PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS

9 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS

PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS

The following is a summary of net periodic benefit cost relating to our pension and OPEB plans.

	Three months ended September 30,				Nine months ended September 30,
(in millions)	2020		2019		2020		2019
Pension benefits
Service cost	$	20	$	18	$	61	$	56
Interest cost	24		47		71		137
Expected return on plan assets	(40)		(74)		(121)		(214)
Amortization of net losses and prior service costs	19		15		57		44
Net periodic pension cost	$	23	$	6	$	68	$	23
OPEB
Interest cost	$	2	$	2	$	4	$	6
Amortization of net loss and prior service credit	(5)		(7)		(13)		(21)
Net periodic OPEB cost (income)	$	(3)	$	(5)	$	(9)	$	(15)

In September 2020, we offered certain former U.S. employees with a vested pension benefit a limited-time option to take a lump sum distribution in lieu of future monthly payments. Those accepting the option will be paid from the assets of the pension plan in December 2020. This action will accelerate the satisfaction of future pension obligations and could result in a non-cash pre-tax settlement loss in the fourth quarter of 2020, which will be determined based on the rate of acceptance. The settlement loss, if triggered, would be recognized as a non-operating benefit cost.