Employee benefit plans (Tables)

12 Months Ended

Dec. 31, 2019

Combined Data for Domestic and Foreign Defined Benefit Pension and Post Retirement Healthcare Plans

The following tables report the combined data for our domestic and foreign defined benefit pension and post-retirement healthcare plans.



	Pension Benefits												Healthcare Benefits
	Domestic						Foreign						Domestic						Foreign
(dollars in millions)	2019			2018			2019			2018			2019			2018			2019			2018
Weighted-average assumptions used to determine benefit obligations
Discount rate	3.45		%	4.45		%	2.02		%	2.95		%	3.45		%	4.45		%	2.10		%	3.10		%
Rate of compensation increase	N/A			N/A			3.19			2.98			3.00			3.00			N/A			N/A
Cash balance interest crediting rate	4.00			4.00			N/A			N/A			N/A			N/A			N/A			N/A
Change in benefit obligation (a)
Benefit obligation at beginning of period	$	(4,123	)	$	(4,405	)	$	(1,104	)	$	(1,322	)	$	(149	)	$	(175	)	$	(5	)	$	(4	)
Service cost	—			—			(11		)	(28		)	(1		)	(1		)	—			—
Interest cost	(178		)	(169		)	(32		)	(32		)	(6		)	(7		)	—			—
Amendments	—			—			(1		)	—			—			—			—			—
Actuarial gain (loss)	(585		)	219			(264		)	173			(1		)	22			(1		)	(1		)
Curtailments	—			—			—			11			—			—			—			—
Benefits paid	227			232			40			25			12			12			—			—
Foreign exchange adjustment	N/A			N/A			(22		)	69			N/A			N/A			—			—
Benefit obligation at end of period	(4,659		)	(4,123		)	(1,394		)	(1,104		)	(145		)	(149		)	(6		)	(5		)
Change in fair value of plan assets
Fair value at beginning of period	5,040			5,496			1,316			1,393			99			107			—			—
Actual return on plan assets	910			(257		)	191			1			18			(8		)	—			—
Employer contributions	15			33			30			22			12			12			—			—
Benefit payments	(227		)	(232		)	(40		)	(25		)	(12		)	(12		)	—			—
Foreign exchange adjustment	N/A			N/A			32			(75		)	N/A			N/A			—			—
Fair value at end of period	5,738			5,040			1,529			1,316			117			99			—			—
Funded status at end of period	$	1,079		$	917		$	135		$	212		$	(28	)	$	(50	)	$	(6	)	$	(5	)
Amounts recognized in accumulated other comprehensive loss (income) consist of:
Net loss	$	1,557		$	1,598		$	221		$	105		$	70		$	84		$	1		$	—
Prior service cost (credit)	—			—			2			1			(33		)	(40		)	—			—
Total loss (before tax effects)	$	1,557		$	1,598		$	223		$	106		$	37		$	44		$	1		$	—

(a)

The benefit obligation for pension benefits is the projected benefit obligation, and for healthcare benefits, it is the accumulated benefit obligation.

Summary of Net Periodic Benefit Cost (Credit)



Net periodic benefit (credit) cost	Pension Benefits																		Healthcare Benefits
	Domestic									Foreign									Domestic									Foreign
(dollars in millions)	2019			2018			2017			2019			2018			2017			2019			2018			2017			2019			2018			2017
Weighted-average assumptions as of Jan. 1:
Market-related value of plan assets	$	5,304		$	5,238		$	5,026		$	1,277		$	1,266		$	994		$	111		$	108		$	102		N/A			N/A			N/A
Discount rate	4.45		%	3.97		%	4.35		%	2.95		%	2.45		%	2.53		%	4.45		%	3.97		%	4.35		%	3.10		%	2.50		%	2.60		%
Expected rate of return on plan assets	6.500			6.625			6.625			3.54			4.56			4.61			6.500			6.625			6.625			N/A			N/A			N/A
Rate of compensation increase	N/A			N/A			N/A			2.98			3.02			3.60			3.00			3.00			3.00			N/A			N/A			N/A
Cash balance interest crediting rate	4.00			4.00			4.00			N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Components of net periodic benefit (credit) cost :
Service cost	$	—		$	—		$	—		$	11		$	28		$	31		$	1		$	1		$	1		$	—		$	—		$	—
Interest cost	178			169			180			32			32			33			6			7			7			—			—			—
Expected return on assets	(337		)	(339		)	(325		)	(45		)	(57		)	(50		)	(7		)	(8		)	(7		)	—			—			—
Amortization of:
Prior service cost (credit)	—			—			—			—			—			—			(7		)	(9		)	(10		)	—			—			—
Net actuarial loss	53			68			67			2			22			35			4			7			6			—			—			—
Settlement loss	—			5			2			—			—			—			—			—			—			—			—			—
Net periodic benefit (credit) cost	$	(106	)	$	(97	)	$	(76	)	$	—		$	25		$	49		$	(3	)	$	(2	)	$	(3	)	$	—		$	—		$	—

