Employee Benefit Plans

9 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

The Company sponsors defined benefit pension plans principally for salaried, management personnel. Beginning in 2020, the CSX Pension Plan is closed to new participants.

CSX also sponsors a non-contributory post-retirement medical plan and a life insurance plan that provide certain benefits to eligible employees hired prior to January 1, 2003. Beginning in 2019, both the life insurance benefit for eligible active employees and health savings account contributions made by the Company to eligible retirees younger than 65 were eliminated. Beginning in 2020, the employer-funded health reimbursement arrangements for eligible retirees 65 years or older have been eliminated. Independent actuaries compute the amounts of liabilities and expenses relating to these plans subject to the assumptions that the Company determines are appropriate based on historical trends, current market rates and future projections. These amounts are reviewed by management.

Only the service cost component of net periodic benefit costs is included in labor and fringe expense on the consolidated income statement. All other components of net periodic benefit cost are included in other income - net.

	Pension Benefits Cost
	Third Quarters				Nine Months
(Dollars in millions)	2020		2019		2020		2019
Service Cost Included in Labor and Fringe	$	10	$	8	$	30	$	24
Interest Cost	20		25		61		77
Expected Return on Plan Assets	(43)		(43)		(130)		(129)
Amortization of Net Loss	15		8		43		23
Total Included in Other Income - Net	(8)		(10)		(26)		(29)
Net Periodic Benefit Cost/(Credit)	$	2	$	(2)	$	4	$	(5)
	Other Post-retirement Benefits Cost
	Third Quarters				Nine Months
(Dollars in millions)	2020		2019		2020		2019
Service Cost Included in Labor and Fringe	$	—	$	—	$	1	$	1
Interest Cost	1		—		2		2
Amortization of Prior Service Costs	(2)		(2)		(5)		(5)
Total Included in Other Income - Net	(1)		(2)		(3)		(3)
Net Periodic Benefit Cost/(Credit)	$	(1)	$	(2)	$	(2)	$	(2)

    Qualified pension plan obligations are funded in accordance with regulatory requirements and with an objective of meeting or exceeding minimum funding requirements necessary to avoid restrictions on flexibility of plan operation and benefit payments. No contributions to the Company's qualified pension plans are expected in 2020.