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POSTRETIREMENT BENEFIT PLANS
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
POSTRETIREMENT BENEFIT PLANS POSTRETIREMENT BENEFIT PLANS
PENSION BENEFITS AND RETIREE HEALTH AND LIFE BENEFITS SPONSORED BY GE PRIOR TO SPIN-OFF.

Certain GE HealthCare employees were covered under various pension and retiree health and life plans sponsored by GE prior to the Spin-Off. These plans were accounted for as multiemployer plans prior to the Spin-Off. Certain of these benefit plans are closed to new participants. For the years ended December 31, 2022 and 2021, relevant costs for these plans were allocated to the Company by GE and recognized within the Combined Statements of Income. These costs included service costs for active employees in the U.S. GE Pension Plan, certain international pension plans, the U.S. GE Supplementary Pension Plan, and certain U.S. retiree benefit plans. We did not record any assets or liabilities associated with our participation in these plans in our Combined Statement of Financial Position as of December 31, 2022.

Expenses associated with our employees’ participation in the U.S. GE Pension Plan and certain U.S. retiree benefit plans, which represent the majority of related expense, were $73 million and $96 million for the years ended December 31, 2022 and 2021, respectively. Expenses associated with our employees’ participation in certain international pension plans were $11 million and $22 million for the years ended December 31, 2022 and 2021, respectively.

In addition, certain GE HealthCare employees were covered under various pension plans historically sponsored by GE HealthCare. The assets and liabilities associated with these plans are included in our Combined Statement of Financial Position as of December 31, 2022.
PENSION BENEFITS AND RETIREE HEALTH AND LIFE BENEFITS POST SPIN-OFF.

In connection with the Spin-Off, on January 1, 2023, GE HealthCare assumed a portion of former GE pension and postretirement obligations and assets. The pension and postretirement obligations assumed relate to benefits owed to current GE HealthCare employees, former GE HealthCare employees, and certain GE legacy plan participants. For the postretirement plans, GE HealthCare is now a participant in a multiple-employer plan with GE.

The total assets and liabilities for all plans assumed by GE HealthCare on January 1, 2023, are shown in the tables below.

Accumulated Benefit Obligations and Unrecognized Gain
As of January 1, 2023
Defined benefit plans(1)
Other postretirement plans(2)
Total
Accumulated benefit obligations$21,696 $1,210 $22,906 
Unrecognized gain recorded in AOCI
1,258 1,223 2,481 

Net Benefit Liability
As of January 1, 2023
Defined benefit plans(1)
Other postretirement plans(2)
Total
Projected benefit obligations$21,743 $1,210 $22,953 
Fair value of assets18,908 — 18,908 
Net liability$2,835 $1,210 $4,045 
(1) Defined benefit plans are comprised of both Principal Pension Plans and Other Pension Plans, as defined below.
(2) Other postretirement plans (“OPEB Plans”) are comprised of other post-employment benefits, as defined below.

DESCRIPTION OF OUR PLANS.

For the years ended December 31, 2022 and 2021, we disclose postretirement plans with assets or obligations that exceed $20 million in the following tables. As a result of the liabilities and assets transferred to GE HealthCare on January 1, 2023, we disclose in the following tables postretirement plans with assets or obligations that exceed $50 million for the year ended December 31, 2023. We use a December 31st measurement date for these plans.

Our Principal Pension Plans include the GE HealthCare Pension Plan which covers U.S. participants and our GE HealthCare Supplemental Pension Plan which provides supplementary benefits to higher-level, longer-service U.S. employees. The Principal Pension Plans are comprised of the obligations transferred to GE HealthCare from GE in connection with the Spin-Off. These plans have been closed to new participants since 2012. All remaining service accruals for the GE HealthCare Pension Plan will freeze effective December 31, 2024. Benefits for participants of the GE HealthCare Supplemental Pension Plan who became executives before 2011 were frozen effective January 1, 2021, and thereafter these employees accrue a benefit which is paid out in ten annual installments upon retirement. The GE HealthCare Pension Plan has a projected benefit obligation of $16,138 million, plan assets of $14,700 million, and is 91% funded per U.S. GAAP as of December 31, 2023. The GE HealthCare Supplemental Pension plan has a projected benefit obligation of $2,022 million as of December 31, 2023, and the benefits are paid to eligible participants directly by the Company as described further in the ‘Funding’ section of this Note.

Our Other Pension Plans include all other plans, which cover certain U.S. participants and non-U.S. participants. These plans include obligations that existed prior to the Spin-Off and obligations transferred to GE HealthCare from GE in connection with the Spin-Off. In certain countries, benefit accruals have ceased and/or have been closed to new hires as of various dates.