Changes in Other Comprehensive (Income) Loss



Changes in other comprehensive loss (income) in 2019	Pension Benefits						Healthcare Benefits
(in millions)	Domestic			Foreign			Domestic			Foreign
Net loss (gain) arising during period	$	12		$	118		$	(10	)	$	1
Recognition of prior years’ net (loss)	(53		)	(2		)	(4		)	—
Prior service cost arising during the period	—			1			—			—
Recognition of prior years’ service credit	—			—			7			—
Total recognized in other comprehensive (income) loss (before tax effects)	$	(41	)	$	117		$	(7	)	$	1

Defined Benefit Plan Funded Status of Plan



	Domestic						Foreign
(in millions)	2019			2018			2019			2018
Pension benefits:
Prepaid benefit cost	$	1,249		$	1,077		$	222		$	280
Accrued benefit cost	(170		)	(160		)	(87		)	(68		)
Total pension benefits	$	1,079		$	917		$	135		$	212
Healthcare benefits:
Accrued benefit cost	$	(28	)	$	(50	)	$	(6	)	$	(5	)
Total healthcare benefits	$	(28	)	$	(50	)	$	(6	)	$	(5	)

Plan with Obligations in Excess of Plan Assets



Plans with obligations in excess of plan assets	Pension Benefits								Healthcare Benefits
Plans with obligations in excess of plan assets	Domestic				Foreign				Domestic		Foreign
(in millions)	2019		2018		2019		2018		2019	2018	2019	2018
Projected benefit obligation	$	170	$	160	$	384	$	245	N/A	N/A	N/A	N/A
Fair value of plan assets	—		—		297		177		N/A	N/A	N/A	N/A
Accumulated benefit obligation	170		160		164		67		85	80	6	5
Fair value of plan assets	—		—		114		27		—	—	—	—

Benefit Payments for BNY Mellon's Pension and Healthcare Plans expected to be Paid

The following benefit payments for the pension and healthcare plans, which reflect expected future service as appropriate, are expected to be paid over the next 10 years:



Expected benefit payments
(in millions)		Domestic		Foreign
Pension benefits:
Year	2020	$	254	$	20
	2021	265		20
	2022	260		21
	2023	266		24
	2024	275		24
	2025-2029	1,333		144
Total pension benefits		$	2,653	$	253
Healthcare benefits:
Year	2020	$	12	$	—
	2021	10		—
	2022	10		—
	2023	10		—
	2024	9		—
	2025-2029	42		1
Total healthcare benefits		$	93	$	1

Pension Investment Asset Allocation

Our pension assets were invested as follows:



Asset allocations	Domestic				Foreign
	2019		2018		2019		2018
Fixed income	56	%	45	%	80	%	36	%
Equities	42		52		8		48
Alternative investments	2		2		10		9
Private equities	—		1		—		—
Real estate	—		—		—		4
Cash	—		—		2		3
Total pension benefits	100	%	100	%	100	%	100	%

