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Retirement benefits | 12 Months Ended
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Dec. 31, 2021
Retirement Benefits [Abstract] |
Retirement benefits |
Note 10 · Retirement benefits
Defined benefit plans. Substantially all of the employees of HEI and the Utilities participate in the Retirement Plan for Employees of Hawaiian Electric Industries, Inc. and Participating Subsidiaries (HEI Pension Plan). Substantially all of the employees of ASB participated in the American Savings Bank Retirement Plan (ASB Pension Plan) until it was frozen on December 31, 2007. The HEI Pension Plan and the ASB Pension Plan (collectively, the Plans) are qualified, noncontributory defined benefit pension plans and include, in the case of the HEI Pension Plan, benefits for utility union employees determined in accordance with the terms of the collective bargaining agreements between the Utilities and the union. The Plans are subject to the provisions of ERISA. In addition, some current and former executives and directors of HEI and its subsidiaries participate in noncontributory, nonqualified plans (collectively, Supplemental Plans). In general, benefits are based on the employees’ or directors’ years of service and compensation. The continuation of the Plans and the Supplemental Plans and the payment of any contribution thereunder are not assumed as contractual obligations by the participating employers. The Supplemental Plan for directors has been frozen since 1996. The ASB Pension Plan was frozen as of December 31, 2007. The HEI Supplemental Executive Retirement Plan and ASB Supplemental Executive Retirement, Disability, and Death Benefit Plan (noncontributory, nonqualified, defined benefit plans) were frozen as of December 31, 2008. No participants have accrued any benefits under these plans after the respective plan’s freeze and the plans will be terminated at the time all remaining benefits have been paid. Each participating employer reserves the right to terminate its participation in the applicable plans at any time, and HEI and ASB reserve the right to terminate their respective plans at any time. If a participating employer terminates its participation in the Plans, the interest of each affected participant would become 100% vested to the extent funded. Upon the termination of the Plans, assets would be distributed to affected participants in accordance with the applicable allocation provisions of ERISA and any excess assets that exist would be paid to the participating employers. Participants’ benefits in the Plans are covered up to certain limits under insurance provided by the Pension Benefit Guaranty Corporation. Postretirement benefits other than pensions. HEI and the Utilities provide eligible employees health and life insurance benefits upon retirement under the Postretirement Welfare Benefits Plan for Employees of Hawaiian Electric Company, Inc. and participating employers (Hawaiian Electric Benefits Plan). Eligibility of employees and dependents is based on eligibility to retire at termination, the retirement date and the date of hire. The plan was amended in 2011, changing eligibility for certain bargaining unit employees hired prior to May 1, 2011, based on new minimum age and service requirements effective January 1, 2012, per the collective bargaining agreement, and certain management employees hired prior to May 1, 2011 based on new eligibility minimum age and service requirements effective January 1, 2012. The minimum age and service requirements for management and bargaining unit employees hired May 1, 2011 and thereafter have increased and their dependents are not eligible to receive postretirement benefits. Employees may be eligible to receive benefits from the HEI Pension Plan but may not be eligible for postretirement welfare benefits if the different eligibility requirements are not met. The executive death benefit plan was frozen on September 10, 2009 for participants at benefit levels as of that date. The Company’s and Utilities’ cost for OPEB has been adjusted to reflect the plan amendments, which reduced benefits and created prior service credits to be amortized over average future service of affected participants. The amortization of the prior service credit will reduce benefit costs until the various credit bases are fully recognized. Each participating employer reserves the right to terminate its participation in the Hawaiian Electric Benefits Plan at any time. Balance sheet recognition of the funded status of retirement plans. Employers must recognize on their balance sheets the funded status of defined benefit pension and other postretirement benefit plans with an offset to AOCI in shareholders’ equity (using the projected benefit obligation (PBO) and accumulated postretirement benefit obligation (APBO), to calculate the funded status). The PUC allowed the Utilities to adopt pension and OPEB tracking mechanisms in previous rate cases. The amount of the net periodic pension cost (NPPC) and net periodic benefits costs (NPBC) to be recovered in rates is established by the PUC in each rate case or as allowed under the new PBR Framework (see “Regulatory proceedings” in Note 3). Under the Utilities’ tracking mechanisms, any actual costs determined in accordance with GAAP that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will then be amortized over 5 years beginning with the respective