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RETIREMENT BENEFITS
 3 Months Ended
Mar. 31, 2020
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 2019 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
2020
2019
2020
2019
2020
2019
2020
2019
Benefits earned during the period
$
—

$
—

$
37

$
36

$
—

$
—

$
2

$
2

Interest cost on benefit obligation
106

130

64

75

5

7

24

26

Expected return on plan assets
(208
)
(203
)
(65
)
(68
)
(5
)
(5
)
(20
)
(21
)
Amortization of unrecognized:




 

 

 
 

 

 

Prior service cost (benefit)
1

1

(1
)
(1
)
—

—

(2
)
(2
)
Net actuarial loss
56

44

17

15

—

—

5

5

Total net (benefit) expense
$
(45
)
$
(28
)
$
52

$
57

$
—

$
2

$
9

$
10





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:
 
Three Months Ended March 31, 2020
 
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
$
13,453

$
8,105

$
692

$
1,384

Plans measured annually
(26
)
(2,068
)
—

(323
)
Projected benefit obligation at beginning of year—Significant Plans
$
13,427

$
6,037

$
692

$
1,061

Benefits earned during the period


21

—

1

Interest cost on benefit obligation
106

55

5

21

Actuarial loss (gain)
65

(419
)
(13
)
(63
)
Benefits paid, net of participants’ contributions and government subsidy
(249
)
(69
)
(5
)
(12
)
Foreign exchange impact and other
—

(522
)
—

(202
)
Projected benefit obligation at period end—Significant Plans
$
13,349

$
5,103

$
679

$
806

Change in plan assets
 

 

 

 

Plan assets at fair value at beginning of year
$
12,717

$
7,556

$
345

$
1,127

Plans measured annually
—

(1,349
)
—

(9
)
Plan assets at fair value at beginning of year—Significant Plans
$
12,717

$
6,207

$
345

$
1,118

Actual return on plan assets
(628
)
(156
)
(11
)
(45
)
Company contributions, net of reimbursements
13

16

(8
)
—

Benefits paid, net of participants’ contributions and government subsidy

(249
)
(69
)
(5
)
(12
)
Foreign exchange impact and other
—

(511
)
—

(213
)
Plan assets at fair value at period end—Significant Plans
$
11,853

$
5,487

$
321

$
848

Funded status of the Significant Plans
 
 
 
 
Qualified plans(1)
$
(818
)
$
384

$
(358
)
$
42

Nonqualified plans
(678
)
—

—

—

Funded status of the plans at period end—Significant Plans
$
(1,496
)
$
384

$
(358
)
$
42

Net amount recognized at period end
 

 

 

 

Benefit asset
$
—

$
1,001

$
—

$
42

Benefit liability
(1,496
)
(617
)
(358
)
—

Net amount recognized on the balance sheet—Significant Plans
$
(1,496
)
$
384

$
(358
)
$
42

Amounts recognized in AOCI at period end
 

 

 

Prior service benefit
$
—

$
8

$
—

$
54

Net actuarial (loss) gain
(7,932
)
(780
)
22

(289
)
Net amount recognized in equity (pretax)—Significant Plans
$
(7,932
)
$
(772
)
$
22

$
(235
)
Accumulated benefit obligation at period end—Significant Plans
$
13,344

$
4,827

$
679

$
806


(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, 2020 and no minimum required funding is expected for 2020.

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, 2020
For Year Ended
December 31, 2019
Beginning of period balance, net of tax(1)(2)
$
(6,809
)
$
(6,257
)
Actuarial assumptions changes and plan experience
430

(2,300
)
Net asset gain (loss) due to difference between actual and expected returns
(1,128
)
1,427

Net amortization
76

274

Prior service cost
—

(7
)
Curtailment/settlement gain(3)
—

1

Foreign exchange impact and other
204

(66
)
Change in deferred taxes, net
132

119

Change, net of tax
$
(286
)
$
(552
)
End of period balance, net of tax(1)(2)
$
(7,095
)
$
(6,809
)

(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
Mar. 31, 2020
Dec. 31, 2019
U.S. plans
 
 
Qualified pension
3.25
%
3.10
%
Nonqualified pension
3.25

3.10

Postretirement
3.15

3.00

Non-U.S. plans
 
 
Pension (1)
0.20-8.95
-0.05-9.00
Weighted average
4.21

4.05

Postretirement
9.10

9.20



(1)
Due to substantial downward movement in yields, there were negative discount rates for plans with relatively short duration in major markets such as Switzerland.

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, 2020
Dec. 31, 2019
Mar. 31, 2019
U.S. plans
 
 
 
Qualified pension
3.20
%
3.25
%
3.85
%
Nonqualified pension
3.25

3.25

3.90

Postretirement
3.20

3.15

3.80

Non-U.S. plans
 
 
 
Pension
0.45-9.45
0.20-8.95
0.45-10.30
Weighted average
4.38

4.21

4.74

Postretirement
9.75

9.10

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 March 31, 2020
In millions of dollars
One-percentage-point increase
One-percentage-point decrease
Pension
 
 
   U.S. plans
$
7

$
(12
)
   Non-U.S. plans
(2
)
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 three months of 2020. 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 three months ended March 31, 2020 and 2019, as well as expected Company contributions for the remainder of 2020 and the actual contributions made in 2019:
 
Pension plans 
Postretirement plans 
 
U.S. plans(1)
Non-U.S. plans
U.S. plans
Non-U.S. plans
In millions of dollars
2020
2019
2020
2019
2020
2019
2020
2019
Company contributions(2) for the three months ended
 March 31
$
14

$
14

$
37

$
34

$
—

$
—

$
2

$
3

Company contributions made during the remainder
  of the year
—

467

—

116

—

4

—

222

Company contributions expected to be made during
  the remainder of the year
43

—

116

—

—

—

6

—


(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 March 31,
In millions of dollars
2020
2019
U.S. plans
$
101

$
99

Non-U.S. plans
76

68



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
2020
2019
Service-related expense




Amortization of unrecognized:




   Net actuarial loss
—

1

Total service-related expense
$
—

$
1

Non-service-related expense
$
5

$
4

Total net expense
$
5

$
5