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RETIREMENT BENEFITS
 6 Months Ended
Jun. 30, 2019
Retirement Benefits [Abstract]  
RETIREMENT BENEFITS RETIREMENT BENEFITS
For additional information on Citi’s retirement benefits, see Note 8 to the Consolidated Financial Statements in Citi’s 2018 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 June 30,
 
Pension plans
Postretirement benefit plans
 
U.S. plans
Non-U.S. plans
U.S. plans
Non-U.S. plans
In millions of dollars
2019
2018
2019
2018
2019
2018
2019
2018
Benefits earned during the period
$
—

$
—

$
35

$
38

$
—

$
—

$
2

$
3

Interest cost on benefit obligation
123

126

73

72

6

7

26

25

Expected return on plan assets
(202
)
(211
)
(68
)
(72
)
(4
)
(3
)
(21
)
(22
)
Amortization of unrecognized:
 

 
 

 

 

 

 

 

Prior service cost (benefit)
(1
)
—

(1
)
(1
)
—

—

(3
)
(3
)
Net actuarial loss
48

42

15

14

—

—

6

8

Curtailment loss(1)
—

1

—

—

—

—

—

—

Settlement loss(1)
—

—

2

1

—

—

—

—

Total net (benefit) expense
$
(32
)
$
(42
)
$
56

$
52

$
2

$
4

$
10

$
11

























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

 
Six Months Ended June 30,
 
Pension plans
Postretirement benefit plans
 
U.S. plans
Non-U.S. plans
U.S. plans
Non-U.S. plans
In millions of dollars
2019
2018
2019
2018
2019
2018
2019
2018
Benefits earned during the period
$
—

$
1

$
71

$
76

$
—

$
—

$
4

$
5

Interest cost on benefit obligation
253

249

148

147

13

13

52

51

Expected return on plan assets
(405
)
(424
)
(136
)
(150
)
(9
)
(6
)
(42
)
(45
)
Amortization of unrecognized




 

 

 
 

 

 

Prior service benefit
—

—

(2
)
(2
)
—

—

(5
)
(5
)
Net actuarial loss
92

89

30

27

—

—

11

15

Curtailment loss (1)
—

1

—

—

—

—

—

—

Settlement loss(1)
—

—

2

5

—

—

—

—

Total net (benefit) expense
$
(60
)
$
(84
)
$
113

$
103

$
4

$
7

$
20

$
21


1)
Losses due to curtailment and settlement relate to repositioning and divestiture activities.
Funded Status and Accumulated Other Comprehensive Income (AOCI)
The following table summarizes the funded status and amounts recognized on the Consolidated Balance Sheet for the Company’s
Significant Plans:
 
Six Months Ended June 30, 2019
 
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
$
12,655

$
7,149

$
662

$
1,159

Plans measured annually
(25
)
(1,862
)
—

(307
)
Projected benefit obligation at beginning of year—Significant Plans
$
12,630

$
5,287

$
662

$
852

First quarter activity
408

293

13

62

Projected benefit obligation at March 31, 2019—Significant Plans
$
13,038

$
5,580

$
675

$
914

Benefits earned during the period
—

21

—

1

Interest cost on benefit obligation
122

60

6

23

Actuarial loss
548

172

42

48

Benefits paid, net of participants’ contributions and government subsidy
(233
)
(79
)
(13
)
(19
)
Foreign exchange impact and other
—

3

—

8

Projected benefit obligation at period end—Significant Plans
$
13,475

$
5,757

$
710

$
975






 
Six Months Ended June 30, 2019
 
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
$
11,490

$
6,699

$
345

$
1,036

Plans measured annually
—

(1,248
)
—

(9
)
Plan assets at fair value at beginning of year—Significant Plans
$
11,490

$
5,451

$
345

$
1,027

First quarter activity
487

257

2

32

Plan assets at fair value at March 31, 2019—Significant Plans
$
11,977

$
5,708

$
347

$
1,059

Actual return on plan assets
449

206

9

62

Company contributions, net of reimbursements
438

14

5

218

Benefits paid, net of participants’ contributions and government subsidy

(233
)
(79
)
(13
)
(19
)
Foreign exchange impact and other
—

250

—

(236
)
Plan assets at fair value at period end—Significant Plans
$
12,631

$
6,099

$
348

$
1,084

Funded status of the Significant Plans
 
 
 
 
Qualified plans(1)
$
(151
)
$
342

$
(362
)
$
109

Nonqualified plans
(693
)
—

—

—

Funded status of the plans at period end—Significant Plans
$
(844
)
$
342

$
(362
)
$
109

Net amount recognized at period end
 

 

 

