RETIREMENT BENEFITS

3 Months Ended

Mar. 31, 2013

RETIREMENT BENEFITS

RETIREMENT BENEFITS

8.  RETIREMENT BENEFITS

        For additional information on Citi's retirement benefits, see Note 9 to the Consolidated Financial Statements in the Company's 2012 Annual Report on Form 10-K.

Pension and Postretirement Plans

        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 was frozen effective January 1, 2008 for most employees. Accordingly, no additional compensation-based contributions were credited to the cash balance portion of the plan for existing plan participants after 2007. However, certain employees covered under the 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 table summarizes 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. The Company uses a December 31 measurement date for its U.S. and non-U.S. plans.

Net (Benefit) Expense

	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	2013			2012			2013			2012			2013			2012			2013			2012
Qualified Plans
Benefits earned during the year	$	3		$	3		$	54		$	50		$	—		$	—		$	10		$	7
Interest cost on benefit obligation		126			141			95			90			9			11			37			28
Expected return on plan assets		(214	)		(224	)		(101	)		(98	)		(1	)		(1	)		(31	)		(25	)
Amortization of unrecognized
Prior service cost (benefit)		(1	)		—			1			1			—			—			—			—
Net actuarial loss		31			24			22			19			—			2			11			6
Net qualified plans (benefit) expense	$	(55	)	$	(56	)	$	71		$	62		$	8		$	12		$	27		$	16
Nonqualified plans expense	$	12		$	10		$	—		$	—		$	—		$	—		$	—		$	—
Total net (benefit) expense	$	(43	)	$	(46	)	$	71		$	62		$	8		$	12		$	27		$	16

Contributions

        The Company's funding practice for U.S. and non-U.S. pension 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 minimum required cash contributions during the first quarter of 2013.

        The following table summarizes the actual Company contributions for the quarters ended March 31, 2013 and 2012, as well as estimated expected Company contributions for the remainder of 2013. Expected contributions are subject to change since contribution decisions are affected by various factors, such as market performance and regulatory requirements.

	Pension plans								Postretirement benefit plans
	U.S. plans(1)				Non-U.S. plans				U.S. plans				Non-U.S. plans
In millions of dollars	2013		2012		2013		2012		2013		2012		2013		2012
Company contributions(2) for the three months ended March 31	$	10	$	11	$	98	$	47	$	14	$	14	$	170	$	2
Company contributions expected for the remainder of the year	$	35	$	35	$	121	$	204	$	43	$	41	$	7	$	93

(1)

The U.S. pension plans include qualified and nonqualified plans.

(2)

Company contributions are composed of cash contributions made to the plans and benefits paid directly to participants by the Company.

Postemployment Plans

        The Company sponsors U.S. postemployment 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 components of net expense recognized in the Consolidated Statement of Income for the Company's U.S. postemployment plans.

	Three Months Ended March 31,
In millions of dollars	2013		2012
Service related expense
Benefits earned during the year	$	7	$	6
Interest cost on benefit obligation		3		3
Amortization of unrecognized
Prior service cost		2		2
Net actuarial loss		3		3
Total service related expense	$	15	$	14
Non-service related expense	$	7	$	7
Total net expense	$	22	$	21

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 Citigroup 401(k) Plan sponsored by the Company in the U.S.

        Under the Citigroup 401(k) Plan, eligible U.S. employees receive matching contributions of up to 6% of their eligible compensation for 2013 and 2012, subject to statutory limits. Additionally, 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 pretax expense associated with this plan amounted to approximately $103 million and $97 million in the first quarters of 2013 and 2012, respectively.