POSTRETIREMENT BENEFIT PLANS

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

POSTRETIREMENT BENEFIT PLANS

NOTE 13. POSTRETIREMENT BENEFIT PLANS

PENSION BENEFITS AND RETIREE HEALTH AND LIFE BENEFITS. We sponsor a number of pension and retiree health and life insurance benefit plans that we present in three categories, principal pension plans, other pension plans and principal retiree benefit plans. Smaller pension plans with pension assets or obligations that have not reached $50 million and other retiree benefit plans are not presented. Information in this Note is as of a December 31 measurement date for these plans and does not reflect the impact of the GE HealthCare Separation, including the legal split and the transfer of certain postretirement benefit plans. See Note 28 for information regarding the legal split and the transfer of certain postretirement benefit plans to GE HealthCare in connection with the Separation.

DESCRIPTION OF OUR PLANS
Plan Category		Participants	Funding	Comments
Principal Pension Plans	GE Pension Plan	Covers U.S. participants ~177,000 retirees and beneficiaries, ~82,500 vested former employees and ~23,000 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 receive increased company contributions in the company sponsored defined contribution plan in lieu of participation in a defined benefit plan (announced October 2019).
	GE Supplementary Pension Plan	Provides supplementary benefits to higher-level, longer-service U.S. employees	This 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	The annuity benefit has been closed to new participants since 2011 and has been replaced by an installment benefit (which was closed to new executives after 2020). Benefits for ~700 employees who became executives before 2011 were frozen effective January 1, 2021, and thereafter these employees accrue the installment benefit.
Other Pension Plans(a)	41 U.S. and non-U.S. pension plans with pension assets or obligations that have reached $50 million	Covers ~58,000 retirees and beneficiaries, ~48,500 vested former employees and ~14,000 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 may decide to contribute additional amounts beyond this level. 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 ~151,500 retirees and dependents and ~21,500 active employees	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.

(a) Plans that reach $50 million are not removed from the presentation unless part of a disposition or plan termination.

FUNDING STATUS BY PLAN TYPE	Benefit Obligation				Fair Value of Assets				Deficit/(Surplus)
	2022		2021		2022		2021		2022		2021
Principal Pension Plans:
GE Pension Plan (subject to regulatory funding)	$	48,134	$	65,073	$	44,993	$	60,990	$	3,141	$	4,083
GE Supplementary Pension Plan (not subject to regulatory funding)	5,457		7,226		—		—		5,457		7,226
	53,591		72,299		44,993		60,990		8,598		11,309
Other Pension Plans:
Subject to regulatory funding	12,078		19,698		14,512		22,280		(2,434)		(2,582)
Not subject to regulatory funding	1,838		2,558		151		210		1,687		2,348
Principal retiree benefit plans (not subject to regulatory funding)	3,304		4,308		10		42		3,294		4,266
Total plans subject to regulatory funding	60,212		84,771		59,505		83,270		707		1,501
Total plans not subject to regulatory funding	10,599		14,092		161		252		10,438		13,840
Total plans	$	70,811	$	98,863	$	59,666	$	83,522	$	11,145	$	15,341

FUNDING. The Employee Retirement Income Security Act (ERISA) determines minimum funding requirements in the U.S. No contributions were required or made for the GE Pension Plan during 2022 or 2021 and based on our current assumptions, we do not anticipate having to make additional required contributions to the plan in the near future. On an ERISA basis, our estimate is that the GE Pension Plan was 92.8% and 107.3% funded for 2022 and 2021, respectively. The GAAP funded status is 93.5% and 93.7% for 2022 and 2021, respectively.

As of the measurement date of December 31, we would expect to pay approximately $370 million for benefit payments under our GE Supplementary Pension Plan and administrative expenses of our principal pension plans and would expect to contribute approximately $170 million to other pension plans in 2023. We fund retiree health benefits on a pay-as-you-go basis and the retiree life insurance trust at our discretion. As of the measurement date of December 31, we would expect to contribute approximately $365 million in 2023 to fund such benefits.

ACTIONS. Pension benefits for approximately 2,700 United Kingdom (UK) participants have been frozen effective January 1, 2022. In addition, pension benefits for approximately 800 Canadian participants will be frozen effective December 31, 2023. These transactions were reflected as a curtailment loss in 2021 upon announcement.

