Fourth Quarter 2023 Earnings Review and Business Update
2024 Pension funding and costs
■
On a consolidated basis, Duke Energy
pension plans are ~114% funded across all
plans as of 12/31/2023 on a PBO basis
Duke Energy's pension funding policy:
Duke Energy's policy is to fund amounts on
an actuarial basis to provide assets sufficient
to meet benefit payments to be paid to plan
participants
■ On a consolidated basis, the plan has a
target asset allocation of ~40% return-
seeking assets and ~60% liability hedging
assets
Pension
Contributions
($ in millions)
All plans
2022A
2023A
2024E
$58
$100
-$150
■
Key 2024 assumptions:
Discount rate: 5.40% (vs. 5.60% for 2023)
Expected long-term return on assets on a
consolidated basis is 7.66% (vs. 7.27% for 2023)
Rate is disclosed by Plan (1) (7.00% for LPP
and 8.50% for RCBP)
(1) The two qualified, non-contributory pension plans maintained by Duke Energy are the Duke Energy Legacy Pension Plan ("LPP") and the Duke Energy Retirement Cash Balance Plan ("RCBP")
DUKE
ENERGY FOURTH QUARTER 2023 EARNINGS REVIEW AND BUSINESS UPDATE
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