporate debt investments in the OPEB plan comprised investment grade bonds (68 percent) and non-investment grade, high-yield bonds (32 percent) of U.S. issuers from diverse industries. At December 31, 2011, corporate debt investments in the OPEB plan comprised investment grade bonds (69 percent) and non-investment grade, high-yield bonds (31 percent) of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields presently available on comparable securities of issuers with similar credit ratings.
4 | State and municipal bonds were valued using a matrix-pricing model that incorporates Level 2 market-based information. The fair value of the bonds was derived from various observable inputs, including benchmark yields, reported securities trades, broker/dealer quotes, bond ratings, and general information on market movements for investment grade state and municipal securities normally considered by market participants when pricing such debt securities.
5 | Foreign corporate debt securities were valued based on quoted market prices, when available, or on yields available on comparable securities of issuers with similar credit ratings.
6 | Common stocks in the OPEB plan consist of equity securities with low transaction costs that were actively managed and tracked by the S&P 500 Index. These securities were valued at their quoted closing prices.
7 | Mutual funds represent shares in registered investment companies that are priced based on the daily quoted NAVs that are publicly available and are the basis for transactions to buy or sell shares in the funds.
8 | Pooled funds in the Pension Plan include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. At December 31, 2012, these funds comprised investments in U.S. equity securities (51 percent), foreign equity securities (26 percent), foreign fixed-income securities (14 percent), U.S. fixed-income securities (four percent), and alternative investments (five percent). At December 31, 2011, these funds comprised investments in U.S. equity securities (53 percent), foreign equity securities (22 percent), foreign fixed-income securities (16 percent), U.S. fixed-income securities (five percent), and alternative investments (four percent). These investments were valued at the quoted NAV provided by the fund managers that is the basis for transactions to buy or sell shares in the funds.
9 | Pooled funds in the OPEB plan include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. At December 31, 2012, these funds comprised investments in U.S. equity securities (65 percent), foreign equity securities (21 percent), foreign fixed-income securities (nine percent), U.S. fixed-income securities (three percent), and alternative investments (two percent). At December 31, 2011, these funds comprised investments in U.S. equity securities (88 percent), foreign equity securities (six percent), foreign fixed-income securities (four percent), U.S. fixed-income securities (one percent), and alternative investments (one percent). These investments are valued at the quoted NAV provided by the fund managers that is the basis for transactions to buy or sell shares in the funds.
Schedule Of Plan Contributions |
In Millions
Years Ended December 31 | 2012 | 2011 |
CMS Energy, including Consumers |  |  |  |  |  |  |
OPEB1 |  |  |  |  |  |  |
VEBA trust |  | $ | 45 |  | $ | 48 |
401(h) component |  |  | 20 |  |  | 19 |
|  | $ | 65 |  | $ | 67 |
Pension2 |  | $ | - |  | $ | 250 |
Consumers |  |  |  |  |  |  |
OPEB1 |  |  |  |  |  |  |
VEBA trust |  | $ | 45 |  | $ | 47 |
401(h) component |  |  | 19 |  |  | 19 |
|  | $ | 64 |  | $ | 66 |
Pension2 |  | $ | - |  | $ | 245 |
1 | CMS Energy, including Consumers, plans to contribute $74 million to the OPEB plan in 2013, of which Consumers plans to contribute $73 million.
2 | CMS Energy, including Consumers, planned to contribute $50 million to the Pension Plan in 2013, of which Consumers planned to contribute $49 million. This Pension Plan contribution was made in January 2013.
Schedule Of Expected Benefit Payments |
In Millions
| Pension | DB SERP | OPEB1 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
2013 |  | $ | 120 |  | $ | 7 |  | $ | 61 |
2014 |  |  | 128 |  |  | 8 |  |  | 65 |
2015 |  |  | 138 |  |  | 8 |  |  | 70 |
2016 |  |  | 144 |  |  | 8 |  |  | 74 |
2017 |  |  | 149 |  |  | 8 |  |  | 79 |
2018-2022 |  |  | 793 |  |  | 46 |  |  | 451 |
Consumers |  |  |  |  |  |  |  |  |  |
2013 |  | $ | 117 |  | $ | 4 |  | $ | 59 |
2014 |  |  | 125 |  |  | 4 |  |  | 63 |
2015 |  |  | 134 |  |  | 4 |  |  | 67 |
2016 |  |  | 140 |  |  | 4 |  |  | 71 |
2017 |  |  | 146 |  |  | 4 |  |  | 76 |
2018-2022 |  |  | 773 |  |  | 20 |  |  | 432 |
1 | CMS Energy’s and Consumers’ OPEB benefit payments are net of employee contributions and expected Medicare Part D prescription drug subsidy payments. For CMS Energy, subsidies to be received are estimated to be $6 million for 2013, $7 million for each of 2014 and 2015, $8 million for each of 2016 and 2017, and $51 million combined for 2018 through 2022. For Consumers, subsidies to be received are estimated to be $6 million for each of 2013 and 2014, $7 million for each of 2015 and 2016, $8 million for 2017, and $48 million combined for 2018 through 2022.
