CenterPoint Energy 2009 Annual Report Download - page 107

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85
The fair values of CenterPoint Energy’s postretirement plan assets at December 31, 2009, by asset category are as
follows:
Fair Value Measurements at December 31, 2009
(in millions)
Total
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Mutual funds (1) ...............................................
.
$ 146 $ 146 $
—
$
—
Total ................................................................
.
$ 146 $ 146 $
—
$
—
(1) 65% of the amount invested in mutual funds is in fixed income securities, 26% is in U.S. equities and
9% is in international equities.
CenterPoint Energy contributed $13 million, $7 million and $26 million to its qualified pension, non-qualified
pension and postretirement benefits plans, respectively, in 2009. CenterPoint Energy expects to contribute
approximately $9 million and $19 million to its non-qualified pension and postretirement benefits plans,
respectively, in 2010.
The following benefit payments are expected to be paid by the pension and postretirement benefit plans (in
millions):
Postretirement Benefit Plan
Pension
Benefits
Benefit
Pa
y
ments
Medicare
Subsidy
Recei
p
ts
2010 ......................................... $ 136 $ 33 $ (4)
2011 ......................................... 138 35 (5)
2012 ......................................... 142 36 (5)
2013 ......................................... 145 38 (6)
2014 ......................................... 144 39 (6)
2015-2019 ................................ 743 216 (38)
Savings Plan
CenterPoint Energy has a tax-qualified employee savings plan that includes a cash or deferred arrangement under
Section 401(k) of the Internal Revenue Code of 1986, as amended (the Code), and an employee stock ownership
plan (ESOP) under Section 4975(e)(7) of the Code. Under the plan, participating employees may contribute a
portion of their compensation, on a pre-tax or after-tax basis, generally up to a maximum of 50% of eligible
compensation. The Company matches 100% of the first 6% of each employee’s compensation contributed. The
matching contributions are fully vested at all times.
Participating employees may elect to invest all or a portion of their contributions to the plan in CenterPoint
Energy common stock, to have dividends reinvested in additional shares or to receive dividend payments in cash on
any investment in CenterPoint Energy common stock, and to transfer all or part of their investment in CenterPoint
Energy common stock to other investment options offered by the plan.
The savings plan has significant holdings of CenterPoint Energy common stock. As of December 31, 2009,
21,320,436 shares of CenterPoint Energy’s common stock were held by the savings plan, which represented
approximately 23% of its investments. Given the concentration of the investments in CenterPoint Energy’s common
stock, the savings plan and its participants have market risk related to this investment.
CenterPoint Energy’s savings plan benefit expenses were $35 million, $39 million and $31 million in 2007, 2008
and 2009, respectively.