Pension and Other Postretirement Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2012

General Discussion of Pension and Other Postretirement Benefits [Abstract]

Changes in benefit obligations and plan assets and funded status amounts

The following table presents the changes in benefit obligations, plan assets and funded status amounts reported on the Consolidated Balance Sheets for the Firm’s U.S. and non-U.S. defined benefit pension and OPEB plans.

	Defined benefit pension plans
As of or for the year ended December 31,	U.S.								Non-U.S.								OPEB plans(e)
(in millions)	2012				2011				2012				2011				2012			2011
Change in benefit obligation
Benefit obligation, beginning of year	$	(9,043	)		$	(8,320	)		$	(2,829	)		$	(2,600	)		$	(999	)	$	(980	)
Benefits earned during the year	(272		)		(249		)		(41		)		(36		)		(1		)	(1		)
Interest cost on benefit obligations	(466		)		(451		)		(126		)		(133		)		(44		)	(51		)
Plan amendments	—				—				6				—				—			—
WaMu Global Settlement	(1,425		)		—				—				—				—			—
Employee contributions	NA				NA				(5		)		(5		)		(74		)	(84		)
Net gain/(loss)	(864		)		(563		)		(244		)		(160		)		(9		)	(39		)
Benefits paid	592				540				108				93				149			166
Expected Medicare Part D subsidy receipts	NA				NA				NA				NA				(10		)	(10		)
Foreign exchange impact and other	—				—				(112		)		12				(2		)	—
Benefit obligation, end of year	$	(11,478	)		$	(9,043	)		$	(3,243	)		$	(2,829	)		$	(990	)	$	(999	)
Change in plan assets
Fair value of plan assets, beginning of year	$	10,472			$	10,828			$	2,989			$	2,647			$	1,435		$	1,381
Actual return on plan assets	1,292				147				237				277				142			78
Firm contributions	31				37				86				169				2			2
WaMu Global Settlement	1,809				—				—				—				—			—
Employee contributions	—				—				5				5				—			—
Benefits paid	(592		)		(540		)		(108		)		(93		)		(16		)	(26		)
Foreign exchange impact and other	—				—				121				(16		)		—			—
Fair value of plan assets, end of year	$	13,012		(b)(c)	$	10,472		(b)(c)	$	3,330		(c)	$	2,989		(c)	$	1,563		$	1,435
Funded/(unfunded) status(a)	$	1,534			$	1,429		(d)	$	87			$	160			$	573		$	436
Accumulated benefit obligation, end of year	$	(11,447	)		$	(9,008	)		$	(3,221	)		$	(2,800	)		NA			NA

(a) Represents overfunded plans with an aggregate balance of $2.8 billion and $2.6 billion at December 31, 2012 and 2011, respectively, and underfunded plans with an aggregate balance of $612 million and $621 million at December 31, 2012 and 2011, respectively.

(b) At December 31, 2012 and 2011, approximately $418 million and $426 million, respectively, of U.S. plan assets included participation rights under participating annuity contracts.

(c) At December 31, 2012 and 2011, defined benefit pension plan amounts not measured at fair value included $137 million and $50 million, respectively, of accrued receivables, and $310 million and $245 million, respectively, of accrued liabilities, for U.S. plans; and $47 million and $56 million, respectively, of accrued receivables, and $46 million and $69 million of accrued liabilities, respectively, for non-U.S. plans.

(d) Does not include any amounts attributable to the WaMu Pension Plan.

(e) Includes an unfunded accumulated postretirement benefit obligation of $31 million and $33 million at December 31, 2012 and 2011, respectively, for the U.K. plan.

Pretax pension and OPEB amounts recorded in AOCI

The following table presents pretax pension and OPEB amounts recorded in AOCI.

	Defined benefit pension plans
December 31,	U.S.						Non-U.S.						OPEB plans
(in millions)	2012			2011			2012			2011			2012			2011
Net gain/(loss)	$	(3,814	)	$	(3,669	)	$	(676	)	$	(544	)	$	(133	)	$	(176	)
Prior service credit/(cost)	237			278			18			12			1			1
Accumulated other comprehensive income/(loss), pretax, end of year	$	(3,577	)	$	(3,391	)	$	(658	)	$	(532	)	$	(132	)	$	(175	)

Components of net periodic benefit costs reported in the Consolidated Statements of Income and other comprehensive income

The following table presents the components of net periodic benefit costs reported in the Consolidated Statements of Income and other comprehensive income for the Firm’s U.S. and non-U.S. defined benefit pension, defined contribution and OPEB plans.