Consumers Energy Company [Member] |
Schedule Of SERP Trust Assets, ABO And Contributions |
In Millions
Years Ended December 31 | 2012 | 2011 |
CMS Energy, including Consumers |  |  |  |  |  |  |
Trust assets |  | $ | 128 |  | $ | 114 |
ABO |  |  | 130 |  |  | 117 |
Contributions |  |  | 13 |  |  | 27 |
Consumers |  |  |  |  |  |  |
Trust assets |  | $ | 87 |  | $ | 75 |
ABO |  |  | 86 |  |  | 76 |
Contributions |  |  | 9 |  |  | 20 |
Schedule Of Effect Of One-Percentage-Point Change In Assumed Health Care Cost Trend Rates |
In Millions
| One Percentage | One Percentage |
Years Ended December 31 | Point Increase | Point Decrease |
CMS Energy, including Consumers |  |  |  |  |  |  |
Effect on total service and interest cost component |  | $ | 23 |  | $ | (19) |
Effect on PBO |  |  | 281 |  |  | (242) |
Consumers |  |  |  |  |  |  |
Effect on total service and interest cost component |  | $ | 22 |  | $ | (18) |
Effect on PBO |  |  | 273 |  |  | (235) |
Schedule Of Assumptions Used |
| Pension and DB SERP |  | OPEB |
December 31 | 2012 |  | 2011 |  | 2010 |  |  | 2012 |  | 2011 |  | 2010 |  |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted average for benefit obligations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discount rate1 |  | 4.10 | % |  | 4.90 | % |  | 5.40 | % |  |  | 4.40 | % |  | 5.10 | % |  | 5.60 | % |
Mortality table2 |  | 2000 |  |  | 2000 |  |  | 2000 |  |  |  | 2000 |  |  | 2000 |  |  | 2000 |  |
Rate of compensation increase |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pension |  | 3.00 | % |  | 3.50 | % |  | 4.00 | % |  |  |  |  |  |  |  |  |  |  |
DB SERP |  | 5.50 | % |  | 5.50 | % |  | 5.50 | % |  |  |  |  |  |  |  |  |  |  |
Weighted average for net periodic benefit cost obligations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discount rate1 |  | 4.90 | % |  | 5.40 | % |  | 5.85 | % |  |  | 5.10 | % |  | 5.60 | % |  | 6.00 | % |
Expected long-term rate of return on plan assets3 |  | 7.75 | % |  | 8.00 | % |  | 8.00 | % |  |  | 7.25 | % |  | 7.50 | % |  | 7.50 | % |
Mortality table2 |  | 2000 |  |  | 2000 |  |  | 2000 |  |  |  | 2000 |  |  | 2000 |  |  | 2000 |  |
Rate of compensation increase |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pension |  | 3.50 | % |  | 4.00 | % |  | 4.00 | % |  |  |  |  |  |  |  |  |  |  |
DB SERP |  | 5.50 | % |  | 5.50 | % |  | 5.50 | % |  |  |  |  |  |  |  |  |  |  |
1 The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ Pension Plan and OPEB plan and the yields on high quality corporate bonds rated Aa or better. 2 The mortality assumption was based on the RP-2000 mortality tables with projection of future mortality improvements using Scale AA, which aligned with the IRS prescriptions for cash funding valuations under the Pension Protection Act of 2006. 3 CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on Pension Plan assets was 7.75 percent in 2012. The actual return on Pension Plan assets was 14.1 percent in 2012, four percent in 2011, and 13 percent in 2010.