utility’s next rate case. Accordingly, all retirement benefit expenses (except for executive life and nonqualified pension plan expenses, which amounted to $1.2 million and $1.1 million in 2021 and 2020, respectively) determined in accordance with GAAP will be recovered. Under the tracking mechanisms, amounts that would otherwise be recorded in AOCI (excluding amounts for executive life and nonqualified pension plans), net of taxes, as well as other pension and OPEB charges, are allowed to be reclassified as a regulatory asset, as those costs will be recovered in rates through the NPPC and NPBC in the future. The Utilities have reclassified to a regulatory asset/(liability) charges for retirement benefits that would otherwise be recorded in AOCI (amounting to the elimination of a potential adjustment to AOCI of $(230.8) million pretax and $53.7 million pretax for 2021 and 2020, respectively). Under the pension tracking mechanism, the Utilities are required to make contributions to the pension trust in the amount of the actuarially calculated NPPC, except when limited by the ERISA minimum contribution requirements or the maximum contributions imposed by the Internal Revenue Code. Contributions in excess of the calculated NPPC are recorded in a separate regulatory asset. The OPEB tracking mechanisms generally require the Utilities to make contributions to the OPEB trust in the amount of the actuarially calculated NPBC, (excluding amounts for executive life), except when limited by material, adverse consequences imposed by federal regulations. Future decisions in rate cases could further impact funding amounts. Defined benefit pension and other postretirement benefit plans information. The changes in the obligations and assets of the Company’s and Utilities’ retirement benefit plans and the changes in AOCI (gross) for 2021 and 2020 and the funded status of these plans and amounts related to these plans reflected in the Company’s and Utilities’ consolidated balance sheets as of December 31, 2021 and 2020 were as follows:
| 2021 |  | 2020
(in thousands) | Pension benefits |  | Other benefits |  | Pension benefits |  | Other benefits
HEI consolidated |  |  |  |  |  |  |
Benefit obligation, January 1 | $ | 2,624,530 |  |  | $ | 226,421 |  |  | $ | 2,278,283 |  |  | $ | 215,639 |
Service cost | 81,432 |  |  | 2,827 |  |  | 73,387 |  |  | 2,537 |
Interest cost | 75,361 |  |  | 6,122 |  |  | 81,335 |  |  | 7,407 |
Actuarial (gains) losses | (43,300) |  |  | (8,527) |  |  | 275,973 |  |  | 9,785 |
Participants contributions | — |  |  | 2,943 |  |  | — |  |  | 2,768 |
Benefits paid and expenses | (93,384) |  |  | (11,635) |  |  | (84,448) |  |  | (11,715) |
Benefit obligation, December 31 | 2,644,639 |  |  | 218,151 |  |  | 2,624,530 |  |  | 226,421 |
Fair value of plan assets, January 1 | 2,089,491 |  |  | 219,873 |  |  | 1,799,200 |  |  | 200,831 |
Actual return on plan assets | 271,443 |  |  | 28,130 |  |  | 302,566 |  |  | 27,678 |
Employer contributions | 51,777 |  |  | — |  |  | 70,844 |  |  | — |
Participants contributions | — |  |  | 2,943 |  |  | — |  |  | 2,768 |
Benefits paid and expenses | (91,966) |  |  | (11,635) |  |  | (83,119) |  |  | (11,404) |
Fair value of plan assets, December 31 | 2,320,745 |  |  | 239,311 |  |  | 2,089,491 |  |  | 219,873 |
Accrued benefit asset (liability), December 31 | $ | (323,894) |  |  | $ | 21,160 |  |  | $ | (535,039) |  |  | $ | (6,548) |
Other assets | $ | 23,675 |  |  | $ | 21,663 |  |  | $ | 25,851 |  |  | $ | — |
Defined benefit pension and other postretirement benefit plans liability | (347,569) |  |  | (503) |  |  | (560,890) |  |  | (6,548) |
Accrued benefit asset (liability), December 31 | $ | (323,894) |  |  | $ | 21,160 |  |  | $ | (535,039) |  |  | $ | (6,548) |
AOCI debit, January 1 (excluding impact of PUC D&Os) | $ | 557,564 |  |  | $ | 2,395 |  |  | $ | 503,821 |  |  | $ | 6,610 |
Recognized during year – prior service credit (cost) | — |  |  | 1,533 |  |  | (8) |  |  | 1,761 |
Recognized during year – net actuarial loss | (27,245) |  |  | (203) |  |  | (33,456) |  |  | (208) |
Occurring during year – net actuarial loss (gain) | (182,520) |  |  | (23,700) |  |  | 87,207 |  |  | (5,768) |
AOCI debit before cumulative impact of PUC D&Os, December 31 | 347,799 |  |  | (19,975) |  |  | 557,564 |  |  | 2,395 |
Cumulative impact of PUC D&Os | (324,162) |  |  | 19,166 |  |  | (534,594) |  |  | (1,177) |
AOCI debit/(credit), December 31 | $ | 23,637 |  |  | $ | (809) |  |  | $ | 22,970 |  |  | $ | 1,218 |
Net actuarial loss (gain) | $ | 347,799 |  |  | $ | (18,172) |  |  | $ | 557,564 |  |  | $ | 5,731 |
Prior service gain | — |  |  | (1,803) |  |  | — |  |  | (3,336) |
AOCI debit before cumulative impact of PUC D&Os, December 31 | 347,799 |  |  | (19,975) |  |  | 557,564 |  |  | 2,395 |
Cumulative impact of PUC D&Os | (324,162) |  |  | 19,166 |  |  | (534,594) |  |  | (1,177) |
AOCI debit/(credit), December 31 | 23,637 |  |  | (809) |  |  | 22,970 |  |  | 1,218 |
Income taxes (benefits) | (6,199) |  |  | 209 |  |  | (5,988) |  |  | (313) |
AOCI debit/(credit), net of taxes (benefits), December 31 | $ | 17,438 |  |  | $ | (600) |  |  | $ | 16,982 |  |  | $ | 905 |
As shown in the table above, as of December 31, 2021, the other postretirement benefit plans with APBOs in excess of plan assets are unfunded plans, and as of December 31, 2020, all of the other postretirement benefit plans had APBOs in excess of plan assets.
