Pension and Other Postretirement Employee Benefit Plans

12 Months Ended

Dec. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Pension and other postretirement employee benefit plans

Pension and other postretirement employee benefit plans

The Firm’s defined benefit pension plans and its other postretirement employee benefit (“OPEB”) plans are accounted for in accordance with U.S. GAAP for retirement benefits.

Defined benefit pension plans

The Firm has a qualified noncontributory U.S. defined benefit pension plan that provides benefits to substantially all U.S. employees. The U.S. plan employs a cash balance formula in the form of pay and interest credits to determine the benefits to be provided at retirement, based on years of service and eligible compensation (generally base pay capped at $100,000 annually; effective January 1, 2015, in addition to base pay, eligible compensation will include certain other types of variable incentive compensation capped at $100,000 annually). Employees begin to accrue plan benefits after completing one year of service, and benefits generally vest after three years of service. The Firm also offers benefits through defined benefit pension plans to qualifying employees in certain non-U.S. locations based on factors such as eligible compensation, age and/or years of service.

It is the Firm’s policy to fund the pension plans in amounts sufficient to meet the requirements under applicable laws. The Firm does not anticipate at this time any contribution to the U.S. defined benefit pension plan in 2015. The 2015 contributions to the non-U.S. defined benefit pension plans are expected to be $47 million of which $31 million are contractually required.

JPMorgan Chase also has a number of defined benefit pension plans that are not subject to Title IV of the Employee Retirement Income Security Act. The most significant of these plans is the Excess Retirement Plan, pursuant to which certain employees previously earned pay credits on compensation amounts above the maximum stipulated by law under a qualified plan; no further pay credits are allocated under this plan. The Excess Retirement Plan had an unfunded projected benefit obligation (“PBO”) in the amount of $257 million and $245 million, at December 31, 2014 and 2013, respectively.

Defined contribution plans

JPMorgan Chase currently provides two qualified defined contribution plans in the U.S. and other similar arrangements in certain non-U.S. locations, all of which are administered in accordance with applicable local laws and regulations. The most significant of these plans is The JPMorgan Chase 401(k) Savings Plan (the “401(k) Savings Plan”), which covers substantially all U.S. employees. Employees can contribute to the 401(k) Savings Plan on a pretax and/or Roth 401(k) after-tax basis. The JPMorgan Chase Common Stock Fund, which is an investment option under the 401(k) Savings Plan, is a nonleveraged employee stock ownership plan.

The Firm matches eligible employee contributions up to 5% of eligible compensation (generally base pay; effective January 1, 2015, in addition to base pay, eligible compensation will include certain other types of variable incentive compensation) on an annual basis. Employees begin to receive matching contributions after completing a one-year-of-service requirement. Employees with total annual cash compensation of $250,000 or more are not eligible for matching contributions. Matching contributions vest after three years of service for employees hired on or after May 1, 2009. The 401(k) Savings Plan also permits discretionary profit-sharing contributions by participating companies for certain employees, subject to a specified vesting schedule.

OPEB plans

JPMorgan Chase offers postretirement medical and life insurance benefits to certain retirees and postretirement medical benefits to qualifying U.S. employees. These benefits vary with the length of service and the date of hire and provide for limits on the Firm’s share of covered medical benefits. The medical and life insurance benefits are both contributory. Postretirement medical benefits also are offered to qualifying United Kingdom (“U.K.”) employees.

JPMorgan Chase’s U.S. OPEB obligation is funded with corporate-owned life insurance (“COLI”) purchased on the lives of eligible employees and retirees. While the Firm owns the COLI policies, COLI proceeds (death benefits, withdrawals and other distributions) may be used only to reimburse the Firm for its net postretirement benefit claim payments and related administrative expense. The U.K. OPEB plan is unfunded.

