The following table reflects the portion of pension and OPEB costs that were charged to expense, including any pension and OPEB mark-to-market adjustments, in the three years ended December 31, 2022, 2021, and 2020: Net Periodic Benefit Costs (Credits) 2022 2021 2020 (In millions) Pension $ (389) $ (582) $ 254 OPEB (12) (170) (47) Total $ (401) $ (752) $ 207 The annual pension and OPEB mark-to-market adjustments, (gains) or losses, for the years ended December 31, 2022, 2021, and 2020 were $(72) million, $(382) million and $477 million, respectively. FirstEnergy expects its 2023 pre-tax net periodic benefit expense including amounts capitalized (excluding mark-to-market adjustments) to be approximately $46 million based upon the following assumptions: Assumption Pension OPEB Effective rate for interest on benefit obligations 5.10 % 5.06 % Effective rate for service costs 5.34 % 5.41 % Effective rate for interest on service costs 5.22 % 5.33 % Expected return on plan assets 8.00 % 7.00 % Rate of compensation increase 4.30 % N/A The approximate effects on 2023 pension and OPEB net periodic benefit costs and the 2022 benefit obligation from changes in key assumptions are as follows: Approximate Effect on 2023 Net Periodic Benefit Costs from Changes in Key Assumptions Assumption Change Pension OPEB Total (In millions) Discount rate Change by 0.25% (1) $ 230 $ 9 $ 239 Expected return on plan assets Change by 0.25% $ 16 $ 1 $ 17 Health care trend rate Change by 1.0% N/A $ 6 $ 6 (1) Assumes a parallel shift in yield curve. Approximate Effect on 2022 Benefit Obligation from Changes in Key Assumptions Assumption Change Pension OPEB Total (In millions) Discount rate Change by 0.25% (1) $ 233 $ 9 $ 242 Health care trend rate Change by 1.0% N/A $ 6 $ 6 (1) Assumes a parallel shift in yield curve. See Note 5, "Pension and Other Postemployment Benefits," of the Notes to Consolidated Financial Statements for additional information. 69
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