| 2021 |  | 2020
(in thousands) | Pension benefits |  | Other benefits |  | Pension benefits |  | Other benefits
Hawaiian Electric consolidated |  |  |  |  |  |  |
Benefit obligation, January 1 | $ | 2,440,758 |  |  | $ | 217,074 |  |  | $ | 2,110,904 |  |  | $ | 207,073 |
Service cost | 79,463 |  |  | 2,802 |  |  | 71,604 |  |  | 2,515 |
Interest cost | 70,235 |  |  | 5,875 |  |  | 75,484 |  |  | 7,103 |
Actuarial (gains) losses | (39,755) |  |  | (7,779) |  |  | 260,102 |  |  | 9,151 |
Participants contributions | — |  |  | 2,886 |  |  | — |  |  | 2,717 |
Benefits paid and expenses | (85,425) |  |  | (11,388) |  |  | (77,336) |  |  | (11,485) |
Transfers | (332) |  |  | — |  |  | — |  |  | — |
Benefit obligation, December 31 | 2,464,944 |  |  | 209,470 |  |  | 2,440,758 |  |  | 217,074 |
Fair value of plan assets, January 1 | 1,909,730 |  |  | 216,315 |  |  | 1,640,417 |  |  | 197,564 |
Actual return on plan assets | 266,922 |  |  | 27,712 |  |  | 276,453 |  |  | 27,207 |
Employer contributions | 51,079 |  |  | — |  |  | 69,720 |  |  | — |
Participants contributions | — |  |  | 2,886 |  |  | — |  |  | 2,717 |
Benefits paid and expenses | (84,852) |  |  | (11,388) |  |  | (76,860) |  |  | (11,173) |
Other | (262) |  |  | — |  |  | — |  |  | — |
Fair value of plan assets, December 31 | 2,142,617 |  |  | 235,525 |  |  | 1,909,730 |  |  | 216,315 |
Accrued benefit asset (liability), December 31 | $ | (322,327) |  |  | $ | 26,055 |  |  | $ | (531,028) |  |  | $ | (759) |
Other assets | $ | — |  |  | $ | 26,055 |  |  | $ | — |  |  | $ | — |
Other liabilities (short-term) | (547) |  |  | — |  |  | (535) |  |  | (720) |
Defined benefit pension and other postretirement benefit plans liability | (321,780) |  |  | — |  |  | (530,493) |  |  | (39) |
Accrued benefit asset (liability), December 31 | $ | (322,327) |  |  | $ | 26,055 |  |  | $ | (531,028) |  |  | $ | (759) |
AOCI debit, January 1 (excluding impact of PUC D&Os) | $ | 538,521 |  |  | $ | 1,181 |  |  | $ | 478,078 |  |  | $ | 5,730 |
Recognized during year – prior service credit (cost) | — |  |  | 1,530 |  |  | (9) |  |  | 1,758 |
Recognized during year – net actuarial loss | (27,534) |  |  | (206) |  |  | (30,566) |  |  | (207) |
Occurring during year – net actuarial loss (gain) | (181,342) |  |  | (22,736) |  |  | 91,018 |  |  | (6,100) |
AOCI debit before cumulative impact of PUC D&Os, December 31 | 329,645 |  |  | (20,231) |  |  | 538,521 |  |  | 1,181 |
Cumulative impact of PUC D&Os | (324,162) |  |  | 19,166 |  |  | (534,594) |  |  | (1,177) |
AOCI debit/(credit), December 31 | $ | 5,483 |  |  | $ | (1,065) |  |  | $ | 3,927 |  |  | $ | 4 |
Net actuarial loss (gain) | $ | 329,645 |  |  | $ | (18,434) |  |  | $ | 538,521 |  |  | $ | 4,508 |
Prior service gain | — |  |  | (1,797) |  |  | — |  |  | (3,327) |
AOCI debit before cumulative impact of PUC D&Os, December 31 | 329,645 |  |  | (20,231) |  |  | 538,521 |  |  | 1,181 |
Cumulative impact of PUC D&Os | (324,162) |  |  | 19,166 |  |  | (534,594) |  |  | (1,177) |
AOCI debit/(credit), December 31 | 5,483 |  |  | (1,065) |  |  | 3,927 |  |  | 4 |
Income taxes (benefits) | (1,412) |  |  | 274 |  |  | (1,011) |  |  | (1) |
AOCI debit/(credit), net of taxes (benefits), December 31 | $ | 4,071 |  |  | $ | (791) |  |  | $ | 2,916 |  |  | $ | 3 |
As of December 31, 2020, the other postretirement benefit plan shown in the table above had APBOs in excess of plan assets. Pension benefits. In 2021, investment returns were higher than assumed rates and improved the funded position. Actuarial gains due to demographic experience, including assumption changes, the most significant of which was the increase in the discount rate used to measure PBO compared to the prior year, improved funded position while the updates to mortality assumptions projected generationally, partially offset the improvement. In 2020, investment returns were higher than assumed rates and together with updates to mortality assumptions projected generationally, improved the funded position. Actuarial losses due to demographic experience, including assumption changes, the most significant of which was the decrease in the discount rate used to measure PBO compared to the prior year, partially offset the improvement in funded position. Other benefits. In 2021, investment returns were higher than assumed rates and improved funded position. Actuarial gains due to demographic experience, including