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(d)
(in millions)	2014			2013				2014			2013			2014			2013
Change in benefit obligation
Benefit obligation, beginning of year	$	(10,776	)	$	(11,478	)		$	(3,433	)	$	(3,243	)	$	(826	)	$	(990	)
Benefits earned during the year	(281		)	(314		)		(33		)	(34		)	—			(1		)
Interest cost on benefit obligations	(534		)	(447		)		(137		)	(125		)	(38		)	(35		)
Plan amendments	(53		)	—				—			—			—			—
Special termination benefits	—			—				(1		)	—			—			—
Curtailments	—			—				—			—			(3		)	—
Employee contributions	NA			NA				(7		)	(7		)	(62		)	(72		)
Net gain/(loss)	(1,669		)	794				(408		)	(62		)	(58		)	138
Benefits paid	777			669				119			106			145			144
Expected Medicare Part D subsidy receipts	NA			NA				NA			NA			(2		)	(10		)
Foreign exchange impact and other	—			—				260			(68		)	2			—
Benefit obligation, end of year	$	(12,536	)	$	(10,776	)		$	(3,640	)	$	(3,433	)	$	(842	)	$	(826	)
Change in plan assets
Fair value of plan assets, beginning of year	$	14,354		$	13,012			$	3,532		$	3,330		$	1,757		$	1,563
Actual return on plan assets	1,010			1,979				518			187			159			211
Firm contributions	36			32				46			45			3			2
Employee contributions	—			—				7			7			—			—
Benefits paid	(777		)	(669		)		(119		)	(106		)	(16		)	(19		)
Foreign exchange impact and other	—			—				(266		)	69			—			—
Fair value of plan assets, end of year	$	14,623		$	14,354		(b)(c)	$	3,718		$	3,532		$	1,903		$	1,757
Net funded status(a)	$	2,087		$	3,578			$	78		$	99		$	1,061		$	931
Accumulated benefit obligation, end of year	$	(12,375	)	$	(10,685	)		$	(3,615	)	$	(3,406	)	NA			NA

(a) Represents plans with an aggregate overfunded balance of $3.9 billion and $5.1 billion at December 31, 2014 and 2013, respectively, and plans with an aggregate underfunded balance of $708 million and $540 million at December 31, 2014 and 2013, respectively.

(b) At December 31, 2014 and 2013, approximately $336 million and $429 million, respectively, of U.S. plan assets included participation rights under participating annuity contracts.

(c) At December 31, 2014 and 2013, defined benefit pension plan amounts not measured at fair value included $106 million and $96 million, respectively, of accrued receivables, and $257 million and $104 million, respectively, of accrued liabilities, for U.S. plans.

(d) Includes an unfunded accumulated postretirement benefit obligation of $37 million and $34 million at December 31, 2014 and 2013, respectively, for the U.K. plan.

Gains and losses

For the Firm’s defined benefit pension plans, fair value is used to determine the expected return on plan assets. Amortization of net gains and losses is included in annual net periodic benefit cost if, as of the beginning of the year, the net gain or loss exceeds 10% of the greater of the PBO or the fair value of the plan assets. Any excess is amortized over the average future service period of defined benefit pension plan participants, which for the U.S. defined benefit pension plan is currently seven years. In addition, prior service costs are amortized over the average remaining service period of active employees expected to receive benefits under the plan when the prior service cost is first recognized. The average remaining amortization period for current prior service costs is five years.

For the Firm’s OPEB plans, a calculated value that recognizes changes in fair value over a five-year period is used to determine the expected return on plan assets. This value is referred to as the market related value of assets. Amortization of net gains and losses, adjusted for gains and losses not yet recognized, is included in annual net periodic benefit cost if, as of the beginning of the year, the net gain or loss exceeds 10% of the greater of the accumulated postretirement benefit obligation or the market related value of assets. Any excess net gain or loss is amortized over the average expected lifetime of retired participants, which is currently twelve years; however, prior service costs resulting from plan changes are amortized over the average years of service remaining to full eligibility age, which is currently two years.

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)	2014			2013			2014			2013			2014		2013
Net gain/(loss)	$	(3,346	)	$	(1,726	)	$	(628	)	$	(658	)	$	130	$	125
Prior service credit/(cost)	102			196			11			14			—		1
Accumulated other comprehensive income/(loss), pretax, end of year	$	(3,244	)	$	(1,530	)	$	(617	)	$	(644	)	$	130	$	126

