16. Pension Plans and Other Postretirement Benefits

The Company has contributory and non-contributory defined-benefit pension plans, which include both qualified and supplemental plans. The Company also provides certain health care and life insurance benefits for certain retired employees. Retiree health care benefits are funded by contributions from the retiree, and in certain circumstances, contributions from the Company. The Company’s retiree life insurance plan is noncontributory.

During the nine months ended September 30, 2013, the Company made contributions of $122 million to its funded pension plans, $6 million to its unfunded pension plans, and $11 million to its unfunded other postretirement benefit plans. During the fourth quarter of 2013, the Company expects to contribute $2 million to its funded pension plans, $30 million to its unfunded pension plans, and $5 million to its unfunded other postretirement benefit plans.

The following summarizes the Company’s pension and other postretirement benefit cost:



	Pension Benefits						Other Benefits
millions	2013			2012			2013		2012
Three Months Ended September 30
Service cost	$	21		$	19		$	2	$	2
Interest cost	19			21			3		4
Expected return on plan assets	(22		)	(23		)	—		—
Amortization of net actuarial loss (gain)	29			23			—		—
Amortization of net prior service cost (credit)	—			—			1		—
Net periodic benefit cost	$	47		$	40		$	6	$	6

Nine Months Ended September 30
Service cost	$	64		$	57		$	7	$	7
Interest cost	58			64			10		12
Expected return on plan assets	(68		)	(68		)	—		—
Amortization of net actuarial loss (gain)	88			69			—		—
Amortization of net prior service cost (credit)	—			—			1		1
Net periodic benefit cost	$	142		$	122		$	18	$	20