assumption changes, the most significant of which was the increase in the discount rate used to measure APBO, improved the funded position while the updates to the per capita claims cost to reflect 2022 premiums and mortality assumptions projected generationally, partially offset the improvement. In 2020, investment returns were higher than assumed rates and together with updates to the per capita claims cost to reflect 2021 premiums, improved funded position and offset the actuarial losses due to demographic experience, including assumption changes, the most significant of which was the decrease in the discount rate used to measure APBO. The dates used to determine retirement benefit measurements for the defined benefit plans and OPEB were December 31 of 2021, 2020 and 2019. Through December 31, 2020, for purposes of calculating NPPC and NPBC for all plan assets, the Company and the Utilities have determined the market-related value of retirement benefit plan assets, primarily equity securities and fixed income securities, by calculating the difference between the expected return and the actual return on the fair value of the plan assets, then amortizing the difference over future years – 0% in the first year and 25% in each of years two through five – and finally adding or subtracting the unamortized differences for the past four years from fair value. The method includes a 15% range restriction around the fair value of such assets (i.e., 85% to 115% of fair value). Effective January 1, 2021, the Company adopted a change in accounting principle for the plans’ fixed income securities from the calculated market-related value method to the fair value method in the calculation of the expected return on plan assets component of NPPC and NPBC. The remaining plan assets continue to use the calculated market-related value methodology. The Company considers the fair value approach to be preferable for its fixed-income securities portfolio because it results in a current reflection of the changes in the value of plan assets in a way similar to the obligations it is intended to hedge. The Company evaluated the effect of this change in accounting principle and deemed it to be immaterial to the historical financial statements of the Company and Hawaiian Electric and, therefore, did not account for the change retrospectively and recorded the cumulative effects from the change in accounting principle in earnings for non-Utility businesses in the first quarter of 2021. Amounts related to the Utilities were reflected as adjustments to regulatory assets as appropriate, consistent with the expected regulatory treatment as described in the following paragraph. The Utilities have implemented pension and OPEB tracking mechanisms under which all of their retirement benefit expenses (except for executive life and nonqualified pension plan expenses) determined in accordance with GAAP are recovered over time. Under the tracking mechanisms, any actual costs determined in accordance with GAAP that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will then be amortized over 5 years beginning with the respective utility’s next rate case. A primary goal of the plans is to achieve long-term asset growth sufficient to pay future benefit obligations at a reasonable level of risk. The investment policy target for defined benefit pension and OPEB plans of HEI and the Utilities reflects the philosophy that long-term growth can best be achieved by prudent investments in equity securities while balancing overall fund and pension liability volatility by an appropriate allocation to fixed income securities. To reduce the level of portfolio risk and volatility in returns, efforts have been made to diversify the plans’ investments by asset class, geographic region, market capitalization and investment style. ASB’s frozen, overfunded defined benefit pension plan is invested in a portfolio that uses a liability-driven investment strategy to limit funded status volatility. The asset allocation of defined benefit retirement plans to equity and fixed income securities (excluding cash) and related investment policy targets and ranges were as follows:
| Pension benefits 1 |  | Other benefits 2
|  |  |  |  | Investment policy |  |  |  |  |  | Investment policy
December 31 | 2021 |  | 2020 |  | Target |  | Range 3 |  | 2021 |  | 2020 |  | Target |  | Range 3
