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 2022 or 2021.

The following table summarizes the Company’s actual contributions for the years ended December 31, 2022 and 2021, as well as expected Company contributions for 2023. 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	2023		2022		2021		2023		2022		2021		2023		2022		2021		2023		2022		2021
Contributions made by the Company	$	—	$	—	$	—	$	71	$	158	$	104	$	—	$	—	$	—	$	4	$	4	$	3
Benefits paid directly by (reimbursements to) the Company(3)	57		55		56		39		336		51		5		14		22		5		5		5

(1) Amounts reported for 2023 are expected amounts.

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

(3) 2022 benefit payments have increased due to the wind-down of Citi’s consumer banking business in Korea. See Note 2 for additional information.

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 pension and postretirement plans:



	Pension plans								Postretirement benefit plans
	U.S. plans				Non-U.S. plans				U.S. plans				Non-U.S. plans
In millions of dollars	2022		2021		2022		2021		2022		2021		2022		2021
Change in benefit obligation

Benefit obligation at beginning of year	$	12,766	$	13,815	$	8,001	$	8,629	$	501	$	559	$	1,169	$	1,390






Service cost	—		—		116		149		—		—		2		6
Interest cost on benefit obligation	442		351		329		268		16		13		90		96
Plan amendments	—		—		—		6		—		—		—		—
Actuarial (gain)(2)	(2,522)		(447)		(1,168)		(344)		(95)		(28)		(100)		(110)
Benefits paid, net of participants’ contributions	(945)		(953)		(397)		(345)		(47)		(43)		(72)		(78)

Divestitures	—		—		(22)		—		—		—		—		—
Settlement(4)	—		—		(364)		(124)		—		—		—		—
Curtailment(4)	—		—		(35)		(30)		—		—		—		—

Foreign exchange impact and other	—		—		(85)		(208)		—		—		(76)		(135)


Benefit obligation at year end	$	9,741	$	12,766	$	6,375	$	8,001	$	375	$	501	$	1,013	$	1,169
Change in plan assets

Plan assets at fair value at beginning of year	$	12,977	$	13,309	$	7,614	$	7,831	$	319	$	331	$	1,043	$	1,146






Actual return on assets(2)	(1,942)		565		(1,212)		217		(33)		9		(75)		97
Company contributions, net of reimbursements	55		56		495		155		14		22		9		8

Benefits paid, net of participants’ contributions	(945)		(953)		(397)		(345)		(47)		(43)		(72)		(78)
Divestitures	—		—		(11)		—		—		—		—		—
Settlement(4)	—		—		(364)		(124)		—		—		—		—
Foreign exchange impact and other	—		—		(39)		(120)		—		—		(50)		(130)
Plan assets at fair value at year end	$	10,145	$	12,977	$	6,086	$	7,614	$	253	$	319	$	855	$	1,043

Funded status of the plans
Qualified plans(5)	$	949	$	894	$	(289)	$	(387)	$	(122)	$	(182)	$	(158)	$	(126)
Nonqualified plans(3)	(545)		(683)		—		—		—		—		—		—
Funded status of the plans at year end	$	404	$	211	$	(289)	$	(387)	$	(122)	$	(182)	$	(158)	$	(126)

Net amount recognized at year end
Qualified plans
Benefit asset	$	949	$	894	$	799	$	963	$	—	$	—	$	28	$	165
Benefit liability	—		—		(1,088)		(1,350)		(122)		(182)		(186)		(291)
Qualified plans	$	949	$	894	$	(289)	$	(387)	$	(122)	$	(182)	$	(158)	$	(126)
Nonqualified plans	(545)		(683)		—		—		—		—		—		—
Net amount recognized on the balance sheet	$	404	$	211	$	(289)	$	(387)	$	(122)	$	(182)	$	(158)	$	(126)

Amounts recognized in AOCI at year end(1)

Net transition obligation	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Prior service (cost) benefit	(6)		(8)		7		5		82		92		36		47
Net actuarial (loss) gain	(6,445)		(6,575)		(1,671)		(1,400)		120		77		(206)		(182)


