Contributions

The Company’s funding practice for U.S. and non-U.S. pension and postretirement plans is generally to fund to minimum funding requirements in accordance with applicable local laws and regulations. The Company may increase its contributions above the minimum required contribution, if appropriate. In addition, management has the ability to change its funding practices. For the U.S. pension plans, there were no required minimum cash contributions for 2020 or 2019.

The following table summarizes the Company’s actual contributions for the years ended December 31, 2020 and 2019, as well as expected Company contributions for 2021. Expected contributions are subject to change, since contribution decisions are affected by various factors, such as market performance, tax considerations and regulatory requirements.


	Pension plans(1)												Postretirement benefit plans(1)
	U.S. plans(2)						Non-U.S. plans						U.S. plans						Non-U.S. plans
In millions of dollars	2021		2020		2019		2021		2020		2019		2021		2020		2019		2021		2020		2019
Contributions made by the Company	$	—	$	—	$	425	$	97	$	115	$	111	$	—	$	—	$	—	$	3	$	4	$	221
Benefits paid directly by (reimbursements to) the Company	57		56		56		58		43		39		6		(15)		4		5		5		4

(1) Amounts reported for 2021 are expected amounts.

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

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:



	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
Change in projected benefit obligation

Projected benefit obligation at beginning of year	$	13,453	$	12,655	$	8,105	$	7,149	$	692	$	662	$	1,384	$	1,159






Benefits earned during the year	—		1		147		146		—		—		7		8
Interest cost on benefit obligation	378		469		246		287		17		24		93		104
Plan amendments(1)	—		—		(4)		7		(104)		—		—		—
Actuarial loss (gain)(2)	950		1,263		518		861		(18)		46		30		140
Benefits paid, net of participants’ contributions and government subsidy(3)	(966)		(936)		(298)		(304)		(28)		(40)		(64)		(72)


Settlement gain(4)	—		—		(110)		(84)		—		—		—		—
Curtailment loss (gain)(4)	—		1		(14)		(4)		—		—		—		—

Foreign exchange impact and other	—		—		39		47		—		—		(60)		45


Projected benefit obligation at year end	$	13,815	$	13,453	$	8,629	$	8,105	$	559	$	692	$	1,390	$	1,384
Change in plan assets

Plan assets at fair value at beginning of year	$	12,717	$	11,490	$	7,556	$	6,699	$	345	$	345	$	1,127	$	1,036






Actual return on assets(2)	1,502		1,682		584		781		29		36		129		138
Company contributions (reimbursements)	56		481		158		150		(15)		4		9		225

Benefits paid, net of participants’ contributions and government subsidy(3)	(966)		(936)		(298)		(304)		(28)		(40)		(64)		(72)

Settlement gain(4)	—		—		(110)		(84)		—		—		—		—
Foreign exchange impact and other	—		—		(59)		314		—		—		(55)		(200)
Plan assets at fair value at year end	$	13,309	$	12,717	$	7,831	$	7,556	$	331	$	345	$	1,146	$	1,127

Funded status of the plans
Qualified plans(5)	$	230	$	(23)	$	(798)	$	(549)	$	(228)	$	(347)	$	(244)	$	(257)
Nonqualified plans(6)	(736)		(713)		—		—		—		—		—		—
Funded status of the plans at year end	$	(506)	$	(736)	$	(798)	$	(549)	$	(228)	$	(347)	$	(244)	$	(257)

Net amount recognized
Qualified plans
Benefit asset	$	230	$	—	$	741	$	808	$	—	$	—	$	25	$	57
Benefit liability	—		(23)		(1,539)		(1,357)		(228)		(347)		(269)		(314)
Qualified plans	$	230	$	(23)	$	(798)	$	(549)	$	(228)	$	(347)	$	(244)	$	(257)
Nonqualified plans	(736)		(713)		—		—		—		—		—		—
Net amount recognized on the balance sheet	$	(506)	$	(736)	$	(798)	$	(549)	$	(228)	$	(347)	$	(244)	$	(257)

Amounts recognized in AOCI

Net transition obligation	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Prior service (cost) benefit	(10)		(12)		12		1		101		—		63		76
Net actuarial (loss) gain	(7,132)		(7,092)		(1,863)		(1,735)		56		24		(348)		(416)


Net amount recognized in equity (pretax)	$	(7,142)	$	(7,104)	$	(1,851)	$	(1,734)	$	157	$	24	$	(285)	$	(340)
Accumulated benefit obligation at year end	$	13,812	$	13,447	$	8,116	$	7,618	$	559	$	692	$	1,390	$	1,384

(1)U.S. postretirement benefit plan was amended in 2020 to move grandfathered Medicare-eligible retirees to the Medicare individual marketplace.