Assets held by category |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. equity securities | 59 | % |  | 58 | % |  | 52 | % |  | 45-65% |  | 58 | % |  | 57 | % |  | 52 | % |  | 45-65%
Non-U.S equity securities | 13 |  |  | 14 |  |  | 15 |  |  | 5-25% |  | 15 |  |  | 16 |  |  | 15 |  |  | 5-25%
Fixed income securities | 27 |  |  | 28 |  |  | 30 |  |  | 20-40% |  | 27 |  |  | 27 |  |  | 30 |  |  | 20-40%
Private equity | 1 |  |  | — |  |  | 3 |  |  | 0-5% |  | — |  |  | — |  |  | 3 |  |  | 0-5%
| 100 | % |  | 100 | % |  | 100 | % |  |  |  | 100 | % |  | 100 | % |  | 100 | % |  |
1 Asset allocation (excluding cash) is applicable to only HEI and the Utilities. As of December 31, 2021 and 2020, nearly all of ASB’s pension assets were invested in fixed income securities. 2 Asset allocation (excluding cash) is applicable to only HEI and the Utilities. ASB does not fund its other benefits. 3 Broad range for equity securities is a minimum of 60% and a maximum of 80% for pension benefits and other benefits. The fair values of the investments shown in the tables below represent the Company’s best estimates of the amounts that would be received upon sale of those assets in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset at the measurement date, the fair value measurement reflects the Company’s judgments about the assumptions that market participants would use in pricing the asset. Those judgments are developed by the Company based on the best information available in the circumstances. The Company used the following valuation methodologies for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2021 and 2020. Equity securities equity index and exchange-traded funds, U.S. Treasury fixed income securities and public mutual funds (Level 1). Equity securities, equity index and exchange-traded funds, U.S. Treasury fixed income securities and public mutual funds are valued at the closing price reported on the active market on which the individual securities or funds are traded. Fixed income securities, preferred securities (Level 2). Fixed income and preferred securities, other than those issued by the U.S. Treasury, are valued based on yields currently available on comparable securities of issuers with similar credit ratings. Assets held in various trusts for the retirement benefit plans are measured at fair value on a recurring basis and were as follows:
| Pension benefits |  | Other benefits
|  |  | Fair value measurements using |  |  |  | Fair value measurements using
(in millions) | December 31 |  | Quoted prices in active markets for identical assets (Level 1) |  | Significant other observable inputs (Level 2) |  |  |  | December 31 |  | Quoted prices in active markets for identical assets (Level 1) |  | Significant other observable inputs (Level 2) |  |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. equity securities | $ | 432 |  |  | $ | 431 |  |  | $ | 1 |  |  |  |  | $ | 53 |  |  | $ | 53 |  |  | $ | — |  |  |
Non-U.S. equity securities | 188 |  |  | 188 |  |  | — |  |  |  |  | 24 |  |  | 24 |  |  | — |  |  |
U.S. equity index and exchange-traded funds | 830 |  |  | 830 |  |  | — |  |  |  |  | 84 |  |  | 84 |  |  | — |  |  |
Non-U.S. equity investments at net asset value (NAV) | 96 |  |  | — |  |  | — |  |  |  |  | 12 |  |  | — |  |  | — |  |  |
Total equity investments | 1,546 |  |  | 1,449 |  |  | 1 |  |  |  |  | 173 |  |  | 161 |  |  | — |  |  |
Fixed income securities and public mutual funds | 393 |  |  | 146 |  |  | 247 |  |  |  |  | 58 |  |  | 56 |  |  | 2 |  |  |
Fixed income investments at NAV | 307 |  |  | — |  |  | — |  |  |  |  | 5 |  |  | — |  |  | — |  |  |
Total fixed income investments | 700 |  |  | 146 |  |  | 247 |  |  |  |  | 63 |  |  | 56 |  |  | 2 |  |  |
Private equity at NAV | 22 |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  |
Cash equivalents, fund and at NAV | 50 |  |  | 15 |  |  | — |  |  |  |  | 3 |  |  | 3 |  |  | — |  |  |
Total | 2,318 |  |  | $ | 1,610 |  |  | $ | 248 |  |  |  |  | 239 |  |  | $ | 220 |  |  | $ | 2 |  |  |
Cash, receivables and payables, net | 3 |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  |
Fair value of plan assets | $ | 2,321 |  |  |  |  |  |  |  |  | $ | 239 |  |  |  |  |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. equity securities | $ | 368 |  |  | $ | 368 |  |  | $ | — |  |  |  |  | $ | 46 |  |  | $ | 46 |  |  | $ | — |  |  |
Non-U.S. equity securities | 172 |  |  | 172 |  |  | — |  |  |  |  | 22 |  |  | 22 |  |  | — |  |  |