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)	2014			2013			2012			2014				2013				2012				2014			2013			2012
Components of net periodic benefit cost
Benefits earned during the year	$	281		$	314		$	272		$	33			$	34			$	41			$	—		$	1		$	1
Interest cost on benefit obligations	534			447			466			137				125				126				38			35			44
Expected return on plan assets	(985		)	(956		)	(861		)	(172		)		(142		)		(137		)		(101		)	(92		)	(90		)
Amortization:
Net (gain)/loss	25			271			289			47				49				36				—			1			(1		)
Prior service cost/(credit)	(41		)	(41		)	(41		)	(2		)		(2		)		—				(1		)	—			—
Net periodic defined benefit cost	(186		)	35			125			43				64				66				(64		)	(55		)	(46		)
Other defined benefit pension plans(a)	14			15			15			6				14				8				NA			NA			NA
Total defined benefit plans	(172		)	50			140			49				78				74				(64		)	(55		)	(46		)
Total defined contribution plans	438			447			409			329				321				302				NA			NA			NA
Total pension and OPEB cost included in compensation expense	$	266		$	497		$	549		$	378			$	399			$	376			$	(64	)	$	(55	)	$	(46	)
Changes in plan assets and benefit obligations recognized in other comprehensive income
Net (gain)/loss arising during the year	$	1,645		$	(1,817	)	$	434		$	57			$	19			$	146			$	(5	)	$	(257	)	$	(43	)
Prior service credit arising during the year	53			—			—			—				—				(6		)		—			—			—
Amortization of net loss	(25		)	(271		)	(289		)	(47		)		(49		)		(36		)		—			(1		)	1
Amortization of prior service (cost)/credit	41			41			41			2				2				—				1			—			—
Foreign exchange impact and other	—			—			—			(39		)	(a)	14			(a)	22			(a)	—			—			(1		)
Total recognized in other comprehensive income	$	1,714		$	(2,047	)	$	186		$	(27	)		$	(14	)		$	126			$	(4	)	$	(258	)	$	(43	)
Total recognized in net periodic benefit cost and other comprehensive income	$	1,528		$	(2,012	)	$	311		$	16			$	50			$	192			$	(68	)	$	(313	)	$	(89	)

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

The estimated pretax amounts that will be amortized from AOCI into net periodic benefit cost in 2015 are as follows.

	Defined benefit pension plans						OPEB plans
(in millions)	U.S.			Non-U.S.			U.S.		Non-U.S.
Net loss/(gain)	$	257		$	37		$	—	$	—
Prior service cost/(credit)	(34		)	(2		)	—		—
Total	$	223		$	35		$	—	$	—

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,	2014		2013		2012		2014	2013	2012
Actual rate of return:
Defined benefit pension plans	7.29	%	15.95	%	12.66	%	5.62 - 17.69%	3.74 - 23.80%	7.21 - 11.72%
OPEB plans	9.84		13.88		10.10		NA	NA	NA

Plan assumptions

JPMorgan Chase’s expected long-term rate of return for U.S. defined benefit pension and OPEB plan assets is a blended average of the investment advisor’s projected long-term (10 years or more) returns for the various asset classes, weighted by the asset allocation. Returns on asset classes are developed using a forward-looking approach and are not strictly based on historical returns. Equity returns are generally developed as the sum of inflation, expected real earnings growth and expected long-term dividend yield. Bond returns are generally developed as the sum of inflation, real bond yield and risk spread (as appropriate), adjusted for the expected effect on returns from changing yields. Other asset-class returns are derived from their relationship to the equity and bond markets. Consideration is also given to current market conditions and the short-term portfolio mix of each plan.

For the U.K. defined benefit pension plans, which represent the most significant of the non-U.S. defined benefit pension plans, procedures similar to those in the U.S. are used to develop the expected long-term rate of return on plan assets, taking into consideration local market conditions and the specific allocation of plan assets. The expected long-term rate of return on U.K. plan assets is an average of projected long-term returns for each asset class. The return on equities has been selected by reference to the yield on long-term U.K. government bonds plus an equity risk premium above the risk-free rate. The expected return on “AA” rated long-term corporate bonds is based on an implied yield for similar bonds.