	Pension plans
	U.S.									Non-U.S.									OPEB plans
Year ended December 31, (in millions)	2012			2011			2010			2012			2011			2010			2012			2011			2010
Components of net periodic benefit cost
Benefits earned during the year	$	272		$	249		$	230		$	41		$	36		$	31		$	1		$	1		$	2
Interest cost on benefit obligations	466			451			468			126			133			128			44			51			55
Expected return on plan assets	(861		)	(791		)	(742		)	(137		)	(141		)	(126		)	(90		)	(88		)	(96		)
Amortization:
Net (gain)/loss	289			165			225			36			48			56			(1		)	1			(1		)
Prior service cost/(credit)	(41		)	(43		)	(43		)	—			(1		)	(1		)	—			(8		)	(13		)
Settlement (gain)/loss	—			—			—			—			—			1			—			—			—
Special termination benefits	—			—			—			—			—			1			—			—			—
Net periodic defined benefit cost	125			31			138			66			75			90			(46		)	(43		)	(53		)
Other defined benefit pension plans(a)	15			19			14			8			12			11			NA			NA			NA
Total defined benefit plans	140			50			152			74			87			101			(46		)	(43		)	(53		)
Total defined contribution plans	409			370			332			302			285			251			NA			NA			NA
Total pension and OPEB cost included in compensation expense	$	549		$	420		$	484		$	376		$	372		$	352		$	(46	)	$	(43	)	$	(53	)
Changes in plan assets and benefit obligations recognized in other comprehensive income
Net (gain)/loss arising during the year	$	434		$	1,207		$	(187	)	$	146		$	25		$	(21	)	$	(43	)	$	58		$	(54	)
Prior service credit arising during the year	—			—			—			(6		)	—			(10		)	—			—			—
Amortization of net loss	(289		)	(165		)	(225		)	(36		)	(48		)	(56		)	1			(1		)	1
Amortization of prior service (cost)/credit	41			43			43			—			1			1			—			8			13
Settlement loss/(gain)	—			—			—			—			—			(1		)	—			—			—
Foreign exchange impact and other	—			—			—			22			1			(23		)	(1		)	—			1
Total recognized in other comprehensive income	$	186		$	1,085		$	(369	)	$	126		$	(21	)	$	(110	)	$	(43	)	$	65		$	(39	)
Total recognized in net periodic benefit cost and other comprehensive income	$	311		$	1,116		$	(231	)	$	192		$	54		$	(20	)	$	(89	)	$	22		$	(92	)

(a) Includes various defined benefit pension plans which are individually immaterial.

Estimated pretax amounts that will be amortized from AOCI into net periodic benefit cost

The estimated pretax amounts that will be amortized from AOCI into net periodic benefit cost in 2013 are as follows.

	Defined benefit pension plans						OPEB plans
(in millions)	U.S.			Non-U.S.			U.S.		Non-U.S.
Net loss/(gain)	$	276		$	50		$	5	$	(1	)
Prior service cost/(credit)	(41		)	(2		)	—		—
Total	$	235		$	48		$	5	$	(1	)

Actual rate of return on plan assets

The following table presents the actual rate of return on plan assets for the U.S. and non-U.S. defined benefit pension and OPEB plans.

	U.S.						Non-U.S.
Year ended December 31,	2012		2011		2010		2012	2011	2010
Actual rate of return:
Defined benefit pension plans	12.66	%	0.72	%	12.23	%	7.21 - 11.72%	(4.29)-13.12%	0.77-10.65%
OPEB plans	10.10		5.22		11.23		NA	NA	NA

Weighted-average assumptions used to determine benefit obligations

Weighted-average assumptions used to determine benefit obligations
	U.S.				Non-U.S.
December 31,	2012		2011		2012	2011
Discount rate:
Defined benefit pension plans	3.90	%	4.60	%	1.40 - 4.40%	1.50-4.80%
OPEB plans	3.90		4.70		—	—
Rate of compensation increase	4.00		4.00		2.75 - 4.10	2.75-4.20
Health care cost trend rate:
Assumed for next year	7.00		7.00		—	—
Ultimate	5.00		5.00		—	—
Year when rate will reach ultimate	2017		2017		—	—