U.S. equity index and exchange-traded funds | 734 |  |  | 734 |  |  | — |  |  |  |  | 77 |  |  | 77 |  |  | — |  |  |
Non-U.S. equity investments at NAV | 102 |  |  | — |  |  | — |  |  |  |  | 13 |  |  | — |  |  | — |  |  |
Total equity investments | 1,376 |  |  | 1,274 |  |  | — |  |  |  |  | 158 |  |  | 145 |  |  | — |  |  |
Fixed income securities and public mutual funds | 363 |  |  | 105 |  |  | 258 |  |  |  |  | 53 |  |  | 51 |  |  | 2 |  |  |
Fixed income investments at NAV | 278 |  |  | — |  |  | — |  |  |  |  | 5 |  |  | — |  |  | — |  |  |
Total fixed income investments | 641 |  |  | 105 |  |  | 258 |  |  |  |  | 58 |  |  | 51 |  |  | 2 |  |  |
Cash equivalents at NAV | 68 |  |  | 25 |  |  | — |  |  |  |  | 4 |  |  | 3 |  |  | — |  |  |
Total | 2,085 |  |  | $ | 1,404 |  |  | $ | 258 |  |  |  |  | 220 |  |  | $ | 199 |  |  | $ | 2 |  |  |
Cash, receivables and payables, net | 4 |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  |
Fair value of plan assets | $ | 2,089 |  |  |  |  |  |  |  |  | $ | 220 |  |  |  |  |  |  |
The fair value of investments measured at NAV presented in the table above is intended to permit reconciliation to the fair value of plan assets amounts. The following table represents assets measured at NAV.
| Pension benefits |  | Other benefits
Measured at NAV | December 31 |  | Redemption frequency |  | Redemption notice period |  | December 31 |  | Redemption frequency |  | Redemption notice period
(in millions) |  |  |  |  |  |  |  |  |  |  |
2021 |  |  |  |  |  |  |  |  |  |  |
Non-U.S. equity funds (a) | $ | 96 |  |  | Daily-Monthly |  | 5-30 days |  | $ | 12 |  |  | Daily-Monthly |  | 5-30 days
Fixed income investments (b) | 307 |  |  | Daily |  | 15 days |  | 5 |  |  | Daily |  | 15 days
Private equity (c) | 22 |  |  | NA |  | NA |  | — |  |  | NA |  | NA
Cash equivalents (d) | 35 |  |  | Daily |  | 0-1 day |  | — |  |  | Daily |  | 0-1 day
| $ | 460 |  |  |  |  |  |  | $ | 17 |  |  |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |
Non-U.S. equity funds (a) | $ | 102 |  |  | Daily-Monthly |  | 5-30 days |  | $ | 13 |  |  | Daily-Monthly |  | 5-30 days
Fixed income investments (b) | 278 |  |  | Daily |  | 15 days |  | 5 |  |  | Daily |  | 15 days
Cash equivalents (d) | 43 |  |  | Daily |  | 0-1 day |  | 1 |  |  | Daily |  | 0-1 day
| $ | 423 |  |  |  |  |  |  | $ | 19 |  |  |  |  |
NA Not applicable None of the investments presented in the tables above have unfunded commitments, other than private equity disclosed in (c) below. (a) Represents investments in funds that primarily invest in non-U.S., emerging markets equities. Redemption frequency for pension benefits assets as of December 31, 2021 were: daily, 61% and monthly, 39%, and as of December 31, 2020 were daily, 62% and monthly, 38%. Redemption frequency for other benefits assets as of December 31, 2021 were: daily, 57% and monthly, 43% and as of December 31, 2020 were: daily, 58% and monthly, 42%. (b) Represents investments in fixed income securities invested in a US-dollar denominated fund that seeks to exceed the Barclays Capital Long Corporate A or better Index through investments in US-dollar denominated fixed income securities and commingled vehicles. (c) Represents investment in a private equity fund. The fund is valued as reported by the General Partner, based on the valuation of the underlying investments. As of December 31, 2021, the unfunded commitment of the private equity fund was $66 million; the fund does not allow redemptions but may be dissolved with six months written notice. The termination date of the fund is November 1, 2100, unless dissolved earlier. (d) Represents investments in cash equivalent funds. This class includes funds that invest primarily in securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. For pension benefits, the fund may also invest in fixed income securities of investment grade issuers. The following weighted-average assumptions were used in the accounting for the plans:
| Pension benefits |  | Other benefits
December 31 | 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019
Benefit obligation |  |  |  |  |  |  |  |  |  |  |
Discount rate 1 | 3.05 | % |  | 2.92 | % |  | 3.61 | % |  | 3.07 | % |  | 2.83 | % |  | 3.52 | %
Rate of compensation increase | 3.5 |  |  | 3.5 |  |  | 3.5 |  |  | NA |  | NA |  | NA
Net periodic pension/benefit cost (years ended) |  |  |  |  |  |  |  |  |  |  |
