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PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2024
Postemployment Benefits [Abstract]  
Schedule of Defined Benefit Plans Disclosures
The following tables and information provide additional disclosures:
(In millions)Pension BenefitsOPEB
Change in benefit obligations:2024202320242023
Benefit obligations — beginning of year$4,571 $4,646 $1,036 $1,233 
Service cost28 31 8 10 
Interest cost218 235 50 64 
Plan amendments— 3 7 8 
Actuarial loss (gain)(165)116 162 (158)
Benefits paid(429)(436)(155)(163)
Participant contributions— — 36 42 
Acquired through business combinations35 — — — 
Foreign currency exchange(1)— — — 
Effect of settlement(9)(24)— — 
Other— — 3 — 
Benefit obligations — end of year$4,248 $4,571 $1,147 $1,036 
Change in plan assets:
Fair value of plan assets — beginning of year$4,282 $4,338 $739 $728 
Actual return on plan assets254 375 46 67 
Participant contributions— — 36 42 
Employer contributions119 29 76 65 
Benefits paid(429)(436)(155)(163)
Acquired through business combinations21 — — — 
Foreign currency exchange(1)— — — 
Effect of settlement(9)(24)— — 
Fair value of plan assets — end of year$4,237 $4,282 $742 $739 
Funded status$(11)$(289)$(405)$(297)
Amounts recognized in Statements of Financial Position:
Non-current assets$239 $137 $188 $192 
Current liabilities1
(7)(18)(85)(76)
Non-current liabilities(243)(408)(508)(413)
Total amount recognized$(11)$(289)$(405)$(297)
Amounts recognized in accumulated other comprehensive loss (income):
Net actuarial gain$(400)$(304)$(1,720)$(2,033)
Prior service cost (credit)89 106 (109)(131)
Net amount recognized$(311)$(198)$(1,829)$(2,164)
1 Current liabilities are classified within Other current liabilities on the Statements of Consolidated Financial Position.
Company contributions and payments we expect to make in 2025, and made in 2024 and 2023 are as follows:
Pension BenefitsOPEB
(In millions)
VEBA1
Direct PaymentsTotal
2023$29 $— $65 $65 
2024119 — 76 76 
2025 (Expected)69 — 74 74 
1 Pursuant to the applicable bargaining agreements, benefits can be paid from certain VEBAs that are at least 70% funded (all VEBAs were over 70% funded at December 31, 2024). Certain agreements with plans holding VEBA assets have capped healthcare costs. For the Cleveland-Cliffs Steel LLC VEBA, we are required to make contributions based on earnings, and we may withdraw money from the VEBA plan to the extent funds are available for costs in excess of the cap. VEBA withdrawals are represented net of direct payments. There will be no further contributions to the Cleveland-Cliffs Steel LLC VEBA based on earnings for the remainder of the labor agreement with the USW, which expires in September 2026.
The following table summarizes the changes in fair value of the employee benefit commitment:
(In millions)2024
Beginning balance as of January 1$— 
Fair value of commitment assumed in connection with Stelco Acquisition(197)
Total losses included in earnings(2)
Payments5 
Foreign currency translation6 
Ending balance as of December 31$(188)
The following table summarizes the changes in fair value of the MinnTac option:
(In millions)2024
Beginning balance as of January 1$— 
Fair value of option acquired in connection with Stelco Acquisition110 
Total losses included in earnings(12)
Foreign currency translation(3)
Ending balance as of December 31$95 
Components Of Net Periodic Benefit Cost
COMPONENTS OF NET PERIODIC BENEFIT COST (CREDIT)
Pension BenefitsOPEB
(In millions)202420232022202420232022
Service cost$28 $31 $45 $8 $10 $35 
Interest cost218 235 144 50 64 72 
Expected return on plan assets(320)(315)(355)(43)(43)(37)
Amortization:
Net actuarial loss (gain)(1)3 13 (154)(145)(43)
Prior service costs (credits)18 18 5 (15)(17)(3)
Settlements and special termination benefits(2)(4)(8)2 — — 
Net periodic benefit cost (credit)$(59)$(32)$(156)$(152)$(131)$24 
For 2025, we estimate net periodic benefit cost (credit) as follows:
(In millions)
Defined benefit pension plans$(70)
OPEB plans(124)
Total$(194)
Components of Accumulated Other Comprehensive Income (Loss)
The following includes details on the significant actuarial losses (gains) impacting the benefit obligation and other components of other comprehensive loss (income):
Pension BenefitsOPEB
(In millions)2024202320242023
Discount rates$(146)$124 $(43)$28 
Demographic updates1
(14)(5)26 (208)
Mortality— (2)— (11)
Per capita healthcare costs and healthcare trend2
— — 179 33 
Other(5)(1)— — 
Actuarial loss (gain) on benefit obligation(165)116 162 (158)
Actual returns on assets under (over) expected67 (60)(3)(24)
Amortization of net actuarial gain (loss)1 (3)154 145 
Amortization of prior service credits (costs)(18)(18)15 17 
Settlements2 4 — — 
Plan amendments— 3 7 8 
Total recognized in other comprehensive loss (income)$(113)$42 $335 $(12)
1 In 2023, the OPEB plans generated an actuarial gain relating to updates for demographic experience. We had adjustments relating to retirements, participation, persistency and census data updates.
