RETIREMENT BENEFITS

For additional information on Citi’s retirement benefits, see Note 8 to the Consolidated Financial Statements in Citi’s 2016 Annual Report on Form 10-K.

Net (Benefit) Expense

The following table summarizes the components of net (benefit) expense recognized in the Consolidated Statement of Income for the Company’s pension and postretirement plans for Significant Plans and All Other Plans:



	Three months ended March 31,
	Pension plans												Postretirement benefit plans
	U.S. plans						Non-U.S. plans						U.S. plans						Non-U.S. plans
In millions of dollars	2017			2016			2017			2016			2017			2016			2017			2016
Qualified plans
Benefits earned during the period	$	1		$	1		$	36		$	38		$	—		$	—		$	2		$	3
Interest cost on benefit obligation	132			141			71			73			6			8			24			24
Expected return on plan assets	(216		)	(218		)	(70		)	(72		)	(1		)	(2		)	(21		)	(21		)
Amortization of unrecognized
Prior service benefit	—			—			(1		)	—			—			—			(2		)	(3		)
Net actuarial loss (gain)	41			36			16			19			(1		)	—			8			8
Curtailment gains⁽¹⁾	—			—			—			(3		)	—			—			—			—
Settlement loss⁽¹⁾	—			—			—			1			—			—			—			—
Net qualified plans (benefit) expense	$	(42	)	$	(40	)	$	52		$	56		$	4		$	6		$	11		$	11
Nonqualified plans expense	10			10			—			—			—			—			—			—
Total net (benefit) expense	$	(32	)	$	(30	)	$	52		$	56		$	4		$	6		$	11		$	11

(1) (Gains) losses due to curtailment and settlement relate to repositioning and divestiture activities.

Funded Status and Accumulated Other Comprehensive Income (AOCI)

The following tables summarize the funded status and amounts recognized in the Consolidated Balance Sheet for the Company’s

Significant Plans.



	Three months ended March 31, 2017
	Pension plans						Postretirement benefit plans
In millions of dollars	U.S. plans			Non-U.S. plans			U.S. plans			Non-U.S. plans
Change in projected benefit obligation
Projected benefit obligation at beginning of year	$	14,000		$	6,522		$	686		$	1,141
Plans measured annually	(28		)	(1,784		)	—			(303		)
Projected benefit obligation at beginning of year—Significant Plans	$	13,972		$	4,738		$	686		$	838
Benefits earned during the period	1			21			—			2
Interest cost on benefit obligation	139			60			6			20
Plan amendments	—			5			—			—
Actuarial loss	72			134			3			39
Benefits paid, net of participants’ contributions	(187		)	(75		)	(16		)	(11		)
Foreign exchange impact and other	—			657			—			84
Projected benefit obligation at period end—Significant Plans	$	13,997		$	5,540		$	679		$	972



	Three months ended March 31, 2017
	Pension plans						Postretirement benefit plans
In millions of dollars	U.S. plans			Non-U.S. plans			U.S. plans			Non-U.S. plans
Change in plan assets
Plan assets at fair value at beginning of year	$	12,363		$	6,149		$	129		$	1,015
Plans measured annually	—			(1,167		)	—			(11		)
Plan assets at fair value at beginning of year—Significant Plans	$	12,363		$	4,982		$	129		$	1,004
Actual return on plan assets	333			179			4			36
Company contributions, net of reimbursements	13			13			12			—
Plan participants’ contributions	—			1			—			—
Benefits paid, net of government subsidy	(187		)	(76		)	(16		)	(11		)
Foreign exchange impact and other	—			786			—			99
Plan assets at fair value at period end—Significant Plans	$	12,522		$	5,885		$	129		$	1,128

Funded status of the Significant Plans
Qualified plans⁽¹⁾	$	(778	)	$	345		$	(550	)	$	156
Nonqualified plans	(697		)	—			—			—
Funded status of the plans at period end—Significant Plans	$	(1,475	)	$	345		$	(550	)	$	156

Net amount recognized
Benefit asset	$	—		$	801		$	—		$	156
Benefit liability	(1,475		)	(456		)	(550		)	—
Net amount recognized on the balance sheet—Significant Plans	$	(1,475	)	$	345		$	(550	)	$	156

Amounts recognized in AOCI
Prior service benefit	$	—		$	32		$	—		$	92
Net actuarial gain (loss)	(6,795		)	(921		)	104			(372		)
Net amount recognized in equity (pretax)—Significant Plans	$	(6,795	)	$	(889	)	$	104		$	(280	)

Accumulated benefit obligation at period end—Significant Plans	$	13,991		$	5,272		$	679		$	972


(1)	The U.S. qualified pension plan is fully funded under specified Employee Retirement Income Security Act of 1974, as amended (ERISA), funding rules as of January 1, 2017 and no minimum required funding is expected for 2017.

