Company: DTK
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000936340-25-000065
Chunk: 128

Company: DTE ENERGY CO
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 128
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 investment gains and losses have been recognized in the calculation of MRV for these plans.

The discount rate that DTE Energy utilizes for determining future pension and other postretirement benefit obligations is based on a yield curve approach and a review of bonds that receive one of the two highest ratings given by a recognized rating agency.  The yield curve approach matches projected pension plan and other postretirement benefit payment streams with bond portfolios reflecting actual liability duration unique to the plans.  The discount rate determined on this basis was 5.65% for the pension plans and 5.66% for the other postretirement plans at December 31, 2024 compared to 5.00% for both the pension and other postretirement plans at December 31, 2023.

DTE Energy changed the mortality assumptions as of December 31,2024 to reflect recent plan experience.  The mortality assumptions used at December 31, 2024 are the PRI-2012 mortality table projected using Scale MP-2021,  with generational projection.  The base mortality tables vary by type of plan, employee's union status and employment status, with additional adjustments to reflect the actual experience and credibility of each population.

DTE Energy estimates a total pension cost of approximately $60 million for 2025, compared to the credit of $18 million in 2024.  The expected change is primarily related to the recognition of deferred investment losses.  The 2025 other postretirement benefit credit is estimated at approximately $40 million, comparable to the credit of $44 million in 2024.

The health care trend rates for DTE Energy assume 8.50% for pre-65 participants and 9.00% for post-65 participants for 2025, trending down to 4.50% for both pre-65 and post-65 participants in 2035.

Future actual pension and other postretirement benefit costs or credits will depend on future investment performance, changes in future discount rates, and various other factors related to plan design.

Lowering the expected long-term rate of return on the plan assets by one percentage point would have decreased the 2024 pension credit by approximately $43 million.  Lowering the discount rate and the salary increase assumptions by one percentage point would have decreased the 2024 pension credit by approximately $18 million.  Lowering the expected long-term rate of return on plan assets by one percentage point would have decreased the 2024 other postretirement credit by approximately $16