Employee Benefits

9 Months Ended

Sep. 30, 2012

Employee Benefits

Employee Benefits

11. Employee Benefits

The following table provides the components of the net periodic benefit cost for Aon's U.S. pension plans, along with its most significant international pension plans, which are located in the U.K., the Netherlands, and Canada (in millions):

	ThreemonthsendedSeptember30,
	U.S.						International
	2012			2011			2012			2011
Service cost	$	-		$	-		$	4		$	5
Interest cost	29			31			66			67
Expected return on plan assets	(31		)	(30		)	(80		)	(73		)
Amortization of net actuarial loss	10			8			15			14
Net periodic benefit cost	$	8		$	9		$	5		$	13

	NinemonthsendedSeptember30,
	U.S.						International
	2012			2011			2012			2011
Service cost	$	-		$	-		$	12		$	15
Interest cost	89			92			198			201
Expected return on plan assets	(95		)	(90		)	(241		)	(217		)
Amortization of net actuarial loss	32			23			44			41
Net periodic benefit cost	$	26		$	25		$	13		$	40

Based on current assumptions, in 2012, Aon plans to contribute $226 million and $415 million to its U.S. and most significant international defined benefit pension plans, respectively. During the nine months ended September30, 2012, contributions of $195 million were made to the Company's U.S. pension plans and $259 million were made to its most significant international pension plans. On September30, 2012, the Company completed a merger of five of the seven legacy Aon and Hewitt UK pension plans into one single plan. In addition to decreasing management time and improving governance, additional benefits are expected to be derived through improved operational efficiencies, reduced advisor and asset manager costs, and a higher level of control over investments. In connection with this transaction, on October1, 2012, the Company made a discretionary contribution of approximately $80 million.