Net amount recognized in equity (pretax)	$	(6,451)	$	(6,583)	$	(1,664)	$	(1,395)	$	202	$	169	$	(170)	$	(135)
Accumulated benefit obligation at year end	$	9,740	$	12,765	$	6,051	$	7,559	$	375	$	501	$	1,013	$	1,169

(1)The framework for the Company’s pension oversight process includes monitoring of potential settlement charges for all plans. Settlement accounting is triggered when either the sum of all settlements (including lump sum payments) for the year is greater than service plus interest costs or if more than 10% of the plan’s projected benefit obligation will be settled. Because some of Citi’s Significant Plans are frozen and have no material service cost, settlement accounting may apply in the future.

(2)Actuarial gain was primarily due to the increase in global discount rates partially offset by lower than expected asset returns.

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

(4)Curtailment and settlement relate to divestiture activities.

(5)The U.S. qualified plan was fully funded as of January 1, 2022 and no minimum funding was required for 2022. The plan is also expected to be fully funded as of January 1, 2023 with no expected minimum funding requirement for 2023.

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


In millions of dollars	2022		2021		2020

Beginning of year balance, net of tax(1)(2)	$	(5,852)	$	(6,864)	$	(6,809)

Actuarial assumptions changes and plan experience	3,923		963		(1,464)
Net asset gain (loss) due to difference between actual and expected returns	(4,225)		(148)		1,076
Net amortization	198		280		318
Prior service credit (cost)	—		(7)		108
Curtailment/settlement gain (loss)(3)	(37)		11		(8)
Foreign exchange impact and other	172		153		(108)
Change in deferred taxes, net	66		(240)		23
Change, net of tax	$	97	$	1,012	$	(55)
End of year balance, net of tax(1)(2)	$	(5,755)	$	(5,852)	$	(6,864)

(1)See Note 20 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 divestiture activities.

At December 31, 2022 and 2021, 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	2022		2021		2022		2021		2022		2021		2022		2021
Projected benefit obligation	$	545	$	683	$	3,463	$	3,966	$	545	$	683	$	3,315	$	3,809
Accumulated benefit obligation	545		683		3,179		3,574		545		682		3,088		3,477
Fair value of plan assets	—		—		2,374		2,616		—		—		2,252		2,486

(1)As of December 31, 2022 and 2021, only the 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	2022	2021
Discount rate
U.S. plans
Qualified pension	5.50%	2.80%
Nonqualified pension	5.55	2.80
Postretirement	5.60	2.75
Non-U.S. pension plans
Range(1)	1.75 to 25.20	-0.10 to 11.95
Weighted average	6.66	3.96
Non-U.S. postretirement plans
Range	3.25 to 10.60	1.05 to 10.00
Weighted average	9.80	8.28
Future compensation increase rate(2)
Non-U.S. pension plans
Range	1.30 to 23.11	1.30 to 11.25
Weighted average	3.76	3.10
Expected return on assets
U.S. plans
Qualified pension	5.70	5.00
Postretirement(3)	5.70/3.00	5.00/1.50
Non-U.S. pension plans
Range	1.00 to 11.50	0.00 to 11.50
Weighted average	6.05	3.69
Non-U.S. postretirement plans
Range	8.70 to 9.10	6.00 to 8.00
Weighted average	8.70	7.99

(1) In 2021, due to historically low global interest rates, there were negative discount rates for plans with relatively short duration in certain major markets, such as the Eurozone and Switzerland.

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

(3) For the years ended 2022 and 2021, the expected return on assets for the VEBA Trust was 3.00% and 1.50%, respectively.


