v3.25.2
Employee Postretirement Benefits
 6 Months Ended
Jun. 30, 2025
Retirement Benefits [Abstract]  
Employee Postretirement Benefits

5. Employee Postretirement Benefits

 

In 2024, TEC was a participant in the comprehensive retirement plans of TECO Energy, LLC (formerly known as TECO Energy, Inc. prior to April 1, 2024). Effective January 1, 2025, the comprehensive retirement plans were transferred to TECO Holdings, Inc. The following table presents detail related to TECO Holdings' periodic benefit cost for pension and other postretirement benefits. Amounts disclosed for TECO Holdings' pension benefits include the amounts related to its qualified pension plan and non-qualified, non-contributory SERP and Restoration Plan.

 

TECO Holdings Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

(millions)

Pension Benefits

 

 

Other Postretirement Benefits

 

Three months ended June 30,

2025

 

 

2024

 

 

2025

 

 

2024

 

Components of net periodic benefit cost

 

 

 

 

 

 

 

 

 

 

 

Service cost

$

5

 

 

$

5

 

 

$

0

 

 

$

0

 

Interest cost

 

9

 

 

 

8

 

 

 

1

 

 

 

1

 

Expected return on assets

 

(14

)

 

 

(13

)

 

 

0

 

 

 

0

 

Amortization of actuarial loss (gain)

 

2

 

 

 

1

 

 

 

0

 

 

 

0

 

Net periodic benefit cost

$

2

 

 

$

1

 

 

$

1

 

 

$

1

 

Six months ended June 30,

 

 

 

 

 

 

 

 

 

 

 

Components of net periodic benefit cost

 

 

 

 

 

 

 

 

 

 

 

Service cost

$

9

 

 

$

9

 

 

$

0

 

 

$

0

 

Interest cost

 

18

 

 

 

17

 

 

 

3

 

 

 

3

 

Expected return on assets

 

(27

)

 

 

(27

)

 

 

0

 

 

 

0

 

Amortization of actuarial loss (gain)

 

4

 

 

 

3

 

 

 

0

 

 

 

(1

)

Net periodic benefit cost

$

4

 

 

$

2

 

 

$

3

 

 

$

2

 

 

TEC’s portion of the net periodic benefit cost for the three months ended June 30, 2025 and 2024, respectively, was $1 million and zero for pension benefits, and $2 million and $1 million for other postretirement benefits. TEC’s portion of the net periodic benefit cost for the six months ended June 30, 2025 and 2024, respectively, was $2 million and zero

for pension benefits, and $3 million and $2 million for other postretirement benefits. TEC’s portion of net periodic benefit costs for pension and other benefits is included as an expense on the Condensed Statements of Income in “Operations & maintenance”.

TECO Holdings assumed a long-term EROA of 7.05% and a discount rate of 5.66% for pension benefits under its qualified pension plan for 2025. For TECO Holdings' other postretirement benefits, TECO Holdings used a discount rate of 5.69% for 2025.

TECO Holdings made contributions of $9 million and $12 million to its qualified pension plan in the six months ended June 30, 2025 and 2024, respectively. TEC’s portion of these contributions was $6 million and $7 million during the six months ended June 30, 2025 and 2024, respectively. TECO Holdings expects to make contributions to the pension plan of $9 million for the remainder of 2025. TEC estimates its portion of the remaining 2025 contributions to be $5 million. See Note 1 for further information regarding TECO Holdings.

Included in the benefit cost discussed above, for the three and six months ended June 30, 2025, $2 million and $3 million, respectively, of unamortized prior service benefits and costs and actuarial gains and losses were reclassified by TEC from regulatory assets to the Condensed Statement of Income, compared with $1 million and $2 million for the three and six months ended June 30, 2024, respectively.