Talen Energy Corp
For the period ended Sep 30, 2024. Filed Nov 14, 2024.
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Sep 30, 2024 · Filed Nov 14, 2024
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13. Postretirement Benefit Obligations
- Postretirement Benefit Obligations
TES and certain subsidiaries sponsor postemployment benefits which include defined benefit pension plans, health and welfare postretirement plans (other postretirement benefit plans), and defined contribution plans.
The components of net periodic benefit costs for the periods were:
| Successor · Predecessor | |||||
|---|---|---|---|---|---|
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | May 18 through September 30, 2023 | January 1 through May 17, 2023 | |
| Postretirement benefits service cost (a) | $— | $— | $2 | $1 | $1 |
| Interest cost | 17 | 17 | 50 | 25 | 27 |
| Expected return on plan assets | (17) | (18) | (52) | (26) | (33) |
| Resolved litigation settlement | 15 | — | 15 | — | — |
| Amortization of: | |||||
| Net loss | — | — | — | — | 2 |
| Postretirement benefit (gain) loss, net (b) | 15 | (1) | 13 | (1) | (4) |
| Net periodic defined benefit cost (credit) | $15 | $(1) | $15 | $— | $(3) |
(a)Activity presented as “Operation, maintenance and development” on the Consolidated Statements of Operations.
(b)Activity presented as “Other non-operating income (expense), net” on the Consolidated Statements of Operations.
See Note 10 for additional information on recently resolved litigation regarding certain of our defined benefit pension obligations.
In March 2024, $10 million of excess assets from the PA Mines UMWA Plan VEBA were transferred to a separate VEBA, which provides benefits for participants in Talen’s health and welfare “wrap plan.” As such assets were not presented on the Consolidated Balance Sheets prior to the transfer of the assets from the VEBA, a transfer gain of $10 million was recognized for the nine months ended September 30, 2024 (Successor) and presented as “Other non-operating income (expense), net” on the Consolidated Statements of Operations.
In September 2024, the Company contributed $38 million to the TERP that is presented as “Postretirement benefit obligations” on the Consolidated Balance Sheets as of September 30, 2024 (Successor). In October 2024, the Company contributed an additional $6 million to the TERP.
In September 2024, the Company approved a plan amendment for certain other postretirement benefit plans, resulting in the recognition of prior service credits of $21 million and presented as “Postretirement benefit prior service (credits) costs, net” on the Consolidated Statements of Comprehensive Income (Loss).
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