Weighted-average assumptions used to determine net periodic benefit costs

Weighted-average assumptions used to determine net periodic benefit costs
	U.S.						Non-U.S.
Year ended December 31,	2012		2011		2010		2012	2011	2010
Discount rate:
Defined benefit pension plans	4.60	%	5.50	%	6.00	%	1.50 - 4.80%	1.60-5.50%	2.00–5.70%
OPEB plans	4.70		5.50		6.00		—	—	—
Expected long-term rate of return on plan assets:
Defined benefit pension plans	7.50		7.50		7.50		2.50 - 4.60	2.40-5.40	2.40–6.20
OPEB plans	6.25		6.25		7.00		NA	NA	NA
Rate of compensation increase	4.00		4.00		4.00		2.75 - 4.20	3.00-4.50	3.00–4.50
Health care cost trend rate:
Assumed for next year	7.00		7.00		7.75		—	—	—
Ultimate	5.00		5.00		5.00		—	—	—
Year when rate will reach ultimate	2017		2017		2014		—	—	—

Effect of a one-percentage-point change in the assumed health care cost trend rate on the Firm's total service and interest cost and accumulated postretirement benefit obligation

The following table presents the effect of a one-percentage-point change in the assumed health care cost trend rate on JPMorgan Chase’s total service and interest cost and accumulated postretirement benefit obligation.

Year ended December 31, 2012 (in millions)	1-Percentage point increase		1-Percentage point decrease
Effect on total service and interest cost	$	1	$	(1	)
Effect on accumulated postretirement benefit obligation	28		(25		)

Weighted-average asset allocation of the fair values of total plan assets

The following table presents the weighted-average asset allocation of the fair values of total plan assets at December 31 for the years indicated, as well as the respective approved range/target allocation by asset category, for the Firm’s U.S. and non-U.S. defined benefit pension and OPEB plans.

	Defined benefit pension plans
	U.S.					Non-U.S.						OPEB plans(c)
	Target	% of plan assets				Target		% of plan assets				Target		% of plan assets
December 31,	Allocation	2012		2011		Allocation		2012		2011		Allocation		2012		2011
Asset category
Debt securities(a)	10-30%	20	%	20	%	70	%	72	%	74	%	50	%	50	%	50	%
Equity securities	25-60	41		39		29		27		25		50		50		50
Real estate	5-20	5		5		—		—		—		—		—		—
Alternatives(b)	15-50	34		36		1		1		1		—		—		—
Total	100%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%

(a) Debt securities primarily include corporate debt, U.S. federal, state, local and non-U.S. government, and mortgage-backed securities.

(b) Alternatives primarily include limited partnerships.

(c) Represents the U.S. OPEB plan only, as the U.K. OPEB plan is unfunded.

Pension and OPEB plan assets and liabilities measured at fair value

Pension and OPEB plan assets and liabilities measured at fair value
	U.S. defined benefit pension plans										Non-U.S. defined benefit pension plans
December 31, 2012 (in millions)	Level 1		Level 2			Level 3		Total fair value			Level 1			Level 2		Level 3		Total fair value
Cash and cash equivalents	$	162	$	—		$	—	$	162		$	142		$	—	$	—	$	142
Equity securities:
Capital equipment	702		6			—		708			115			15		—		130
Consumer goods	744		4			—		748			136			32		—		168
Banks and finance companies	425		54			—		479			94			23		—		117
Business services	424		—			—		424			125			8		—		133
Energy	192		—			—		192			54			12		—		66
Materials	211		—			—		211			30			6		—		36
Real Estate	18		—			—		18			10			—		—		10
Other	1,107		42			4		1,153			19			71		—		90
Total equity securities	3,823		106			4		3,933			583			167		—		750
Common/collective trust funds(a)	412		1,660			199		2,271			62			192		—		254
Limited partnerships:(b)
Hedge funds	—		878			1,166		2,044			—			—		—		—
Private equity	—		—			1,743		1,743			—			—		—		—
Real estate	—		—			467		467			—			—		—		—
Real assets(c)	—		—			311		311			—			—		—		—
Total limited partnerships	—		878			3,687		4,565			—			—		—		—
Corporate debt securities(d)	—		1,114			1		1,115			—			765		—		765
U.S. federal, state, local and non-U.S. government debt securities	—		537			—		537			—			1,237		—		1,237
Mortgage-backed securities	107		30			—		137			100			—		—		100
Derivative receivables	3		5			—		8			109			—		—		109
Other(e)	7		34			420		461			21			67		—		88
Total assets measured at fair value(f)(g)	$	4,514	$	4,364		$	4,311	$	13,189		$	1,017		$	2,428	$	—	$	3,445
Derivative payables	$	—	$	(4	)	$	—	$	(4	)	$	(116	)	$	—	$	—	$	(116	)
Total liabilities measured at fair value(h)	$	—	$	(4	)	$	—	$	(4	)	$	(116	)	$	—	$	—	$	(116	)

