SEC Filings

10-K
NRG ENERGY, INC. filed this Form 10-K on 02/29/2016
Entire Document
 
                

Investment risk and performance are monitored on an ongoing basis through quarterly portfolio reviews of each asset fund class to a related performance benchmark, if applicable, and annual pension liability measurements. Performance benchmarks are composed of the following indices:
Asset Class
 
Index
U.S. equities
 
Dow Jones U.S. Total Stock Market Index
Non-U.S. equities
 
MSCI All Country World Ex-U.S. IMI Index
Global equities
 
MSCI World Index
Emerging market equities
 
MSCI Emerging Markets Index
Fixed income securities
 
Barclays Capital Long Term Government/Credit Index & Barclays US Aggregate Bond Index
NRG's expected future benefit payments for each of the next five years, and in the aggregate for the five years thereafter, are as follows:
 
 
 
Other Postretirement Benefit
 
Pension
Benefit Payments
 
Benefit Payments
 
Medicare Prescription Drug Reimbursements
 
(In millions)
2016
$
60

 
$
12

 
$

2017
64

 
9

 

2018
67

 
10

 

2019
71

 
10

 

2020
75

 
10

 

2021-2025
409

 
52

 
1

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effect:
 
1-Percentage-
Point Increase
 
1-Percentage-
Point Decrease
 
(In millions)
Effect on total service and interest cost components
$
1

 
$
(1
)
Effect on postretirement benefit obligation
13

 
(11
)
STP Defined Benefit Plans
NRG has a 44% undivided ownership interest in STP, as discussed further in Note 27, Jointly Owned Plants. STPNOC, which operates and maintains STP, provides its employees a defined benefit pension plan as well as postretirement health and welfare benefits. Although NRG does not sponsor the STP plan, it reimburses STPNOC for 44% of the contributions made towards its retirement plan obligations. For the year ended December 31, 2015, NRG reimbursed STPNOC $9 million towards its defined benefit plans. For the year ended December 31, 2014, NRG reimbursed STPNOC $14 million towards its defined benefit plans. In 2016, NRG expects to reimburse STPNOC $7 million for its contribution towards the plans.
The Company has recognized the following in its statement of financial position, statement of operations and accumulated OCI related to its 44% interest in STP:
 
As of December 31,
 
Pension Benefits
 
Other Postretirement Benefits
 
2015
 
2014
 
2015
 
2014
 
(In millions)
Funded status — STPNOC benefit plans
$
(63
)
 
$
(71
)
 
$
(26
)
 
$
(30
)
Net periodic benefit cost/(credit)
10

 
6

 
(8
)
 
3

Other changes in plan assets and benefit obligations recognized in other comprehensive income
(8
)
 
37

 
6

 
(29
)

182