Employee Benefit Plans

12 Months Ended

Dec. 31, 2024

Retirement Benefits [Abstract]

Employee Benefit Plans

21. Employee Benefit Plans

Pension and Other Postretirement Benefit Plans

Certain subsidiaries of MetLife, Inc. sponsor a U.S. qualified and various U.S. and non-U.S. nonqualified defined benefit pension plans covering employees who meet specified eligibility requirements. U.S. pension benefits are provided utilizing either a traditional formula or cash balance formula. The traditional formula provides benefits that are primarily based upon years of credited service and final average earnings. The cash balance formula utilizes hypothetical or notional accounts which credit participants with benefits equal to a percentage of eligible pay, as well as interest credits, determined annually based upon the annual rate of interest on 30-year U.S. Treasury securities, for each account balance. Effective January 1, 2023, U.S. qualified and nonqualified defined benefit pension plans were amended to provide benefits accruals for all active participants under the cash balance formula and to cease future accruals under the traditional formula. The U.S. nonqualified pension plans provide supplemental benefits in excess of limits applicable to a qualified plan. The non-U.S. pension plans generally provide benefits based upon either years of credited service and earnings preceding retirement or points earned on job grades and other factors in years of service.

These subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for U.S. and non-U.S. retired employees. U.S. employees of these subsidiaries who were hired prior to 2003 (or, in certain cases, rehired during or after 2003) and meet age and service criteria while working for one of the subsidiaries may become eligible for these other postretirement benefits, at various levels, in accordance with the applicable plans. Virtually all retirees, or their beneficiaries, contribute a portion of the total costs of postretirement medical benefits. U.S. employees hired after 2003 are not eligible for any employer subsidy for postretirement medical benefits. Effective January 1, 2023, the accrual of the employer subsidy credits for eligible employees was discontinued.

The benefit obligations, funded status and net periodic benefit costs related to these pension and other postretirement benefits were comprised of the following:

	December 31, 2024												December 31, 2023
	Pension Benefits						Other Postretirement Benefits						Pension Benefits						Other Postretirement Benefits
	U.S. Plans		Non- U.S. Plans		Total		U.S. Plans		Non- U.S. Plans		Total		U.S. Plans		Non- U.S. Plans		Total		U.S. Plans		Non- U.S. Plans		Total
	(In millions)
Benefit obligations	$	8,320	$	757	$	9,077	$	693	$	37	$	730	$	8,649	$	849	$	9,498	$	723	$	42	$	765
Estimated fair value of plan assets	7,370		466		7,836		1,302		27		1,329		7,786		484		8,270		1,307		27		1,334
Over (under) funded status	$	(950)	$	(291)	$	(1,241)	$	609	$	(10)	$	599	$	(863)	$	(365)	$	(1,228)	$	584	$	(15)	$	569
Net periodic benefit costs	$	257	$	60	$	317	$	(43)	$	3	$	(40)	$	227	$	64	$	291	$	(41)	$	3	$	(38)

Obligations and Funded Status

	December 31,
	2024				2023
	Pension Benefits (1)		Other Postretirement Benefits		Pension Benefits (1)		Other Postretirement Benefits
	(In millions)
Change in benefit obligations:
Benefit obligations at January 1,	$	9,498	$	765	$	9,298	$	794
Service costs	156		3		143		3
Interest costs	460		40		474		43
Plan participants’ contributions	—		29		—		30
Plan amendments	3		—		—		—
Net actuarial (gains) losses (2)	(281)		(16)		299		(23)
Acquisition, divestitures, settlements and curtailments	(36)		(2)		(35)		—
Benefits paid	(638)		(83)		(636)		(86)
Effect of foreign currency translation	(85)		(6)		(45)		4
Benefit obligations at December 31,	9,077		730		9,498		765
Change in plan assets:
Estimated fair value of plan assets at January 1,	8,270		1,334		8,294		1,303
Actual return on plan assets	39		59		529		72
Acquisition, divestitures and settlements	(36)		(2)		(35)		—
Plan participants’ contributions	—		29		—		30
Employer contributions	256		(5)		140		13
Benefits paid	(638)		(83)		(636)		(86)
Effect of foreign currency translation	(55)		(3)		(22)		2
Estimated fair value of plan assets at December 31,	7,836		1,329		8,270		1,334
Over (under) funded status at December 31,	$	(1,241)	$	599	$	(1,228)	$	569
Amounts recognized on the consolidated balance sheets:
Other assets	$	132	$	907	$	229	$	886
Other liabilities	(1,373)		(308)		(1,457)		(317)
Net amount recognized	$	(1,241)	$	599	$	(1,228)	$	569
AOCI:
Net actuarial (gains) losses	$	2,331	$	(502)	$	2,360	$	(509)
Prior service costs (credit)	(11)		—		(25)		—
AOCI, before income tax	$	2,320	$	(502)	$	2,335	$	(509)
Accumulated benefit obligation	$	8,969	N/A		$	9,377	N/A