The discount rate used in determining the benefit obligation under the U.S. defined benefit pension and OPEB plans was selected by reference to the yields on portfolios of bonds with maturity dates and coupons that closely match each of the plan’s projected cash flows; such portfolios are derived from a broad-based universe of high-quality corporate bonds as of the measurement date. In years in which these hypothetical bond portfolios generate excess cash, such excess is assumed to be reinvested at the one-year forward rates implied by the Citigroup Pension Discount Curve published as of the measurement date. The discount rate for the U.K. defined benefit pension plan represents a rate of appropriate duration from the analysis of yield curves provided by our actuaries.

In 2014, the Society of Actuaries (“SOA”) completed a comprehensive review of mortality experience of uninsured private retirement plans in the U.S. In October 2014, the SOA published new mortality tables and a new mortality improvement scale that reflects improved life expectancies and an expectation that this trend will continue. The Firm has adopted the SOA’s tables and projection scale, resulting in an estimated increase in PBO of $533 million.

At December 31, 2014, the Firm decreased the discount rates used to determine its benefit obligations for the U.S. defined benefit pension and OPEB plans in light of current market interest rates, which will result in an increase in expense of approximately $139 million for 2015. The 2015 expected long-term rate of return on U.S. defined benefit pension plan assets and U.S. OPEB plan assets are 6.50% and 6.00%, respectively. For 2015, the initial health care benefit obligation trend assumption has been set at 6.00%, and the ultimate health care trend assumption and the year to reach the ultimate rate remains at 5.00% and 2017, respectively, unchanged from 2014. As of December 31, 2014, the interest crediting rate assumption and the assumed rate of compensation increase remained at 5.00% and 3.50%, respectively.

The following tables present the weighted-average annualized actuarial assumptions for the projected and accumulated postretirement benefit obligations, and the components of net periodic benefit costs, for the Firm’s significant U.S. and non-U.S. defined benefit pension and OPEB plans, as of and for the periods indicated.

Weighted-average assumptions used to determine benefit obligations
	U.S.				Non-U.S.
December 31,	2014		2013		2014	2013
Discount rate:
Defined benefit pension plans	4.00	%	5.00	%	1.00 - 3.60%	1.10 - 4.40%
OPEB plans	4.10		4.90		—	—
Rate of compensation increase	3.50		3.50		2.75 - 4.20	2.75 - 4.60
Health care cost trend rate:
Assumed for next year	6.00		6.50		—	—
Ultimate	5.00		5.00		—	—
Year when rate will reach ultimate	2017		2017		—	—

Weighted-average assumptions used to determine net periodic benefit costs
	U.S.						Non-U.S.
Year ended December 31,	2014		2013		2012		2014	2013	2012
Discount rate:
Defined benefit pension plans	5.00	%	3.90	%	4.60	%	1.10 - 4.40%	1.40 - 4.40%	1.50 - 4.80%
OPEB plans	4.90		3.90		4.70		—	—	—
Expected long-term rate of return on plan assets:
Defined benefit pension plans	7.00		7.50		7.50		1.20 - 5.30	2.40 - 4.90	2.50 - 4.60
OPEB plans	6.25		6.25		6.25		NA	NA	NA
Rate of compensation increase	3.50		4.00		4.00		2.75 - 4.60	2.75 - 4.10	2.75 - 4.20
Health care cost trend rate:
Assumed for next year	6.50		7.00		7.00		—	—	—
Ultimate	5.00		5.00		5.00		—	—	—
Year when rate will reach ultimate	2017		2017		2017		—	—	—

The following table presents the effect of a one-percentage-point change in the assumed health care cost trend rate on JPMorgan Chase’s accumulated postretirement benefit obligation. As of December 31, 2014, there was no material effect on total service and interest cost.

Year ended December 31, 2014 (in millions)	1-Percentage point increase		1-Percentage point decrease
Effect on accumulated postretirement benefit obligation	$	9	$	(8	)

JPMorgan Chase’s U.S. defined benefit pension and OPEB plan expense is sensitive to the expected long-term rate of return on plan assets and the discount rate. With all other assumptions held constant, a 25-basis point decline in the expected long-term rate of return on U.S. plan assets would result in an aggregate increase of approximately $40 million in 2015 U.S. defined benefit pension and OPEB plan expense. A 25-basis point decline in the discount rate for the U.S. plans would result in an increase in 2015 U.S. defined benefit pension and OPEB plan expense of approximately an aggregate $36 million and an increase in the related benefit obligations of approximately an aggregate $333 million. A 25-basis point decrease in the interest crediting rate for the U.S. defined benefit pension plan would result in a decrease in 2015 U.S. defined benefit pension expense of approximately $36 million and a decrease in the related PBO of approximately $148 million. A 25-basis point decline in the discount rates for the non-U.S. plans would result in an increase in the 2015 non-U.S. defined benefit pension plan expense of approximately $19 million.