(2)During 2020 and 2019, the actuarial loss is primarily due to the decline in global discount rates offset by actual return on assets due to favorable asset returns.

(3)U.S. postretirement benefit plans were net of Employer Group Waiver Plan subsidy of $40 million and $22 million in 2020 and 2019, respectively.

(4)Curtailment and settlement (gains) losses relate to repositioning and divestiture activities.

(5)The U.S. qualified pension plan is fully funded under specified Employee Retirement Income Security Act (ERISA) funding rules as of January 1, 2021 and no minimum required funding is expected for 2021.

(6)The nonqualified plans of the Company are unfunded.

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


In millions of dollars	2020		2019		2018

Beginning of year balance, net of tax(1)(2)	$	(6,809)	$	(6,257)	$	(6,183)

Actuarial assumptions changes and plan experience	(1,464)		(2,300)		1,288
Net asset gain (loss) due to difference between actual and expected returns	1,076		1,427		(1,732)
Net amortization	318		274		214
Prior service credit (cost)	108		(7)		(7)
Curtailment/settlement gain(3)	(8)		1		7
Foreign exchange impact and other	(108)		(66)		136
Change in deferred taxes, net	23		119		20
Change, net of tax	$	(55)	$	(552)	$	(74)
End of year balance, net of tax(1)(2)	$	(6,864)	$	(6,809)	$	(6,257)

(1)See Note 19 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.

At December 31, 2020 and 2019, the aggregate projected benefit obligation (PBO), the aggregate accumulated benefit obligation (ABO) and the aggregate fair value of plan assets are presented for all defined benefit pension plans with a PBO in excess of plan assets and for all defined benefit pension plans with an ABO in excess of plan assets as follows:


	PBO exceeds fair value of plan assets								ABO exceeds fair value of plan assets
	U.S. plans(1)				Non-U.S. plans				U.S. plans(1)				Non-U.S. plans
In millions of dollars	2020		2019		2020		2019		2020		2019		2020		2019
Projected benefit obligation	$	736	$	13,453	$	4,849	$	4,445	$	736	$	13,453	$	4,723	$	2,748
Accumulated benefit obligation	734		13,447		4,400		4,041		734		13,447		4,329		2,435
Fair value of plan assets	—		12,717		3,310		3,089		—		12,717		3,212		1,429

(1)As of December 31, 2020, only the nonqualified plans’ PBO and ABO exceeded plan assets; As of December 31, 2019, both the qualified and nonqualified plans’ PBO and ABO exceeded plan assets.

Plan Assumptions

The Company utilizes a number of assumptions to determine plan obligations and expenses. Changes in one or a combination of these assumptions will have an impact on the Company’s pension and postretirement PBO, funded status and (benefit) expense. Changes in the plans’ funded status resulting from changes in the PBO and fair value of plan assets will have a corresponding impact on Accumulated other comprehensive income (loss).

The actuarial assumptions at the respective years ended December 31 in the table below are used to measure the year-end PBO and the net periodic (benefit) expense for the subsequent year (period). Since Citi’s Significant Plans are measured on a quarterly basis, the year-end rates for those plans are used to calculate the net periodic (benefit) expense for the subsequent year’s first quarter.

As a result of the quarterly measurement process, the net periodic (benefit) expense for the Significant Plans is calculated at each respective quarter end based on the preceding quarter-end rates (as shown below for the U.S. and non-U.S. pension and postretirement plans). The actuarial assumptions for All Other Plans are measured annually.

