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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Defined Benefit Plan EMPLOYEE BENEFIT PLANS
Certain subsidiaries of the Company are sponsors or administrators of both qualified and non-qualified defined benefit pension plans (“Pension Plans”). The largest of these plans is a non-contributory qualified defined benefit pension plan sponsored by RGA Reinsurance Company (“RGA Reinsurance”) that covers U.S. employees. The benefits under the Pension Plans are generally based on years of service and compensation levels. Effective January 1, 2020, the qualified defined benefit pension plan and some of the non-qualified defined benefit pension plans were closed to new employees.
The Company also provides select health care and life insurance benefits for certain retired employees. The health care benefits are provided through a self-insured welfare benefit plan. Employees become eligible for these benefits if they meet minimum age and service requirements. The retiree’s cost for health care benefits varies depending upon the credited years of service. Effective January 1, 2017, employees hired in the U.S. are not eligible for retiree health care benefits. Virtually all retirees, or their beneficiaries, contribute a portion of the total cost of postretirement health benefits. Overfunded and underfunded plans are recognized in other assets and other liabilities, respectively.
A December 31 measurement date is used for all of the defined benefit and postretirement plans. The status of these plans as of December 31, 2022 and 2021 is summarized below (dollars in millions):
 December 31,
 Pension BenefitsOther Benefits
 2022202120222021
Change in benefit obligation:
Benefit obligation at beginning of year$256 $254 $75 $81 
Service cost17 18 3 3 
Interest cost6 4 2 2 
Participant contributions— — — — 
Amendments— — 2 (3)
Actuarial (gains) losses(50)(8)(20)(6)
Benefits paid(12)(12)(2)(2)
Foreign exchange translations and other adjustments(3)— — — 
Benefit obligation at end of year$214 $256 $60 $75 
 December 31,
 Pension BenefitsOther Benefits
 2022202120222021
Change in plan assets:
Fair value of plan assets at beginning of year$179 $157 $— $— 
Actual return on plan assets(30)15 — — 
Employer contributions21 19 2 2 
Participant contributions— — — — 
Benefits paid(12)(12)(2)(2)
Fair value of plan assets at end of year$158 $179 $— $— 
Funded status at end of year$(56)$(77)$(60)$(75)
 December 31,
 Qualified Plans
Non-Qualified Plans(1)
Total
 202220212022202120222021
Aggregate fair value of plan assets$158 $179 $— $— $158 $179 
Aggregate projected benefit obligations142 166 72 90 214 256 
Over (under) funded$16 $13 $(72)$(90)$(56)$(77)
(1)For non-qualified plans, there are no required funding levels.
 December 31,
 Pension BenefitsOther Benefits
 2022202120222021
Amounts recognized in accumulated other comprehensive income (loss):
Net actuarial (gain) loss$40 $52 $(1)$20 
Net prior service cost (credit)— — (6)(9)
Total$40 $52 $(7)$11 
The following table presents information for pension plans with a projected benefit obligation in excess of plan assets as of December 31, 2022 and 2021 (dollars in millions):
 20222021
Projected benefit obligation$73 $256 
Fair value of plan assets— 179 
The following table presents information for pension plans with an accumulated benefit obligation in excess of plan assets as of December 31, 2022 and 2021 (dollars in millions):
20222021
Accumulated benefit obligation$66 $248 
Fair value of plan assets— 179 
The components of net periodic benefit cost, included in other operating expenses on the consolidated statements of income, and other changes in plan assets and benefit obligations recognized in other comprehensive income were as follows (dollars in millions):
  