During the year	2022	2021	2020
Discount rate
U.S. plans
Qualified pension	2.80%/3.80%/ 4.80%/5.65%	2.45%/3.10%/ 2.75%/2.80%	3.25%/3.20%/ 2.60%/2.55%
Nonqualified pension	2.80/3.85/ 4.80/5.60	2.35/3.00/ 2.70/2.75	3.25/3.25/ 2.55/2.50
Postretirement	2.75/3.85/ 4.75/5.65	2.20/2.85/ 2.60/2.65	3.15/3.20/ 2.45/2.35
Non-U.S. pension plans(1)
Range(2)	-0.10 to 11.95	-0.25 to 11.15	-0.10 to 11.30
Weighted average	3.96	3.14	3.65
Non-U.S. postretirement plans(1)
Range	1.05 to 11.25	0.80 to 9.80	0.90 to 9.75
Weighted average	8.28	7.42	7.76
Future compensation increase rate(3)
Non-U.S. pension plans(1)
Range	1.30 to 11.25	1.20 to 11.25	1.50 to 11.50
Weighted average	3.10	3.10	3.17
Expected return on assets
U.S. plans
Qualified pension(4)	5.00	5.80/5.60/ 5.60/5.00	6.70
Postretirement(4)	5.00/1.50	5.80/5.60/ 5.00/1.50	6.70/3.00
Non-U.S. pension plans(1)
Range	0.00 to 11.50	0.00 to 11.50	0.00 to 11.50
Weighted average	3.69	3.39	3.95
Non-U.S. postretirement plans(1)
Range	6.00 to 8.00	5.95 to 8.00	6.20 to 8.00
Weighted average	7.99	7.99	7.99

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

(2) In 2021, due to historically low global interest rates, there were negative discount rates for plans with relatively short duration in certain 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 adjusted from 5.00% to 5.70% effective January 1, 2023 to reflect a significant change in economic market conditions. The expected return on assets for the U.S. pension and postretirement plans changed from 6.70% to 5.80% effective as of January 1, 2021, reduced to 5.60% effective April 1, 2021 and further reduced to 5.00% effective October 1, 2021.

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 a hypothetical bond portfolio of U.S. high-quality corporate bonds that match each plan’s projected cash flows. The discount rates for the non-U.S. pension and postretirement plans are selected by reference to each plan’s specific cash flows and a market-based yield curve developed from the available local high-quality corporate bonds. However, where developed corporate bond markets do not exist, the discount rates are selected by reference to local government bonds with an estimated premium added to reflect the additional risk for corporate bonds in certain countries. Where available, the resulting plan yields by jurisdiction are compared with published, high-quality corporate bond indices for reasonableness.

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 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 2022, 2021 and 2020 for the U.S. pension and postretirement plans:


U.S. plans (During the year)	2022	2021	2020
Expected return on assets
U.S. pension and postretirement trust	5.00%	5.80%/5.60%/5.60%/5.00%	6.70%
VEBA Trust(2)	1.50	1.50	3.00
Actual return on assets(1)
U.S. pension and postretirement trust	(15.52)	5.14	12.84
VEBA Trust	1.40	1.52	2.11

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

(2)The expected return on assets for the VEBA Trust was adjusted from 1.50% to 3.00% effective January 1, 2023 to reflect significant change in economic condition.

Sensitivities of Certain Key Assumptions

The following tables summarize the effect on pension expense:


	Discount rate
	One-percentage-point increase
In millions of dollars	2022		2021		2020
U.S. plans	$	27	$	35	$	34
Non-U.S. plans	(5)		(4)		(16)
	One-percentage-point decrease
In millions of dollars	2022		2021		2020
U.S. plans	$	(34)	$	(49)	$	(52)
Non-U.S. plans	15		25		25

The U.S. Qualified Pension Plan was frozen in 2008, and as a result, most of the prospective service costs have 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 discount rate would decrease 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.

The following tables summarize the effect on pension expense:


	Expected return on assets
	One-percentage-point increase
In millions of dollars	2022		2021		2020
U.S. plans	$	(123)	$	(124)	$	(123)
Non-U.S. plans	(60)		(70)		(66)
	One-percentage-point decrease
In millions of dollars	2022		2021		2020
U.S. plans	$	123	$	124	$	123
Non-U.S. plans	60		70		66

Health Care Cost Trend Rate

Assumed health care cost trend rates were as follows:


	2022	2021
Health care cost increase rate for U.S. plans
Following year	7.00%	6.25%
Ultimate rate to which cost increase is assumed to decline	5.00	5.00
Year in which the ultimate rate is reached	2031	2027
Health care cost increase rate for non-U.S. plans (weighted average)
Following year	7.05%	6.92%
Ultimate rate to which cost increase is assumed to decline	7.05	6.92
Year in which the ultimate rate is reached	2023	2022

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	2022	2021	2020
U.S. plans	4.50%	1.80%	1.45%
Non-U.S. plans	1.73	1.61	1.60

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)	2023	2022		2021		2022		2021
Equity securities(2)	0–22%	7	%	7	%	7	%	7	%
Debt securities(3)	55–114	71		72		71		72
Real estate	0–4	3		2		3		2
Private equity	0–5	7		6		7		6
Other investments	0–23	12		13		12		13
Total		100	%	100	%	100	%	100	%

(1)Target asset allocations are set by investment strategy, whereas pension and postretirement assets as of December 31, 2022 and 2021 are based on the underlying investment product. For example, the private equity investment strategy may include underlying investments in real estate within the target asset allocation; however, within pension and postretirement assets, the underlying investment in real estate is reflected in the real estate category and 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 2022 and 2021.

(3)The VEBA Trust for postretirement benefits is primarily invested in cash equivalents and debt securities in 2022 and 2021 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)	2023	2022	2021	2022		2021
Equity securities	0–100%	0–63%	0–100%	19	%	16	%
Debt securities	0–100	0–100	0–100	73		76
Real estate	0–15	0–15	0–14	1		1
Other investments	0–100	0–100	0–100	7		7
Total				100	%	100	%


	Non-U.S. postretirement plans
	Target asset allocation	Actual range at December 31,		Weighted-average at December 31,
Asset category(1)	2023	2022	2021	2022		2021
Equity securities	0–46%	0–48%	0–42%	47	%	41	%
Debt securities	50–100	45–100	53–100	49		53
Other investments	0–4	0–7	0–6	4		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.

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 25. 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, 2022
Asset categories	Level 1		Level 2		Level 3		Total
U.S. equities	$	233	$	—	$	—	$	233
Non-U.S. equities	346		—		—		346
Mutual funds and other registered investment companies	243		—		—		243
Commingled funds	—		818		—		818
Debt securities	929		4,638				5,567
Annuity contracts	—		—		3		3
Derivatives	2		34		—		36
Other investments	—		—		4		4
Total investments	$	1,753	$	5,490	$	7	$	7,250
Cash and short-term investments	$	39	$	563	$	—	$	602
Other investment liabilities	(10)		(45)		—		(55)
Net investments at fair value	$	1,782	$	6,008	$	7	$	7,797
Other investment receivables redeemed at NAV							$	21
Securities valued at NAV							2,580
Total net assets							$	10,398

(1)The investments of the U.S. pension and postretirement plans are commingled in one trust. At December 31, 2022, 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, 2021
Asset categories	Level 1		Level 2		Level 3		Total
U.S. equities	$	358	$	—	$	—	$	358
Non-U.S. equities	460		—		—		460
Mutual funds and other registered investment companies	297		—		—		297
Commingled funds	—		1,143		—		1,143
Debt securities	1,657		5,770		—		7,427
Annuity contracts	—		—		4		4
Derivatives	2		17		—		19
Other investments	13		—		25		38
Total investments	$	2,787	$	6,930	$	29	$	9,746
Cash and short-term investments	$	25	$	627	$	—	$	652
Other investment liabilities	(7)		(17)		—		(24)
Net investments at fair value	$	2,805	$	7,540	$	29	$	10,374
Other investment liabilities redeemed at NAV							$	(29)
Securities valued at NAV							2,951
Total net assets							$	13,296