2 The loss in per capita healthcare costs in 2024 relating to our OPEB plans is primarily due to unfavorable Medicare Advantage Prescription Drug healthcare rates, which are effective January 1, 2025. Additionally, we increased our short-term Medicare Advantage Prescription Drug trend rate assumption.
Estimated Future Benefit Payments
(In millions)Pension Benefits
OPEB1
2025$472 $116 
2026440 114 
2027419 109 
2028405 105 
2029382 100 
2030-20341,663 445 
1 OPEB benefit payments are displayed net of participant contributions.
Defined Benefit Plan, Assumptions
The following represents weighted-average assumptions used to determine benefit obligations:
Pension BenefitsOPEB
December 31,December 31,
2024202320242023
Discount rate5.55%5.12%5.59%5.15%
Interest crediting rate5.585.46N/AN/A
Compensation rate increase3.003.003.003.00
The following represents weighted-average assumptions used to determine net benefit cost:
Pension BenefitsOPEB
December 31,December 31,
202420232022202420232022
Obligation discount rate5.08 %5.47 %3.21 %5.15 %5.52 %3.33 %
Service cost discount rate5.29 5.61 3.49 5.28 5.65 3.91 
Interest cost discount rate5.05 5.34 2.75 5.08 5.38 3.01 
Interest crediting rate5.46 5.46 5.39 N/AN/AN/A
Expected return on plan assets7.85 7.66 6.87 5.95 5.87 4.86 
Compensation rate increase3.00 3.00 2.74 3.00 3.00 3.00 
Assumed Health Care Cost Trend Rates
The following represents assumed weighted-average health care cost trend rates:
December 31,
20242023
Health care cost trend rate assumed for next year1
11.43 %5.49 %
Ultimate health care cost trend rate4.50 %4.50 %
Year that the ultimate rate is reached20322032
1 The health care trend rate is weighted for all of our OPEB plans and factors in our Medicare Advantage Prescription Drug pricing arrangements. In 2024, we maintained our assumed health care cost trend rate for self insured plans at 6.25%, which grades down on a linear basis to 4.50% by 2032. In 2024, the health care trend rate for the Medicare Advantage Prescription Drug plans assumes a 16.25% rate, which is primarily driven by our expectation that the impacts from the Inflation Reduction Act will negatively impact Medicare Advantage Prescription Drug plan costs for the next year. We assume the healthcare trend rate for the Medicare Advantage Prescription Drug plans will realign with the self insured plans after the one time increase.