 

Benefit asset
$
—

$
920

$
—

$
109

Benefit liability
(844
)
(578
)
(362
)
—

Net amount recognized on the balance sheet—Significant Plans
$
(844
)
$
342

$
(362
)
$
109

Amounts recognized in AOCI at period end
 

 

 

Prior service benefit
$
—

$
14

$
—

$
72

Net actuarial (loss) gain
(7,101
)
(995
)
13

(320
)
Net amount recognized in equity (pretax)—Significant Plans
$
(7,101
)
$
(981
)
$
13

$
(248
)
Accumulated benefit obligation at period end—Significant Plans
$
13,469

$
5,467

$
710

$
975


(1)
The U.S. qualified pension plan is fully funded pursuant to the Employee Retirement Income Security Act of 1974, as amended (ERISA), funding rules as of January 1, 2019 and no minimum required funding is expected for 2019.


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 
 June 30, 2019
Six Months Ended  
  June 30, 2019
Beginning of period balance, net of tax(1)(2)
$
(6,321
)
$
(6,257
)
Actuarial assumptions changes and plan experience
(814
)
(1,609
)
Net asset gain (loss) due to difference between actual and expected returns
443

1,133

Net amortization
66

128

Prior service cost
(5
)
(5
)
Curtailment/settlement gain(3)
2

2

Foreign exchange impact and other
(22
)
(47
)
Change in deferred taxes, net
77

81

Change, net of tax
$
(253
)
$
(317
)
End of period balance, net of tax(1)(2)
$
(6,574
)
$
(6,574
)

(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)
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
Jun. 30, 2019
Jun. 30, 2018
U.S. plans
 
 
Qualified pension
3.85
%
3.95
%
Nonqualified pension
3.90

3.95

Postretirement
3.80

3.90

Non-U.S. plans
 
 
Pension
0.45-10.30
0.75-9.90
Weighted average
4.74

4.86

Postretirement
10.30

9.50



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
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
U.S. plans
 
 
 
Qualified pension
3.45
%
3.85
%
4.25
%
Nonqualified pension
3.50

3.90

4.25

Postretirement
3.35

3.80

4.20

Non-U.S. plans
 
 
 
Pension
0.30-9.55
0.45-10.30
0.75-10.75
Weighted average
4.52

4.74

5.09

Postretirement
9.70

10.30

10.75

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 June 30, 2019
In millions of dollars
One-percentage-point increase
One-percentage-point decrease
Pension
 
 
   U.S. plans
$
7

$
(10
)
   Non-U.S. plans
(3
)
5

Postretirement
 
 
   U.S. plans
1

(1
)
   Non-U.S. plans
(2
)
2






Contributions
For the U.S. pension plans, there were no required minimum cash contributions during the first six months of 2019. The Company made a discretionary contribution of $425 million and $220 million to the U.S. qualified defined benefit plan and Mexico—Banco Nacional Healthcare Postretirement Plan, respectively, during the second quarter of 2019.
 
The following table summarizes the Company’s actual contributions for the six months ended June 30, 2019 and 2018, as well as estimated expected Company contributions for the remainder of 2019 and the actual contributions made for the remainder of 2018:
 
Pension plans 
Postretirement plans 
 
U.S. plans(1)
Non-U.S. plans
U.S. plans
Non-U.S. plans
In millions of dollars
2019
2018
2019
2018
2019
2018
2019
2018
Company contributions(2) for the six months ended
  June 30
$
463

$
28

$
64

$
112

$
—

$
7

$
223

$
5

Company contributions made during the remainder
  of the year
—

27

—

70

—

143

—

4

Company contributions expected to be made during
  the remainder of the year
30

—

70

—

2

—

5

—


(1)
The U.S. 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:
 
Three Months Ended June 30,
Six Months Ended 
 June 30,
In millions of dollars
2019
2018
2019
2018
   U.S. plans
$
99

$
99

$
198

$
203

   Non-U.S. plans
71

72

139

148



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 June 30,
Six Months Ended 
 June 30,
In millions of dollars
2019
2018
2019
2018
Service-related expense




$
—

$
—

Interest cost on benefit obligation
$
1

$
1

$
1

$
1

Expected return on plan assets
(1
)
(1
)
(1
)
(1
)
Amortization of unrecognized:








     Prior service
       benefit
—

(7
)
—

(15
)
     Net actuarial loss
—

—

1

1

Total service-related (benefit) expense
$
—

$
(7
)
$
1

$
(14
)
Non-service-related expense (benefit)
$
2

$
(3
)
$
6

$
3

Total net expense (benefit)
$
2

$
(10
)
$
7

$
(11
)