XML 43 R25.htm IDEA: XBRL DOCUMENT v3.24.3
Benefit Plans
 9 Months Ended
Sep. 30, 2024
Retirement Benefits [Abstract]  
Benefit Plans
Note 16Benefit Plans
For the first nine months of 2024, service cost includes a $38 million refund of premiums previously paid to the Pension Benefit Guaranty Corporation (“PBGC”). The PBGC insures defined benefit plans offered by private-sector employers. PBGC premiums are required to be paid annually and are calculated using a predefined calculation that includes interest rates to discount a plan’s vested benefits. During the second quarter of 2024, the Company’s defined benefit pension plan elected to use an alternative methodology to calculate the prescribed interest rate in determining premiums for plan year 2023, which resulted in a refund of $38 million in previously paid premiums.
Components of net cost (benefit) for pension and other postretirement plans
Three months ended September 30,Nine months ended September 30,
($ in millions)2024202320242023
Pension benefits
Service cost$26 $34 $52 $99 
Interest cost59 58 175 176 
Expected return on plan assets(74)(78)(227)(234)
Costs and expenses11 14 — 41 
Remeasurement of projected benefit obligation233 (211)140 (156)
Remeasurement of plan assets(214)369 (129)219 
Remeasurement (gains) losses19 158 11 63 
Pension net cost$30 $172 $11 $104 
Postretirement benefits
Service cost$— $— $— $— 
Interest cost2 3 7 8 
Amortization of prior service credit— (6)(1)(18)
Costs and expenses2 (3)6 (10)
Remeasurement of benefit obligation
7 (9)4 (7)
Remeasurement of plan assets— — — — 
Remeasurement (gains) losses7 (9)4 (7)
Postretirement net cost (benefit)$9 $(12)$10 $(17)
Pension and postretirement benefits
Costs and expenses$13 $11 $6 $31 
Remeasurement (gains) losses26 149 15 56 
Total net cost$39 $160 $21 $87 
Differences in actual experience and changes in other assumptions affect our pension and other postretirement obligations and expenses. Differences between expected and actual returns on plan assets affect remeasurement (gains) losses.
Pension and other postretirement service cost, interest cost, expected return on plan assets and amortization of prior service credit are reported in property and casualty insurance claims and claims expense, operating costs and expenses, net investment income and (if applicable) restructuring and related charges on the Condensed Consolidated Statements of Operations.
Pension and postretirement benefits remeasurement gains and losses
Three months ended September 30,Nine months ended September 30,
($ in millions)2024202320242023
Remeasurement of benefit obligation (gains) losses:
Discount rate$213 $(231)$115 $(180)
Other assumptions27 11 29 17 
Remeasurement of plan assets (gains) losses(214)369 (129)219 
Remeasurement (gains) losses$26 $149 $15 $56 
Remeasurement losses of $26 million and $15 million for the third quarter and first nine months of 2024, respectively, related to a decrease in the liability discount rate and changes in other assumptions, partially offset by favorable asset performance compared to expected return on plan assets.
The weighted average discount rate used to measure the pension benefit obligation decreased to 5.02% at September 30, 2024 compared to 5.62% at June 30, 2024 and 5.35% at December 31, 2023 resulting in losses for the third quarter and first nine months of 2024.
For the third quarter of 2024, the actual return on plan assets was higher than the expected return due to higher fixed income valuations from lower market yields and higher public equity returns. For the first nine months of 2024, the actual return on plan assets was higher than the expected return due to higher equity valuations and tighter credit spreads, partially offset by higher rates.