CenterPoint Energy 2014 Annual Report Download - page 104

CenterPoint Energy contributed $87 million , $10 million and $18 million to its qualified pension, non-
qualified pension and postretirement
benefits plans, respectively, in 2014 . CenterPoint Energy expects to contribute approximately $35 million , $31 million and $17 million
to its
qualified pension, non-qualified pension and postretirement benefits plans, respectively, in 2015 .
The following benefit payments are expected to be paid by the pension and postretirement benefit plans (in millions):
(c) 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, 2014 , 17,497,676
shares of
CenterPoint Energy’s common stock were held by the savings plan, which represented approximately 20%
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 $39 million , $38 million and $36 million in 2014 , 2013 and 2012 , respectively.
(d) Postemployment Benefits
CenterPoint Energy provides postemployment benefits for former or inactive employees, their beneficiaries and covered dependents, after
employment but before retirement (primarily healthcare and life insurance benefits for participants in the long-
term disability plan). The
Company recorded postemployment expenses of $3 million , $4 million and $8 million in 2014 , 2013 and 2012 , respectively.
94
Fair Value Measurements at December 31, 2013
(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)
$
140
$
140
$
—
$
—
Total
$
140
$
140
$
—
$
—
(1) 72% of the amount invested in mutual funds is in fixed income securities, 20% is in U.S. equities and 8%
is in international equities.
Postretirement Benefit Plan
Pension
Benefits
Benefit
Payments
Medicare
Subsidy
Receipts
2015
$
223
$
35
$
(4
)
2016
143
36
(4
)
2017
147
38
(5
)
2018
154
40
(5
)
2019
152
42
(6
)
2020-2024
785
228
(39
)