Company: DTK
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000936340-25-000065
Chunk: 129

Company: DTE ENERGY CO
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 129
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 million.  Lowering the discount rate and the salary increase assumptions by one percentage point would have decreased the 2024 other postretirement credit by approximately $7 million.

The value of the qualified pension and other postretirement benefit plan assets was $5.3 billion at December 31, 2024 and $5.6 billion at December 31, 2023.  At December 31, 2024, DTE Energy's qualified pension plans were underfunded by $115 million and its other postretirement benefit plans were over-funded by $471 million.  In 2024, the funded status of the pension plans and other postretirement benefit plans improved primarily due to higher discount rates, along with updated demographic assumptions that lowered the liability for the other postretirement benefit plans. 

Pension and other postretirement costs and pension cash funding requirements may increase in future years without typical returns in the financial markets.  Any required pension funding will be made by contributing amounts consistent with the provisions of the Pension Protection Act of 2006.  DTE Energy made a nominal contribution to its qualified pension plans in 2024, no contribution in 2023, and does not anticipate making any material contributions in 2025.  At the discretion of management and depending on financial market conditions, DTE Gas anticipates transferring up to $25 million of qualified pension plan funds to DTE Electric annually for the next five years in exchange for cash consideration.  DTE Energy did not make other postretirement benefit plan contributions in 2024 or 2023 and does not anticipate making any contributions to the other postretirement plans in 2025 or over the next five years.  All planned contributions will be at the discretion of management and subject to any changes in financial market conditions.  

See Note 19 to the Consolidated Financial Statements, "Retirement Benefits and Trusteed Assets."

47

Legal Reserves

The Registrants are involved in various legal proceedings, claims, and litigation arising in the ordinary course of business.  The Registrants regularly assess their liabilities and contingencies in connection with asserted or potential matters and establish reserves when appropriate.  Legal reserves are based upon the Registrants' management’s assessment of pending and threatened legal proceedings and claims against the Registrants.

Accounting for Tax Obligations

The Registrants are required to make judgments regarding the potential tax effects of various financial transactions and results of operations in order to estimate their obligations to taxing authorities.  The Registrants account for