Employee Benefit Plans

6 Months Ended

Jun. 30, 2011


9.	Employee Benefit Plans

Pension and Other Postretirement Benefit Plans

Certain subsidiaries of the Holding Company (the “Subsidiaries”) sponsor and/or administer various U.S. qualified and non-qualified defined benefit pension plans and other postretirement employee benefit plans covering employees and sales representatives who meet specified eligibility requirements. The Subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for retired employees. The Subsidiaries have issued group annuity and life insurance contracts supporting approximately 99% of all U.S. pension and other postretirement benefit plan assets, which are invested primarily in separate accounts sponsored by the Subsidiaries.

In connection with the Acquisition, the Company acquired certain pension plans sponsored by American Life. The net periodic benefit costs and related amortizations from accumulated other comprehensive income (loss) into the costs associated with these plans are included in the disclosure below.

Measurement dates used for all of the Subsidiaries’ defined benefit pension and other postretirement benefit plans correspond with the fiscal year ends of sponsoring Subsidiaries, which are December 31 for most Subsidiaries and November 30 for American Life.

The components of net periodic benefit costs were as follows:


	Pension Benefits												Other Postretirement Benefits
	Three Months						Six Months						Three Months						Six Months
	Ended						Ended						Ended						Ended
	June 30,						June 30,						June 30,						June 30,
	2011			2010			2011			2010			2011			2010			2011			2010
										(In millions)

Service costs	$	63		$	44		$	126		$	88		$	4		$	5		$	9		$	9
Interest costs		105			100			210			199			27			28			54			56
Expected return on plan assets		(113	)		(112	)		(227	)		(224	)		(19	)		(21	)		(39	)		(40	)
Settlement and curtailment costs		—			7			—			7			—			—			—			—
Amortization of net actuarial (gains) losses		48			49			97			98			10			10			21			19
Amortization of prior service costs (credit)		1			1			2			3			(27	)		(20	)		(54	)		(41	)

Net periodic benefit costs	$	104		$	89		$	208		$	171		$	(5	)	$	2		$	(9	)	$	3

The components of net periodic benefit costs amortized from accumulated other comprehensive income (loss) were as follows:


	Pension Benefits												Other Postretirement Benefits
	Three Months						Six Months						Three Months						Six Months
	Ended						Ended						Ended						Ended
	June 30,						June 30,						June 30,						June 30,
	2011			2010			2011			2010			2011			2010			2011			2010
	(In millions)

Amortization of net actuarial (gains) losses	$	48		$	49		$	97		$	98		$	10		$	10		$	21		$	19
Amortization of prior service costs (credit)		1			1			2			3			(27	)		(20	)		(54	)		(41	)

Subtotal		49			50			99			101			(17	)		(10	)		(33	)		(22	)
Deferred income tax expense (benefit)		(15	)		(18	)		(34	)		(36	)		7			28			11			26

Components of net periodic benefit costs amortized from accumulated other comprehensive income (loss), net of income tax	$	34		$	32		$	65		$	65		$	(10	)	$	18		$	(22	)	$	4

As disclosed in Note 17 of the Notes to the Consolidated Financial Statements included in the 2010 Annual Report, no contributions are required to be made to the Subsidiaries’ U.S. qualified pension plans during 2011; however, the Subsidiaries expected to make discretionary contributions of $175 million to the U.S. plans during 2011. At June 30, 2011, no discretionary contributions have yet been made to those plans. The Subsidiaries fund benefit payments for their U.S. non-qualified pension and other postretirement plans as due through their general assets. At June 30, 2011, $28 million have been contributed to its non-U.S. pension plans.