Schedule Of Net Benefit Costs |
In Millions
| Pension and DB SERP |
Years Ended December 31 | 2012 | 2011 | 2010 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Net periodic pension and DB SERP cost |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 49 |  | $ | 49 |  | $ | 45 |
Interest expense |  |  | 105 |  |  | 106 |  |  | 104 |
Expected return on plan assets |  |  | (125) |  |  | (112) |  |  | (92) |
Amortization of: |  |  |  |  |  |  |  |  |  |
Net loss |  |  | 79 |  |  | 65 |  |  | 52 |
Prior service cost |  |  | 5 |  |  | 5 |  |  | 5 |
Net periodic pension and DB SERP cost |  | $ | 113 |  | $ | 113 |  | $ | 114 |
Regulatory adjustment1 |  |  | - |  |  | - |  |  | 30 |
Net periodic pension and DB SERP cost after regulatory adjustment |  | $ | 113 |  | $ | 113 |  | $ | 144 |
Consumers |  |  |  |  |  |  |  |  |  |
Net periodic pension and DB SERP cost |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 48 |  | $ | 48 |  | $ | 44 |
Interest expense |  |  | 100 |  |  | 101 |  |  | 99 |
Expected return on plan assets |  |  | (122) |  |  | (109) |  |  | (89) |
Amortization of: |  |  |  |  |  |  |  |  |  |
Net loss |  |  | 77 |  |  | 63 |  |  | 50 |
Prior service cost |  |  | 5 |  |  | 5 |  |  | 5 |
Net periodic pension and DB SERP cost |  | $ | 108 |  | $ | 108 |  | $ | 109 |
Regulatory adjustment1 |  |  | - |  |  | - |  |  | 30 |
Net periodic pension and DB SERP cost after regulatory adjustment |  | $ | 108 |  | $ | 108 |  | $ | 139 |
In Millions
| OPEB |
Years Ended December 31 | 2012 | 2011 | 2010 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Net periodic OPEB cost |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 32 |  | $ | 27 |  | $ | 26 |
Interest expense |  |  | 82 |  |  | 77 |  |  | 80 |
Expected return on plan assets |  |  | (66) |  |  | (66) |  |  | (60) |
Amortization of: |  |  |  |  |  |  |  |  |  |
Net loss |  |  | 46 |  |  | 30 |  |  | 32 |
Prior service credit |  |  | (20) |  |  | (20) |  |  | (17) |
Net periodic OPEB cost |  | $ | 74 |  | $ | 48 |  | $ | 61 |
Regulatory adjustment1 |  |  | - |  |  | - |  |  | 5 |
Net periodic OPEB cost after regulatory adjustment |  | $ | 74 |  | $ | 48 |  | $ | 66 |
Consumers |  |  |  |  |  |  |  |  |  |
Net periodic OPEB cost |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 31 |  | $ | 26 |  | $ | 25 |
Interest expense |  |  | 79 |  |  | 74 |  |  | 77 |
Expected return on plan assets |  |  | (61) |  |  | (61) |  |  | (56) |
Amortization of: |  |  |  |  |  |  |  |  |  |
Net loss |  |  | 47 |  |  | 31 |  |  | 33 |
Prior service credit |  |  | (20) |  |  | (20) |  |  | (16) |
Net periodic OPEB cost |  | $ | 76 |  | $ | 50 |  | $ | 63 |
Regulatory adjustment1 |  |  | - |  |  | - |  |  | 5 |
Net periodic OPEB cost after regulatory adjustment |  | $ | 76 |  | $ | 50 |  | $ | 68 |
1 Regulatory adjustments are the differences between amounts included in rates and the periodic benefit cost calculated. These regulatory adjustments were offset by surcharge revenues, which resulted in no impact to net income for the years presented. The pension and OPEB regulatory asset was less than $1 million at December 31, 2012 and 2011.