	U.S. defined benefit pension plans										Non-U.S. defined benefit pension plans
December 31, 2011 (in millions)	Level 1		Level 2			Level 3		Total fair value			Level 1		Level 2			Level 3		Total fair value
Cash and cash equivalents	$	117	$	—		$	—	$	117		$	72	$	—		$	—	$	72
Equity securities:
Capital equipment	607		7			—		614			69		12			—		81
Consumer goods	657		—			—		657			64		30			—		94
Banks and finance companies	301		2			—		303			83		13			—		96
Business services	332		—			—		332			48		10			—		58
Energy	173		—			—		173			52		10			—		62
Materials	161		—			1		162			35		6			—		41
Real estate	11		—			—		11			1		—			—		1
Other	766		274			—		1,040			160		5			—		165
Total equity securities	3,008		283			1		3,292			512		86			—		598
Common/collective trust funds(a)	401		1,125			202		1,728			138		170			—		308
Limited partnerships:(b)
Hedge funds	—		933			1,039		1,972			—		—			—		—
Private equity	—		—			1,367		1,367			—		—			—		—
Real estate	—		—			306		306			—		—			—		—
Real assets(c)	—		—			264		264			—		—			—		—
Total limited partnerships	—		933			2,976		3,909			—		—			—		—
Corporate debt securities(d)	—		544			2		546			—		958			—		958
U.S. federal, state, local and non-U.S. government debt securities	—		328			—		328			—		904			—		904
Mortgage-backed securities	122		36			—		158			17		—			—		17
Derivative receivables	1		2			—		3			—		7			—		7
Other(e)	102		60			427		589			74		65			—		139
Total assets measured at fair value(f)(g)	$	3,751	$	3,311		$	3,608	$	10,670		$	813	$	2,190		$	—	$	3,003
Derivative payables	$	—	$	(3	)	$	—	$	(3	)	$	—	$	(1	)	$	—	$	(1	)
Total liabilities measured at fair value(h)	$	—	$	(3	)	$	—	$	(3	)	$	—	$	(1	)	$	—	$	(1	)

(a) At December 31, 2012 and 2011, common/collective trust funds primarily included a mix of short-term investment funds, domestic and international equity investments (including index) and real estate funds.

(b) Unfunded commitments to purchase limited partnership investments for the plans were $1.4 billion and $1.2 billion for 2012 and 2011, respectively.

(c) Real assets include investments in productive assets such as agriculture, energy rights, mining and timber properties and exclude raw land to be developed for real estate purposes.

(d) Corporate debt securities include debt securities of U.S. and non-U.S. corporations.

(e) Other consists of exchange-traded funds and participating and non-participating annuity contracts. Exchange-traded funds are primarily classified within level 1 of the fair value hierarchy given they are valued using market observable prices. Participating and non-participating annuity contracts are classified within level 3 of the fair value hierarchy due to lack of market mechanisms for transferring each policy and surrender restrictions.

(f) At December 31, 2012 and 2011, the fair value of investments valued at NAV were $4.4 billion and $3.9 billion, respectively, which were classified within the valuation hierarchy as follows: $0.4 billion and $0.4 billion in level 1, $2.5 billion and $2.1 billion in level 2 and $1.5 billion and $1.4 billion in level 3.

(g) At December 31, 2012 and 2011, excluded U.S. defined benefit pension plan receivables for investments sold and dividends and interest receivables of $137 million and $50 million, respectively; and excluded non-U.S. defined benefit pension plan receivables for investments sold and dividends and interest receivables of $47 million and $56 million, respectively.

(h) At December 31, 2012 and 2011, excluded $306 million and $241 million, respectively, of U.S. defined benefit pension plan payables for investments purchased; and $4 million and $4 million, respectively, of other liabilities; and excluded non-U.S. defined benefit pension plan payables for investments purchased of $46 million and $69 million, respectively.