Investment strategy and asset allocation

The Firm’s U.S. defined benefit pension plan assets are held in trust and are invested in a well-diversified portfolio of equity and fixed income securities, cash and cash equivalents, and alternative investments (e.g., hedge funds, private equity, real estate and real assets). Non-U.S. defined benefit pension plan assets are held in various trusts and are also invested in well-diversified portfolios of equity, fixed income and other securities. Assets of the Firm’s COLI policies, which are used to partially fund the U.S. OPEB plan, are held in separate accounts of an insurance company and are allocated to investments intended to replicate equity and fixed income indices.

The investment policy for the Firm’s U.S. defined benefit pension plan assets is to optimize the risk-return relationship as appropriate to the needs and goals of the plan using a global portfolio of various asset classes diversified by market segment, economic sector, and issuer. Assets are managed by a combination of internal and external investment managers. Periodically the Firm performs a comprehensive analysis on the U.S. defined benefit pension plan asset allocations, incorporating projected asset and liability data, which focuses on the short- and long-term impact of the asset allocation on cumulative pension expense, economic cost, present value of contributions and funded status. As the U.S. defined benefit pension plan is overfunded, the investment strategy for this plan was adjusted in 2013 to provide for greater liquidity.Currently, approved asset allocation ranges are: U.S. equity 0% to 45%, international equity 0% to 40%, debt securities 0% to 80%, hedge funds 0% to 5%, real estate 0% to 10%, real assets 0% to 10% and private equity 0% to 20%. Asset allocations are not managed to a specific target but seek to shift asset class allocations within these stated ranges. Investment strategies incorporate the economic outlook and the anticipated implications of the macroeconomic environment on the various asset classes while maintaining an appropriate level of liquidity for the plan. The Firm regularly reviews the asset allocations and asset managers, as well as other factors that impact the portfolio, which is rebalanced when deemed necessary.

For the U.K. defined benefit pension plans, which represent the most significant of the non-U.S. defined benefit pension plans, the assets are invested to maximize returns subject to an appropriate level of risk relative to the plans’ liabilities. In order to reduce the volatility in returns relative to the plans’ liability profiles, the U.K. defined benefit pension plans’ largest asset allocations are to debt securities of appropriate durations. Other assets, mainly equity securities, are then invested for capital appreciation, to provide long-term investment growth. Similar to the U.S. defined benefit pension plan, asset allocations and asset managers for the U.K. plans are reviewed regularly and the portfolio is rebalanced when deemed necessary.

Investments held by the Plans include financial instruments which are exposed to various risks such as interest rate, market and credit risks. Exposure to a concentration of credit risk is mitigated by the broad diversification of both U.S. and non-U.S. investment instruments. Additionally, the investments in each of the common/collective trust funds and registered investment companies are further diversified into various financial instruments. As of December 31, 2014, assets held by the Firm’s U.S. and non-U.S. defined benefit pension and OPEB plans do not include JPMorgan Chase common stock, except through indirect exposures through investments in third-party stock-index funds. The plans hold investments in funds that are sponsored or managed by affiliates of JPMorgan Chase in the amount of $3.7 billionand$2.9 billion for U.S. plans and $1.4 billion and $242 million for non-U.S. plans, as of December 31, 2014 and 2013, respectively.

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	2014		2013		Allocation		2014		2013		Allocation		2014		2013
Asset category
Debt securities(a)	0-80%	31	%	25	%	62	%	61	%	63	%	30-70%		50	%	50	%
Equity securities	0-85	46		48		37		38		36		30-70		50		50
Real estate	0-10	4		4		—		—		—		—		—		—
Alternatives(b)	0-35	19		23		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.

Fair value measurement of the plans’ assets and liabilities

For information on fair value measurements, including descriptions of level 1, 2, and 3 of the fair value hierarchy and the valuation methods employed by the Firm, see Note 3.