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(1)Includes nonqualified unfunded plans, for which the aggregate PBO was $1.0 billion at both December 31, 2024 and 2023.

(2)For the year ended December 31, 2024, significant sources of actuarial (gains) losses for pension and other postretirement benefits include the impact of changes to the financial assumptions of ($386) million and ($15) million, respectively, demographic assumptions of ($2) million and $0, respectively, and plan experience of $107 million and ($1) million, respectively. For the year ended December 31, 2023, significant sources of actuarial (gains) losses for pension and other postretirement benefits include the impact of changes to the financial assumptions of $256 million and $8 million, respectively, demographic assumptions of ($54) million and ($8) million, respectively, and plan experience of $97 million and ($23) million, respectively.

Information regarding pension plans and other postretirement benefit plans with PBOs and/or accumulated benefit obligations (“ABO”) or APBO in excess of plan assets was as follows at:

	December 31,
	2024		2023		2024		2023		2024		2023
	PBO Exceeds Estimated Fair Value of Plan Assets				ABO Exceeds Estimated Fair Value of Plan Assets				APBO Exceeds Estimated Fair Value of Plan Assets
	(In millions)
PBO	$	1,388	$	1,474	$	1,376	$	1,459	N/A		N/A
ABO	$	1,337	$	1,411	$	1,337	$	1,411	N/A		N/A
APBO	N/A		N/A		N/A		N/A		$	549	$	580
Estimated fair value of plan assets	$	12	$	15	$	2	$	2	$	244	$	266

Net Periodic Benefit Costs

The components of net periodic benefit costs and other changes in plan assets and benefit obligations recognized in OCI were as follows:

	Years Ended December 31,
	2024				2023				2022
	Pension Benefits		Other Postretirement Benefits		Pension Benefits		Other Postretirement Benefits		Pension Benefits		Other Postretirement Benefits
	(In millions)
Net periodic benefit costs:
Service costs	$	156	$	3	$	143	$	3	$	187	$	4
Interest costs	460		40		474		43		328		34
Settlement and curtailment (gains) losses	5		1		6		—		5		—
Expected return on plan assets	(460)		(56)		(480)		(54)		(516)		(55)
Amortization of net actuarial (gains) losses	167		(28)		159		(30)		129		(25)
Amortization of prior service costs (credit)	(11)		—		(11)		—		(11)		—
Total net periodic benefit costs (credit)	317		(40)		291		(38)		122		(42)
Other changes in plan assets and benefit obligations recognized in OCI:
Net actuarial (gains) losses	141		(20)		250		(41)		2		(191)
Prior service costs (credit)	3		—		—		—		8		—
Amortization of net actuarial gains (losses)	(167)		28		(159)		30		(129)		25
Amortization of prior service (costs) credit	11		—		11		—		11		—
Settlement and curtailment (gains) losses	(5)		(1)		(6)		—		(5)		—
Exchange rate changes	2		—		(2)		—		(7)		—
Total recognized in OCI	(15)		7		94		(11)		(120)		(166)
Total recognized in net periodic benefit costs and OCI	$	302	$	(33)	$	385	$	(49)	$	2	$	(208)

Assumptions

Assumptions used in determining benefit obligations for the U.S. plans were as follows:

	Pension Benefits			Other Postretirement Benefits
December 31, 2024
Weighted average discount rate	5.70%			5.80%
Weighted average interest crediting rate	4.31%			N/A
Rate of compensation increase	2.50%	-	8.00%	N/A
December 31, 2023
Weighted average discount rate	5.25%			5.35%
Weighted average interest crediting rate	4.00%			N/A
Rate of compensation increase	2.50%	-	8.00%	N/A

Assumptions used in determining net periodic benefit costs for the U.S. plans were as follows:

	Pension Benefits			Other Postretirement Benefits
Year Ended December 31, 2024
Weighted average discount rate	5.25%			5.35%
Weighted average interest crediting rate	4.30%			N/A
Weighted average expected rate of return on plan assets	6.00%			4.25%
Rate of compensation increase	2.50%	-	8.00%	N/A
Year Ended December 31, 2023
Weighted average discount rate	5.60%			5.70%
Weighted average interest crediting rate	4.00%			N/A
Weighted average expected rate of return on plan assets	6.25%			4.25%
Rate of compensation increase	2.50%	-	8.00%	N/A
Year Ended December 31, 2022
Weighted average discount rate	2.95%			3.05%
Weighted average interest crediting rate	3.43%			N/A
Weighted average expected rate of return on plan assets	5.00%			3.86%
Rate of compensation increase	2.50%	-	8.00%	N/A

The weighted average discount rate for the U.S. plans is determined annually based on the yield, measured on a yield to worst basis, of a hypothetical portfolio constructed of high quality debt instruments available on the measurement date, which would provide the necessary future cash flows to pay the aggregate PBO when due.

The weighted average expected rate of return on plan assets for the U.S. plans is based on anticipated performance of the various asset sectors in which the plans invest, weighted by target allocation percentages. Anticipated future performance is based on long-term historical returns of the plan assets by sector, adjusted for the long-term expectations on the performance of the markets. While the precise expected rate of return derived using this approach will fluctuate from year to year, the policy is to hold this long-term assumption constant as long as it remains within reasonable tolerance from the derived rate.

The weighted average expected rate of return on plan assets for 2025 is currently anticipated to be 6.00% for U.S. pension benefits and 4.25% for U.S. other postretirement benefits.

The weighted average interest crediting rate is determined annually based on the plan selected rate, long-term financial forecasts of that rate and the demographics of the plan participants.

The assumed healthcare costs trend rates used in measuring the APBO and net periodic benefit costs were as follows:

	December 31,
	2024				2023
	Before Age 65		Age 65 and older		Before Age 65		Age 65 and older
Following year	6.1	%	8.3	%	6.2	%	4.5	%
Ultimate rate to which cost increase is assumed to decline	3.7	%	4.5	%	3.7	%	4.5	%
Year in which the ultimate trend rate is reached	2074		2089		2074		2102

Plan Assets

Certain U.S. subsidiaries provide employees with benefits under various Employee Retirement Income Security Act of 1974 (“ERISA”) benefit plans. These include qualified pension plans, postretirement medical plans and certain retiree life insurance coverage. The assets of these U.S. subsidiaries’ qualified pension plans are held in insurance group annuity contracts, and the vast majority of the assets of the postretirement medical plan are held in a trust which largely utilizes insurance contracts to hold the assets. All of these contracts are issued by the Company and the assets under the contracts are held in insurance separate accounts. The underlying assets of the separate accounts are principally comprised of cash and cash equivalents, short-term investments, fixed maturity securities AFS, equity securities, derivatives, real estate and private equity investments. The assets backing the retiree life coverage also utilize insurance contracts issued by the Company’s insurance affiliate and are held in a general account Life Insurance Funding Agreement.

The insurance contract provider engages investment management firms (“Managers”) to serve as sub-advisors for the separate accounts based on the specific investment needs and requests identified by the plan fiduciary. These Managers have portfolio management discretion over the purchasing and selling of securities and other investment assets pursuant to the respective investment management agreements and guidelines established for each insurance separate account. The assets of the qualified pension plans and postretirement medical plans (the “Invested Plans”) are well diversified across multiple asset categories and across a number of different Managers, with the intent of minimizing risk concentrations within any given asset category or with any of the given Managers.