Certain assumptions used in determining pension and postretirement benefit obligations and net benefit expense for the Company’s plans are shown in the following table:


At year end	2020	2019
Discount rate
U.S. plans
Qualified pension	2.45%	3.25%
Nonqualified pension	2.35	3.25
Postretirement	2.20	3.15
Non-U.S. pension plans
Range(1)	-0.25 to 11.15	-0.10 to 11.30
Weighted average	3.14	3.65
Non-U.S. postretirement plans
Range	0.80 to 8.55	0.90 to 9.10
Weighted average	7.42	7.76
Future compensation increase rate(2)
Non-U.S. pension plans
Range	1.20 to 11.25	1.50 to 11.50
Weighted average	3.10	3.17
Expected return on assets
U.S. plans
Qualified pension	5.80	6.70
Postretirement(3)	5.80/1.50	6.70/3.00
Non-U.S. pension plans
Range	0.00 to 11.50	0.00 to 11.50
Weighted average	3.39	3.95
Non-U.S. postretirement plans
Range	5.95 to 8.00	6.20 to 8.00
Weighted average	7.99	7.99

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

(2) Not material for U.S. plans.

(3) For the year ended 2020 and 2019, the expected return on assets for the VEBA Trust was 1.50% and 3.00% respectively.


During the year	2020	2019	2018
Discount rate
U.S. plans
Qualified pension	3.25%/3.20%/ 2.60%/2.55%	4.25%/3.85%/ 3.45%/3.10%	3.60%/3.95%/ 4.25%/4.30%
Nonqualified pension	3.25/3.25/ 2.55/2.50	4.25/3.90/ 3.50/3.10	3.60/3.95/ 4.25/4.30
Postretirement	3.15/3.20/ 2.45/2.35	4.20/3.80/ 3.35/3.00	3.50/3.90/ 4.20/4.20
Non-U.S. pension plans(1)
Range(2)	-0.10 to 11.30	-0.05 to 12.00	0.00 to 10.75
Weighted average	3.65	4.47	4.17
Non-U.S. postretirement plans(1)
Range	0.90 to 9.75	1.75 to 10.75	1.75 to 10.10
Weighted average	7.76	9.05	8.10
Future compensation increase rate(3)
Non-U.S. pension plans(1)
Range	1.50 to 11.50	1.30 to 13.67	1.17 to 13.67
Weighted average	3.17	3.16	3.08
Expected return on assets
U.S. plans
Qualified pension(4)	6.70	6.70	6.80/6.70
Postretirement(4)	6.70/3.00	6.70/3.00	6.80/6.70/3.00
Non-U.S. pension plans(1)
Range	0.00 to 11.50	1.00 to 11.50	0.00 to 11.60
Weighted average	3.95	4.30	4.52
Non-U.S. postretirement plans(1)
Range	6.20 to 8.00	8.00 to 9.20	8.00 to 9.80
Weighted average	7.99	8.01	8.01

(1) Reflects rates utilized to determine the quarterly expense for Significant non-U.S. pension and postretirement plans.

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

(3) Not material for U.S. plans.

(4) The expected return on assets for the U.S. pension and postretirement plans was lowered from 6.70% to 5.80% effective January 1, 2021 to reflect the lower interest rate environment and a change in target asset allocation.

Discount Rate

The discount rates for the U.S. pension and postretirement plans were selected by reference to a Citigroup-specific analysis using each plan’s specific cash flows and compared with high-quality corporate bond indices for reasonableness. The discount rates for the non-U.S. pension and postretirement plans are selected by reference to high-quality corporate bond rates in countries that have developed corporate bond markets. However, where developed corporate bond markets do not exist, the discount rates are selected by reference to local government bond rates with a premium added to reflect the additional risk for corporate bonds in certain countries. Effective December 31, 2019, the established rounding convention is to the nearest 5 bps for all countries.

Expected Return on Assets

The Company determines its assumptions for the expected return on assets for its U.S. pension and postretirement plans using a “building block” approach, which focuses on ranges of anticipated rates of return for each asset class. A weighted average range of nominal rates is then determined based on target allocations to each asset class. Market performance over a number of earlier years is evaluated covering a wide range of economic conditions to determine whether there are sound reasons for projecting any past trends.

The Company considers the expected return on assets to be a long-term assessment of return expectations and does not anticipate changing this assumption unless there are significant changes in investment strategy or economic conditions. This contrasts with the selection of the discount rate and certain other assumptions, which are reconsidered annually (or quarterly for the Significant Plans) in accordance with GAAP.

