XML 112 R46.htm IDEA: XBRL DOCUMENT v3.20.2
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2019
Employee Benefit Plans [Abstract]  
Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets
Table 69: Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets
 
Qualified
Pension
 
Nonqualified
Pension
 
Postretirement
Benefits
In millions
2019

 
2018

 
2019

 
2018

 
2019

 
2018

Accumulated benefit obligation at December 31
$
4,740

 
$
4,315

 
$
259

 
$
253

 
 
 
 
Projected benefit obligation at January 1
$
4,355

 
$
4,789

 
$
258

 
$
286

 
$
322

 
$
355

Service cost
115

 
116

 
3

 
3

 
4

 
5

Interest cost
186

 
171

 
10

 
9

 
13

 
12

Amendments
21

 
 
 
 
 
 
 
 
 
 
Actuarial (gains)/losses and changes in assumptions
498

 
(424
)
 
25

 
(16
)
 
18

 
(28
)
Participant contributions
 
 
 
 
 
 
 
 
3

 
3

Federal Medicare subsidy on benefits paid
 
 
 
 
 
 
 
 
 
 
1

Benefits paid
(288
)
 
(297
)
 
(31
)
 
(24
)
 
(27
)
 
(26
)
Projected benefit obligation at December 31
$
4,887

 
$
4,355

 
$
265

 
$
258

 
$
333

 
$
322

Fair value of plan assets at January 1
$
4,963

 
$
5,253

 

 
 
 
$
232

 
$
230

Actual return on plan assets
979

 
(193
)
 
 
 
 
 
15

 
3

Employer contribution
 
 
200

 
$
31

 
$
24

 
24

 
21

Participant contributions
 
 
 
 
 
 
 
 
3

 
3

Federal Medicare subsidy on benefits paid
 
 
 
 
 
 
 
 
 
 
1

Benefits paid
(288
)
 
(297
)
 
(31
)
 
(24
)
 
(27
)
 
(26
)
Fair value of plan assets at December 31
$
5,654

 
$
4,963

 
$
—

 
$
—

 
$
247

 
$
232

Funded status
$
767

 
$
608

 
$
(265
)
 
$
(258
)
 
$
(86
)
 
$
(90
)
Amounts recognized on the consolidated balance sheet
 
 
 
 
 
 
 
 
 
 
 
Noncurrent asset
$
767

 
$
608

 
 
 
 
 
 
 
 
Current liability
 
 
 
 
$
(26
)
 
$
(26
)
 
$
(2
)
 
$
(2
)
Noncurrent liability
 
 
 
 
(239
)
 
(232
)
 
(84
)
 
(88
)
Net amount recognized on the consolidated balance sheet
$
767

 
$
608

 
$
(265
)
 
$
(258
)
 
$
(86
)
 
$
(90
)
Amounts recognized in AOCI consist of:
 
 
 
 
 
 
 
 
 
 
 
Prior service cost (credit)
$
29

 
$
12

 
 
 
 
 
$
2

 
$
1

Net actuarial loss (gain)
411

 
608

 
$
78

 
$
57

 
1

 
(7
)
Amount of loss (gain) recognized in AOCI
$
440

 
$
620

 
$
78

 
$
57

 
$
3

 
$
(6
)
Asset Strategy Allocations
Table 70: Asset Strategy Allocations
 
Target Allocation Range

Percentage of Plan Assets by Strategy at December 31
 
 
  
2019

2018

Asset Category
 
 
 
Domestic Equity
20 – 40%

27
%
27
%
International Equity
10 – 25%

17
%
22
%
Private Equity
0 – 15%

10
%
11
%
Total Equity
40 – 70%

54
%
60
%
Domestic Fixed Income
10 – 40%

23
%
18
%
High Yield Fixed Income
0 – 25%

8
%
9
%
Total Fixed Income
10 – 65%

31
%
27
%
Real estate
0 – 10%

5
%
5
%
Other
0 – 15%

10
%
8
%
Total
100
%
100
%
100
%
Pension Plan Assets - Fair Value Hierarchy
The following table sets forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2019 and 2018.
Table 71: Pension Plan Assets - Fair Value Hierarchy
 
December 31, 2019
 
 
December 31, 2018
 
In millions
Level 1

 
Level 2

 
Level 3

 
Total Fair Value

 
 
Level 1

 
Level 2

 
Level 3

 
Total Fair Value

 
Interest bearing cash


 
$
1

 
 
 
$
1

 
 
$
7

 
$
2

 
 
 
$
9

 
Money market funds
$
456

 
 
 
 
 
456

 
 
149

 
 
 
 
 
149

 
U.S. government and agency securities
582

 
135

 
$
1

 
718

 
 
512

 
130

 
 
 
642

 
Corporate debt
 
 
660

 
3

 
663

 
 
 
 
580

 
$
6

 
586

 
Common stock
620

 
1

 
4

 
625

 
 
623

 
6

 
 
 
629

 
Mutual funds
 
 
253

 
 
 
253

 
 
 
 
236

 
 
 
236

 
Other


 
126

 
 