Schedule Of Benefit Obligations In Excess Of Fair Value Of Plan Assets |
In Millions
| Pension Plan |
Years Ended December 31 | 2012 | 2011 |
CMS Energy, including Consumers |  |  |  |  |  |  |
Benefit obligation at beginning of period |  | $ | 2,072 |  | $ | 1,896 |
Service cost |  |  | 48 |  |  | 48 |
Interest cost |  |  | 99 |  |  | 100 |
Actuarial loss |  |  | 249 |  |  | 107 |
Benefits paid |  |  | (114) |  |  | (79) |
Benefit obligation at end of period |  |  | 2,354 |  |  | 2,072 |
Plan assets at fair value at beginning of period |  | $ | 1,626 |  | $ | 1,401 |
Actual return on plan assets |  |  | 215 |  |  | 54 |
Company contribution |  |  | - |  |  | 250 |
Actual benefits paid |  |  | (114) |  |  | (79) |
Plan assets at fair value at end of period |  |  | 1,727 |  |  | 1,626 |
Funded status1 |  | $ | (627) |  | $ | (446) |
In Millions
| DB SERP |  | OPEB |  |
Years Ended December 31 | 2012 | 2011 |  | 2012 | 2011 |  |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at beginning of period |  | $ | 127 |  | $ | 118 |  |  | $ | 1,641 |  | $ | 1,410 |  |
Service cost |  |  | 1 |  |  | 1 |  |  |  | 32 |  |  | 27 |  |
Interest cost |  |  | 6 |  |  | 6 |  |  |  | 82 |  |  | 77 |  |
Actuarial loss |  |  | 16 |  |  | 8 |  |  |  | 25 |  |  | 180 |  |
Benefits paid |  |  | (6) |  |  | (6) |  |  |  | (51) | 2 |  | (53) | 2 |
Benefit obligation at end of period |  | $ | 144 |  | $ | 127 |  |  | $ | 1,729 | 3 | $ | 1,641 | 3 |
Plan assets at fair value at beginning of period |  | $ | - |  | $ | - |  |  | $ | 924 |  | $ | 887 |  |
Actual return on plan assets |  |  | - |  |  | - |  |  |  | 108 |  |  | 23 |  |
Company contribution |  |  | 6 |  |  | 6 |  |  |  | 65 |  |  | 67 |  |
Actual benefits paid |  |  | (6) |  |  | (6) |  |  |  | (50) | 2 |  | (53) | 2 |
Plan assets at fair value at end of period |  | $ | - |  | $ | - |  |  | $ | 1,047 |  | $ | 924 |  |
Funded status |  | $ | (144) |  | $ | (127) |  |  | $ | (682) |  | $ | (717) |  |
Consumers |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at beginning of period |  | $ | 85 |  | $ | 77 |  |  | $ | 1,585 |  | $ | 1,358 |  |
Service cost |  |  | 1 |  |  | 1 |  |  |  | 31 |  |  | 26 |  |
Interest cost |  |  | 4 |  |  | 4 |  |  |  | 79 |  |  | 74 |  |
Actuarial loss |  |  | 13 |  |  | 6 |  |  |  | 24 |  |  | 178 |  |
Benefits paid |  |  | (3) |  |  | (3) |  |  |  | (49) | 2 |  | (51) | 2 |
Benefit obligation at end of period |  | $ | 100 |  | $ | 85 |  |  | $ | 1,670 | 3 | $ | 1,585 | 3 |
Plan assets at fair value at beginning of period |  | $ | - |  | $ | - |  |  | $ | 861 |  | $ | 825 |  |
Actual return on plan assets |  |  | - |  |  | - |  |  |  | 101 |  |  | 21 |  |
Company contribution |  |  | 3 |  |  | 3 |  |  |  | 64 |  |  | 66 |  |
Actual benefits paid |  |  | (3) |  |  | (3) |  |  |  | (48) | 2 |  | (51) | 2 |
Plan assets at fair value at end of period |  | $ | - |  | $ | - |  |  | $ | 978 |  | $ | 861 |  |
Funded status |  | $ | (100) |  | $ | (85) |  |  | $ | (692) |  | $ | (724) |  |
1 At December 31, 2012, $590 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. At December 31, 2011, $414 million of the funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. 2 CMS Energy received payments of $5 million in each of 2012, 2011, and 2010 for the Medicare Part D subsidies. Consumers received payments of $5 million in each of 2012, 2011, and 2010 for the Medicare Part D subsidies. The Medicare Part D subsi dy payments are used to pay OPEB plan benefits. 3 The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 established a prescription drug benefit under Medicare (Medicare Part D) and a federal subsidy, which is tax-exempt, to sponsors of retiree health care benefit plans that provide a benefit that is actuarially equivalent to Medicare Part D. In 2010, the Health Care Acts repealed these tax-exempt deductions for years beginning after December 31, 2012. The Medicare Part D annualized reduction in net OPEB cost for CMS Energy was $20 million for 2012, $26 million for 2011, and $28 million for 2010. Consumers’ Medicare Part D annualized reduction in net OPEB costs was $19 million for 2012, $25 million for 2011, and $26 million for 2010. The reduction for CMS Energy and Consumers included $7 million for 2012, $9 million for 2011, and $10 million for 2010 in capitalized OPEB costs.
