EMPLOYEE BENEFITS

9 Months Ended

Sep. 30, 2012

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

13. EMPLOYEE BENEFITS

The following table presents the components of net periodic benefit cost with respect to pensions and other postretirement benefits:

	Pension									Postretirement
(in millions)	U.S. Plans			Non-U.S. Plans			Total			U.S. Plans			Non-U.S. Plans			Total
Three Months Ended September 30, 2012
Components of net periodic benefit cost:
Service cost	$	40		$	13		$	53		$	1		$	1		$	2
Interest cost		49			8			57			3			1			4
Expected return on assets		(60	)		(5	)		(65	)		–			–			–
Amortization of prior service (credit) cost		(8	)		(1	)		(9	)		(3	)		–			(3	)
Amortization of net (gain) loss		29			3			32			–			–			–
Other		–			–			–			–			(1	)		(1	)
Net periodic benefit cost	$	50		$	18		$	68		$	1		$	1		$	2
Three Months Ended September 30, 2011
Components of net periodic benefit cost:
Service cost	$	40		$	14		$	54		$	3		$	1		$	4
Interest cost		54			9			63			3			1			4
Expected return on assets		(64	)		(6	)		(70	)		–			–			–
Amortization of prior service (credit) cost		–			(1	)		(1	)		–			–			–
Amortization of net (gain) loss		9			3			12			–			–			–
Other		–			6			6			–			–			–
Net periodic benefit cost	$	39		$	25		$	64		$	6		$	2		$	8
Amount associated with discontinued operations	$	–		$	2		$	2		$	–		$	1		$	1

	Pension									Postretirement
(in millions)	U.S. Plans			Non-U.S. Plans			Total			U.S. Plans			Non-U.S. Plans			Total
Nine Months Ended September 30, 2012
Components of net periodic benefit cost:
Service cost	$	116		$	39		$	155		$	4		$	2		$	6
Interest cost		149			25			174			8			2			10
Expected return on assets		(180	)		(15	)		(195	)		–			–			–
Amortization of prior service (credit) cost		(25	)		(3	)		(28	)		(8	)		–			(8	)
Amortization of net (gain) loss		87			10			97			–			–			–
Other		–			–			–			–			(1	)		(1	)
Net periodic benefit cost	$	147		$	56		$	203		$	4		$	3		$	7
Nine Months Ended September 30, 2011
Components of net periodic benefit cost:
Service cost	$	114		$	52		$	166		$	7		$	3		$	10
Interest cost		158			28			186			10			2			12
Expected return on assets		(190	)		(19	)		(209	)		–			–			–
Amortization of prior service (credit) cost		1			(3	)		(2	)		1			–			1
Amortization of net (gain) loss		30			12			42			–			–			–
Other		–			6			6			–			–			–
Net periodic benefit cost	$	113		$	76		$	189		$	18		$	5		$	23
Amount associated with discontinued operations	$	–		$	13		$	13		$	–		$	2		$	2

For the nine-month period ended September 30, 2012, AIG contributed $76 million to its U.S. and non-U.S. pension plans and estimates it will contribute an additional $15 million for the remainder of 2012. These estimates are subject to change since contribution decisions are affected by various factors, including AIG's liquidity, market performance and management discretion.