Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 444

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 444
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 trend rates have a significant effect on the amounts that Sempra, SDG&E and SoCalGas report for the health care plan costs. Following are the health care cost trend rates applicable to our PBOP plans:ASSUMED HEALTH CARE COST TREND RATES PBOP Pre-65 retireesRetirees aged 65 years and olderYears ended December 31, 202420232022202420232022Health care cost trend rate assumed for next year 6.50 %6.00 %6.00 %4.50 %4.50 %4.50 %Rate to which the cost trend rate is assumed to decline(the ultimate trend)4.75 %4.75 %4.75 %4.50 %4.50 %4.50 %Year the rate reaches the ultimate trend203020282028202220222022

Plan AssetsInvestment Strategy for Sempra’s Pension Master TrustSempra’s pension master trust holds the investments for our pension plans and a portion of the investments for our PBOP plans. We maintain additional trusts, as we discuss below, for certain of SDG&E’s and SoCalGas’ PBOP plans. Other than through indexing and certain collective investment strategies, the trusts do not invest in securities of Sempra.The current asset allocation objective for the pension master trust is to protect the funded status of the plans while generating sufficient returns to cover future benefit payments and accruals. A portion of the pension master trust is invested in accordance with plan specific de-risking glidepaths designed to reduce the assets’ exposure to risk as the plans become better funded. We assess the portfolio performance by comparing actual returns with relevant benchmarks. The target asset allocations for Sempra’s pension plans are between return-seeking assets (i.e., generally, equity securities, diversified real assets, high-yield fixed income securities and other instruments with a similar risk profile) and risk-mitigating assets (i.e., generally, government and corporate fixed income securities) as follows:TARGET ASSET ALLOCATIONS FOR PENSION PLANS (Dollars in millions)SempraSDG&ESoCalGasReturn-seeking assets34 %42 %49 %Risk-mitigating assets66 %58 %51 %We maintain asset allocations at strategic levels within reasonable bands of variance. The asset allocations are reviewed by our Plan Funding Committee and our Pension and Benefits Investment Committee (the Committees) on a regular basis to help ensure that