(1)The investments of the U.S. pension and postretirement plans are commingled in one trust. At December 31, 2021, 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, 2022
Asset categories	Level 1		Level 2		Level 3		Total
U.S. equities	$	121	$	10	$	—	$	131
Non-U.S. equities	718		19		—		737
Mutual funds and other registered investment companies	2,416		296		—		2,712
Commingled funds	13		—		—		13
Debt securities	2,959		980		—		3,939
Real estate	—		2		2		4
Annuity contracts	—		—		2		2
Derivatives	—		1,490		—		1,490
Other investments	—		—		258		258
Total investments	$	6,227	$	2,797	$	262	$	9,286
Cash and short-term investments	$	69	$	6	$	—	$	75
Other investment liabilities	—		(2,436)		—		(2,436)
Net investments at fair value	$	6,296	$	367	$	262	$	6,925
Securities valued at NAV							$	16
Total net assets							$	6,941


	Non-U.S. pension and postretirement benefit plans
In millions of dollars	Fair value measurement at December 31, 2021
Asset categories	Level 1		Level 2		Level 3		Total
U.S. equities	$	127	$	19	$	—	$	146
Non-U.S. equities	713		92		—		805
Mutual funds and other registered investment companies	2,888		66		—		2,954
Commingled funds	21		—		—		21
Debt securities	4,263		1,341		—		5,604
Real estate	—		3		2		5
Annuity contracts	—		—		2		2
Derivatives	—		239		—		239
Other investments	—		—		318		318
Total investments	$	8,012	$	1,760	$	322	$	10,094
Cash and short-term investments	$	117	$	5	$	—	$	122
Other investment liabilities	—		(1,578)		—		(1,578)
Net investments at fair value	$	8,129	$	187	$	322	$	8,638
Securities valued at NAV							$	19
Total net assets							$	8,657

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, 2021		Realized (losses)		Unrealized gains		Purchases, sales and issuances		Transfers in and/or out of Level 3		Ending Level 3 fair value at Dec. 31, 2022

Annuity contracts	$	4	$	—	$	—	$	(1)	$	—	$	3
Other investments	25		(3)		2		(20)		—		4


Total investments	$	29	$	(3)	$	2	$	(21)	$	—	$	7


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

Asset categories	Beginning Level 3 fair value at Dec. 31, 2020		Realized (losses)		Unrealized gains		Purchases, sales and issuances		Transfers in and/or out of Level 3		Ending Level 3 fair value at Dec. 31, 2021

Annuity contracts	$	1	$	—	$	—	$	3	$	—	$	4

Other investments	57		(6)		2		(28)		—		25

Total investments	$	58	$	(6)	$	2	$	(25)	$	—	$	29


In millions of dollars	Non-U.S. pension and postretirement benefit plans
Asset categories	Beginning Level 3 fair value at Dec. 31, 2021		Unrealized gains		Purchases, sales and issuances		Transfers in and/or out of Level 3		Ending Level 3 fair value at Dec. 31, 2022


Real estate	$	2	$	—	$	—	$	—	$	2
Annuity contracts	2		—		—		—		2
Other investments	318		—		(60)		—		258
Total investments	$	322	$	—	$	(60)	$	—	$	262


In millions of dollars	Non-U.S. pension and postretirement benefit plans
Asset categories	Beginning Level 3 fair value at Dec. 31, 2020		Unrealized gains		Purchases, sales and issuances		Transfers in and/or out of Level 3		Ending Level 3 fair value at Dec. 31, 2021


Real estate	$	2	$	—	$	—	$	—	$	2
Annuity contracts	5		—		(3)		—		2
Other investments	312		4		2		—		318
Total investments	$	319	$	4	$	(1)	$	—	$	322

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
2023	$	964	$	536	$	55	$	72
2024	964		518		46		76
2025	969		489		43		79
2026	942		499		40		83
2027	921		508		38		87
2028–2032	4,038		2,623		150		494

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 on the Company’s Consolidated Balance Sheet:


In millions of dollars	2022		2021
Funded status of the plan at year end	$	(48)	$	(41)
Net amount recognized in AOCI (pretax)	$	(16)	$	(15)

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


In millions of dollars	2022		2021		2020
Net expense	$	11	$	10	$	9

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 2022 and 2021, 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	2022		2021		2020
Company contributions	$	471	$	436	$	414
	Non-U.S. plans
In millions of dollars	2022		2021		2020
Company contributions	$	399	$	364	$	304