v3.25.4
Retirement Benefits (Tables)
12 Months Ended
Dec. 31, 2025
Defined Benefit Plan Disclosure [Line Items]  
Schedule of SERP Trust Assets, ABO and Contributions Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Trust assets$122 $127 
ABO104 105 
Consumers
Trust assets$92 $95 
ABO76 76 
Schedule of Assumptions Used Presented in the following table are the weighted-average assumptions used in CMS Energy’s, including Consumers’, retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202520242023
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.58%5.73%5.05%
DB Pension Plan B5.285.594.95
DB SERP5.225.564.94
OPEB Plan5.505.695.02
Rate of compensation increase
DB Pension Plan A3.703.703.60
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A5.77%5.08%5.27%
DB SERP4
5.18
OPEB Plan5.855.125.31
Interest cost discount rate2,3
DB Pension Plan A5.434.935.12
DB Pension Plan B5.304.875.06
DB SERP5.294.875.06
OPEB Plan5.394.915.10
Expected long-term rate of return on plan assets5
DB Pension Plans7.307.507.20
OPEB Plan7.157.507.20
Rate of compensation increase
DB Pension Plan A3.703.603.60
DB SERP4
5.50
1The mortality assumption for benefit obligations and net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021.
2The 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’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
4The last active participant in the DB SERP retired in 2023. Thus, the determination of the associated net periodic benefit cost no longer assumes a service cost discount rate nor a rate of compensation increase.
5CMS 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 the assets of the DB Pension Plans was 7.30 percent in 2025. The actual return on the assets of the DB Pension Plans was 12.7 percent in 2025, 3.6 percent in 2024, and 12.6 percent in 2023.
Schedule of Net Benefit Costs 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 benefit plans:
In Millions
DB Pension Plans and DB SERPOPEB Plan
Years Ended December 31202520242023202520242023
CMS Energy, including Consumers
Net periodic credit
Service cost$25 $28 $29 $$11 $12 
Interest cost114 109 112 43 43 44 
Expected return on plan assets(229)(234)(220)(111)(115)(103)
Amortization of:
Net loss11 12 12 12 
Prior service cost (credit)(34)(31)(41)
Settlement loss11 11 11 — — — 
Net periodic credit$(64)$(70)$(52)$(91)$(88)$(76)
Consumers
Net periodic credit
Service cost$24 $27 $28 $$11 $11 
Interest cost106 102 105 42 41 42 
Expected return on plan assets(215)(221)(208)(104)(107)(95)
Amortization of:
Net loss10 11 11 12 
Prior service cost (credit)(33)(30)(40)
Settlement loss11 11 11 — — — 
Net periodic credit$(60)$(66)$(49)$(84)$(81)$(70)
Schedule of Funded Status of Retirement Benefit Plans Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefit plans with their retirement benefit plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202520242025202420252024
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,094 $2,195 $105 $114 $831 $900 
Service cost25 28 — — 11 
Interest cost109 104 43 43 
Plan amendments— — — — — (25)
Actuarial loss (gain)53 
1
(91)
1
(4)
1
(40)
1
Benefits paid(158)(142)(10)(10)(54)(58)
Benefit obligation at end of period$2,123 $2,094 $104 $105 $830 $831 
Plan assets at fair value at beginning of period$2,964 $3,004 $— $— $1,588 $1,559 
Actual return on plan assets371 102 — — 197 86 
Company contribution— — 10 10 — — 
Actual benefits paid(158)(142)(10)(10)(52)(57)
Plan assets at fair value at end of period$3,177 $2,964 $— $— $1,733 $1,588 
Funded status$1,054 
2
$870 
2
$(104)$(105)$903 $757 
Consumers
Benefit obligation at beginning of period$76 $83 $801 $867 
Service cost— — 11 
Interest cost42 41 
Plan amendments— — — (24)
Actuarial loss (gain)(4)
1
(38)
1
Benefits paid(7)(7)(51)(56)
Benefit obligation at end of period$76 $76 $801 $801 
Plan assets at fair value at beginning of period$— $— $1,479 $1,453 
Actual return on plan assets— — 184 80 
Company contribution— — 
Actual benefits paid(7)(7)(50)(54)
Plan assets at fair value at end of period$— $— $1,613 $1,479 
Funded status$(76)$(76)$812 $678 
1The actuarial losses for 2025 for the DB Pension Plans and OPEB Plans were primarily the result of lower discount rates. The actuarial gains for 2024 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $1.0 billion at December 31, 2025 and $836 million at December 31, 2024.