Pension and OPEB plan assets and liabilities measured at fair value
	U.S. defined benefit pension plans											Non-U.S. defined benefit pension plans(i)
December 31, 2014 (in millions)	Level 1		Level 2			Level 3		Total fair value				Level 1		Level 2			Total fair value
Cash and cash equivalents	$	87	$	—		$	—	$	87			$	128	$	1		$	129
Equity securities:
Capital equipment	1,249		—			—		1,249				96		24			120
Consumer goods	1,198		8			—		1,206				250		32			282
Banks and finance companies	778		7			—		785				279		31			310
Business services	458		—			—		458				277		18			295
Energy	267		—			—		267				50		15			65
Materials	319		1			—		320				40		9			49
Real Estate	46		—			—		46				1		—			1
Other	971		4			4		979				26		40			66
Total equity securities	5,286		20			4		5,310				1,019		169			1,188
Common/collective trust funds(a)	345		1,277			8		1,630				112		251			363
Limited partnerships:(b)
Hedge funds	—		26			77		103				—		—			—
Private equity	—		—			2,208		2,208				—		—			—
Real estate	—		—			533		533				—		—			—
Real assets(c)	70		—			202		272				—		—			—
Total limited partnerships	70		26			3,020		3,116				—		—			—
Corporate debt securities(d)	—		1,454			9		1,463				—		724			724
U.S. federal, state, local and non-U.S. government debt securities	446		161			—		607				235		540			775
Mortgage-backed securities	1		73			1		75				2		77			79
Derivative receivables	—		114			—		114				—		258			258
Other(e)	2,031		27			337		2,395				283		58			341
Total assets measured at fair value(f)	$	8,266	$	3,152		$	3,379	$	14,797		(g)	$	1,779	$	2,078		$	3,857
Derivative payables	$	—	$	(23	)	$	—	$	(23	)		$	—	$	(139	)	$	(139	)
Total liabilities measured at fair value	$	—	$	(23	)	$	—	$	(23	)	(h)	$	—	$	(139	)	$	(139	)

	U.S. defined benefit pension plans											Non-U.S. defined benefit pension plans(i)
December 31, 2013 (in millions)	Level 1		Level 2			Level 3		Total fair value				Level 1		Level 2			Total fair value
Cash and cash equivalents	$	62	$	—		$	—	$	62			$	221	$	3		$	224
Equity securities:
Capital equipment	1,084		—			—		1,084				86		17			103
Consumer goods	1,085		—			—		1,085				225		50			275
Banks and finance companies	737		—			—		737				233		29			262
Business services	510		—			—		510				209		14			223
Energy	292		—			—		292				64		20			84
Materials	344		—			—		344				36		9			45
Real estate	38		—			—		38				—		1			1
Other	1,337		18			4		1,359				25		103			128
Total equity securities	5,427		18			4		5,449				878		243			1,121
Common/collective trust funds(a)	—		1,308			4		1,312				98		248			346
Limited partnerships:(b)
Hedge funds	—		355			718		1,073				—		—			—
Private equity	—		—			1,969		1,969				—		—			—
Real estate	—		—			558		558				—		—			—
Real assets(c)	—		—			271		271				—		—			—
Total limited partnerships	—		355			3,516		3,871				—		—			—
Corporate debt securities(d)	—		1,223			7		1,230				—		787			787
U.S. federal, state, local and non-U.S. government debt securities	343		299			—		642				—		777			777
Mortgage-backed securities	37		50			—		87				73		—			73
Derivative receivables	—		30			—		30				—		302			302
Other(e)	1,214		41			430		1,685				148		52			200
Total assets measured at fair value(f)	$	7,083	$	3,324		$	3,961	$	14,368		(g)	$	1,418	$	2,412		$	3,830
Derivative payables	$	—	$	(6	)	$	—	$	(6	)		$	—	$	(298	)	$	(298	)
Total liabilities measured at fair value	$	—	$	(6	)	$	—	$	(6	)	(h)	$	—	$	(298	)	$	(298	)

(a) At December 31, 2014 and 2013, 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 $1.2 billion and $1.6 billion for 2014 and 2013, 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 money markets, exchange-traded funds and participating and non-participating annuity contracts. Money markets and 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, 2014 and 2013, the fair value of investments valued at NAV were $2.1 billion and $2.7 billion, respectively, which were classified within the valuation hierarchy as follows: $500 million and $100 million in level 1, $1.6 billion and $1.9 billion in level 2, zero and $700 million in level 3.