COST OF OUR BENEFITS PLANS	2022									2021									2020
AND ASSUMPTIONS	Principal 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	$	221		$	86		$	39		$	237		$	233		$	44		$	657		$	243		$	59
Interest cost	2,069			398			108			1,951			383			103			2,350			422			150
Expected return on plan assets	(3,142)			(967)			—			(3,049)			(1,194)			—			(2,993)			(1,082)			(11)
Amortization of net loss (gain)	1,422			101			(115)			3,483			403			(79)			3,399			434			(82)
Amortization of prior service cost (credit)	5			(8)			(235)			28			(3)			(236)			146			1			(234)
Curtailment / settlement loss (gain)	—			(6)			—			—			76			—			—			12			—
Non-operating	$	354		$	(482)		$	(242)		$	2,413		$	(335)		$	(212)		$	2,902		$	(213)		$	(177)
Net periodic expense (income)	$	575		$	(396)		$	(203)		$	2,650		$	(102)		$	(168)		$	3,559		$	30		$	(118)
Weighted-average benefit obligations assumptions
Discount rate	5.53		%	4.59		%	5.43		%	2.94		%	1.93		%	2.64		%	2.61		%	1.44		%	2.15		%
Compensation increases	3.07			2.44			3.12			3.05			2.35			2.63			2.95			3.06			2.82
Initial healthcare trend rate(a)	N/A			N/A			6.40			N/A			N/A			5.70			N/A			N/A			5.90
Weighted-average benefit cost assumptions
Discount rate	2.94			1.93			2.64			2.61			1.44			2.15			3.36			1.97			3.05
Expected rate of return on plan assets	6.00			4.80			—			6.25			5.69			1.25			6.25			6.10			7.00

(a) For 2022, ultimately declining to 5% for 2030 and thereafter.

As of the measurement date of December 31, we would expect 2023 net periodic benefit income for principal pension, other pension and principal retiree benefit plans to be about $2,010 million, which is an increase of approximately $1,985 million in income from 2022. The increase would primarily be due to the discount rate. The components of net periodic benefit costs, other than the service cost component, are included in Non-operating benefit cost (income) in our Statement of Earnings (Loss).

PLAN FUNDED STATUS AND AMOUNTS RECORDED IN ACCUMULATED OTHER COMPREHENSIVE LOSS (INCOME)
	2022									2021
	Principal pension			Other pension			Principal retiree benefit			Principal pension			Other pension			Principal retiree benefit
Change in benefit obligations
Balance at January 1	$	72,299		$	22,256		$	4,308		$	76,298		$	24,658		$	5,019
Service cost	221			86			39			237			233			44
Interest cost	2,069			398			108			1,951			383			103
Participant contributions	14			19			54			15			24			60
Plan amendments	—			—			—			—			(1)			—
Actuarial loss (gain) - net	(17,281)		(a)	(6,282)		(a)	(778)		(a)	(2,448)		(a)	(1,561)		(a)	(446)
Benefits paid	(3,731)			(920)			(438)			(3,754)			(998)			(472)
Curtailments	—			—			—			—			(74)			—
Dispositions/acquisitions/other - net	—			—			11			—			(188)			—
Exchange rate adjustments	—			(1,641)			—			—			(220)			—
Balance at December 31	$	53,591	(b)	$	13,916		$	3,304	(c)	$	72,299	(b)	$	22,256		$	4,308	(c)
Change in plan assets
Balance at January 1	$	60,990		$	22,490		$	42		$	58,843		$	21,506		$	134
Actual gain (loss) on plan assets	(12,605)			(5,334)			—			5,559			1,602			41
Employer contributions	325			209			352			327			594			279
Participant contributions	14			19			54			15			24			60
Benefits paid	(3,731)			(920)			(438)			(3,754)			(998)			(472)
Dispositions/acquisitions/other - net	—			—			—			—			(138)			—
Exchange rate adjustments	—			(1,801)			—			—			(100)			—
Balance at December 31	$	44,993		$	14,663		$	10		$	60,990		$	22,490		$	42
Funded status - surplus (deficit)	$	(8,598)		$	747		$	(3,294)		$	(11,309)		$	234		$	(4,266)
Amounts recorded in Statement of Financial Position
Non-current assets - other	$	—		$	2,591		$	—		$	—		$	2,898		$	—
Current liabilities - other	(351)			(101)			(355)			(337)			(107)			(362)
Non-current liabilities - compensation and benefits	(8,247)			(1,743)			(2,939)			(10,972)			(2,557)			(3,904)
Net amount recorded	$	(8,598)		$	747		$	(3,294)		$	(11,309)		$	234		$	(4,266)
Amounts recorded in Accumulated other comprehensive loss (income)
Prior service cost (credit)	$	(113)		$	(42)		$	(1,677)		$	(109)		$	(52)		$	(1,912)
Net loss (gain)	(5,710)			1,787			(1,705)			(2,754)			2,012			(1,042)
Total recorded in Accumulated other comprehensive loss (income)	$	(5,823)		$	1,745		$	(3,382)		$	(2,863)		$	1,960		$	(2,954)

(a)Principally associated with discount rate changes.

(b)The benefit obligation for the GE Supplementary Pension Plan, which is an unfunded plan, was $5,457 million and $7,226 million at December 31, 2022 and 2021, respectively.