Schedule of Retirement Benefit Plan Assets (Liabilities)
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120252024
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$1,054 $870 
OPEB Plan903 757 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP94 95 
Consumers
Non-current assets
DB Pension Plans$1,009 $836 
OPEB Plan812 678 
Current liabilities
DB SERP
Non-current liabilities
DB SERP69 69 
Schedule of Net Periodic Benefit Cost Not Yet Recognized Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets see Note 3, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312025202420252024
CMS Energy, including Consumers
Regulatory assets
Net loss$548 $653 $93 $176 
Prior service cost (credit)12 (61)(94)
Regulatory assets$557 $665 $32 $82 
AOCI
Net loss (gain)57 60 (7)(3)
Prior service credit— — (2)(2)
Total amounts recognized in regulatory assets and AOCI$614 $725 $23 $77 
Consumers
Regulatory assets
Net loss$548 $653 $93 $176 
Prior service cost (credit)12 (61)(94)
Regulatory assets$557 $665 $32 $82 
AOCI
Net loss18 15 — — 
Total amounts recognized in regulatory assets and AOCI$575 $680 $32 $82 
Schedule of Allocation of Plan Assets Presented in the following tables are the fair values of the assets of CMS Energy’s, including Consumers’, DB Pension Plans and OPEB Plan, by asset category and by level within the fair value hierarchy. For additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements.
In Millions
DB Pension Plans
December 31, 2025December 31, 2024
TotalLevel 1Level 2TotalLevel 1Level 2
Cash and short-term investments$162 $162 $— $148 $148 $— 
Mutual funds— — — — — — 
$162 $162 $— $148 $148 $— 
Pooled funds3,015 2,816 
Total$3,177 $2,964 
In Millions
OPEB Plan
December 31, 2025December 31, 2024
TotalLevel 1Level 2TotalLevel 1Level 2
Cash and short-term investments$72 $72 $— $35 $35 $— 
U.S. government and agencies securities15 — 15 13 — 13 
Corporate debt69 — 69 68 — 68 
State and municipal bonds— — 
Foreign bonds16 — 16 15 — 15 
Common stocks215 215 — 170 170 — 
Mutual funds75 75 — 53 53 — 
$466 $362 $104 $356 $258 $98 
Pooled funds1,267 1,232 
Total$1,733 $1,588 
Schedule of Asset Allocation Presented in the following table are the investment components of the assets of CMS Energy’s DB Pension Plans and OPEB Plan as of December 31, 2025:
DB Pension PlansOPEB Plan
Fixed-income securities39.2%37.6%
Equity securities38.742.4
Real asset investments9.3 8.8 
Return-seeking fixed income7.15.6
Liquid alternative investments4.3 3.7 
Cash and cash equivalents1.4 1.9 
100.0%100.0%
Schedule of Expected Benefit Payments Presented in the following table are the expected benefit payments for each of the next five years and the fiveyear period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2026$164 $10 $59 
2027165 10 61 
2028164 10 62 
2029164 62 
2030164 62 
2031-2035801 41 305 
Consumers
2026$154 $$57 
2027155 58 
2028154 59 
2029155 59 
2030154 60 
2031-2035756 29 292 
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of SERP Trust Assets, ABO and Contributions Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Trust assets$122 $127 
ABO104 105 
Consumers
Trust assets$92 $95 
ABO76 76 
Schedule of Assumptions Used Presented in the following table are the weighted-average assumptions used in CMS Energy’s, including Consumers’, retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202520242023
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.58%5.73%5.05%
DB Pension Plan B5.285.594.95
DB SERP5.225.564.94
OPEB Plan5.505.695.02
Rate of compensation increase
DB Pension Plan A3.703.703.60
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A5.77%5.08%5.27%
DB SERP4
5.18
OPEB Plan5.855.125.31
Interest cost discount rate2,3
DB Pension Plan A5.434.935.12
DB Pension Plan B5.304.875.06
DB SERP5.294.875.06
OPEB Plan5.394.915.10
Expected long-term rate of return on plan assets5
DB Pension Plans7.307.507.20
OPEB Plan7.157.507.20
Rate of compensation increase
DB Pension Plan A3.703.603.60
DB SERP4
5.50
1The mortality assumption for benefit obligations and net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021.
2The 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’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
4The last active participant in the DB SERP retired in 2023. Thus, the determination of the associated net periodic benefit cost no longer assumes a service cost discount rate nor a rate of compensation increase.