(g) At December 31, 2014 and 2013, excluded U.S. defined benefit pension plan receivables for investments sold and dividends and interest receivables of $106 million and $96 million, respectively.

(h) At December 31, 2014 and 2013, excluded $241 million and $102 million, respectively, of U.S. defined benefit pension plan payables for investments purchased; and $16 million and $2 million, respectively, of other liabilities.

(i) There were no assets or liabilities classified as level 3 for the non-U.S. defined benefit pension plans as of December 31, 2014 and 2013.

The Firm’s U.S. OPEB plan was partially funded with COLI policies of $1.9 billion and $1.7 billion at December 31, 2014 and 2013, respectively, which were classified in level 3 of the valuation hierarchy.

Changes in level 3 fair value measurements using significant unobservable inputs
Year ended December 31, 2014 (in millions)	Fair value, January 1, 2014		Actual return on plan assets						Purchases, sales and settlements, net			Transfers in and/or out of level 3			Fair value, December 31, 2014
			Realized gains/(losses)			Unrealized gains/(losses)
U.S. defined benefit pension plans
Equities	$	4	$	—		$	—		$	—		$	—		$	4
Common/collective trust funds	4		—			1			3			—			8
Limited partnerships:
Hedge funds	718		193			(180		)	(662		)	8			77
Private equity	1,969		192			173			(126		)	—			2,208
Real estate	558		29			36			(90		)	—			533
Real assets	271		27			(6		)	(90		)	—			202
Total limited partnerships	3,516		441			23			(968		)	8			3,020
Corporate debt securities	7		(2		)	2			4			(2		)	9
Mortgage-backed securities	—		—			—			1			—			1
Other	430		—			(93		)	—			—			337
Total U.S. defined benefit pension plans	$	3,961	$	439		$	(67	)	$	(960	)	$	6		$	3,379
OPEB plans
COLI	$	1,749	$	—		$	154		$	—		$	—		$	1,903
Total OPEB plans	$	1,749	$	—		$	154		$	—		$	—		$	1,903

Year ended December 31, 2013 (in millions)	Fair value, January 1, 2013		Actual return on plan assets					Purchases, sales and settlements, net			Transfers in and/or out of level 3			Fair value, December 31, 2013
			Realized gains/(losses)		Unrealized gains/(losses)
U.S. defined benefit pension plans
Equities	$	4	$	—	$	—		$	—		$	—		$	4
Common/collective trust funds	199		59		(32		)	(222		)	—			4
Limited partnerships:
Hedge funds	1,166		137		14			(593		)	(6		)	718
Private equity	1,743		108		170			(4		)	(48		)	1,969
Real estate	467		21		44			26			—			558
Real assets	311		4		12			(98		)	42			271
Total limited partnerships	3,687		270		240			(669		)	(12		)	3,516
Corporate debt securities	1		—		—			—			6			7
Mortgage-backed securities	—		—		—			—			—			—
Other	420		—		10			—			—			430
Total U.S. defined benefit pension plans	$	4,311	$	329	$	218		$	(891	)	$	(6	)	$	3,961
OPEB plans
COLI	$	1,554	$	—	$	195		$	—		$	—		$	1,749
Total OPEB plans	$	1,554	$	—	$	195		$	—		$	—		$	1,749

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
Mortgage-backed securities	—		—		—			—			—		—
Other	427		—		(7		)	—			—		420
Total U.S. defined benefit pension plans	$	3,608	$	78	$	150		$	471		$	4	$	4,311
OPEB plans
COLI	$	1,427	$	—	$	127		$	—		$	—	$	1,554
Total OPEB plans	$	1,427	$	—	$	127		$	—		$	—	$	1,554

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
2015	$	712	$	110	$	73	$	1
2016	765		113		71		1
2017	899		118		70		1
2018	926		128		68		1
2019	966		132		66		1
Years 2020–2024	4,357		746		293		5