The following table shows the change in AOCI related to the Company’s pension, postretirement and post employment plans:



In millions of dollars	Three months ended March 31, 2017			Year ended December 31, 2016
Beginning of period balance, net of tax⁽¹⁾⁽²⁾	$	(5,164	)	$	(5,116	)
Actuarial assumptions changes and plan experience	(248		)	(854		)
Net asset gain due to difference between actual and expected returns	253			400
Net amortization	56			232
Prior service (cost) credit	(5		)	28
Curtailment/settlement gain⁽³⁾	—			17
Foreign exchange impact and other	(58		)	99
Change in deferred taxes, net	(10		)	30
Change, net of tax	$	(12	)	$	(48	)
End of period balance, net of tax⁽¹⁾⁽²⁾	$	(5,176	)	$	(5,164	)


(1)	See Note 17 to the Consolidated Financial Statements for further discussion of net AOCI balance.


(2)	Includes net-of-tax amounts for certain profit sharing plans outside the U.S.


(3)	Gains due to curtailment and settlement relate to repositioning and divestiture activities.

Plan Assumptions

The discount rates utilized during the period in determining the pension and postretirement net (benefit) expense for the Significant Plans are as follows:



Net benefit (expense) assumed discount rates during the period	Three months ended
	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
U.S. plans
Qualified pension	4.10%	3.55%	4.40%
Nonqualified pension	4.00	3.45	4.35
Postretirement	3.90	3.30	4.20
Non-U.S. plans
Pension	0.60-11.00	0.20-11.55	0.75-13.20
Weighted average	5.08	4.42	5.37
Postretirement	9.65	8.25	8.60

The discount rates utilized at period-end in determining the pension and postretirement benefit obligations for the Significant Plans are as follows:



Plan obligations assumed discount rates at period ended	Mar. 31, 2017	Dec. 31, 2016
U.S. plans
Qualified pension	4.05%	4.10%
Nonqualified pension	3.95	4.00
Postretirement	3.85	3.90
Non-U.S. plans
Pension	0.55-10.45	0.60-11.00
Weighted average	4.83	5.08
Postretirement	9.25	9.65

Sensitivities of Certain Key Assumptions

The following table summarizes the estimated effect on the Company’s Significant Plans quarterly expense of a one-percentage-point change in the discount rate:



	Three months ended March 31, 2017
In millions of dollars	One-percentage-point increase			One-percentage-point decrease
Pension
U.S. plans	$	7		$	(11	)
Non-U.S. plans	(5		)	7
Postretirement
U.S. plans	$	—		$	—
Non-U.S. plans	(2		)	2

Contributions

For the U.S. pension plans, there were no required minimum cash contributions during the first three months of 2017.

The following table summarizes the Company’s actual contributions for the three months ended March 31, 2017 and 2016, as well as estimated expected Company contributions for the remainder of 2017 and the actual contributions made in the second, third and fourth quarters of 2016.



	Pension plans								Postretirement plans
	U.S. plans ⁽¹⁾				Non-U.S. plans				U.S. plans				Non-U.S. plans
In millions of dollars	2017		2016		2017		2016		2017		2016		2017		2016
Company contributions⁽²⁾ for the three months ended March 31	$	13	$	15	$	34	$	32	$	12	$	6	$	2	$	2
Company contributions made or expected to be made during the remainder of the year	43		541		105		94		—		—		6		7


(1)	The U.S. pension plans include benefits paid directly by the Company for the nonqualified pension plans.


(2)	Company contributions are composed of cash contributions made to the plans and benefits paid directly by the Company.

Defined Contribution Plans

The following table summarizes the Company’s contributions for the defined contribution plans:

Post Employment Plans

The following table summarizes the components of net expense recognized in the Consolidated Statement of Income for the Company’s U.S. post employment plans:



	Three months ended March 31,
In millions of dollars	2017			2016
Service-related expense
Interest cost on benefit obligation	$	—		$	1
Amortization of unrecognized
Prior service benefit	(8		)	(8		)
Net actuarial loss	1			1
Total service-related benefit	$	(7	)	$	(6	)
Non-service-related expense	$	8		$	8
Total net benefit expense	$	1		$	2

Three months ended
March 31,

In millions of dollars

U.S. plans

Non-U.S. plans