5CMS 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 the assets of the DB Pension Plans was 7.30 percent in 2025. The actual return on the assets of the DB Pension Plans was 12.7 percent in 2025, 3.6 percent in 2024, and 12.6 percent in 2023.
Schedule of Net Benefit Costs 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 benefit plans:
In Millions
DB Pension Plans and DB SERPOPEB Plan
Years Ended December 31202520242023202520242023
CMS Energy, including Consumers
Net periodic credit
Service cost$25 $28 $29 $$11 $12 
Interest cost114 109 112 43 43 44 
Expected return on plan assets(229)(234)(220)(111)(115)(103)
Amortization of:
Net loss11 12 12 12 
Prior service cost (credit)(34)(31)(41)
Settlement loss11 11 11 — — — 
Net periodic credit$(64)$(70)$(52)$(91)$(88)$(76)
Consumers
Net periodic credit
Service cost$24 $27 $28 $$11 $11 
Interest cost106 102 105 42 41 42 
Expected return on plan assets(215)(221)(208)(104)(107)(95)
Amortization of:
Net loss10 11 11 12 
Prior service cost (credit)(33)(30)(40)
Settlement loss11 11 11 — — — 
Net periodic credit$(60)$(66)$(49)$(84)$(81)$(70)
Schedule of Funded Status of Retirement Benefit Plans Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefit plans with their retirement benefit plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202520242025202420252024
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,094 $2,195 $105 $114 $831 $900 
Service cost25 28 — — 11 
Interest cost109 104 43 43 
Plan amendments— — — — — (25)
Actuarial loss (gain)53 
1
(91)
1
(4)
1
(40)
1
Benefits paid(158)(142)(10)(10)(54)(58)
Benefit obligation at end of period$2,123 $2,094 $104 $105 $830 $831 
Plan assets at fair value at beginning of period$2,964 $3,004 $— $— $1,588 $1,559 
Actual return on plan assets371 102 — — 197 86 
Company contribution— — 10 10 — — 
Actual benefits paid(158)(142)(10)(10)(52)(57)
Plan assets at fair value at end of period$3,177 $2,964 $— $— $1,733 $1,588 
Funded status$1,054 
2
$870 
2
$(104)$(105)$903 $757 
Consumers
Benefit obligation at beginning of period$76 $83 $801 $867 
Service cost— — 11 
Interest cost42 41 
Plan amendments— — — (24)
Actuarial loss (gain)(4)
1
(38)
1
Benefits paid(7)(7)(51)(56)
Benefit obligation at end of period$76 $76 $801 $801 
Plan assets at fair value at beginning of period$— $— $1,479 $1,453 
Actual return on plan assets— — 184 80 
Company contribution— — 
Actual benefits paid(7)(7)(50)(54)
Plan assets at fair value at end of period$— $— $1,613 $1,479 
Funded status$(76)$(76)$812 $678 
1The actuarial losses for 2025 for the DB Pension Plans and OPEB Plans were primarily the result of lower discount rates. The actuarial gains for 2024 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $1.0 billion at December 31, 2025 and $836 million at December 31, 2024.
Schedule of Retirement Benefit Plan Assets (Liabilities)
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120252024
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$1,054 $870 
OPEB Plan903 757 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP94 95 
Consumers
Non-current assets
DB Pension Plans$1,009 $836 
OPEB Plan812 678 
Current liabilities
DB SERP
Non-current liabilities
DB SERP69 69 
Schedule of Net Periodic Benefit Cost Not Yet Recognized Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets see Note 3, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312025202420252024
CMS Energy, including Consumers
Regulatory assets
Net loss$548 $653 $93 $176 
Prior service cost (credit)12 (61)(94)
Regulatory assets$557 $665 $32 $82 
AOCI
Net loss (gain)57 60 (7)(3)
Prior service credit— — (2)(2)
Total amounts recognized in regulatory assets and AOCI$614 $725 $23 $77 
Consumers
Regulatory assets
Net loss$548 $653 $93 $176 
Prior service cost (credit)12 (61)(94)
Regulatory assets$557 $665 $32 $82 
AOCI
Net loss18 15 — — 
Total amounts recognized in regulatory assets and AOCI$575 $680 $32 $82 
Schedule of Expected Benefit Payments Presented in the following table are the expected benefit payments for each of the next five years and the fiveyear period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2026$164 $10 $59 
2027165 10 61 
2028164 10 62 
2029164 62 
2030164 62 
2031-2035801 41 305 
Consumers
2026$154 $$57 
2027155 58 
2028154 59 
2029155 59 
2030154 60 
2031-2035756 29 292