v3.26.1
PENSION AND OTHER POST-EMPLOYMENT BENEFITS
 6 Months Ended
Jun. 30, 2026
Retirement Benefits [Abstract]  
PENSION AND OTHER POST-EMPLOYMENT BENEFITS PENSION AND OTHER POST-EMPLOYMENT BENEFITS
The disclosures in this note apply to both Registrants, unless indicated otherwise.
FirstEnergy provides qualified benefit plans, through the FirstEnergy Master Pension Plan and the FirstEnergy Welfare Plan, which cover substantially all employees, as well as non-qualified defined benefit plans that cover certain employees, including employees of JCP&L. FirstEnergy’s pension and OPEB plans are neither multiemployer nor multiple-employer plans.
The Registrants recognize a pension and OPEB mark-to-market adjustment for the change in fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for remeasurement.
FirstEnergy does not currently expect to have a required contribution to the pension plan until 2027, which, based on various assumptions, including an expected rate of return on assets of 8.0% for 2026, is expected to be approximately $250 million. However, FirstEnergy may elect to contribute to the pension plan voluntarily. JCP&L is not expected to make a contribution to the pension plan.
FirstEnergy’s cash flows from operating activities for the six months ended June 30, 2026, and 2025, include approximately $22 million and $24 million, respectively, of employee benefit plan funding and related payments. These payments are primarily related to short-term benefit payment liabilities owed to retirees under plan obligations in the respective periods.
Service costs, net of capitalization, are reported within “Other operating expenses” on the Registrants’ Statements of Income and Comprehensive Income. Non-service costs, other than the pension and OPEB mark-to-market adjustment, which is separately shown, are reported within “Miscellaneous income, net”, within “Other income (expense)” on the Registrants’ Statements of Income and Comprehensive Income.

The components of FirstEnergy’s net periodic benefit costs (credits) for pension and OPEB were as follows:
FirstEnergy Components of Net Periodic Benefit Costs (Credits)PensionOPEB
For the Three Months Ended June 30,2026202520262025
 (In millions)
Service costs $32 $32 $— $— 
Interest costs 87 94 5 5 
Expected return on plan assets(114)(115)(11)(9)
Net periodic benefit costs (credits)$5 $11 $(6)$(4)
Net periodic benefit credits, net of amounts capitalized $(14)$(7)$(5)$(5)
Components of Net Periodic Benefit Costs (Credits)PensionOPEB
For the Six Months Ended June 30, 2026202520262025
 (In millions)
Service costs$65 $65 $1 $1 
Interest costs174 187 9 10 
Expected return on plan assets(229)(230)(21)(19)
Net periodic benefit costs (credits)$10 $22 $(11)$(8)
Net periodic benefit credits, net of amounts capitalized$(28)$(13)$(11)$(9)
JCP&L

JCP&L recognizes its allocated portion of the expected cost of providing pension and OPEB to employees and their beneficiaries and covered dependents from the time employees are hired until they become eligible to receive those benefits. JCP&L also recognizes its allocated portion of obligations to former or inactive employees after employment, but before retirement, for disability-related benefits.
JCP&L’s net periodic benefit costs (credits) for pension and OPEB were as follows:

JCP&L Net Periodic Benefit Costs (Credits)PensionOPEB
For the Three Months Ended June 30,2026202520262025
(In millions)
JCP&L's share of net periodic benefit credits(1)
$(2)$(1)$(5)$(3)
Allocated net periodic benefit costs from affiliates(1) (2)
$2 $3 $— $— 
For the Six Months Ended June 30,
JCP&L's share of net periodic benefit credits(1)
$(4)$(2)$(9)$(7)
Allocated net periodic benefit costs from affiliates(1) (2)
$4 $5 $— $— 
(1) Includes amounts capitalized.
(2) In addition to the net periodic benefit costs for its current and former employees and retirees, JCP&L is also allocated pension and OPEB net periodic benefit costs and credits from its affiliates, primarily FESC.