The expected return on assets for the U.S. pension and postretirement plans Trust was 5.80% at December 31, 2020 and 6.70% at December 31, 2019 and 2018. The expected return on assets reflects the expected annual appreciation of the plan assets and reduces the Company’s annual pension expense. The expected return on assets is deducted from the sum of service cost, interest cost and other components of pension expense to arrive at the net pension (benefit) expense.

The following table shows the expected return on assets used in determining the Company’s pension expense compared to the actual return on assets during 2020, 2019 and 2018 for the U.S. pension and postretirement plans:


U.S. plans (During the year)	2020	2019	2018
Expected return on assets
U.S. pension and postretirement trust	6.70%	6.70%	6.80%/6.70%
VEBA trust	3.00	3.00	3.00
Actual return on assets(1)
U.S. pension and postretirement trust	12.84	15.20	-3.40
VEBA trust	2.11	1.91 to 2.76	0.43 to 1.41

(1)Actual return on assets is presented net of fees.

Sensitivities of Certain Key Assumptions

The following tables summarize the effect on pension expense:


	Discount rate
	One-percentage-point increase
In millions of dollars	2020		2019		2018
U.S. plans	$	34	$	28	$	25
Non-U.S. plans	(16)		(19)		(22)
	One-percentage-point decrease
In millions of dollars	2020		2019		2018
U.S. plans	$	(52)	$	(44)	$	(37)
Non-U.S. plans	25		32		32

The U.S. Qualified Pension Plan was frozen in 2008, and as a result, most service costs have been eliminated. The pension expense for the U.S. Qualified Pension Plan is therefore driven primarily by interest cost rather than by service cost. An increase in the discount rate generally increases pension expense.

For Non-U.S. Pension Plans that are not frozen (in countries such as Mexico, the U.K. and South Korea), there is more service cost. The pension expense for the Non-U.S. Plans is driven by both service cost and interest cost. An increase in the discount rate generally decreases pension expense due to the greater impact on service cost compared to interest cost.

Since the U.S. Qualified Pension Plan was frozen, most of the prospective service cost has been eliminated and the gain/loss amortization period was changed to the life expectancy for inactive participants. As a result, pension expense for the U.S. Qualified Pension Plan is driven more by interest costs than service costs, and an increase in the discount rate would increase pension expense, while a decrease in the discount rate would decrease pension expense.

The following tables summarize the effect on pension expense:


	Expected return on assets
	One-percentage-point increase
In millions of dollars	2020		2019		2018
U.S. plans	$	(123)	$	(123)	$	(126)
Non-U.S. plans	(66)		(64)		(64)
	One-percentage-point decrease
In millions of dollars	2020		2019		2018
U.S. plans	$	123	$	123	$	126
Non-U.S. plans	66		64		64

Health Care Cost Trend Rate

Assumed health care cost trend rates were as follows:


	2020	2019
Health care cost increase rate for U.S. plans
Following year	6.50%	6.75%
Ultimate rate to which cost increase is assumed to decline	5.00	5.00
Year in which the ultimate rate is reached	2027	2027
Health care cost increase rate for non-U.S. plans (weighted average)
Following year	6.85%	6.85%
Ultimate rate to which cost increase is assumed to decline	6.85	6.85
Year in which the ultimate rate is reached	2021	2020

Interest Crediting Rate

The Company has cash balance plans and other plans with promised interest crediting rates. For these plans, the interest crediting rates are set in line with plan rules or country legislation and do not change with market conditions.


	Weighted average interest crediting rate
At year end	2020	2019	2018
U.S. plans	1.45%	2.25%	3.25%
Non-U.S. plans	1.60	1.61	1.68

Plan Assets

Citigroup’s pension and postretirement plans’ asset allocations for the U.S. plans and the target allocations by asset category based on asset fair values, are as follows:


	Target asset allocation	U.S. pension assets at December 31,				U.S. postretirement assets at December 31,
Asset category(1)	2021	2020		2019		2020		2019
Equity securities(2)	0–26%	16	%	17	%	16	%	17	%
Debt securities(3)	35–82	59		58		59		58
Real estate	0–7	4		4		4		4
Private equity	0–10	3		3		3		3
Other investments	0–30	18		18		18		18
Total		100	%	100	%	100	%	100	%

(1)Asset allocations for the U.S. plans are set by investment strategy, not by investment product. For example, private equities with an underlying investment in real estate are classified in the real estate asset category, not private equity.

