v3.26.1
INVESTMENT OF THE PLAN AND THE PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED THRIFT AND TAX-DEFERRED SAVINGS PLAN (THRIFT PLAN) IN THE MASTER TRUST
 12 Months Ended
Dec. 31, 2025
EBP 006  
EBP, Master Trust [Line Items]  
INVESTMENT OF THE PLAN AND THE PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED THRIFT AND TAX-DEFERRED SAVINGS PLAN (THRIFT PLAN) IN THE MASTER TRUST
3.
INVESTMENT OF THE PLAN AND THE PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED THRIFT AND TAX-DEFERRED SAVINGS PLAN (THRIFT PLAN) IN THE MASTER TRUST

Use of the Master Trust permits the commingling of trust assets with the assets of the Thrift Plan for investment and administrative purposes. The Thrift Plan is a defined contribution retirement plan available to non-represented employees of the Employers. Although assets of both plans are commingled in the Master Trust, the Trustee maintains supporting records for the purpose of allocating the net assets and net income or loss of the investment account to the respective participating plans. The net assets and the net investment income or loss of the investment assets is allocated by the Trustee to each participating plan based on the relationship of the interest of each plan to the total of the interests of the participating plans. Master Trust investments consisted of:

 

 

As of December 31,

 

 

2025

 

 

2024

 

 

(Thousands)

 

 Investments of Master Trust at fair value:

 

 

 

 

 

 

Cash, Cash Equivalents and Short-Term Investments

 

$

80,221

 

 

$

75,295

 

Common Stock of Public Service Enterprise Group Incorporated*

 

 

275,664

 

 

 

306,730

 

Mutual Funds

 

 

715,936

 

 

 

701,953

 

Collective Investment Trusts

 

 

2,720,750

 

 

 

2,324,876

 

Fixed Income Securities

 

 

208,141

 

 

 

181,783

 

Fidelity BrokerageLink (a)

 

 

314,391

 

 

 

272,072

 

Total Investments, at fair value

 

 

4,315,103

 

 

 

3,862,709

 

 Investment of Master Trust, at contract value:

 

 

 

 

 

 

Investment contracts (Stable Value Fund)

 

 

513,580

 

 

 

586,216

 

 Net Accounts Payable (a)

 

 

(10,299

)

 

 

(7,586

)

Total Investments of Master Trust

 

$

4,818,384

 

 

$

4,441,339

 

 

(a)
Includes interest and dividends and receivables and payables related to pending securities sales and purchases.

* Permitted party-in-interest transactions.

 

 

For the Year Ended

 

 

 

December 31, 2025

 

 

(Thousands)

 

Investment Income of Master Trust:

 

 

 

Net Appreciation in Fair Value of Mutual Funds, Collective Investment Trusts, Fixed Income and Preferred Securities

 

$

518,817

 

Net Appreciation in Fair Value of Fidelity BrokerageLink (a)

 

 

29,630

 

Net Appreciation in Fair Value of Common Stock of Public Service Enterprise Group Incorporated*

 

 

27,673

 

Interest from Investment Contracts

 

 

14,960

 

Dividends from Common Stock of Public Service Enterprise Group Incorporated*

 

 

9,047

 

Total Investment Income, Net

 

$

600,127

 

 

(a)
Amounts primarily relate to equity investments in stocks and in mutual funds. The net change in fair value is primarily comprised of realized/unrealized gains or losses and dividends earned on these equity investments.

* Permitted party-in-interest transactions.

The changes in net assets of the Master Trust for the year ended December 31, 2025 are summarized as follows:

 

 

For the Year Ended

 

 

 

December 31, 2025

 

 

(Thousands)

 

Changes in Net Assets:

 

 

 

Net Appreciation of Investments

 

$

576,120

 

Dividends from Common Stock of Public Service Enterprise Group Incorporated*

 

 

9,047

 

Interest from Investment Contracts

 

 

14,960

 

Net Investment Income, Net

 

 

600,127

 

Administrative Expenses

 

 

(4,602

)

Net Transfers

 

 

(218,480

)

Increase in Net Assets

 

 

377,045

 

Net Assets:

 

 

 

Beginning of Year

 

 

4,441,339

 

End of Year

 

$

4,818,384

 

 

* Permitted party-in-interest transactions.

Assets of the Stable Value Fund

The Stable Value Fund utilizes a “building block” approach that invests in a series of proprietary commingled fixed income funds to build each stable value portfolio. This approach provides diversification, typically between 2,500 and 3,000 individual securities broadly diversified across fixed income sectors. As of December 31, 2025, the Stable Value Fund was comprised of the following:

 

Issuer

 

Expiration

 

Effective Rate

 

Contract Value
(Thousands)

 

Met Tower Life (A)

 

Open-Ended

 

2.75%

 

$

63,876

 

Pacific Life Insurance (A)

 

Open-Ended

 

2.84%

 

 

91,391

 

Prudential Ins Co. (A)

 

Open-Ended

 

2.64%

 

 

88,600

 

RGA (A)

 

Open-Ended

 

2.65%

 

 

88,346

 

Transamerica (A)

 

Open-Ended

 

2.67%

 

 

90,670

 

Voya Retirement & Annuity Co. (A)

 

Open-Ended

 

2.74%

 

 

90,697

 

Total Investment Contracts

 

 

 

 

 

 

513,580

 

Investment in BlackRock Financial Mgmt Short-Term Investment

 

 

 

3.63%

 

 

15,513

 

Total Stable Value Fund

 

 

 

 

 

$

529,093

 

 

(A)
Managed by INVESCO Institutional, Inc.

