RETIREMENT BENEFITS

9 Months Ended

Sep. 30, 2011

RETIREMENT BENEFITS

RETIREMENT BENEFITS

8. RETIREMENT BENEFITS

        The Company has several non-contributory defined benefit pension plans covering certain U.S. employees and has various defined benefit pension and termination indemnity plans covering employees outside the United States. The U.S. qualified defined benefit plan provides benefits to eligible participants. Effective January 1, 2008, the U.S. qualified pension plan was frozen for most employees. Accordingly, no additional compensation-based contributions were credited to the cash balance portion of the plan for most existing plan participants after 2007. However, certain employees covered under a prior final pay plan formula continue to accrue benefits. The Company also offers postretirement health care and life insurance benefits to certain eligible U.S. retired employees, as well as to certain eligible employees outside the United States.

        The following tables summarize the components of net (benefit) expense recognized in the Consolidated Statement of Income for the Company's U.S. qualified and nonqualified pension plans, postretirement plans and plans outside the United States.

Net (Benefit) Expense

		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		2011			2010			2011			2010			2011			2010			2011			2010
Qualified Plans
Benefits earned during the year		$	3		$	4		$	51		$	43		$	—		$	—		$	7		$	5
Interest cost on benefit obligation			153			161			97			84			13			15			30			26
Expected return on plan assets			(222	)		(220	)		(108	)		(94	)		(1	)		(2	)		(31	)		(24	)
Amortization of unrecognized
	Net transition obligation		—			—			—			(1	)		—			—			—			—
	Prior service cost (benefit)		—			—			1			1			—			(1	)		—			—
	Net actuarial loss		16			12			18			14			—			3			6			5
Curtailment (gain) loss			—			—			29			—			—			—			—			—
Net qualified plans (benefit) expense		$	(50	)	$	(43	)	$	88		$	47		$	12		$	15		$	12		$	12
Nonqualified plans expense		$	10		$	11		$	—		$	—		$	—		$	—		$	—		$	—
Total net (benefit) expense		$	(40	)	$	(32	)	$	88		$	47		$	12		$	15		$	12		$	12

		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		2011			2010			2011			2010			2011			2010			2011			2010
Qualified Plans
Benefits earned during the year		$	11		$	13		$	152		$	125		$	—		$	—		$	22		$	17
Interest cost on benefit obligation			463			480			292			254			42			44			91			78
Expected return on plan assets			(666	)		(643	)		(324	)		(281	)		(5	)		(6	)		(92	)		(74	)
Amortization of unrecognized
	Net transition obligation		—			—			(1	)		(1	)		—			—			—			—
	Prior service cost (benefit)		—			(1	)		3			3			(2	)		1			—			—
	Net actuarial loss		50			34			55			42			8			5			18			15
	Curtailment (gain) loss		—			—			29			—			—			—			—			—
Net qualified plans (benefit) expense		$	(142	)	$	(117	)	$	206		$	142		$	43		$	44		$	39		$	36
Nonqualified plans expense		$	30		$	33		$	—		$	—		$	—		$	—		$	—		$	—
Total net (benefit) expense		$	(112	)	$	(84	)	$	206		$	142		$	43		$	44		$	39		$	36

Contributions

        Citigroup's pension funding policy for U.S. plans and non-U.S. plans is generally to fund to applicable minimum funding requirements rather than to the amounts of accumulated benefit obligations. For the U.S. plans, the Company may increase its contributions above the minimum required contribution under the Employee Retirement Income Security Act of 1974, as amended, if appropriate to its tax and cash position and the plans' funded position. For the U.S. qualified pension plan, as of September 30, 2011, there were no minimum required cash contributions and no discretionary cash or non-cash contributions are currently planned. For the U.S. non-qualified pension plans, the Company contributed $32 million in benefits paid directly during the nine months ended September 30, 2011 and expects to contribute an additional $10.5 million during the remainder of 2011. For the non-U.S. pension plans, the Company contributed $158.8 million in cash and benefits paid directly during the nine months ended September 30, 2011 and expects to contribute an additional $74.6 million during the remainder of 2011. For the non-U.S. postretirement plans, the Company contributed $1.3 million in cash and benefits paid directly during the nine months ended September 30, 2011 and expects to contribute $63.0 million during the remainder of 2011. These estimates are subject to change, since contribution decisions are affected by various factors, such as market performance and regulatory requirements. In addition, management has the ability to change funding policy.