The Invested Plans, other than those held in participant directed investment accounts, are managed in accordance with investment policies consistent with the longer-term nature of related benefit obligations and within prudent risk parameters. Specifically, investment policies are oriented toward (i) maximizing the Invested Plan’s funded status; (ii) minimizing the volatility of the Invested Plan’s funded status; (iii) generating asset returns that exceed liability increases; and (iv) targeting rates of return in excess of a custom benchmark and industry standards over appropriate reference time periods. These goals are expected to be met through identifying appropriate and diversified asset classes and allocations, ensuring adequate liquidity to pay benefits and expenses when due and controlling the costs of administering and managing the Invested Plan’s investments. Independent investment consultants are periodically used to evaluate the investment risk of the Invested Plan’s assets relative to liabilities, analyze the economic and portfolio impact of various asset allocations and management strategies and recommend asset allocations.

Derivative contracts may be used to reduce investment risk, to manage duration and to replicate the risk/return profile of an asset or asset class. Derivatives may not be used to leverage a portfolio in any manner, such as to magnify exposure to an asset, asset class, interest rates or any other financial variable. Derivatives are also prohibited for use in creating exposures to securities, currencies, indices or any other financial variable that is otherwise restricted.

The table below summarizes the actual weighted average allocation of the estimated fair value of total plan assets by asset class at December 31 for the years indicated and the approved target allocation by major asset class at December 31, 2024 for the Invested Plans:

	December 31,
	2024								2023
	U.S. Pension Benefits				U.S. Other Postretirement Benefits (1)				U.S. Pension Benefits		U.S. Other Postretirement Benefits (1)
	Target		Actual Allocation		Target		Actual Allocation		Actual Allocation		Actual Allocation
Asset Class
Fixed maturity securities AFS	85	%	83	%	95	%	94	%	82	%	94	%
Equity securities (2)	7	%	7	%	5	%	6	%	6	%	6	%
Alternative securities (3)	8	%	10	%	—	%	—	%	12	%	—	%
Total assets			100	%			100	%	100	%	100	%

__________________

(1)U.S. other postretirement benefits do not reflect postretirement life’s plan assets invested in fixed maturity securities AFS.

(2)Equity securities percentage includes derivative assets.

(3)Alternative securities primarily include private equity and real estate funds.

Estimated Fair Value

The pension and other postretirement benefit plan assets are categorized into a three-level fair value hierarchy, as described in Note 13, based upon the significant input with the lowest level in its valuation. The Level 2 asset category includes certain separate accounts that are primarily invested in liquid and readily marketable securities. The estimated fair value of such separate accounts is based upon reported NAV provided by fund managers and this value represents the amount at which transfers into and out of the respective separate account are effected. These separate accounts provide reasonable levels of price transparency and can be corroborated through observable market data. Directly held investments are primarily invested in U.S. and foreign government and corporate securities. The Level 3 asset category includes separate accounts that are invested in assets that provide little or no price transparency due to the infrequency with which the underlying assets trade and generally require additional time to liquidate in an orderly manner. Accordingly, the values for separate accounts invested in these alternative asset classes are based on inputs that cannot be readily derived from or corroborated by observable market data.

The pension and other postretirement plan assets measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are summarized as follows:

	December 31, 2024
	Pension Benefits								Other Postretirement Benefits
	Fair Value Hierarchy								Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities AFS:
Corporate	$	—	$	3,025	$	56	$	3,081	$	—	$	175	$	—	$	175
U.S. government bonds	1,693		30		—		1,723		102		7		—		109
Foreign bonds	—		729		2		731		—		38		—		38
Federal agencies	96		83		—		179		1		1		—		2
Municipals	—		79		—		79		—		5		—		5
Short-term investments	2		168		—		170		469		406		—		875
Other (1)	173		271		2		446		10		56		—		66
Total fixed maturity securities AFS	1,964		4,385		60		6,409		582		688		—		1,270
Equity securities	489		198		8		695		58		—		—		58
Other investments	42		5		680		727		1		—		—		1
Derivative assets	4		1		—		5		—		—		—		—
Total assets	$	2,499	$	4,589	$	748	$	7,836	$	641	$	688	$	—	$	1,329

