Employee Benefits

12 Months Ended

Dec. 31, 2021

Compensation And Retirement Disclosure [Abstract]

Employee Benefits

10. EMPLOYEE BENEFITS

The Company sponsors a 401(k) plan for eligible U.S. employees and defined contribution and defined benefit pension plans that cover substantially all of its non-U.S. employees. Eligible employees may participate in the MSCI 401(k) plan (or any other regional defined contribution plan sponsored by MSCI) immediately upon hire. Eligible employees receive 401(k) and other defined contribution plan matching contributions, which are subject to vesting and certain other limitations. Additionally, some non-US employees are eligible to participate in and receive contributions to defined benefit plans.

The following table reflects the employee benefits expense by cost, type and location in the Statement of Income for the periods indicated:

	Years Ended
	December 31,		December 31,		December 31,
(in thousands)	2021		2020		2019
Employee benefit cost type
401(k) and other defined contribution plans		25,740		21,804		19,909
Pension related net period benefit expense		5,785		4,671		4,135
Total	$	31,525	$	26,475	$	24,044
Location in the Statement of Income
Cost of revenues	$	12,231	$	9,913	$	9,387
Selling and marketing		9,489		7,910		7,368
Research and development		6,271		5,328		4,705
General and administrative		2,620		2,289		1,844
Other expense (income)		914		1,035		740
Total	$	31,525	$	26,475	$	24,044

The Company uses a measurement date of December 31^st to calculate obligations under its pension and postretirement plans. As of December 31, 2021 and 2020, the Company carried a net liability of $34.5 million and $36.1 million, respectively, in “Other non-current liabilities” on the Consolidated Statement of Financial Condition related to its future pension obligations. The fair value of the defined benefit plan assets was $30.2 million and $28.5 million at December 31, 2021 and 2020, respectively.

The Company’s retiree benefit plans include defined benefit plans for employees in Switzerland, as well as other countries where MSCI maintains an operating presence.

Our Switzerland plans are government-mandated retirement funds that provide employees with a minimum investment return, which is determined annually by the Swiss government and was 1.0% in the years ended December 31, 2021, 2020 and 2019. Under the Switzerland plans, the Company and our employees are required to make contributions into a fund managed by an independent investment fiduciary. Employer contributions must be in an amount at least equal to the employee’s contribution. Employee contributions are based on the respective employee’s age, salary and chosen contribution scale. As of December 31, 2021 and 2020, the Switzerland plans had a gross pension liability of $34.0 million and $34.8 million, respectively, and plan assets that totaled $26.1 million and $24.6 million, respectively. In the years ended December 31, 2021, 2020 and 2019, we recognized net periodic benefit expense of $0.3 million, $0.5 million and $1.0 million, respectively, related to our Switzerland plans. The discount rate for the Switzerland defined benefit pension plan was 0.30% and 0.10%, respectively, as of December 31, 2021 and 2020.

The investment strategies of the non-U.S. defined benefit plans vary according to the plan provisions and local laws. The majority of the assets in the non-U.S. plans are in the Switzerland plans. The Switzerland plans are associated with an insured collective retirement foundation, whereby assets are held in trust and the assets are comingled with those of other participating companies. Investment decisions are made by a board of the collective retirement foundation, comprised of participating company representatives and representatives from the insurer. The overall strategy is to manage risk while maximizing total returns.