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RETIREMENT BENEFITS
 9 Months Ended
Sep. 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 September 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

$
—

$
37

$
35

$
—

$
—

$
2

$
2

Interest cost on benefit obligation
112

132

70

73

6

6

25

26

Expected return on plan assets
(208
)
(210
)
(72
)
(71
)
(5
)
(4
)
(20
)
(22
)
Amortization of unrecognized:
 

 
 

 

 

 

 

 

Prior service cost (benefit)
1

—

(1
)
(1
)
—

—

(2
)
(2
)
Net actuarial loss
52

39

15

14

—

—

5

7

Curtailment loss(1)
1

—

(5
)
—

—

—

—

—

Total net (benefit) expense
$
(41
)
$
(39
)
$
44

$
50

$
1

$
2

$
10

$
11

























(1)
Curtailment relates to repositioning and divestiture activities.

 
Nine Months Ended September 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

$
1

$
108

$
111

$
—

$
—

$
6

$
7

Interest cost on benefit obligation
365

381

218

220

19

19

77

77

Expected return on plan assets
(613
)
(634
)
(208
)
(221
)
(14
)
(10
)
(62
)
(67
)
Amortization of unrecognized:




 

 

 
 

 

 

Prior service cost (benefit)
1

—

(3
)
(3
)
—

—

(7
)
(7
)
Net actuarial loss
144

128

45

41

—

—

16

22

Curtailment loss (gain)(1)
1

1

(5
)
—

—

—

—

—

Settlement loss(1)
—

—

2

5

—

—

—

—

Total net (benefit) expense
$
(101
)
$
(123
)
$
157

$
153

$
5

$
9

$
30

$
32


(1)
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:
 
Nine Months Ended September 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

Second quarter activity
437

177

35

61

Projected benefit obligation at June 30, 2019—Significant Plans
$
13,475

$
5,757

$
710

$
975

Benefits earned during the period
1

22

—

2

Interest cost on benefit obligation
112

58

6

22

Actuarial loss
469

254

17

50

Benefits paid, net of participants’ contributions and government subsidy
(246
)
(75
)
(14
)
(17
)
Curtailment loss(1)
1

—

—

—

Foreign exchange impact and other
—

(146
)
—

(26
)
Projected benefit obligation at period end—Significant Plans
$
13,812

$
5,870

$
719

$
1,006

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

Second quarter activity
654

391

1

25

Plan assets at fair value at June 30, 2019—Significant Plans
$
12,631

$
6,099

$
348

$
1,084

Actual return on plan assets
258

311

5

28

Company contributions, net of reimbursements
13

16

7

—

Benefits paid, net of participants’ contributions and government subsidy

(246
)
(75
)
(14
)
(17
)
Foreign exchange impact and other
—

(134
)
—

(29
)
Plan assets at fair value at period end—Significant Plans
$
12,656

$
6,217

$
346

$
1,066

Funded status of the Significant Plans
 
 
 
 
Qualified plans(1)
$
(447
)
$
347

$
(373
)
$
60

Nonqualified plans
(709
)
—

—

—

Funded status of the plans at period end—Significant Plans
$
(1,156
)
$
347

$
(373
)
$
60

Net amount recognized at period end
 

 

 

 

Benefit asset
$
—

$
935

$
—

$
60

Benefit liability
(1,156
)
(588
)
(373
)
—

Net amount recognized on the balance sheet—Significant Plans
$
(1,156
)
$
347

$
(373
)
$
60

Amounts recognized in AOCI at period end
 

 

 

Prior service benefit
$
—

$
12

$
—

$
68

Net actuarial (loss) gain
(7,470
)
(959
)
(3
)
(350
)
Net amount recognized in equity (pretax)—Significant Plans
$
(7,470
)
$
(947
)
$
(3
)
$
(282
)
Accumulated benefit obligation at period end—Significant Plans
$
13,806

$
5,564

$
719

$
1,006


(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 
 September 30, 2019
Nine Months Ended  
  September 30, 2019
Beginning of period balance, net of tax(1)(2)
$
(6,574
)
$
(6,257
)
Actuarial assumptions changes and plan experience
(788
)
(2,397
)
Net asset gain (loss) due to difference between actual and expected returns
306

1,439

Net amortization
70

198

Prior service cost
—

(5
)
Curtailment/settlement gain(3)
(5
)
(3
)
Foreign exchange impact and other
61

14

Change in deferred taxes, net
106

187

Change, net of tax
$
(250
)
$
(567
)
End of period balance, net of tax(1)(2)
$
(6,824
)
$
(6,824
)

(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
Sept. 30, 2019
June 30, 2019
U.S. plans
 
 
Qualified pension
3.45
%
3.85
%
Nonqualified pension
3.50

3.90

Postretirement
3.35

3.80

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

4.74

Postretirement
9.70

10.30



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
Sept. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
U.S. plans
 
 
 
Qualified pension
3.10
%
3.45
%
3.85
%
Nonqualified pension
3.10

3.50

3.90

Postretirement
3.00

3.35

3.80

Non-U.S. plans
 
 
 
Pension
-0.05-9.00
0.30-9.55
0.45-10.30
Weighted average
4.05

4.52

4.74

Postretirement
9.20

9.70

10.30

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 September 30, 2019
In millions of dollars
One-percentage-point increase
One-percentage-point decrease
Pension
 
 
   U.S. plans
$
8

$
(12
)
   Non-U.S. plans
(3
)
6

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 nine months of 2019. The Company made discretionary contributions 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 nine months ended September 30, 2019 and 2018, as well as expected Company contributions for the remainder of 2019 and the actual contributions made in 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 nine months ended
  September 30
$
467

$
42

$
98

$
143

$
6

$
150

$
225

$
7

Company contributions made during the remainder
  of the year
—

13

—

39

—

—

—

2

Company contributions expected to be made during
  the remainder of the year
15

—

35

—

1

—

2

—


(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 September 30,
Nine Months Ended 
 September 30,
In millions of dollars
2019
2018
2019
2018
U.S. plans
$
99

$
90

$
296

$
293

Non-U.S. plans
71

68

209

216



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 September 30,
Nine Months Ended 
 September 30,
In millions of dollars
2019
2018
2019
2018
Service-related expense




$
—

$
—

Interest cost on benefit obligation
$
—

$
—

$
1

$
1

Expected return on plan assets
—

—

(1
)
(1
)
Amortization of unrecognized:








     Prior service
       benefit
—

(8
)
—

(23
)
     Net actuarial loss
1

1

2

2

Total service-related (benefit) expense
$
1

$
(7
)
$
2

$
(21
)
Non-service-related expense (benefit)
$
4

$
4

$
10

$
7

Total net expense (benefit)
$
5

$
(3
)
$
12

$
(14
)