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POSTRETIREMENT BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Description Postretirement Benefit Plans
DESCRIPTION OF OUR PLANS
Plan CategoryParticipantsFundingOther
Principal Pension Plans
GE Pension Plan
Covers U.S. participants. ~176,500 retirees and beneficiaries, ~93,000 vested former employees and ~26,500 active employees.
Our funding policy is to contribute amounts sufficient to meet minimum funding requirements under employee benefit and tax laws. We may decide to contribute additional amounts beyond this level.
This plan has been closed to new participants since 2012. Benefits for ~20,000 employees with salaried benefits were frozen effective January 1, 2021, and thereafter these employees will receive increased company contributions in the company sponsored defined contribution plan in lieu of participation in a defined benefit plan (announced 10/2019).
GE Supplementary Pension PlanProvides supplementary benefits to higher-level, longer-service U.S. employeesThis plan is unfunded. We pay benefits from company cash.
The annuity benefit has been closed to new participants since 2011 and has been replaced by an installment benefit. Benefits for ~700 employees who became executives before 2011 were frozen effective January 1, 2021, and thereafter these employees will accrue the installment benefit offered to new executives since 2011.
Other Pension Plans
44 U.S. and non-U.S. pension plans with pension assets or obligations greater than $50 million
Covers ~56,500 retirees and beneficiaries, ~49,500 vested former employees and ~20,000 active employees
Our funding policy is to contribute amounts sufficient to meet minimum funding requirements under employee benefit and tax laws in each country. We pay benefits for some plans from company cash. In certain countries, benefit accruals have ceased and/or have been closed to new hires as of various dates.
Principal Retiree
Benefit Plans
Provides health and life insurance benefits to certain eligible participants
Covers U.S participants. ~170,000 retirees and dependents
We fund retiree health benefits on a pay-as-you-go basis and the retiree life insurance trust at our discretion.Participants share in the cost of the healthcare benefits.
Cost of Benefits Plans and Assumptions
COST OF OUR BENEFITS PLANS202020192018
AND ASSUMPTIONSPrincipal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit
Components of expense (income)
Service cost - operating$657 $243 $59 $654 $246 $58 $888 $323 $63 
Interest cost2,350 422 150 2,780 542 202 2,658 548 196 
Expected return on plan assets(2,993)(1,082)(11)(3,428)(1,144)(21)(3,248)(1,285)(29)
Amortization of net actuarial loss (gain)3,399 434 (82)3,439 319 (118)3,785 312 (79)
Amortization of prior service cost (credit)146 1 (234)135 3 (232)143 (9)(230)
Curtailment / settlement loss (gain)(a)— 12 — 349 13 (38)34 1 — 
Non-operating$2,902 $(213)$(177)$3,275 $(267)$(207)$3,372 $(433)$(142)
Net periodic expense (income)$3,559 $30 $(118)$3,929 $(21)$(149)$4,260 $(110)$(79)
Weighted-average assumptions used to determine benefit obligations
Discount rate2.61 %1.44 %2.15 %3.36 %1.97 %3.05 %4.34 %2.75 %4.12 %
Compensation increases2.95 3.06 2.82 2.95 3.16 3.75 3.60 3.16 3.60 
Initial healthcare trend rate(b)N/AN/A5.90 N/AN/A5.90 N/AN/A6.00 
Weighted-average assumptions used to determine benefit cost
Discount rate(c)3.36 1.97 3.05 4.07 2.75 4.12 3.64 2.41 3.43 
Expected rate of return on plan assets6.25 5.69 7.00 6.75 6.76 7.00 6.75 6.75 7.00 
(a) For 2019, the principal pension amount is a curtailment loss driven by freezing the GE Pension Plan benefits for certain participants.
(b) For 2020, ultimately declining to 5% for 2030 and thereafter.
(c) Weighted average 2019 discount rate for principal pension was 4.07%. Discount rate was 4.34% for January 1, 2019 through September 30, 2019 and then changed to 3.24% for the remainder of 2019 due to the remeasurement of the plans for the U.S. pension changes announced in October 2019.
