We have a pension plan covering employees in certain of our U.S. operations whose benefit accrual has been frozen. Retirement benefits are derived from a formula, which is based on length of service and compensation.

We did not make any contributions to our pension plan during 2019 or 2018. During 2017, in connection with our de-risking strategy, we contributed $136 million to our plan. At the same time, we changed the plan’s target allocation from 65% equity securities and 35% fixed income securities, to 5% equity securities and 95% fixed income securities. The fixed income allocation includes corporate bonds of companies from diversified industries and U.S. government bonds. As a result of this contribution and change in investment policy, we anticipate that there will be less need for contributions in future years, and the pension plan will not be required to pay the Pension Benefit Guaranty Corporation variable rate premiums. Income is expected to be lower than it was in prior periods because the expected return on plan assets is lower.

We do not expect to make contributions to the pension plan in 2020. We will continue to monitor the plan’s funded status, and we will consider modifying the plan’s investment policy based on the actuarial and funding characteristics of the retirement plan, the demographic profile of plan participants, and our business objectives. Our long-term objective is to keep the plan at or near full funding, while minimizing the risk inherent in pension plans.



	Fair Value Measurements
Asset Category	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash	$	7	$	—	$	—	$	7
Equity securities:
U.S. large-cap	—		25		—		25
U.S. small-cap	—		7		—		7
International	—		13		—		13
Fixed income securities	137		751		6		894
Total	$	144	$	796	$	6	$	946



	Fair Value Measurements
Asset Category	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash	$	8	$	—	$	—	$	8
Equity securities:
U.S. large-cap	—		21		—		21
U.S. small-cap	—		5		—		5
International	—		11		—		11
Fixed income securities	127		640		7		774
Total	$	135	$	677	$	7	$	819

The measurement dates for the pension plan are December 31, 2019 and 2018. The following table provides a summary of the changes in the pension plan’s benefit obligations and the fair value of assets measured using the valuation techniques described in Note 17, as of December 31, 2019 and 2018 and a statement of funded status of the pension plan as of December 31, 2019 and 2018 (in millions):



	As of December 31,
	2019			2018
Change in benefit obligation:
Benefit obligation at beginning of year	$	791		$	875
Interest cost	28			26
Actuarial (gain) loss	90			(61		)
Benefits paid	(48		)	(49		)
Benefit obligation at year end	$	861		$	791
Change in plan assets:
Fair value of plan assets at beginning of year	$	794		$	869
Actual return on plan assets	148			(26		)
Contributions	—			—
Benefits paid	(48		)	(49		)
Fair value of plan assets at end of year	$	894		$	794
Funded status	$	33		$	3
Accumulated benefit obligation	$	861		$	791
Amounts recognized in the accompanying consolidated balance sheets:
Accrued pension plan asset	$	33		$	3



	Year Ended December 31,
	2019			2018			2017
Interest cost	$	28		$	26		$	27
Estimated return on plan assets	(31		)	(29		)	(44		)
Amortization of loss	3			4			2
Aggregate pension expense (benefit)	$	—		$	1		$	(15	)

We use a market-related value of plan assets when determining the estimated return on plan assets. Gains/losses on plan assets are amortized over a four-year period and accumulate in other comprehensive income. We recognize deferred gains and losses in future net income based on a “corridor” approach, where the corridor is equal to 10% of the greater of the benefit obligation or the market-related value of plan assets at the beginning of the year.

We have a U.S. nonqualified supplemental executive retirement plan, or SERP, which provides supplemental retirement benefits for certain employees. The future benefit accrual of the SERP plan is frozen. To provide for the future payments of these benefits, we have purchased insurance on the lives of certain of the participants through company-owned policies. As of December 31, 2019 and 2018, the cash surrender value of such policies was $58 million and $57 million, respectively, and is included in other non-current assets in the accompanying consolidated balance sheets. We also acquired a SERP through both the ICE NGX and CHX acquisitions. The following table provides a summary of the changes in the SERP benefit obligations (in millions):



	As of December 31,
	2019			2018
Change in benefit obligation:
Benefit obligation at beginning of year	$	41		$	49
Interest cost	1			1
Actuarial (gain) loss	4			(2		)
Benefits paid	(5		)	(7		)
Benefit obligation at year end	$	41		$	41
Funded status	$	(41	)	$	(41	)
Amounts recognized in the accompanying consolidated balance sheets:
Other current liabilities	$	(5	)	$	(5	)
Accrued employee benefits	(36		)	(36		)

SERP plan expense in the accompanying consolidated statements of income was $1 million each year in 2019, 2018 and 2017 and primarily consisted of interest cost. The following table shows the projected payments for the SERP plan based on the actuarial assumptions (in millions):



	Year Ended December 31,
	2019	2018	2017
Weighted-average discount rate for determining benefit obligations (pension/SERP plans)	3.0% / 2.7%	4.0% / 3.8%	3.4% / 3.1%
Weighted-average discount rate for determining interest costs (pension/SERP plans)	3.7% / 3.5%	3.0% / 2.7%	3.2% / 2.6%
Expected long-term rate of return on plan assets (pension/SERP plans)	3.9% / N/A	3.5% / N/A	6.5% / N/A
Rate of compensation increase	N/A	N/A	N/A

The assumed discount rate reflects the market rates for high-quality corporate bonds currently available. The discount rate was determined by considering the average of pension yield curves constructed on a large population of high quality corporate bonds. The resulting discount rates reflect the matching of plan liability cash flows to yield curves. To develop the expected long-term rate of return on assets assumption, we considered the historical returns and the future expectations for returns for each asset class as well as the target asset allocation of the pension portfolio.

The determination of the interest cost component utilizes a full yield curve approach by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to each year’s discounted cash flow.

Our defined benefit plans provide certain health care and life insurance benefits for certain eligible retired NYSE U.S. employees. These post-retirement benefit plans, which may be modified in accordance with their terms, are fully frozen. The net periodic post-retirement benefit costs were $2 million, $5 million and $5 million in 2019, 2018 and 2017, respectively. The defined benefit plans are unfunded and we currently do not expect to fund the post-retirement benefit plans. The weighted-average discount rate for determining the benefit obligation as of December 31, 2019 and 2018 is 3.0% and 4.0%, respectively. The weighted-average discount rate for determining the interest cost as of December 31, 2019 and 2018 is 3.7% and 3.0%, respectively. The following table shows the actuarial determined benefit obligation, interest costs, employee contributions, actuarial (gain) loss, benefits paid during the periods and the accrued employee benefits (in millions):



	As of December 31,
	2019			2018
Benefit obligation at the end of year	$	142		$	154
Interest cost	5			5
Actuarial gain	(8		)	(19		)
Employee contributions	3			3
Benefits paid	(12		)	(13		)
Amounts recognized in the accompanying consolidated balance sheets:
Other current liabilities	$	(8	)	$	(10	)
Accrued employee benefits	(134		)	(144		)

The following table shows the payments projected for our post-retirement benefit plans (net of expected Medicare subsidy receipts of $11 million in aggregate over the next ten fiscal years) based on actuarial assumptions (in millions):

For measurement purposes, we assumed a 6.7% annual rate of increase in the per capita cost of covered health care benefits in 2019 which will decrease on a graduated basis to 4.5% in the year 2038 and thereafter.

Our U.S. employees are eligible to participate in 401(k) and profit sharing plans and our non-U.S. employees are eligible to participate in defined contribution pension plans. Total contributions under the 401(k), profit sharing and defined contribution pension plans were $42 million, $39 million and $38 million in 2019, 2018 and 2017, respectively. No discretionary or profit sharing contributions were made during 2019, 2018 or 2017.