As of December 31, 2024, the Stable Value Fund was comprised of the following:

 

Issuer

 

Expiration

 

Effective Rate

 

Contract Value
(Thousands)

 

Met Tower Life (A)

 

Open-Ended

 

2.74%

 

$

72,880

 

Pacific Life Insurance (A)

 

Open-Ended

 

2.67%

 

 

104,243

 

Prudential Ins Co. (A)

 

Open-Ended

 

2.58%

 

 

101,169

 

RGA (A)

 

Open-Ended

 

2.61%

 

 

100,903

 

Transamerica (A)

 

Open-Ended

 

2.68%

 

 

103,529

 

Voya Retirement & Annuity Co. (A)

 

Open-Ended

 

2.74%

 

 

103,492

 

Total Investment Contracts

 

 

 

 

 

 

586,216

 

Investment in BlackRock Financial Mgmt Short-Term Investment

 

 

 

4.37%

 

 

11,043

 

Total Stable Value Fund

 

 

 

 

 

$

597,259

 

 

(A)
Managed by INVESCO Institutional, Inc.

Most of the investments in the Stable Value Fund are in benefit-responsive investment contracts. The units in the underlying “building block funds” are held by the Plan’s Trustee. The accounts are credited with earnings on the underlying investments and charged for Participant withdrawals and administrative expenses. The investment contract issuer is contractually obligated to repay the principal and a specified interest rate that is guaranteed to the Master Trust.

Because the investment contracts are fully benefit-responsive, contract value is the relevant measurement attribute for that portion of the net assets available for benefits attributable to the investment contracts. Contract value, as reported to the Master Trust by the Stable Value Fund managers, represents contributions made under the contracts, plus earnings, less Participant withdrawals and administrative expenses. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value.

There are no reserves against contract value for credit risk of the contract issuers or otherwise. The crediting interest rate is based on a formula agreed upon with the issuers, but may not be less than zero. Such rates are reviewed on a quarterly basis for resetting. The contract does not permit the insurance companies to terminate the agreement prior to the scheduled maturity date.

The Plan's ability to receive amounts due is dependent on the issuer's ability to meet its financial obligations. The issuer's ability to meet its contractual obligations may be affected by future economic and regulatory developments.

Certain events limit the ability of the Master Trust, as directed by the Plan, to transact at contract value with the issuers. Such events include the following: (1) amendments to the Plan documents (including complete or partial plan termination or merger with another plan), (2) changes to the Plan’s prohibition on competing investment options or deletion of equity wash provisions, (3) bankruptcy of the Plan Sponsor or other events (for example, divestitures or spin-offs of a subsidiary) that cause a significant withdrawal from the Plan, (4) the failure of the Master Trust to qualify for exemption from federal income taxation or any required prohibited transaction exemption under ERISA, or (5) premature termination of the contract. No events are probable of occurring that might limit the ability of the Plan to transact at contract value with the contract issuers and that would limit the ability of the Plan to transact at contract value with the participants.

In addition, certain events allow the issuer to terminate the contract with the Plan and settle at an amount different from contract value. Such events include (1) an uncured violation of the Plan's investment guidelines, (2) a breach of material obligation under the contract, (3) a material misrepresentation, or (4) a material amendment to the agreement without the consent of the issuer.

The average yield based on actual earnings was approximately 4.19% and 4.95% for 2025 and 2024, respectively. The average yield based on interest rate credited to Participants was approximately 2.74% and 2.70% for 2025 and 2024, respectively.

The fair market value of the wrapper contracts in the Stable Value Fund, which is the difference between the Fund’s fair value and contract value, was lower by $(22,928,135) as of December 31, 2025 and was lower by $(42,220,273) as of December 31, 2024.

Assets of the Company Stock Fund

The assets of the Company Stock Fund are invested in shares of the Company’s Common Stock.

Fidelity BrokerageLink

The Fidelity BrokerageLink is a self-directed brokerage account in which Participants can select and manage a wide selection of investments, including mutual funds and stocks. Deposits into the Fidelity BrokerageLink must come from balances transferred from the other options in the Plan. Participants may transfer up to 99% of their account balance, less certain fees, to the Fidelity BrokerageLink.

Plan Interest in Master Employee Benefit Plan Trust

As of December 31, 2025 and 2024, the Plan's interest in Master Trust investments consisted of:

 

 

As of December 31,

 

 

2025

 

 

2024

 

 

(Thousands)

 

 Plan Interest in Master Trust investments at fair value:

 

 

 

 

 

 

Cash, Cash Equivalents and Short-Term Investments

 

$

31,072

 

 

$

34,846

 

Common Stock of Public Service Enterprise Group Incorporated*

 

 

149,655

 

 

 

166,129

 

Mutual Funds

 

 

345,564

 

 

 

340,064

 

Collective Investment Trusts

 

 

1,327,825

 

 

 

1,127,292

 

Fixed Income Securities

 

 

107,692

 

 

 

92,642

 

Fidelity BrokerageLink (a)

 

 

125,117

 

 

 

105,520

 

Total Investments, at fair value

 

 

2,086,925

 

 

 

1,866,493

 

 Investment of Master Trust, at contract value:

 

 

 

 

 

 

Investment contracts (Stable Value Fund)

 

 

249,774

 

 

 

295,293

 

Net Accounts Receivable (Payable) (a)

 

 

(2,106

)

 

 

(1,978

)

Total Plan Interest in Master Trust Investments

 

$

2,334,593

 

 

$

2,159,808

 

 

(a)
Includes interest and dividends and receivables and payables related to pending securities sales and purchases.

* Permitted party-in-interest transactions.