Changes in level 3 fair value measurements using significant unobservable inputs

Changes in level 3 fair value measurements using significant unobservable inputs
Year ended December 31, 2012 (in millions)	Fair value, January 1, 2012		Actual return on plan assets					Purchases, sales and settlements, net			Transfers in and/or out of level 3		Fair value, December 31, 2012
			Realized gains/(losses)		Unrealized gains/(losses)
U.S. defined benefit pension plans
Equities	$	1	$	—	$	(1	)	$	—		$	4	$	4
Common/collective trust funds	202		2		22			(27		)	—		199
Limited partnerships:
Hedge funds	1,039		1		71			55			—		1,166
Private equity	1,367		59		54			263			—		1,743
Real estate	306		16		1			144			—		467
Real assets	264		—		10			37			—		311
Total limited partnerships	2,976		76		136			499			—		3,687
Corporate debt securities	2		—		—			(1		)	—		1
Other	427		—		(7		)	—			—		420
Total U.S. plans	$	3,608	$	78	$	150		$	471		$	4	$	4,311
Non-U.S. defined benefit pension plans
Other	$	—	$	—	$	—		$	—		$	—	$	—
Total non-U.S. plans	$	—	$	—	$	—		$	—		$	—	$	—
OPEB plans
COLI	$	1,427	$	—	$	127		$	—		$	—	$	1,554
Total OPEB plans	$	1,427	$	—	$	127		$	—		$	—	$	1,554

Year ended December 31, 2011 (in millions)	Fair value, January 1, 2011		Actual return on plan assets						Purchases, sales and settlements, net			Transfers in and/or out of level 3			Fair value, December 31, 2011
			Realized gains/(losses)			Unrealized gains/(losses)
U.S. defined benefit pension plans
Equities	$	—	$	—		$	—		$	—		$	1		$	1
Common/collective trust funds	194		35			1			(28		)	—			202
Limited partnerships:
Hedge funds	1,160		(16		)	27			(76		)	(56		)	1,039
Private equity	1,232		56			2			77			—			1,367
Real estate	304		8			40			14			(60		)	306
Real assets	—		5			(7		)	150			116			264
Total limited partnerships	2,696		53			62			165			—			2,976
Corporate debt securities	1		—			—			1			—			2
Other	387		—			41			(1		)	—			427
Total U.S. plans	$	3,278	$	88		$	104		$	137		$	1		$	3,608
Non-U.S. defined benefit pension plans
Other	$	—	$	—		$	—		$	—		$	—		$	—
Total non-U.S. plans	$	—	$	—		$	—		$	—		$	—		$	—
OPEB plans
COLI	$	1,381	$	—		$	70		$	(24	)	$	—		$	1,427
Total OPEB plans	$	1,381	$	—		$	70		$	(24	)	$	—		$	1,427

Year ended December 31, 2010 (in millions)	Fair value, January 1, 2010		Actual return on plan assets						Purchases, sales and settlements, net			Transfers in and/or out of level 3		Fair value, December 31, 2010
			Realized gains/(losses)			Unrealized gains/(losses)
U.S. defined benefit pension plans
Equities	$	—	$	—		$	—		$	—		$	—	$	—
Common/collective trust funds(a)	284		—			(90		)	—			—		194
Limited partnerships:
Hedge funds	680		(1		)	14			388			79		1,160
Private equity	874		3			108			235			12		1,232
Real estate	196		3			16			89			—		304
Real assets	—		—			—			—			—		—
Total limited partnerships	1,750		5			138			712			91		2,696
Corporate debt securities	—		—			—			—			1		1
Other	334		—			53			—			—		387
Total U.S. plans	$	2,368	$	5		$	101		$	712		$	92	$	3,278
Non-U.S. defined benefit pension plans
Other	$	13	$	—		$	(1	)	$	(12	)	$	—	$	—
Total non-U.S. plans	$	13	$	—		$	(1	)	$	(12	)	$	—	$	—
OPEB plans
COLI	$	1,269	$	—		$	137		$	(25	)	$	—	$	1,381
Total OPEB plans	$	1,269	$	—		$	137		$	(25	)	$	—	$	1,381

(a) The prior period has been revised to consider redemption notification periods in determining the classification of investments within the fair value hierarchy.

Estimated future benefit payments

The following table presents benefit payments expected to be paid, which include the effect of expected future service, for the years indicated. The OPEB medical and life insurance payments are net of expected retiree contributions.

Year ended December 31, (in millions)	U.S. defined benefit pension plans		Non-U.S. defined benefit pension plans		OPEB before Medicare Part D subsidy		Medicare Part D subsidy
2013	$	1,159	$	102	$	92	$	11
2014	1,162		101		91		12
2015	705		108		89		13
2016	709		110		87		14
2017	711		112		84		14
Years 2018–2022	3,555		626		376		65