PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

Dow and DuPont did not merge their pension plans and other postretirement benefit plans as a result of the Merger. See Note 3 for additional information on the Merger.

The following table provides the components of the Company's net periodic benefit cost for all significant plans:



Net Periodic Benefit Cost for All Significant Plans	Three Months Ended						Nine Months Ended
In millions	Sep 30, 2017			Sep 30, 2016			Sep 30, 2017			Sep 30, 2016
Defined Benefit Pension Plans:
Service cost	$	127		$	122		$	378		$	337
Interest cost	221			222			660			626
Expected return on plan assets	(388		)	(376		)	(1,156		)	(1,074		)
Amortization of prior service credit	(6		)	(6		)	(18		)	(18		)
Amortization of net loss	161			147			476			441
Curtailment/settlement ¹	—			—			(6		)	—
Net periodic benefit cost	$	115		$	109		$	334		$	312

Other Postretirement Benefits:
Service cost	$	3		$	3		$	9		$	9
Interest cost	14			14			41			38
Amortization of prior service credit	—			(1		)	—			(2		)
Amortization of net gain	(2		)	(1		)	(5		)	(5		)
Net periodic benefit cost	$	15		$	15		$	45		$	40


1.	The 2017 impact relates to the curtailment and settlement of a pension plan in South Korea.

The Company's funding policy is to contribute to defined benefit pension plans in the United States and a number of other countries when pension laws and/or economics either require or encourage funding. In the second quarter of 2017, the Company increased its estimate and expects to contribute approximately $520 million to its pension plans in 2017.

The provisions of a U.S. non-qualified pension plan require the payment of plan obligations to certain participants upon a change in control of the Company, which occurred when the Company merged with DuPont. As a result, in the third quarter of 2017, $793 million was reclassified from “Pension and other postretirement benefits - noncurrent” to “Accrued and other current liabilities” in the consolidated balance sheets. Certain participants can elect to receive a lump-sum payment or direct the Company to purchase an annuity on their behalf. In the fourth quarter of 2017, the Company expects to make payments of approximately $900 million and record a settlement charge of approximately $450 million, subject to fourth quarter participant annuity elections, which could materially impact the projected payments and settlement charge once known and quantifiable. All transactions are expected to be completed by December 31, 2017.

On October 6, 2017, the Company transferred $410 million to an insurance company in anticipation of annuity purchases for plan participants who will receive a lump sum distribution of their plan benefits as a result of the plan's change in control provision and who elect to direct Dow to purchase an annuity on their behalf using the after-tax proceeds of the lump sum.