(c)The benefit obligation for retiree health plans was $1,991 million and $2,548 million at December 31, 2022 and 2021, respectively.

ASSUMPTIONS USED IN CALCULATIONS. Our defined benefit pension plans are accounted for on an actuarial basis, which requires the selection of various assumptions, including a discount rate, a compensation assumption, an expected return on assets, mortality rates of participants and expectation of mortality improvement.

Projected benefit obligations are measured as the present value of expected benefit payments. We discount those cash payments using a discount rate. We determine the discount rate using the weighted-average yields on high-quality fixed-income securities with maturities that correspond to the payment of benefits. Lower discount rates increase present values and generally increase subsequent-year pension expense; higher discount rates decrease present values and generally reduce subsequent-year pension expense.

The compensation assumption is used to estimate the annual rate at which pay of plan participants will grow. If the rate of growth assumed increases, the size of the pension obligations will increase, as will the amount recorded in AOCI in our Statement of Financial Position and amortized into earnings in subsequent periods.

The expected return on plan assets is the estimated long-term rate of return that will be earned on the investments used to fund the benefit obligations. To determine the expected long-term rate of return on pension plan assets, we consider our asset allocation, as well as historical and expected returns on various categories of plan assets. In developing future long-term return expectations for our principal benefit plans’ assets, we formulate views on the future economic environment, both in the U.S. and abroad. We evaluate general market trends and historical relationships among a number of key variables that impact asset class returns such as expected earnings growth, inflation, valuations, yields and spreads, using both internal and external sources. We also take into account expected volatility by asset class and diversification across classes to determine expected overall portfolio results given our asset allocation. Based on our analysis, we have assumed a 6.00% and 6.25% long-term expected return on the GE Pension Plan assets for cost recognition in 2022 and 2021, respectively. For 2023 cost recognition, based on GE Pension Plan assets at December 31, 2022, we have assumed a 7.00% long-term expected return.

The Society of Actuaries issued new mortality improvement tables during 2021 that were used to update mortality assumptions in the U.S. These changes in assumptions increased the December 31, 2021 U.S. pension and retiree benefit plans' obligations by $278 million.

The healthcare trend assumptions primarily apply to our pre-65 retiree medical plans. Most participants in our post-65 retiree plan have a fixed subsidy and therefore are not subject to healthcare inflation.

We evaluate these critical assumptions at least annually on a plan and country-specific basis. We periodically evaluate other assumptions involving demographics factors such as retirement age and turnover, and update them to reflect our actual experience and expectations for the future. Actual results in any given year will often differ from actuarial assumptions because of economic and other factors. Differences between our actual results and what we assumed are recorded in AOCI each period. These differences are amortized into earnings over the remaining average future service of active participating employees or the expected life of inactive participants, as applicable. For the principal pension plans, gains and losses are amortized using a straight-line method with a separate layer for each year’s gains and losses. For most other pension plans and principal retiree benefit plans, gains and losses are amortized using a straight-line or a corridor amortization method.

SENSITIVITIES TO KEY ASSUMPTIONS. Fluctuations in discount rates can significantly impact pension cost and obligations. As of the December 31 measurement date, we would expect a 25 basis point decrease in discount rate would increase principal pension plan cost in the following year by approximately $130 million and would also expect an increase in the principal pension plan projected benefit obligation at year-end by approximately $1,300 million. The deficit sensitivity to the discount rate would be lower than the projected benefit obligation sensitivity as a result of the liability hedging program incorporated in the plan's asset allocation. A 50 basis point decrease in the expected return on assets would increase principal pension plan cost in the following year by approximately $260 million.

THE COMPOSITION OF OUR 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.

	2022				2021
	Principal pension		Other pension		Principal pension		Other pension
Global equities	$	3,918	$	1,097	$	7,778	$	3,589
Debt securities
Fixed income and cash investment funds	4,918		6,506		7,665		10,527
U.S. corporate(a)	8,715		382		10,324		468
Other debt securities(b)	7,853		443		7,331		492
Real estate	1,486		53		2,510		89
Private equities and other investments	1,245		364		1,515		943
Total	28,135		8,845		37,123		16,108
Plan assets measured at net asset value
Global equities	$	3,285	$	1,029	$	9,517	$	1,172
Debt securities	3,469		1,024		5,269		1,287
Real estate	1,624		1,976		1,408		2,126
Private equities and other investments	8,480		1,789		7,673		1,797
Total plan assets at fair value	$	44,993	$	14,663	$	60,990	$	22,490

(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.