Discount rate 2 | 2.92 |  |  | 3.61 |  |  | 4.31 |  |  | 2.83 |  |  | 3.52 |  |  | 4.34 |
Expected return on plan assets 3 | 7.25 |  |  | 7.25 |  |  | 7.25 |  |  | 7.25 |  |  | 7.25 |  |  | 7.25 |
Rate of compensation increase 4 | 3.5 |  |  | 3.5 |  |  | 3.5 |  |  | NA |  | NA |  | NA
NA Not applicable 1 HEI and the Utilities pension benefits discount rate only at December 31, 2021, 2020 and 2019. ASB’s pension benefits discount rate at December 31, 2021, 2020 and 2019 was 3.04%, 2.76% and 3.49%, respectively. All other disclosed rates apply to the Company and the Utilities. 2 ASB’s pension benefits discount rate for the year ended December 31, 2021 and 2020 was 2.76% and 3.49%. All other disclosed rates apply to the Company and the Utilities. 3 HEI and the Utilities’ plan assets only (gross return). For 2021, 2020 and 2019, ASB’s expected return on plan assets was 2.96%, 3.69% and 4.51%, respectively. 4 HEI and the Utilities use a graded rate of compensation increase assumption based on age. The rate provided above is an average across all future years of service for the current population. NA for ASB. The Company and the Utilities based their selection of an assumed discount rate for 2022 NPPC and NPBC and December 31, 2021 disclosure on a cash flow matching analysis that utilized bond information provided by Bloomberg for all non-callable, high quality bonds (generally rated Aa or better) as of December 31, 2021. In selecting the expected rate of return on plan assets for 2022 NPPC and NPBC: a) HEI and the Utilities considered economic forecasts for the types of investments held by the plans (primarily equity and fixed income investments), the Plans’ asset allocations, industry and corporate surveys and the past performance of the plans’ assets in selecting 7.25% and b) ASB considered its liability-driven investment strategy in selecting 3.24%, which is consistent with the assumed discount rate as of December 31, 2021 with a 20 basis point active manager premium. For 2021, retirement benefit plans’ assets of the Company and the Utilities had a net return of 13.2% and 14.2%, respectively. As of December 31, 2021, the assumed health care trend rates for 2022 and future years were as follows: medical, 6.50%, grading down to 5% for 2028 and thereafter; dental, 5%; and vision, 4%. As of December 31, 2020, the assumed health care trend rates for 2021 and future years were as follows: medical, 6.75%, grading down to 5% for 2028 and thereafter; dental, 5%; and vision, 4%. The components of NPPC and NPBC were as follows:
| Pension benefits |  | Other benefits
(in thousands) | 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019
HEI consolidated |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | 81,432 |  |  | $ | 73,387 |  |  | $ | 62,135 |  |  | $ | 2,827 |  |  | $ | 2,537 |  |  | $ | 2,209 |
Interest cost | 75,361 |  |  | 81,335 |  |  | 84,267 |  |  | 6,122 |  |  | 7,407 |  |  | 8,004 |
Expected return on plan assets | (132,223) |  |  | (113,800) |  |  | (111,989) |  |  | (12,957) |  |  | (12,124) |  |  | (12,356) |
Amortization of net prior service (gain) cost | — |  |  | 8 |  |  | (42) |  |  | (1,533) |  |  | (1,761) |  |  | (1,806) |
Amortization of net actuarial losses | 27,245 |  |  | 33,456 |  |  | 15,479 |  |  | 203 |  |  | 208 |  |  | (13) |
Net periodic pension/benefit cost | 51,815 |  |  | 74,386 |  |  | 49,850 |  |  | (5,338) |  |  | (3,733) |  |  | (3,962) |
Impact of PUC D&Os | 27,963 |  |  | 20,997 |  |  | 48,143 |  |  | 4,839 |  |  | 3,179 |  |  | 3,258 |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | $ | 79,778 |  |  | $ | 95,383 |  |  | $ | 97,993 |  |  | $ | (499) |  |  | $ | (554) |  |  | $ | (704) |
Hawaiian Electric consolidated |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | 79,463 |  |  | $ | 71,604 |  |  | $ | 60,461 |  |  | $ | 2,802 |  |  | $ | 2,515 |  |  | $ | 2,191 |
Interest cost | 70,235 |  |  | 75,484 |  |  | 77,851 |  |  | 5,875 |  |  | 7,103 |  |  | 7,673 |
Expected return on plan assets | (125,404) |  |  | (107,369) |  |  | (104,632) |  |  | (12,755) |  |  | (11,957) |  |  | (12,180) |
Amortization of net prior service (gain) cost | — |  |  | 9 |  |  | 7 |  |  | (1,530) |  |  | (1,758) |  |  | (1,803) |
Amortization of net actuarial losses | 27,534 |  |  | 30,566 |  |  | 14,658 |  |  | 206 |  |  | 207 |  |  | — |
Net periodic pension/benefit cost | 51,828 |  |  | 70,294 |  |  | 48,345 |  |  | (5,402) |  |  | (3,890) |  |  | (4,119) |