Pension BenefitsOther Benefits
 202220212020202220212020
Net periodic benefit cost:
Service cost$17 $18 $14 $3 $3 $3 
Interest cost6 4 6 2 2 2 
Expected return on plan assets(12)(10)(9)— — — 
Amortization of net actuarial losses3 6 5 1 2 2 
Amortization of prior service cost (credit)— — — (2)(1)(1)
Settlements— — — — — — 
Net periodic benefit cost14 18 16 4 6 6 
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net actuarial (gains) losses(9)(13)17 (20)(6)(8)
Amortization of net actuarial (losses)(3)(6)(5)(1)(2)(2)
Amortization of prior service (cost) credit— — — 2 1 1 
Settlements— — — — — — 
Prior service cost (credit)— — — 1 (3)— 
Foreign exchange translations and other adjustments— — — — — — 
Total recognized in other comprehensive income (loss)(12)(19)12 (18)(10)(9)
Total recognized in net periodic benefit cost and other comprehensive income (loss)$2 $(1)$28 $(14)$(4)$(3)
The Company has met the minimum funding requirements for its qualified pension plans and is not required to contribute to the qualified pension plans during 2023. The Company has not determined whether, and to what extent, contributions may be made to the qualified pension plans in 2023. During 2023, the Company expects to contribute $4 million and $2 million to its non-qualified pension plans and other benefit plans, respectively.
The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (dollars in millions):
Pension BenefitsOther Benefits
2023$12 $2 
202415 3 
202516 3 
202617 3 
202717 4 
2028 – 2032
99 21 
Assumptions
The weighted average assumptions used to determine the benefit obligation and net periodic benefit cost were as follows:
 Pension BenefitsOther Benefits
 202220212020202220212020
Benefit obligation
Discount rate5.00 %2.64 %2.22 %4.99 %2.76 %2.41 %
Rate of compensation increase4.96 %4.74 %4.69 %n/an/an/a
Net periodic benefit cost
Discount rate2.65 %2.21 %3.03 %2.76 %2.41 %3.17 %
Expected long-term rate of return on plan assets6.50 %6.50 %7.00 %n/an/an/a
Rate of compensation increase4.75 %4.71 %4.60 %n/an/an/a
The expected rate of return on plan assets is based on anticipated performance of the various asset sectors in which the plan invests, weighted by target allocation percentages. Anticipated future performance is based on long-term historical returns of the plan assets by sector, adjusted for the long-term expectations on the performance of the markets. While the precise expected return derived using this approach may fluctuate from year to year, the policy is to hold this long-term assumption constant as long as it remains within reasonable tolerance from the derived rate. This process is consistent for all plan assets as all the assets are invested in mutual funds.
The assumed health care cost trend rates used in measuring the accumulated non-pension post-retirement benefit obligation were as follows:
 As of December 31,
 20222021
Health care cost trend rates assumed for next year7.00 %6.50 %
Ultimate cost trend rate4.50 %4.50 %
Year ultimate trend is reached20282026
Plan Assets
Target allocations of U.S. qualified pension plan assets are determined with the objective of maximizing returns and minimizing volatility of net assets through adequate asset diversification and partial liability immunization. Adjustments are made to target allocations based on the Company’s assessment of the effect of economic factors and market conditions. The target allocations for plan assets are 60% equity securities and 40% debt securities as of December 31, 2022 and 2021. The Company’s plan assets are invested in mutual funds. The mutual funds include holdings of S&P 500 securities, large-cap securities, mid-cap securities, small-cap securities, international securities, corporate debt securities, U.S. and other government securities, mortgage-related securities and cash.
Equity and debt securities are exposed to various risks, such as interest rate risk, credit risk and overall market volatility. Due to the level of risk associated with certain investment securities, changes in the values of investment securities will occur and any change would affect the amounts reported in the financial statements.
The fair values of the Company’s qualified pension plan assets as of December 31, 2022 and 2021 are summarized below (dollars in millions):
  
December 31, 2022
  Fair Value Measurement Using:
 TotalLevel 1Level 2Level 3
Mutual Funds(1)
$158 $158 $— $— 
Cash— — — — 
Total$158 $158 $— $— 
(1)Mutual funds were invested 25% in U.S. equity funds, 40% in U.S. fixed income funds, 16% in non-U.S. equity funds and 19% in other.
  
December 31, 2021
  Fair Value Measurement Using:
 TotalLevel 1Level 2Level 3
Mutual Funds(2)
$179 $179 $— $— 
Cash— — — — 
Total$179 $179 $— $— 
(2)Mutual funds were invested 27% in U.S. equity funds, 38% in U.S. fixed income funds, 18% in non-U.S. equity funds and 17% in other.
As of December 31, 2022 and 2021, the Company classified all of its qualified pension plan assets in the Level 1 category as quoted prices in active markets are available for these assets. See Note 6 – “Fair Value of Asset and Liabilities” for additional detail on the fair value hierarchy.
Savings and Investment Plans
Certain subsidiaries of RGA also sponsor savings and investment plans under which a portion of employee contributions are matched. Subsidiary contributions to these plans were $23 million, $21 million and $19 million in 2022, 2021 and 2020, respectively.