 
126

 
 
4

 
42

 
4

 
50

 
Investments measured at net asset value (a)
 
 
 
 
 
 
2,812

 
 

 

 

 
2,662

 
Total
$
1,658

 
$
1,176

 
$
8

 
$
5,654

 
 
$
1,295

 
$
996

 
$
10

 
$
4,963

 
(a)
Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
Estimated Cash Flows
The following table provides information regarding our estimated future cash flows related to our various plans.
Table 72: Estimated Cash Flows
 
Pension Plans
 
Postretirement Benefits
 
In millions
Qualified Pension

 
Nonqualified Pension

 
Gross PNC Benefit Payments

 
 
Estimated 2020 employer contributions
 
 
$
26

 
$
28

 
 
Estimated future benefit payments
 
 
 
 
 
 
 
2020
$
300

 
$
26

 
$
28

 
 
2021
$
315

 
$
26

 
$
27

 
 
2022
$
329

 
$
23

 
$
26

 
 
2023
$
327

 
$
23

 
$
25

 
 
2024
$
316

 
$
21

 
$
25

 
 
2025-2029
$
1,557

 
$
92

 
$
111

 
 
Components of Net Periodic Benefit Cost
The components of net periodic benefit cost/(income) and other amounts recognized in Other comprehensive income (OCI) were as follows.

Table 73: Components of Net Periodic Benefit Cost (a)
 
Qualified Pension Plan
Nonqualified Pension Plan
Postretirement Benefits
Year ended December 31 – in millions
2019 (b)
2018

2017

2019

2018

2017

2019

2018

2017

Net periodic cost consists of:
 
 
 
 
 
 
 
 
 
Service cost
$
115

$
116

$
160

$
3

$
3

$
3

$
4

$
5

$
5

Interest cost
186

171

179

10

9

10

13

12

14

Expected return on plan assets
(288
)
(306
)
(285
)
 
 

(5
)
(6
)
(5
)
Amortization of prior service cost/(credit)
4

1

(3
)
 
 

 
 
(1
)
Amortization of actuarial (gain)/loss
4

 
43

4

5

4

 
 
 
Net periodic cost (benefit)
21

(18
)
94

17

17

17

12

11

13

Other changes in plan assets and benefit obligations recognized in OCI:
 
 
 
 
 
 
 
 
 
Current year prior service cost/(credit)
21

 
17

 
 

 
 
2

Amortization of prior service (cost)/credit
(4
)
(1
)
3

 
 

 
 
1

Current year actuarial loss/(gain)
(193
)
75

(264
)
25

(16
)
7

9

(25
)
(22
)
Amortization of actuarial gain/(loss)
(4
)
 
(43
)
(4
)
(5
)
(4
)
 
 
 
Total recognized in OCI
(180
)
74

(287
)
21

(21
)
3

9

(25
)
(19
)
Total amounts recognized in net periodic cost and OCI
$
(159
)
$
56

$
(193
)
$
38

$
(4
)
$
20

$
21

$
(14
)
$
(6
)

(a) The service cost component is included in Personnel expense on the Consolidated Income Statement. All other components are included in Other noninterest expense on the Consolidated Income Statement.
(b)
Includes the effects of the qualified pension plan remeasurement as of January 31, 2019 as a result of a plan amendment.
Net Periodic Costs - Assumptions
The weighted-average assumptions used (as of the beginning of each year) to determine the net periodic costs shown in Table 73 were as follows.
Table 74: Net Periodic Costs - Assumptions
 
Net Periodic Cost Determination
As of January 1
2019

2018

2017

Discount rate
 
 
 
Qualified pension (a)
4.30
%
3.60
%
4.00
%
Nonqualified pension
4.15
%
3.45
%
3.80
%
Postretirement benefits
4.20
%
3.55
%
3.90
%
Rate of compensation increase (average)
3.50
%
3.50
%
3.50
%
Assumed health care cost trend rate
 
 
 
Initial trend
6.50
%
6.75
%
7.00
%
Ultimate trend
5.00
%
5.00
%
5.00
%
Year ultimate trend reached
2025

2025

2025

Expected long-term return on plan assets
5.75
%
6.00
%
6.38
%

(a) The 2019 qualified pension discount rate was 4.15% at the time of remeasurement on January 31, 2019 as a result of a plan amendment.
Other Pension Assumptions
The weighted-average assumptions used (as of the end of each year) to determine year end obligations for pension and postretirement benefits were as follows.
Table 75: Other Pension Assumptions
Year ended December 31
2019

 
2018

 
Discount rate
 
 
 
 
Qualified pension
3.30
%
 
4.30
%
 
Nonqualified pension
3.05
%
 
4.15
%
 
Postretirement benefits
3.20
%
 
4.20
%
 
Rate of compensation increase (average)
4.25
%
 
3.50
%
 
Assumed health care cost trend rate
 
 
 
 
Initial trend
6.25
%
 
6.50
%
 
Ultimate trend
5.00
%
 
5.00
%
 
Year ultimate trend reached
2025

 
2025