	December 31, 2023
	Pension Benefits								Other Postretirement Benefits
	Fair Value Hierarchy								Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities AFS:
Corporate	$	—	$	3,029	$	54	$	3,083	$	—	$	167	$	—	$	167
U.S. government bonds	1,537		38		—		1,575		52		6		—		58
Foreign bonds	—		808		2		810		—		46		—		46
Federal agencies	62		141		—		203		1		—		—		1
Municipals	—		147		—		147		—		8		—		8
Short-term investments	13		184		—		197		554		403		—		957
Other (1)	114		577		8		699		4		33		—		37
Total fixed maturity securities AFS	1,726		4,924		64		6,714		611		663		—		1,274
Equity securities	436		162		12		610		59		—		—		59
Other investments	41		—		828		869		1		—		—		1
Derivative assets	10		67		—		77		—		—		—		—
Total assets	$	2,213	$	5,153	$	904	$	8,270	$	671	$	663	$	—	$	1,334

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(1)Other primarily includes money market securities, mortgage-backed securities, collateralized mortgage obligations and ABS & CLO.

A rollforward of all pension and other postretirement benefit plan assets measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs was as follows:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities AFS:
	Foreign Bonds		Corporate		Other		Equity Securities		Other Investments		Derivative Assets
	(In millions)
Balance, January 1, 2023	$	—	$	55	$	3	$	3	$	855	$	4
Realized gains (losses)	—		—		—		—		(1)		—
Unrealized gains (losses)	—		1		—		1		(51)		(1)
Purchases, sales, issuances and settlements, net	—		2		—		8		25		(3)
Transfers into and/or out of Level 3	2		(4)		5		—		—		—
Balance, December 31, 2023	$	2	$	54	$	8	$	12	$	828	$	—
Realized gains (losses)	—		—		—		—		—		—
Unrealized gains (losses)	—		(2)		(1)		—		(24)		—
Purchases, sales, issuances and settlements, net	—		16		(4)		(4)		(124)		—
Transfers into and/or out of Level 3	—		(12)		(1)		—		—		—
Balance, December 31, 2024	$	2	$	56	$	2	$	8	$	680	$	—

Expected Future Contributions and Benefit Payments

It is the subsidiaries’ practice to make contributions to the U.S. qualified pension plan to comply with minimum funding requirements of ERISA and to ensure that the plan assets continue to be sufficient to meet plan liabilities. In accordance with such practice, a discretionary contribution of $125 million is expected to be paid to the qualified pension plan in 2025. No contributions are expected to be required in 2025 to meet the minimum funding requirements of ERISA. For information on employer contributions, see “— Obligations and Funded Status.”

Benefit payments due under the U.S. nonqualified pension plans are primarily funded from the subsidiaries’ general assets as they become due under the provisions of the plans, and therefore benefit payments equal employer contributions. The U.S. subsidiaries expect to make contributions of $80 million to fund the benefit payments in 2025.

Postretirement benefits are either: (i) not vested under law; (ii) a non-funded obligation of the subsidiaries; or (iii) both. Current regulations do not require funding for these benefits. The subsidiaries use their general assets, net of participant’s contributions, to pay postretirement medical claims as they come due. As permitted under the terms of the governing trust document, the subsidiaries may be reimbursed from plan assets for postretirement medical claims paid from their general assets. The U.S. subsidiaries expect to make contributions of $20 million towards benefit obligations in 2025 to pay postretirement medical claims.

Gross benefit payments for the next 10 years, which reflect expected future service where appropriate, are expected to be as follows:

	Pension Benefits		Other Postretirement Benefits
	(In millions)
2025	$	702	$	61
2026	$	714	$	59
2027	$	724	$	59
2028	$	739	$	59
2029	$	767	$	59
2030-2034	$	3,690	$	274

Defined Contribution Plans

Certain subsidiaries sponsor defined contribution plans under which a portion of employee contributions are matched. These subsidiaries contributed $90 million, $90 million and $46 million for the years ended December 31, 2024, 2023 and 2022, respectively.