Funded Status
FUNDING STATUS BY PLAN TYPEBenefit ObligationFair Value of AssetsDeficit/(Surplus)
202020192020201920202019
Principal Pension Plans:
GE Pension Plan (subject to regulatory funding)$68,945 $65,065 $58,843 $52,633 $10,102 $12,432 
GE Supplementary Pension Plan (not subject to regulatory funding)7,353 6,691 — — 7,353 6,691 
    76,298 71,756 58,843 52,633 17,455 19,123 
Other Pension Plans:
Subject to regulatory funding21,793 19,907 21,283 18,906 510 1,001 
Not subject to regulatory funding2,865 3,014 223 236 2,642 2,778 
Principal retiree benefit plans (not subject to regulatory funding)5,019 5,160 134 289 4,885 4,871 
Total plans subject to regulatory funding90,738 84,972 80,126 71,539 10,612 13,433 
Total plans not subject to regulatory funding15,237 14,865 357 525 14,880 14,340 
Total plans $105,975 $99,837 $80,483 $72,064 $25,492 $27,773 
PLAN FUNDED STATUS AND AMOUNTS RECORDED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
20202019
Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit
Change in benefit obligations
Balance at January 1$71,756 $22,921 $5,160 $68,500 $21,091 $5,153 
Service cost657 243 59 654 246 58 
Interest cost2,350 422 150 2,780 542 202 
Participant contributions69 28 63 77 29 61 
Plan amendments— 27 (7)(42)(c)(17)(23)
Actuarial loss (gain) - net7,057 (a)1,927 (a)85 (a)7,073 (d)2,422 (a)275 (a)
Benefits paid(3,885)(1,062)(491)(3,788)(1,043)(533)  
Curtailments— (69)— (838)(32)(33)
Settlements(1,706)(b)— — (2,657)(e)— — 
Dispositions/ acquisitions / other - net— (335)— (3)(1,030)—   
Exchange rate adjustments— 556 — — 713 —   
Balance at December 31$76,298 (f)$24,658 $5,019 (g)$71,756 (f)$22,921 $5,160 (g)
Change in plan assets
Balance at January 152,633 19,142 289 50,009 17,537 362 
Actual gain (loss) on plan assets8,926 2,542 (22)8,694 2,229 57 
Employer contributions2,806 509 295 298 716 342 
Participant contributions69 28 63 77 29 61 
Benefits paid(3,885)(1,062)(491)(3,788)(1,043)(533)
Settlements(1,706)(b)— — (2,657)(e)— — 
Dispositions/ acquisitions / other - net— (59)— — (1,030)— 
Exchange rate adjustments— 406 — — 704 — 
Balance at December 31$58,843 $21,506 $134 $52,633 $19,142 $289 
Funded status - deficit$17,455 $3,152 $4,885 $19,123 $3,779 $4,871 
Amounts recorded in the consolidated Statement of Financial Position
Non-current assets - other— 845 — — 475 — 
Current liabilities - other(315)(106)(330)(296)(123)(355)
Non-current liabilities - compensation and benefits(17,140)(3,891)(4,555)(18,827)(4,131)(4,516)
Net amount recorded$(17,455)$(3,152)$(4,885)$(19,123)$(3,779)$(4,871)
Amounts recorded in Accumulated other comprehensive income (loss)
Prior service cost (credit)(80)19 (2,148)67 (16)(2,376)
Actuarial loss (gain)5,687 4,582 (633)7,961 4,665 (833)
Total recorded in Accumulated other comprehensive income (loss)$5,607 $4,601 $(2,781)$8,028 $4,649 $(3,209)
(a)Principally associated with discount rate changes.
(b)Irrevocable commitment to purchase group annuity contracts from a third-party insurance company in December 2020.
(c)GE Supplementary Pension Plan amendment for the U.S. pension changes announced in October 2019 offset by other plan amendments adopted in 2019.
