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SEC Filing Details

10-K
NRG ENERGY, INC. filed this Form 10-K on 03/01/2018
Entire Document
 


The target allocations of NRG's pension plan assets were as follows for the year ended December 31, 2017:
U.S. equity
22
%
Non-U.S. equity
14
%
Non-core assets
19
%
U.S. fixed income
45
%
Plan assets are currently invested in a diversified blend of equity and fixed-income investments. Furthermore, equity investments are diversified across U.S., non-U.S., global, and emerging market equities, as well as among growth, value, small and large capitalization stocks.
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
Non-core assets(a)
 
Various (per underlying asset class)
Fixed income securities
 
Barclays Capital Long Term Government/Credit Index & Barclays Strips 20+ Index
(a)
Non-Core Assets are defined as diversifying asset classes approved by the Investment Committee that are intended to enhance returns and/or reduce volatility of the U.S. and non-U.S. equities. Asset classes considered Non-Core include, but may not be limited to: Emerging Market Equity, Emerging Market Debt, Non-US Developed Market Small Cap, High Yield Fixed Income, Real Estate, Bank Loans, Global Infrastructure and other Alternatives.
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)
2018
$
68

 
$
7

 
$

2019
71

 
8

 

2020
75

 
8

 

2021
79

 
8

 

2022
82

 
8

 

2023-2027
421

 
33

 
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

 
$

Effect on postretirement benefit obligation
9

 
(8
)
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, 2017, NRG reimbursed STPNOC $8 million towards its defined benefit plans. For the year ended December 31, 2016, NRG reimbursed STPNOC $7 million towards its defined benefit plans. In 2018, NRG expects to reimburse STPNOC $6 million for its contribution towards the plans.

184