Schedule Of Net Periodic Benefit Cost Not Yet Recognized Including Regulatory Assets |
In Millions
| Pension and DB SERP |  | OPEB |
Years Ended December 31 | 2012 | 2011 |  | 2012 | 2011 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |  |  |  |  |
Regulatory assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | 1,095 |  | $ | 1,014 |  |  | $ | 704 |  | $ | 766 |
Prior service cost (credit) |  |  | 13 |  |  | 17 |  |  |  | (112) |  |  | (132) |
AOCI |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss (gain) |  |  | 98 |  |  | 81 |  |  |  | (7) |  |  | (5) |
Prior service cost (credit) |  |  | - |  |  | 2 |  |  |  | (3) |  |  | (3) |
Total amounts recognized in regulatory assets and AOCI |  | $ | 1,206 |  | $ | 1,114 |  |  | $ | 582 |  | $ | 626 |
Consumers |  |  |  |  |  |  |  |  |  |  |  |  |  |
Regulatory assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | 1,095 |  | $ | 1,014 |  |  | $ | 704 |  | $ | 766 |
Prior service cost (credit) |  |  | 13 |  |  | 17 |  |  |  | (112) |  |  | (132) |
AOCI |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  |  | 38 |  |  | 27 |  |  |  | - |  |  | - |
Total amounts recognized in regulatory assets and AOCI |  | $ | 1,146 |  | $ | 1,058 |  |  | $ | 592 |  | $ | 634 |
Schedule Of Allocation Of Plan Assets |
In Millions
| Pension Plan |
December 31, 2012 | Total | Level 1 | Level 2 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Asset category |  |  |  |  |  |  |  |  |  |
Cash and short-term investments1 |  | $ | 33 |  | $ | 33 |  | $ | - |
U.S. government and agencies securities2 |  |  | 26 |  |  | - |  |  | 26 |
Corporate debt3 |  |  | 277 |  |  | - |  |  | 277 |
State and municipal bonds5 |  |  | 8 |  |  | - |  |  | 8 |
Foreign corporate bonds6 |  |  | 27 |  |  | - |  |  | 27 |
Mutual funds8 |  |  | 319 |  |  | 319 |  |  | - |
Pooled funds9 |  |  | 1,037 |  |  | - |  |  | 1,037 |
Total |  | $ | 1,727 |  | $ | 352 |  | $ | 1,375 |
In Millions
| Pension Plan |
December 31, 2011 | Total | Level 1 | Level 2 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Asset category |  |  |  |  |  |  |  |  |  |
Cash and short-term investments1 |  | $ | 241 |  | $ | 241 |  | $ | - |
U.S. government and agencies securities2 |  |  | 24 |  |  | - |  |  | 24 |
Corporate debt3 |  |  | 236 |  |  | - |  |  | 236 |
State and municipal bonds5 |  |  | 10 |  |  | - |  |  | 10 |
Foreign corporate bonds6 |  |  | 23 |  |  | - |  |  | 23 |
Mutual funds8 |  |  | 257 |  |  | 257 |  |  | - |
Pooled funds9 |  |  | 835 |  |  | - |  |  | 835 |
Total |  | $ | 1,626 |  | $ | 498 |  | $ | 1,128 |
In Millions
| OPEB Plan |
December 31, 2012 | Total | Level 1 | Level 2 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Asset category |  |  |  |  |  |  |  |  |  |
Cash and short-term investments1 |  | $ | 118 |  | $ | 118 |  | $ | - |
U.S. government and agencies securities2 |  |  | 4 |  |  | - |  |  | 4 |
Corporate debt4 |  |  | 38 |  |  | - |  |  | 38 |
State and municipal bonds5 |  |  | 1 |  |  | - |  |  | 1 |
Foreign corporate bonds6 |  |  | 4 |  |  | - |  |  | 4 |
Common stocks7 |  |  | 75 |  |  | 75 |  |  | - |
Mutual funds8 |  |  | 300 |  |  | 300 |  |  | - |
Pooled funds10 |  |  | 507 |  |  | - |  |  | 507 |
Total |  | $ | 1,047 |  | $ | 493 |  | $ | 554 |
Consumers |  |  |  |  |  |  |  |  |  |
Asset category |  |  |  |  |  |  |  |  |  |
Cash and short-term investments1 |  | $ | 111 |  | $ | 111 |  | $ | - |
U.S. government and agencies securities2 |  |  | 3 |  |  | - |  |  | 3 |