(d)Principally associated with discount rate changes offset by impact of the one-time lump sum payments under the GE Pension Plan.
(e)Payments made to former employees from the GE Pension Plan assets for the one-time lump sum payments.
(f)The benefit obligation for the GE Supplementary Pension Plan, which is an unfunded plan, was $7,353 million and $6,691 million at year-end 2020 and 2019, respectively.
(g)The benefit obligation for retiree health plans was $3,094 million and $3,306 million at December 31, 2020 and 2019, respectively.
Composition of Plan Assets The fair value of our pension plans' investments is presented below. The inputs and valuation techniques used to measure the fair value of these assets are described in Note 1 and have been applied consistently.
20202019
Principal pension Other pension Principal pension Other pension
Global equities$5,552 $3,674 $6,826 $3,484 
Debt securities
Fixed income and cash investment funds6,831 10,003 4,398 8,089 
U.S. corporate(a)8,512 410 8,025 365 
Other debt securities(b)5,505 440 6,076 424 
Real estate2,274 81 2,309 140 
Private equities and other investments490 499 23 452 
Total29,164 15,107 27,657 12,954 
Plan assets measured at net asset value
Global equities16,259 1,415 14,616 1,450 
Debt securities5,445 1,268 3,744 914 
Real estate1,324 1,978 1,167 1,930 
Private equities and other investments6,651 1,738 5,449 1,894 
Total plan assets at fair value$58,843 $21,506 $52,633 $19,142 
(a)Primarily represented investment-grade bonds of U.S. issuers from diverse industries.
(b)Primarily represented investments in residential and commercial mortgage-backed securities, non-U.S. corporate and government bonds and U.S. government, federal agency, state and municipal debt.
Asset Allocation
ASSET ALLOCATION OF PENSION PLANS
2020 Target allocation
2020 Actual allocation
Principal PensionOther Pension (weighted average)Principal PensionOther Pension (weighted average)
Global equities
30.0 - 47.0
%22 %37 %25 %
Debt securities (including cash equivalents)
21.0 - 65.0
52 45 56 
Real estate
3.5 - 13.5
9 6 10 
Private equities & other investments
6.0 - 16.0
17 12 9 
Schedule of Defined Benefit Plan Annual Returns
ANNUALIZED RETURNS1 year5 years10 years25 years
GE Pension Plan17.6 %9.7 %8.0 %8.0 %
Estimated Future Benefit Payments
EXPECTED FUTURE BENEFIT PAYMENTS OF OUR BENEFIT PLANSPrincipal pensionOther pensionPrincipal retiree benefit
2021$3,725 $945 $460 
20223,785 945 440 
20233,820 955 420 
20243,845 970 395 
20253,865 995 380 
2026 - 203019,410 5,185 1,615 
Cost of Postretirement Benefit Plans and Changes in Other Comprehensive Income
COST OF POSTRETIREMENT BENEFIT PLANS AND CHANGES IN OTHER COMPREHENSIVE INCOME
For the years ended December 31202020192018
(Pre-tax)Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit
Cost (income) of postretirement benefit plans$3,559 $30 $(118)$3,929 $(21)$(149)$4,260 $(110)$(79)
Changes in other comprehensive income
Prior service cost (credit) - current year— 27 (7)(42)(17)(23)— 82 — 
Actuarial loss (gain) - current year1,124 529 119 971 1,592 240 (111)464 (543)
Reclassifications out of AOCI
Curtailment / settlement gain (loss)— (3)— (353)(12)4 (45)(2)— 
Dispositions— (166)— — (340)— — — — 
Amortization of net actuarial gain (loss)(3,399)(434)82 (3,439)(319)118 (3,785)(312)79 
Amortization of prior service credit (cost)(146)(1)234 (135)(3)232 (143)9 230 
Total changes in other comprehensive income(2,421)(48)428 (2,998)901 571 (4,084)241 (234)
Cost of postretirement benefit plans and changes in other comprehensive income$1,138 $(18)$310 $931 $880 $422 $176 $131 $(313)