(2)Equity securities in the U.S. pension and postretirement plans do not include any Citigroup common stock at the end of 2020 and 2019.

(3)The VEBA Trust for postretirement benefits is primarily invested in cash equivalents and debt securities in 2020 and 2019 and is not reflected in the table above.

Third-party investment managers and advisors provide their services to Citigroup’s U.S. pension and postretirement plans. Assets are rebalanced as the Company’s Pension Plan Investment Committee deems appropriate. Citigroup’s investment strategy, with respect to its assets, is to maintain a globally diversified investment portfolio across several asset classes that, when combined with Citigroup’s contributions to

the plans, will maintain the plans’ ability to meet all required benefit obligations.

Citigroup’s pension and postretirement plans’ weighted-average asset allocations for the non-U.S. plans and the actual ranges, and the weighted-average target allocations by asset category based on asset fair values, are as follows:


	Non-U.S. pension plans
	Target asset allocation	Actual range at December 31,		Weighted-average at December 31,
Asset category(1)	2021	2020	2019	2020		2019
Equity securities	0–100%	0–100%	0–100%	15	%	13	%
Debt securities	0–100	0–100	0–100	77		80
Real estate	0–15	0–12	0–15	1		1
Other investments	0–100	0–100	0–100	7		6
Total				100	%	100	%

(1)Similar to the U.S. plans, asset allocations for certain non-U.S. plans are set by investment strategy, not by investment product.


	Non-U.S. postretirement plans
	Target asset allocation	Actual range at December 31,		Weighted-average at December 31,
Asset category(1)	2021	2020	2019	2020		2019
Equity securities	0–38%	0–38%	0–31%	38	%	27	%
Debt securities	56–100	56–100	66–100	56		71
Other investments	0–6	0–6	0–3	6		2
Total				100	%	100	%

(1)Similar to the U.S. plans, asset allocations for certain non-U.S. plans are set by investment strategy, not by investment product.

Fair Value Disclosure

For information on fair value measurements, including descriptions of Levels 1, 2 and 3 of the fair value hierarchy and the valuation methodology utilized by the Company, see Notes 1 and 24 to the Consolidated Financial Statements. Investments measured using the NAV per share practical expedient are excluded from Level 1, Level 2 and Level 3 in the tables below.

Certain investments may transfer between the fair value hierarchy classifications during the year due to changes in valuation methodology and pricing sources.

Plan assets by detailed asset categories and the fair value hierarchy are as follows:


	U.S. pension and postretirement benefit plans(1)
In millions of dollars	Fair value measurement at December 31, 2020
Asset categories	Level 1		Level 2		Level 3		Total
U.S. equities	$	813	$	—	$	—	$	813
Non-U.S. equities	725		—		—		725
Mutual funds and other registered investment companies	447		—		—		447
Commingled funds	—		1,074		—		1,074
Debt securities	1,275		4,429		—		5,704
Annuity contracts	—		—		1		1
Derivatives	8		6		—		14
Other investments	16		—		57		73
Total investments	$	3,284	$	5,509	$	58	$	8,851
Cash and short-term investments	$	72	$	1,035	$	—	$	1,107
Other investment liabilities	(2)		(10)		—		(12)
Net investments at fair value	$	3,354	$	6,534	$	58	$	9,946
Other investment receivables redeemed at NAV							$	99
Securities valued at NAV							3,595
Total net assets							$	13,640

(1)The investments of the U.S. pension and postretirement plans are commingled in one trust. At December 31, 2020, the allocable interests of the U.S. pension and postretirement plans were 98.0% and 2.0%, respectively. The investments of the VEBA Trust for postretirement benefits are reflected in the above table.


	U.S. pension and postretirement benefit plans(1)
In millions of dollars	Fair value measurement at December 31, 2019
Asset categories	Level 1		Level 2		Level 3		Total
U.S. equities	$	739	$	—	$	—	$	739
Non-U.S. equities	553		—		—		553
Mutual funds and other registered investment companies	280		—		—		280
Commingled funds	—		1,410		—		1,410
Debt securities	1,534		4,046		—		5,580
Annuity contracts	—		—		1		1
Derivatives	10		7		—		17
Other investments	—		—		75		75
Total investments	$	3,116	$	5,463	$	76	$	8,655
Cash and short-term investments	$	93	$	1,080	$	—	$	1,173
Other investment liabilities	(87)		(11)		—		(98)
Net investments at fair value	$	3,122	$	6,532	$	76	$	9,730
Other investment receivables redeemed at NAV							$	22
Securities valued at NAV							3,310
Total net assets							$	13,062

(1)The investments of the U.S. pension and postretirement plans are commingled in one trust. At December 31, 2019, the allocable interests of the U.S. pension and postretirement plans were 98.0% and 2.0%, respectively. The investments of the VEBA Trust for postretirement benefits are reflected in the above table.