Corporate debt4 |  |  | 35 |  |  | - |  |  | 35 |
State and municipal bonds5 |  |  | 1 |  |  | - |  |  | 1 |
Foreign corporate bonds6 |  |  | 3 |  |  | - |  |  | 3 |
Common stocks7 |  |  | 70 |  |  | 70 |  |  | - |
Mutual funds8 |  |  | 281 |  |  | 281 |  |  | - |
Pooled funds10 |  |  | 474 |  |  | - |  |  | 474 |
Total |  | $ | 978 |  | $ | 462 |  | $ | 516 |
In Millions
| OPEB Plan |
December 31, 2011 | Total | Level 1 | Level 2 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Asset category |  |  |  |  |  |  |  |  |  |
Cash and short-term investments1 |  | $ | 64 |  | $ | 64 |  | $ | - |
U.S. government and agencies securities2 |  |  | 203 |  |  | - |  |  | 203 |
Corporate debt4 |  |  | 28 |  |  | - |  |  | 28 |
State and municipal bonds5 |  |  | 71 |  |  | - |  |  | 71 |
Foreign corporate bonds6 |  |  | 3 |  |  | - |  |  | 3 |
Common stocks7 |  |  | 113 |  |  | 113 |  |  | - |
Mutual funds8 |  |  | 31 |  |  | 31 |  |  | - |
Pooled funds10 |  |  | 411 |  |  | - |  |  | 411 |
Total |  | $ | 924 |  | $ | 208 |  | $ | 716 |
Consumers |  |  |  |  |  |  |  |  |  |
Asset category |  |  |  |  |  |  |  |  |  |
Cash and short-term investments1 |  | $ | 60 |  | $ | 60 |  | $ | - |
U.S. government and agencies securities2 |  |  | 189 |  |  | - |  |  | 189 |
Corporate debt4 |  |  | 26 |  |  | - |  |  | 26 |
State and municipal bonds5 |  |  | 66 |  |  | - |  |  | 66 |
Foreign corporate bonds6 |  |  | 3 |  |  | - |  |  | 3 |
Common stocks7 |  |  | 105 |  |  | 105 |  |  | - |
Mutual funds8 |  |  | 29 |  |  | 29 |  |  | - |
Pooled funds10 |  |  | 383 |  |  | - |  |  | 383 |
Total |  | $ | 861 |  | $ | 194 |  | $ | 667 |
1 Cash and short-term investments consist of money market funds with daily liquidity.
1 | U.S. government and agencies securities consist of U.S. Treasury notes and other debt securities backed by the U.S. government and related agencies. These securities were valued based on quoted market prices.
2 | At December 31, 2012, corporate debt investments in the Pension Plan comprised investment grade bonds (68 percent) and non-investment grade, high-yield bonds (32 percent) of U.S. issuers from diverse industries. At December 31, 2011, corporate debt investments in the Pension Plan comprised investment grade bonds (69 percent) and non-investment grade, high-yield bonds (31 percent) of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields presently available on comparable securities of issuers with similar credit ratings.
3 | At December 31, 2012, corporate debt investments in the OPEB plan comprised investment grade bonds (68 percent) and non-investment grade, high-yield bonds (32 percent) of U.S. issuers from diverse industries. At December 31, 2011, corporate debt investments in the OPEB plan comprised investment grade bonds (69 percent) and non-investment grade, high-yield bonds (31 percent) of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields presently available on comparable securities of issuers with similar credit ratings.
4 | State and municipal bonds were valued using a matrix-pricing model that incorporates Level 2 market-based information. The fair value of the bonds was derived from various observable inputs, including benchmark yields, reported securities trades, broker/dealer quotes, bond ratings, and general information on market movements for investment grade state and municipal securities normally considered by market participants when pricing such debt securities.