The OPEB Plans include health and life insurance benefits to U.S. participants. GE HealthCare assumed the obligations associated with these plans in connection with the Spin-Off. Participants share in the cost of the healthcare and life insurance benefits. Certain benefits for salaried and hourly participants were closed to new retirees in 2015 and 2019.

Funding
The funding policy for the GE HealthCare Pension Plan and our Other Pension Plans is to contribute amounts sufficient to meet minimum funding requirements as set forth in employee benefit and tax laws plus any additional amounts as we may determine to be appropriate. The GE HealthCare Supplemental Pension Plan and OPEB Plans are unfunded and we pay benefits from our cash on hand. In 2023, the Company made cash payments totaling $142 million for its GE HealthCare Supplemental Pension Plan, $84 million to its Other Pension Plans and $131 million to its OPEB Plans. In 2024, the Company expects to make total cash contributions of approximately $336 million to our pension and OPEB plans. The Company does not have a required minimum funding contribution for its U.S.-based GE HealthCare Pension Plan in 2024. Future contributions will depend on market conditions, interest rates, and other factors.
Plan Funded Status
As of
December 31, 2023December 31, 2022
Principal Pension Plans
Other Pension Plans
OPEB Plans
Other Pension Plans
Change in projected benefit obligations
Balance at January 1$— $640 $— $940 
Transfers from GE at Spin-Off17,997 3,707 1,149 — 
Service cost32 23 6 19 
Interest cost952 209 59 17 
Participant contributions4 1 18 1 
Plan amendments
53 2 — — 
Actuarial loss (gain) – net493 221 50 (193)
Benefits paid(1,341)(359)(149)(38)
Curtailments(30)— — — 
Exchange rate adjustments— 144 — (43)
Balance at December 31$18,160 $4,588 $1,133 $703 
Change in plan assets
Balance at January 1$— $382 $— $553 
Transfers from GE at Spin-Off
14,838 4,046 — — 
Actual gain (loss) on plan assets1,057 189 — (101)
Employer contributions142 84 131 18 
Participant contributions4 1 18 1 
Benefits paid(1,341)(359)(149)(38)
Acquisitions/Divestitures/Mergers
— 1 — — 
Exchange rate adjustments— 174 — (8)
Balance at December 31$14,700 $4,518 $— $425 
Funded status – surplus (deficit)$(3,460)$(70)$(1,133)$(278)

Amounts Recorded in Consolidated and Combined Statements of Financial Position
As of
December 31, 2023December 31, 2022
Principal Pension Plans
Other Pension Plans
OPEB Plans
Other Pension Plans
All other assets
$— $712 $— $65 
All other current liabilities
(143)(47)(130)(16)
Compensation and benefits
(3,317)(735)(1,003)(327)
Net amount recorded$(3,460)$(70)$(1,133)$(278)

Pre-Tax Amounts Recorded in AOCI
As of
December 31, 2023December 31, 2022
Principal Pension PlansOther Pension Plans
OPEB Plans
Other Pension Plans
Net loss (gain)$(1,213)$1,075 $(482)$60 
Prior service cost (credit)(43)(18)(533)(5)
Total recorded in AOCI$(1,256)$1,057 $(1,015)$55 

The accumulated benefit obligation represents the actuarial present value of benefits based on employee service and compensation as of the measurement date and does not include an assumption about future compensation levels. The table below summarizes the total accumulated benefit obligation, the accumulated benefit obligation in excess of plan assets, and the projected benefit obligation and fair value of plan assets for the defined benefit pension plans with projected benefit obligation in excess of plan assets.
Plan Obligations in Excess of Plan Assets
As of
December 31, 2023
December 31, 2022
Accumulated benefit obligation$23,841 $687 
Plans with accumulated benefit obligation in excess of plan assets
Accumulated benefit obligation$20,774 $390 
Fair value of plan assets15,433 63 
Plans with projected benefit obligation in excess of plan assets
Projected benefit obligation$20,808 $406 
Fair value of plan assets15,433 63 

Components of Expense (Income)
For the years ended December 31
Principal Pension Plans
Other Pension Plans
OPEB Plans
20232023202220212023
Service cost – Operating$32 $23 $19 $24 $6 
Interest cost952 209 17 15 59 
Expected return on plan assets(1,170)(256)(27)(27)— 
Amortization of net loss (gain)(125)10 5 17 (64)
Amortization of prior service cost (credit)4 (3)(5)(4)(87)
Curtailment loss (gain)
17 — — — — 
Settlement loss (gain)
— 61 — — — 
Non-operating$(322)$21 $(10)$1 $(92)
Net periodic expense (income)$(290)$44 $9 $25 $(86)

In the third quarter of 2023, management approved an amendment to the U.S.-based GE HealthCare Pension Plan whereby the benefits for all remaining active employees will be frozen effective December 31, 2024, and additional benefit enhancements were provided. As a result, we recognized a non-cash pre-tax curtailment loss of approximately $17 million as non-operating benefit costs and an increase to our pension liability of $23 million. As a result of the plan changes, we remeasured the plan assets and the projected benefit obligation. These changes collectively decreased AOCI by $305 million in the Consolidated Statement of Financial Position.