Pension Plan Investment Assets Measured at Fair Value



Plan assets measured at fair value on a recurring basis— domestic plans at Dec. 31, 2019
(in millions)	Level 1		Level 2			Level 3		Total fair value
Common and preferred stock:
U.S. equity	$	1,638	$	—		$	—	$	1,638
Non-U.S. equity	195		—			—		195
Derivatives	—		(130		)	—		(130		)
Collective trust funds:
Commingled	—		1,982			—		1,982
U.S. equity	—		688			—		688
Fixed income:
U.S. Treasury securities	362		—			—		362
U.S. government agencies	—		7			—		7
Sovereign government obligations	3		—			—		3
U.S. corporate bonds	—		814			—		814
Other	—		15			—		15
Mutual funds	3		—			—		3
Total domestic plan assets in the fair value hierarchy	$	2,201	$	3,376		$	—	$	5,577
Other assets measured at NAV:
Funds of funds								134
Venture capital and partnership interests								27
Total domestic plan assets, at fair value								$	5,738



Plan assets measured at fair value on a recurring basis— foreign plans at Dec. 31, 2019
(in millions)	Level 1		Level 2		Level 3		Total fair value
Equity funds	$	—	$	129	$	—	$	129
Sovereign/government obligation funds	—		130		—		130
Corporate debt funds	—		1,091		—		1,091
Cash and currency	20		—		—		20
Total foreign plan assets in the fair value hierarchy	$	20	$	1,350	$	—	$	1,370
Other assets measured at NAV							159
Total foreign plan assets, at fair value							$	1,529



Plan assets measured at fair value on a recurring basis— domestic plans at Dec. 31, 2018
(in millions)	Level 1		Level 2		Level 3		Total fair value
Common and preferred stock:
U.S. equity	$	1,514	$	—	$	—	$	1,514
Non-U.S. equity	160		—		—		160
Collective trust funds:
Commingled	—		435		—		435
U.S. equity	—		934		—		934
Fixed income:
U.S. Treasury securities	630		—		—		630
U.S. government agencies	—		44		—		44
Sovereign government obligations	3		5		—		8
U.S. corporate bonds	—		972		—		972
Other	—		69		—		69
Mutual funds	114		—		—		114
Total domestic plan assets in the fair value hierarchy	$	2,421	$	2,459	$	—	$	4,880
Other assets measured at NAV:
Funds of funds							130
Venture capital and partnership interests							30
Total domestic plan assets, at fair value							$	5,040



Plan assets measured at fair value on a recurring basis— foreign plans at Dec. 31, 2018
(in millions)	Level 1		Level 2		Level 3		Total fair value
Equity funds	$	—	$	194	$	—	$	194
Sovereign/government obligation funds	—		126		—		126
Corporate debt funds	—		418		—		418
Cash and currency	356		—		—		356
Total foreign plan assets in the fair value hierarchy	$	356	$	738	$	—	$	1,094
Other assets measured at NAV							222
Total foreign plan assets, at fair value							$	1,316

Pension Plan Assets Valued Using Net Asset Value



Assets valued using NAV at Dec. 31, 2019
(dollars in millions)	Fair value		Unfunded commitments		Redemption frequency	Redemption notice period
Funds of funds (a)	$	136	$	—	Monthly	30-45 days
Venture capital and partnership interests (b)	158		—		N/A	N/A
Property funds (c)	4		—		Monthly	0-90 days
Other contracts (d)	22		—		N/A	N/A
Total	$	320	$	—



Assets valued using NAV at Dec. 31, 2018
(dollars in millions)	Fair value		Unfunded commitments		Redemption frequency	Redemption notice period
Funds of funds (a)	$	147	$	—	Monthly	30-45 days
Venture capital and partnership interests (b)	148		—		N/A	N/A
Property funds (c)	52		—		Monthly	0-90 days
Corporate debt	19		—		N/A	N/A
Other contracts (d)	16		—		N/A	N/A
Total	$	382	$	—


(a)	Funds of funds include multi-strategy hedge funds that utilize investment strategies that invest over both long-term investment and short-term investment horizons.


(b)	Venture capital and partnership interests do not have redemption rights. Distributions from such funds will be received as the underlying investments are liquidated.


(c)	Property funds include funds invested in regional real estate vehicles that hold direct interest in real estate properties.

(d)

Other contracts include assets invested in pooled accounts at insurance companies that are privately valued by the asset manager.