	Non-U.S. pension and postretirement benefit plans
In millions of dollars	Fair value measurement at December 31, 2020
Asset categories	Level 1		Level 2		Level 3		Total
U.S. equities	$	5	$	16	$	—	$	21
Non-U.S. equities	105		670		—		775
Mutual funds and other registered investment companies	3,137		73		—		3,210
Commingled funds	24		—		—		24
Debt securities	6,705		1,420		—		8,125
Real estate	—		2		2		4
Annuity contracts	—		—		5		5
Derivatives	—		1,005		—		1,005
Other investments	—		—		312		312
Total investments	$	9,976	$	3,186	$	319	$	13,481
Cash and short-term investments	$	129	$	3	$	—	$	132
Other investment liabilities	—		(4,650)		—		(4,650)
Net investments at fair value	$	10,105	$	(1,461)	$	319	$	8,963
Securities valued at NAV							$	14
Total net assets							$	8,977


	Non-U.S. pension and postretirement benefit plans
In millions of dollars	Fair value measurement at December 31, 2019
Asset categories	Level 1		Level 2		Level 3		Total
U.S. equities	$	4	$	12	$	—	$	16
Non-U.S. equities	127		262		—		389
Mutual funds and other registered investment companies	3,223		63		—		3,286
Commingled funds	23		—		—		23
Debt securities	4,307		1,615		10		5,932
Real estate	—		3		1		4
Annuity contracts	—		—		5		5
Derivatives	—		1,590		—		1,590
Other investments	1		—		274		275
Total investments	$	7,685	$	3,545	$	290	$	11,520
Cash and short-term investments	$	86	$	3	$	—	$	89
Other investment liabilities	(3)		(2,938)		—		(2,941)
Net investments at fair value	$	7,768	$	610	$	290	$	8,668
Securities valued at NAV							$	15
Total net assets							$	8,683

Level 3 Rollforward

The reconciliations of the beginning and ending balances during the year for Level 3 assets are as follows:


In millions of dollars	U.S. pension and postretirement benefit plans

Asset categories	Beginning Level 3 fair value at Dec. 31, 2019		Realized (losses)		Unrealized gains		Purchases, sales and issuances		Transfers in and/or out of Level 3		Ending Level 3 fair value at Dec. 31, 2020

Annuity contracts	$	1	$	—	$	—	$	—	$	—	$	1
Other investments	75		(3)		3		(18)		—		57


Total investments	$	76	$	(3)	$	3	$	(18)	$	—	$	58


In millions of dollars	U.S. pension and postretirement benefit plans

Asset categories	Beginning Level 3 fair value at Dec. 31, 2018		Realized (losses)		Unrealized (losses)		Purchases, sales and issuances		Transfers in and/or out of Level 3		Ending Level 3 fair value at Dec. 31, 2019

Annuity contracts	$	1	$	—	$	—	$	—	$	—	$	1

Other investments	127		(7)		12		(57)		—		75

Total investments	$	128	$	(7)	$	12	$	(57)	$	—	$	76


In millions of dollars	Non-U.S. pension and postretirement benefit plans
Asset categories	Beginning Level 3 fair value at Dec. 31, 2019		Unrealized gains		Purchases, sales and issuances		Transfers in and/or out of Level 3		Ending Level 3 fair value at Dec. 31, 2020

Debt securities	$	10	$	—	$	(10)	$	—	$	—
Real estate	1		1		—		—		2
Annuity contracts	5		—		—		—		5
Other investments	274		23		15		—		312
Total investments	$	290	$	24	$	5	$	—	$	319


In millions of dollars	Non-U.S. pension and postretirement benefit plans
Asset categories	Beginning Level 3 fair value at Dec. 31, 2018		Unrealized (losses)		Purchases, sales and issuances		Transfers in and/or out of Level 3		Ending Level 3 fair value at Dec. 31, 2019