Impact of PUC D&Os | 27,963 |  |  | 20,997 |  |  | 48,143 |  |  | 4,839 |  |  | 3,179 |  |  | 3,258 |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | $ | 79,791 |  |  | $ | 91,291 |  |  | $ | 96,488 |  |  | $ | (563) |  |  | $ | (711) |  |  | $ | (861) |
The Company recorded pension expense of $47 million, $59 million, $59 million in 2021, 2020 and 2019, respectively, and OPEB income of $(0.1) million in 2021, 2020 and 2019 and charged the remaining amounts primarily to electric utility plant. The Utilities recorded pension expense of $47 million, $55 million and $57 million, respectively, and OPEB income of $(0.2) million, $(0.2) million and $(0.3) million in 2021, 2020 and 2019, respectively, and charged the remaining amounts primarily to electric utility plant. Additional information on the defined benefit pension plans’ accumulated benefit obligations (ABOs), which do not consider projected pay increases (unlike the PBOs shown in the table above), and pension plans with ABOs and PBOs in excess of plan assets were as follows:
| HEI consolidated |  | Hawaiian Electric consolidated
December 31 | 2021 |  | 2020 |  | 2021 |  | 2020
(in billions) |  |  |  |  |  |  |
Defined benefit plans - ABOs | $ | 2.3 |  |  | $ | 2.3 |  |  | $ | 2.1 |  |  | $ | 2.1 |
Defined benefit plans with ABO in excess of plan assets |  |  |  |  |  |  |
ABOs | — |  |  | 2.1 |  |  | — |  |  | 2.1 |
Fair value of plan assets | — |  |  | 2.0 |  |  | — |  |  | 1.9 |
Defined benefit plans with PBOs in excess of plan assets |  |  |  |  |  |  |
PBOs | 2.5 |  |  | 2.5 |  |  | 2.5 |  |  | 2.4 |
Fair value of plan assets | 2.2 |  |  | 2.0 |  |  | 2.1 |  |  | 1.9 |
HEI consolidated. The Company estimates that the cash funding for the qualified defined benefit pension plans in 2022 will be $41 million, which should fully satisfy the minimum required contributions to those plans, including requirements of the Utilities’ pension tracking mechanisms and the Plan’s funding policy. The Company’s current estimate of contributions to its other postretirement benefit plans in 2022 is nil. As of December 31, 2021, the benefits expected to be paid under all retirement benefit plans in 2022, 2023, 2024, 2025, 2026 and 2027 through 2031 amount to $102 million, $105 million, $108 million, $112 million, $116 million and $632 million, respectively. Hawaiian Electric consolidated. The Utilities estimate that the cash funding for the qualified defined benefit pension plan in 2022 will be $41 million, which should fully satisfy the minimum required contributions to that Plan, including requirements of the pension tracking mechanisms and the Plan’s funding policy. The Utilities’ current estimate of contributions to its other postretirement benefit plans in 2022 is nil. As of December 31, 2021, the benefits expected to be paid under all retirement benefit plans in 2022, 2023, 2024, 2025, 2026 and 2027 through 2031 amounted to $93 million, $96 million, $99 million, $102 million, $106 million and $580 million, respectively. Defined contribution plans information. For each of 2021, 2020 and 2019, the Company’s expenses and cash contributions for its defined contribution plans under the HEIRSP and the ASB 401(k) Plan were $6 million, $7 million and $7 million, respectively. The Utilities’ expenses and cash contributions for its defined contribution plan under the HEIRSP for 2021, 2020 and 2019 were $3 million. Retirement benefit plan changes. On December 3, 2021, the Utilities’ union members ratified a new collective bargaining agreement (see Note 3), which includes changes to retirement benefits for all new employees commencing employment on or after January 1, 2022. The changes ratified in the collective bargaining agreement will apply to all employees of HEI and the Utilities first hired on or after January 1, 2022 (New Employees). New Employees are not eligible to participate in the HEI Pension Plan. Instead, New Employees will receive a non-elective employer contribution, equal to 10% of their annual compensation, subject to a vesting schedule, to their account under the HEIRSP, the defined contribution plan for HEI and the Utilities. Only New Employees are impacted by the retirement benefit plan changes. There are no retirement benefit plan changes for employees hired on or before December 31, 2021.

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