Retirement Benefits

9 Months Ended

Sep. 30, 2025

Retirement Benefits [Abstract]

Retirement Benefits

Retirement Benefits

The Company maintains qualified and non-qualified defined benefit pension plans for its U.S. and non-U.S. eligible employees. The Company’s policy for funding its tax-qualified defined benefit retirement plans is to contribute amounts at least sufficient to meet the funding requirements set forth by U.S. law and the laws of the non-U.S. jurisdictions in which the Company offers defined benefit plans.

The weighted average actuarial assumptions utilized to calculate the net periodic benefit cost or credit for the U.S. and significant non-U.S. defined benefit plans are as follows:

Combined U.S. and significant non-U.S. Plans	Pension Benefits
September 30,	2025		2024
Weighted average assumptions:
Discount rate	5.36	%	4.95	%
Expected return on plan assets	5.43	%	5.44	%
Rate of compensation increase*	3.16	%	3.16	%

(*)There are no rate of compensation increase assumptions for the primary U.S. defined benefit plans since future benefit accruals were discontinued for those plans after December 31, 2016 and earned benefits are not subject to final salary level adjustments.

The target asset allocation for the U.S. plans is 50% equities and equity alternatives, and 50% fixed income. At September 30, 2025, the actual allocation for the U.S. plans was 50% equities and equity alternatives, and 50% fixed income. The target allocation for the U.K. plans at September 30, 2025 is 12% equities and equity alternatives, and 88% fixed income. At September 30, 2025, the actual allocation for the U.K. plans was 9% equities and equity alternatives and 91% fixed income. The Company's U.K. plans comprised approximately 78% of non-U.S. plan assets at December 31, 2024. The assets of the Company's defined benefit plans are diversified and are managed in accordance with applicable laws and with the goal of maximizing the plans' real return within acceptable risk parameters. The Company uses threshold-based portfolio re-balancing to ensure the actual portfolio remains consistent with target asset allocation ranges.

In the third quarter of 2025, the Trustee of the MMC U.K. Pension Fund (the "Fund") invested in a $2.5 billion (£1.9 billion) insurance policy that will reimburse the Fund for all future benefit payments to the retirees and beneficiaries in one of the sections of the Fund (a “buy-in”). Fund assets were used for the buy-in and it is accounted for at fair value as an investment. The transaction had no impact on the 2025 net benefit credit.

The net benefit cost or credit of the Company's defined benefit plans is measured on an actuarial basis using various methods and assumptions.

The components of the net benefit credit for defined benefit plans are as follows:

Combined U.S. and significant non-U.S. Plans
For the Three Months Ended September 30,	Pension Benefits
(In millions)	2025		2024
Service cost	$	8	$	5
Interest cost	151		146
Expected return on plan assets	(215)		(222)
Amortization of prior service (credit) cost	1		—
Recognized actuarial loss	11		8
Net periodic benefit credit	$	(44)	$	(63)
Settlement loss	—		1
Net benefit credit	$	(44)	$	(62)

Combined U.S. and significant non-U.S. Plans
For the Nine Months Ended September 30,	Pension Benefits
(In millions)	2025		2024
Service cost	$	21	$	17
Interest cost	445		434
Expected return on plan assets	(631)		(657)
Amortization of prior service (credit) cost	1		1
Recognized actuarial loss	32		23
Net periodic benefit credit	$	(132)	$	(182)
Settlement loss	10		1
Net benefit credit	$	(122)	$	(181)

The following tables provide the amounts reported in the consolidated statements of income:

Combined U.S. and significant non-U.S. Plans
For the Three Months Ended September 30,	Pension Benefits
(In millions)	2025		2024
Compensation and benefits expense	$	8	$	5
Other net benefit credits	(52)		(67)
Net benefit credit	$	(44)	$	(62)

Combined U.S. and significant non-U.S. Plans
For the Nine Months Ended September 30,	Pension Benefits
(In millions)	2025		2024
Compensation and benefits expense	$	21	$	17
Other net benefit credits	(143)		(198)
Net benefit credit	$	(122)	$	(181)

The components of the net benefit credit for the U.S. defined benefit plans are as follows:

U.S. Plans only
For the Three Months Ended September 30,	Pension Benefits
(In millions)	2025		2024
Service cost	$	1	$	—
Interest cost	64		62
Expected return on plan assets	(74)		(76)
Recognized actuarial loss	6		5
Net benefit credit	$	(3)	$	(9)

U.S. Plans only
For the Nine Months Ended September 30,	Pension Benefits
(In millions)	2025		2024
Service cost	$	1	$	—
Interest cost	191		187
Expected return on plan assets	(220)		(227)
Recognized actuarial loss	18		15
Net periodic benefit credit	$	(10)	$	(25)
Settlement loss	1		—
Net benefit credit	$	(9)	$	(25)

The components of the net benefit credit for the non-U.S. defined benefit plans are as follows:

Significant non-U.S. Plans only
For the Three Months Ended September 30,	Pension Benefits
(In millions)	2025		2024
Service cost	$	7	$	5
Interest cost	87		84
Expected return on plan assets	(141)		(146)
Amortization of prior service credit	1		—
Recognized actuarial loss	5		3
Net periodic benefit credit	$	(41)	$	(54)
Settlement loss	—		1
Net benefit credit	$	(41)	$	(53)

Significant non-U.S. Plans only
For the Nine Months Ended September 30,	Pension Benefits
(In millions)	2025		2024
Service cost	$	20	$	17
Interest cost	254		247
Expected return on plan assets	(411)		(430)
Amortization of prior service credit	1		1
Recognized actuarial loss	14		8
Net periodic benefit credit	$	(122)	$	(157)
Settlement loss	9		1
Net benefit credit	$	(113)	$	(156)

The Company made contributions to its U.S. and non-U.S. defined benefit pension plans for the three and nine months ended September 30, 2025 of approximately $21 million and $56 million, respectively, compared to contributions of $16 million and $67 million, respectively, for the corresponding periods in the prior year. The Company expects to contribute approximately $24 million to its U.S. and non-U.S. defined benefit pension plans during the remainder of 2025.

Defined Contribution Plans

The Company maintains defined contribution plans ("DC Plans") for its employees, the most significant being in the U.S. and the U.K. The cost of the U.S. DC Plans for the three and nine months ended September 30, 2025 was $51 million and $159 million, respectively, and $45 million and $142 million, respectively, for the corresponding periods in the prior year. The cost of the U.K. DC Plans for the three and nine months ended September 30, 2025 was $43 million and $141 million, respectively, and $39 million and $130 million, respectively, for the corresponding periods in the prior year.