Debt securities	$	9	$	1	$	—	$	—	$	10
Real estate	1		—		—		—		1
Annuity contracts	10		—		(5)		—		5
Other investments	210		7		57		—		274
Total investments	$	230	$	8	$	52	$	—	$	290

Investment Strategy

The Company’s global pension and postretirement funds’ investment strategy is to invest in a prudent manner for the exclusive purpose of providing benefits to participants. The investment strategies are targeted to produce a total return that, when combined with the Company’s contributions to the funds, will maintain the funds’ ability to meet all required benefit obligations. Risk is controlled through diversification of asset types and investments in domestic and international equities, fixed income securities and cash and short-term investments. The target asset allocation in most locations outside the U.S. is primarily in equity and debt securities. These allocations may vary by geographic region and country depending on the nature of applicable obligations and various other regional considerations. The wide variation in the actual range of plan asset allocations for the funded non-U.S. plans is a result of differing local statutory requirements and economic conditions. For example, in certain countries local law requires that all pension plan assets must be invested in fixed income investments, government funds or local-country securities.

Significant Concentrations of Risk in Plan Assets

The assets of the Company’s pension plans are diversified to limit the impact of any individual investment. The U.S. qualified pension plan is diversified across multiple asset classes, with publicly traded fixed income, publicly traded equity, hedge funds, and real estate representing the most significant asset allocations. Investments in these four asset classes are further diversified across funds, managers, strategies, vintages, sectors and geographies, depending on the specific characteristics of each asset class. The pension assets for the Company’s non-U.S. Significant Plans are primarily invested in publicly traded fixed income and publicly traded equity securities.

Oversight and Risk Management Practices

The framework for the Company’s pension oversight process includes monitoring of retirement plans by plan fiduciaries and/or management at the global, regional or country level, as appropriate. Independent Risk Management contributes to the risk oversight and monitoring for the Company’s U.S. qualified pension plan and non-U.S. Significant Pension Plans. Although the specific components of the oversight process are tailored to the requirements of each region, country and plan, the following elements are common to the Company’s monitoring and risk management process:

•periodic asset/liability management studies and strategic asset allocation reviews;

•periodic monitoring of funding levels and funding ratios;

•periodic monitoring of compliance with asset allocation guidelines;

•periodic monitoring of asset class and/or investment manager performance against benchmarks; and

•periodic risk capital analysis and stress testing.

Estimated Future Benefit Payments

The Company expects to pay the following estimated benefit payments in future years:


	Pension plans				Postretirement benefit plans
In millions of dollars	U.S. plans		Non-U.S. plans		U.S. plans		Non-U.S. plans
2021	$	820	$	566	$	58	$	76
2022	832		504		55		80
2023	847		507		52		85
2024	852		521		49		90
2025	857		527		45		96
2026–2030	4,101		2,698		181		550

Post Employment Plans

The Company sponsors U.S. post employment plans that provide income continuation and health and welfare benefits to certain eligible U.S. employees on long-term disability.

The following table summarizes the funded status and amounts recognized in the Company’s Consolidated Balance Sheet:


In millions of dollars	2020		2019
Funded status of the plan at year end	$	(40)	$	(38)

Net amount recognized in AOCI (pretax)	$	(17)	$	(15)

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


In millions of dollars	2020		2019		2018
Net expense (benefit)	$	9	$	9	$	(18)

Defined Contribution Plans

The Company sponsors defined contribution plans in the U.S. and in certain non-U.S. locations, all of which are administered in accordance with local laws. The most significant defined contribution plan is the Citi Retirement Savings Plan sponsored by the Company in the U.S.

Under the Citi Retirement Savings Plan, eligible U.S. employees received matching contributions of up to 6% of their eligible compensation for 2020 and 2019, subject to statutory limits. In addition, for eligible employees whose eligible compensation is $100,000 or less, a fixed contribution of up to 2% of eligible compensation is provided. All Company contributions are invested according to participants’ individual elections. The following tables summarize the Company contributions for the defined contribution plans:


	U.S. plans
In millions of dollars	2020		2019		2018
Company contributions	$	414	$	404	$	396
	Non-U.S. plans
In millions of dollars	2020		2019		2018
Company contributions	$	304	$	281	$	283