In the fourth quarter of 2023, management approved and paid a one-time lump sum payment for certain terminated employees in two plans who were vested in their benefits. These lump sum settlements reduce our future cash requirements and premiums. As a result of the partial settlement of the pension liability, we recognized a non-cash pre-tax settlement charge. The settlement charge of $61 million represents a pro rata portion of unrecognized net loss recorded in AOCI and is recorded in Non-operating benefit (income) costs in the Consolidated Statement of Income.
Pre-tax Cost of Postretirement Benefit Plans and Changes in Other Comprehensive Income
For the years ended December 31
202320222021
Principal Pension Plans
Other Pension Plans
OPEB Plans
Other Pension Plans
Other Pension Plans
Cost of postretirement benefit plans$(290)$44 $(86)$9 $23 
Changes in other comprehensive loss (income):
Transfers from GE at Spin-Off
(1,989)740 (1,216)— — 
Plan amendments
53 — — — — 
Net loss (gain) – current year606 287 50 (74)(86)
Reclassifications out of AOCI:
Curtailment / settlement gain (loss)(47)(61)— — — 
Amortization of net loss (gain)
125 (10)64 (5)(16)
Amortization of prior service credit(4)3 87 5 4 
Total changes in other comprehensive loss (income)$(1,256)$959 $(1,015)$(74)$(98)
Cost (income) of postretirement benefit plans and changes in other comprehensive loss (income)$(1,546)$1,003 $(1,101)$(65)$(75)

Assumptions
For the years ended December 31
202320222021
Principal Pension Plans
Other Pension Plans
OPEB Plans
Other Pension Plans
Other Pension Plans
Weighted-average benefit obligations assumptions
Discount rate5.2 %4.5 %5.1 %4.3 %1.9 %
Compensation increases3.9 %3.1 %3.6 %3.0 %2.8 %
Weighted-average benefit cost assumptions
Discount rate5.5 %4.9 %5.4 %1.9 %1.4 %
Expected rate of return on plan assets7.0 %5.6 %— %6.3 %5.4 %

For the December 31, 2023 postretirement health care obligations remeasurement, the Company assumed a 6.5% initial weighted average rate of increase in the per capita cost of the various covered health care benefits, which applies primarily to non-Medicare eligible participants. The trend rate was assumed to decrease gradually to an ultimate rate of 5.0% in 2029 and remain at that level thereafter.

Assumptions Used in Calculations
Accounting requirements necessitate the use of assumptions to reflect the uncertainties and the length of time over which the pension obligations will be paid. The actual amount of future benefit payments will depend upon when participants retire, the amount of their benefit at retirement, and how long they live. To reflect the obligation in today’s U.S. dollars, we discount the future payments using a rate that matches the time frame over which the payments are expected to be made. We also assume a long-term rate of return that will be earned on investments used to fund these payments.

GE HealthCare engages third-party actuaries to assist in the determination of the pension and other postretirement plan assumptions. We evaluate these assumptions annually. We periodically evaluate other assumptions, such as retirement age, mortality, and turnover, and update them as necessary to reflect our actual experience and expectations for the future.

We determine the discount rate using the weighted average yields on high-quality fixed-income securities that have maturities consistent with the expected timing of benefit payments. Lower discount rates increase the size of the benefit obligations and generally increase pension expense in the following year; higher discount rates reduce the size of the benefit obligation and generally reduce subsequent-year pension expense.
The expected return on plan assets is the estimated long-term rate of return that will be earned on the investments used to fund the pension obligations. To determine this rate, we consider the current and target composition of plan investments, our historical returns earned, and our expectations about the future.

The compensation assumption is used to estimate the annual rate at which compensation of active plan participants will grow. If the rate of growth assumed increases, the size of the pension obligations will increase, as will the amount recorded in AOCI in our Consolidated and Combined Statements of Financial Position and amortized to earnings in subsequent periods.

With respect to the pension balances included on our Consolidated Statement of Financial Position as of December 31, 2023, we estimate that we will amortize $(116) million of net actuarial gain and $(81) million of prior service credit from AOCI into Non-operating benefit (income) cost in the Consolidated Statement of Income during 2024.