Plan Assets and Asset Allocation The following table reflects the actual asset allocations for pension and VEBA assets as of December 31, 2024 and 2023, as well as the 2025 weighted average target asset allocations:
Pension AssetsVEBA Assets
Asset Category2025
Target
Allocation		Actual Asset Allocation at December 31,2025
Target
Allocation		Actual Asset Allocation at December 31,
2024202320242023
Equity securities34.0 %32.7 %32.1 %17.2 %17.6 %18.4 %
Fixed income40.8 38.9 38.8 78.4 76.6 74.5 
Hedge funds9.4 9.6 9.4 1.0 1.2 1.5 
Private equity3.4 3.6 3.4 — — — 
Structured credit2.5 4.0 5.1 0.3 0.5 0.9 
Real estate9.9 11.2 11.2 3.1 4.1 4.7 
Total100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
Fair Value of Pension Assets by Asset Category
The fair value of our pension assets by asset category is as follows:
(In millions)Quoted Prices in Active Markets for Identical Assets (Level 1)Significant  Other Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Investments Measured at Net Asset ValueTotal
Asset Category2024202320242023202420232024202320242023
Equity securities:
U.S. equities$816 $809 $— $— $— $— $— $— $816 $809 
Global equities501 502 — — — — 69 65 570 567 
Fixed income:
U.S. government securities1
32 22 577 657 — — 146 142 755 821 
U.S. corporate bonds583 587 — — — — 115 94 698 681 
Non U.S. and other bonds9 — — — — — 185 160 194 160 
Hedge funds— — — — 128 118 280 285 408 403 
Private equity— — — — 151 146 — — 151 146 
Structured credit— — — — 171 220 — — 171 220 
Real estate— — — — 242 286 232 189 474 475 
Total$1,941 $1,920 $577 $657 $692 $770 $1,027 $935 $4,237 $4,282 
1 Includes cash equivalents.
The fair value of our VEBA assets by asset category is as follows:
(In millions)Quoted Prices  in Active Markets for Identical Assets
(Level 1)		Significant  Other Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Investments Measured at Net Asset ValueTotal
Asset Category2024202320242023202420232024202320242023
Equity securities:
U.S. equities$99 $102 $— $— $— $— $— $— $99 $102 
Global equities3 3 — — — — 28 30 31 33 
Fixed income:
U.S. government securities1
130 119 50 27 — — 44 47 224 193 
U.S. corporate bonds216 214 74 94 — — 52 49 342 357 
Non U.S. and other bonds2 3 — — — — — — 2 3 
Hedge funds— — — — 10 10 — — 10 10 
Structured credit— — — — 4 7 — — 4 7 
Real estate— — — — 5 10 25 24 30 34 
Total$450 $441 $124 $121 $19 $27 $149 $150 $742 $739 
1 Includes cash equivalents.
Effect of Fair Value Measurements Using Significant Unobservable Inputs on Changes in Plan Assets
The following represents the fair value measurements of changes in plan assets using significant unobservable inputs (Level 3):
Pension AssetsVEBA Assets
(In millions)2024202320242023
Beginning balance — January 1$770 $912 $27 $35 
Actual return on plan assets:
Relating to assets still held at the reporting date18 (16)1 2 
Relating to assets sold during the period7 10 — 1 
Purchases31 24 — — 
Sales(134)(160)(9)(11)
Ending balance — December 31$692 $770 $19 $27 
Multiemployer Plan
Information with respect to multiemployer plans in which we participate follows:
Pension FundEIN/Pension Plan Number
Pension Protection Act Zone Status1
FIP/RP Status Pending/Implemented2
Contributions
(in millions)
Surcharge Imposed3
Expiration Date of Collective Bargaining Agreement4
20242023202420232022
Steelworkers Pension Trust
23-6648508/499
GreenGreenNo$117 $119 $93 No4/1/2025 to 9/1/2026
IAM National Pension Fund’s National Pension Plan
51-6031295/002
RedRedYes22 23 22 Yes5/31/2025 to 5/15/2027
Other Plans5
1 1 — 
Total$140 $143 $115 
1 The most recent Pension Protection Act zone status available in 2024 and 2023 is for each plan's year-end at December 31, 2023 and 2022. The plan's actuary certifies the zone status. Generally, plans in the red zone are less than 65% funded, plans in the yellow zone are between 65% and 80% funded, and plans in the green zone are at least 80% funded. The IAM National Pension Fund's National Pension Plan voluntarily elected to place itself in the "Red Zone" in April 2019 and has implemented a rehabilitation plan to address its underfunded status. Additional contributions will be required as part of the rehabilitation plan until the plan exits the "Red Zone".
2 The "FIP/RP Status Pending/Implemented" column indicates plans for which a financial improvement plan or a rehabilitation plan is either pending or has been implemented, as defined by ERISA.
3 The surcharge represents an additional required contribution due as a result of the critical funding status of the plan.
4 We are party to six collective bargaining agreements that require contributions to the Steelworkers Pension Trust and three collective bargaining agreements that require contributions to the IAM National Pension Fund's National Pension Plan.
5 Plans that are not individually significant to our Company are presented in aggregate.