5 | Foreign corporate debt securities were valued based on quoted market prices, when available, or on yields available on comparable securities of issuers with similar credit ratings.
6 | Common stocks in the OPEB plan consist of equity securities with low transaction costs that were actively managed and tracked by the S&P 500 Index. These securities were valued at their quoted closing prices.
7 | Mutual funds represent shares in registered investment companies that are priced based on the daily quoted NAVs that are publicly available and are the basis for transactions to buy or sell shares in the funds.
8 | Pooled funds in the Pension Plan include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. At December 31, 2012, these funds comprised investments in U.S. equity securities (51 percent), foreign equity securities (26 percent), foreign fixed-income securities (14 percent), U.S. fixed-income securities (four percent), and alternative investments (five percent). At December 31, 2011, these funds comprised investments in U.S. equity securities (53 percent), foreign equity securities (22 percent), foreign fixed-income securities (16 percent), U.S. fixed-income securities (five percent), and alternative investments (four percent). These investments were valued at the quoted NAV provided by the fund managers that is the basis for transactions to buy or sell shares in the funds.
9 | Pooled funds in the OPEB plan include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. At December 31, 2012, these funds comprised investments in U.S. equity securities (65 percent), foreign equity securities (21 percent), foreign fixed-income securities (nine percent), U.S. fixed-income securities (three percent), and alternative investments (two percent). At December 31, 2011, these funds comprised investments in U.S. equity securities (88 percent), foreign equity securities (six percent), foreign fixed-income securities (four percent), U.S. fixed-income securities (one percent), and alternative investments (one percent). These investments are valued at the quoted NAV provided by the fund managers that is the basis for transactions to buy or sell shares in the funds.
Schedule Of Plan Contributions |
In Millions
Years Ended December 31 | 2012 | 2011 |
CMS Energy, including Consumers |  |  |  |  |  |  |
OPEB1 |  |  |  |  |  |  |
VEBA trust |  | $ | 45 |  | $ | 48 |
401(h) component |  |  | 20 |  |  | 19 |
|  | $ | 65 |  | $ | 67 |
Pension2 |  | $ | - |  | $ | 250 |
Consumers |  |  |  |  |  |  |
OPEB1 |  |  |  |  |  |  |
VEBA trust |  | $ | 45 |  | $ | 47 |
401(h) component |  |  | 19 |  |  | 19 |
|  | $ | 64 |  | $ | 66 |
Pension2 |  | $ | - |  | $ | 245 |
1 | CMS Energy, including Consumers, plans to contribute $74 million to the OPEB plan in 2013, of which Consumers plans to contribute $73 million.
2 | CMS Energy, including Consumers, planned to contribute $50 million to the Pension Plan in 2013, of which Consumers planned to contribute $49 million. This Pension Plan contribution was made in January 2013.
Schedule Of Expected Benefit Payments |
In Millions
| Pension | DB SERP | OPEB1 |
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
2013 |  | $ | 120 |  | $ | 7 |  | $ | 61 |
2014 |  |  | 128 |  |  | 8 |  |  | 65 |
2015 |  |  | 138 |  |  | 8 |  |  | 70 |
2016 |  |  | 144 |  |  | 8 |  |  | 74 |
2017 |  |  | 149 |  |  | 8 |  |  | 79 |
2018-2022 |  |  | 793 |  |  | 46 |  |  | 451 |
Consumers |  |  |  |  |  |  |  |  |  |
2013 |  | $ | 117 |  | $ | 4 |  | $ | 59 |
2014 |  |  | 125 |  |  | 4 |  |  | 63 |
2015 |  |  | 134 |  |  | 4 |  |  | 67 |
2016 |  |  | 140 |  |  | 4 |  |  | 71 |
2017 |  |  | 146 |  |  | 4 |  |  | 76 |
2018-2022 |  |  | 773 |  |  | 20 |  |  | 432 |
1 | CMS Energy’s and Consumers’ OPEB benefit payments are net of employee contributions and expected Medicare Part D prescription drug subsidy payments. For CMS Energy, subsidies to be received are estimated to be $6 million for 2013, $7 million for each of 2014 and 2015, $8 million for each of 2016 and 2017, and $51 million combined for 2018 through 2022. For Consumers, subsidies to be received are estimated to be $6 million for each of 2013 and 2014, $7 million for each of 2015 and 2016, $8 million for 2017, and $48 million combined for 2018 through 2022.

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