Expected Future Benefit Payments of Our Benefit Plans
Principal Pension Plans
Other Pension Plans
OPEB Plans
2024
$1,277 $226 $130 
2025
1,289 239 124 
2026
1,300 239 119 
2027
1,307 243 114 
2028
1,310 254 110 
2029-2033
6,449 1,334 454 

PENSION PLAN ASSETS.

The GE HealthCare Employee Benefits Investment Committee (the “Investment Committee”) oversees and monitors the investment of the assets of our U.S. funded pension plans. The Investment Committee retains independent investment managers and advisors and uses documented policies and procedures relating to investment goals, targeted asset allocations, risk management practices, allowable and prohibited investment holdings, diversification, use of derivatives, the relationship between plan assets and benefit obligations, the funded status of the plans, and other relevant factors and considerations.

The assets of our U.S. funded pension plans are invested in a portfolio that includes U.S. and international equity securities; U.S. government, agency and corporate debt securities; asset-backed debt securities; private equity; real estate and other alternative investments; as well as cash and cash equivalents and derivatives contracts. This combination of assets and derivatives is utilized to implement the investment strategies as well as for hedging asset and liability risks. The Investment Committee sets target allocation percentages at an asset class level, including permitted ranges above or below the target allocation percentages.

The plan assets for international plans are managed and allocated by the entities in each country.

The following tables summarize our pension plan financial instruments that are measured at fair value on a recurring basis. There are no plan assets associated with our OPEB Plans. The inputs and valuation techniques used to measure the fair value of the assets are consistent with the valuation methodologies we use to measure financial assets at fair value on a recurring basis, as described in Note 2, “Summary of Significant Accounting Policies.”
Composition of Plan Assets as of December 31, 2023
Principal Pension Plans
Other Pension Plans
Basis of fair value measurement
Basis of fair value measurement
Balance as of December 31, 2023
Level 1
Level 2
Level 3
Measured at NAV(1)
Balance as of December 31, 2023
Level 1
Level 2
Level 3
Measured at NAV(1)
Global equity securities$2,609 $954 $— $— $1,655 $467 $51 $1 $— $415 
Debt securities (including cash and cash equivalents)
8,121 866 6,309 — 946 2,977 239 2,203 — 535 
Real estate912 — — 382 530 508 — — 20 488 
Private equities and other investments3,058 — 9 213 2,836 566 — 1 11 554 
Fair value of plan assets
$14,700 $1,820 $6,318 $595 $5,967 $4,518 $290 $2,205 $31 $1,992 
(1) Certain assets that are measured at fair value using the NAV per share (or its equivalent), as a practical expedient, have not been classified in the fair value hierarchy.

Composition of Plan Assets as of December 31, 2022
Other Pension Plans
Basis of fair value measurement
Balance as of December 31, 2022
Level 1
Level 2
Level 3
Measured at NAV(1)
Global equity securities$67 $33 $— $— $34 
Debt securities (including cash and cash equivalents)
205 24 150 — 31 
Real estate25 — — 12 13 
Private equities and other investments128 3 7 49 69 
Fair value of plan assets
$425 $60 $157 $61 $147 
(1) Certain assets that are measured at fair value using the NAV per share (or its equivalent), as a practical expedient, have not been classified in the fair value hierarchy.

As of December 31, 2023 and 2022, the fair value of plan assets that used significant unobservable inputs (Level 3) was $626 million and $61 million, respectively. These assets primarily relate to real estate and private equity investments. The changes to the balances of Level 3 plan assets during 2023 were primarily a result of the transferred liabilities and assets to GE HealthCare on January 1, 2023. The changes to the balances of Level 3 plan assets during 2022 were not significant.

Weighted Average Asset Allocation of Pension Plans
2023 Target
2023 Actual
Principal Pension Plans
Other Pension Plans
Principal Pension Plans
Other Pension Plans
Global equity securities18 %11 %18 %10 %
Debt securities (including cash and cash equivalents)
54 %58 %55 %66 %
Real estate7 %17 %6 %11 %
Private equities and other instruments21 %14 %21 %13 %

DEFINED CONTRIBUTION PLAN.
As a result of the Spin-Off, GE HealthCare established a defined contribution plan for its eligible U.S. employees that was largely consistent with the plan they participated in while GE HealthCare operated as a business of GE. Expenses associated with our employees’ participation in GE HealthCare’s defined contribution plan in 2023 and GE’s defined contribution plan in 2022 and 2021 represent the employer matching contributions for GE HealthCare employees and were $122 million, $123 million and $119 million for the years ended December 31, 2023, 2022, and 2021, respectively.