Pension and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2019

Pension and Other Postretirement Benefit Plans [Abstract]

Pension and Other Postretirement Benefit Plans

Note 13 – Pension and Other Postretirement Benefit Plans

A.About our Plans

Pension plans. Future benefit accruals for the Company’s domestic defined benefit pension plans are frozen. The Company also has foreign pension and other postretirement benefit plans that are immaterial to our results of operations, liquidity and financial position.

Other postretirement benefit plans. The Company’s postretirement medical plan was frozen in 2013. The Company also offers certain postretirement life insurance benefits through various plans.

B.Cost of Our Plans

Net pension and other postretirement benefits cost was as follows:

	Pension Benefits								Other Postretirement Benefits
	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
(In millions)	2019		2018		2019		2018		2019		2018		2019		2018
Service cost	$	-	$	-	$	1	$	1	$	-	$	-	$	-	$	-
Interest cost		48		42		97		84		2		2		4		4
Expected long-term return on plan assets		(67)		(64)		(123)		(128)		-		-		-		-
Amortization of:
Net loss from past experience		16		18		32		35		-		-		-		-
Prior service cost		-		-		-		-		-		(1)		(1)		(1)
Litigation settlement - plan amendment		-		-		142		-		-		-		-		-
Settlement loss		-		-		10		-		-		-		-		-
Net (benefit) cost	$	(3)	$	(4)	$	159	$	(8)	$	2	$	1	$	3	$	3

As further discussed in Note 16, Old Cigna and the Cigna Pension Plan are defendants in a class action lawsuit related to the Plan’s conversion of certain employees from an annuity to a cash balance benefit in 1997. In the first quarter of 2019, the Plan implemented the court order described in Note 16 resulting in an increase to the pension liability of $142 million. The Company reversed a litigation reserve for this matter in the same amount resulting in no impact on net income.

Pension and other postretirement benefits expense, including reversal of the litigation reserve discussed above, is reported in “interest expense and other” in the Consolidated Statements of Income. The Company did not make any contributions to the domestic qualified pension plans for the six months ended June 30, 2019. Contributions to these plans are expected to be immaterial for the remainder of 2019.