Plan assets that were measured at fair value using NAV as a practical expedient were excluded from the fair value hierarchy. GE Pension Plan investments with a fair value of $2,255 million and $3,872 million at December 31, 2022 and 2021, respectively, were classified within Level 3 and primarily relate to private equities and real estate. The remaining investments were substantially all considered Level 1 and 2. Investments with a fair value of $6,759 million and $12,377 million at December 31, 2022 and 2021, respectively, were classified within Level 1 and primarily relate to global equities and cash. Investments with a fair value of $18,606 million and $20,942 million at December 31, 2022 and 2021, respectively, were classified within Level 2 and primarily relate to debt securities. Other pension plans investments with a fair value of $81 million and $138 million at December 31, 2022 and 2021, respectively, were classified within Level 3 and primarily relate to private equities and real estate. The remaining investments were substantially all considered Level 1 and 2. Investments with a fair value of $841 million and $1,312 million at December 31, 2022 and 2021, respectively, were classified within Level 1 and primarily relate to global equities and cash. Investments with a fair value of $7,580 million and $13,802 million at December 31, 2022 and 2021, respectively, were classified within Level 2 and primarily relate to debt securities. Principal retiree benefit plan investments have a fair value of $10 million and $42 million at December 31, 2022 and 2021, respectively. There were no Level 3 principal retiree benefit plan investments held in 2022 and 2021.

ASSET ALLOCATION OF PENSION PLANS	2022 Target allocation				2022 Actual allocation
	Principal Pension		Other Pension (weighted average)		Principal Pension		Other Pension (weighted average)
Global equities	14.0 - 34.0	%	17	%	16	%	14	%
Debt securities (including cash equivalents)	31.0 - 81.5		60		55		57
Real estate	1.0 - 10.0		8		7		14
Private equities & other investments	6.0 - 30.0		15		22		15

Plan fiduciaries of the GE Pension Plan set investment policies and strategies for the GE Pension Trust and oversee its investment allocation, which includes selecting investment managers and setting long-term strategic targets. The plan fiduciaries' primary strategic investment objectives are balancing investment risk and return and monitoring the plan’s liquidity position in order to meet the plan's near-term benefit payment and other cash needs. The plan has incorporated de-risking objectives and liability hedging programs as part of its long-term investment strategy. The plan utilizes a combination of long-dated corporate bonds, treasuries, strips and derivatives to implement its investment strategies as well as for hedging asset and liability risks. Target allocation percentages are established at an asset class level by plan fiduciaries. Target allocation ranges are guidelines, not limitations, and occasionally plan fiduciaries will approve allocations above or below a target range.

GE securities represented 0.7% and 0.6% of the GE Pension Trust assets at December 31, 2022 and 2021, respectively. The GE Pension Trust has a broadly diversified portfolio of investments in equities, fixed income, private equities and real estate; these investments are both U.S. and non-U.S. in nature.

ANNUALIZED RETURNS	1 year		5 years		10 years		25 years
GE Pension Plan	(20.5)	%	2.7	%	5.4	%	5.8	%

EXPECTED FUTURE BENEFIT PAYMENTS OF OUR BENEFIT PLANS(a)	Principal pension		Other pension		Principal retiree benefit
2023	$	3,830	$	850	$	375
2024	3,865		845		360
2025	3,890		855		345
2026	3,910		870		330
2027	3,920		885		325
2028-2032	19,510		4,585		1,375

(a) As of the measurement date of December 31, 2022

DEFINED CONTRIBUTION PLAN. We have a defined contribution plan for eligible U.S. employees that provides employer contributions which were $444 million, $418 million and $318 million for the years ended December 31, 2022, 2021, and 2020, respectively.

COST OF POSTRETIREMENT BENEFIT PLANS AND CHANGES IN OTHER COMPREHENSIVE INCOME
For the years ended December 31	2022						2021						2020
(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	$	575	$	(396)	$	(203)	$	2,650	$	(102)	$	(168)	$	3,559	$	30	$	(118)
Changes in other comprehensive loss (income)
Prior service cost (credit) - current year	—		—		—		—		(1)		—		—		27		(7)
Net loss (gain) - current year	(1,533)		(128)		(778)		(4,959)		(2,104)		(488)		1,124		529		119
Reclassifications out of AOCI
Curtailment/settlement gain (loss)	—		6		—		—		(68)		—		—		(3)		—
Dispositions	—		—		—		—		(68)		—		—		(166)		—
Amortization of net gain (loss)	(1,422)		(101)		115		(3,483)		(403)		79		(3,399)		(434)		82
Amortization of prior service credit (cost)	(5)		8		235		(28)		3		236		(146)		(1)		234
Total changes in other comprehensive loss (income)	(2,960)		(215)		(428)		(8,470)		(2,641)		(173)		(2,421)		(48)		428
Cost (income) of postretirement benefit plans and changes in other comprehensive loss (income)	$	(2,385)	$	(611)	$	(631)	$	(5,820)	$	(2,743)	$	(341)	$	1,138	$	(18)	$	310