Pension and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2023

Compensation And Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits

M. Pension and Other Postretirement Benefits

The components of net periodic benefit cost were as follows:

	Pension benefits						Other postretirement benefits
First quarter ended March 31,	2023			2022			2023			2022
Service cost	$	2		$	3		$	1		$	1
Interest cost(1)		31			27			6			4
Expected return on plan assets(1)		(39	)		(44	)		—			—
Recognized net actuarial loss(1)		7			28			1			4
Amortization of prior service cost(1)		—			—			(3	)		(3	)
Net periodic benefit cost	$	1		$	14		$	5		$	6

(1)These amounts were reported in Other (expenses) income, net on the accompanying Statement of Consolidated Operations (see Note Q).

Funding and Cash Flows. It is Alcoa’s policy to fund amounts for defined benefit pension plans sufficient to meet the minimum requirements set forth in each applicable country's benefits laws and tax laws, including the Employee Retirement Income Security Act of 1974 (ERISA) for U.S. plans. From time to time, the Company contributes additional amounts as deemed appropriate.

Under ERISA regulations, a plan sponsor that establishes a pre-funding balance by making discretionary contributions to a U.S. defined benefit pension plan may elect to apply all or a portion of this balance toward its minimum required contribution obligations to the related plan in future years.

In the first quarter of 2023, management made such elections related to the Company’s U.S. plans and intends to do so for the remainder of 2023. As a result, Alcoa’s minimum required contribution to defined benefit pension plans in 2023 is estimated to be approximately $20, of which approximately $4 was contributed to non-U.S. plans during the first quarter of 2023.

In the first quarter of 2022, $4 was contributed to non-U.S. plans.