Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2013

Compensation and Retirement Disclosure [Abstract]

Schedule of cost of pension plans

Cost of pension plans

(in millions)	Erie Insurance Group
	2013			2012			2011
Cost of pension plans:
Service cost for benefits earned	$	27		$	21		$	17
Interest cost on benefit obligation	26			24			23
Expected return on plan assets	(31		)	(27		)	(27		)
Prior service cost amortization	1			1			1
Net actuarial loss amortization	15			11			6
Pension plan cost (1)	$	38		$	30		$	20

(1) Pension plan costs represent the total cost for the Erie Insurance Group before reimbursements to Indemnity from the Exchange and EFL.

Schedule of actuarial assumptions used to measure the year-end benefit obligations and net periodic benefit costs for the subsequent year

Actuarial assumptions

The following table describes the assumptions at December 31 used to measure the year-end benefit obligations and the net periodic benefit costs for the subsequent year:

(in millions)	Erie Insurance Group
	2013		2012		2011		2010
Actuarial assumptions:
Employee pension plan:
Discount rate	5.11	%	4.19	%	4.99	%	5.69	%
Expected return on assets	7.50		7.50		8.00		8.00
Compensation increases (1)	4.15		4.15		4.15		4.15
SERP:
Discount rate – pre-retirement/post-retirement	5.11/4.61		4.19/3.69		4.99/4.49		5.69/5.19
Rate of compensation increase	6.00		6.00		6.00		6.00

(1) The rate of compensation increase for the employee plan is age-graded.  An equivalent single compensation increase rate of 4.15% in 2013, 2012 and 2011 would produce similar results.

Schedule of funded status of pension plans and amounts recognized in the Consolidated Statements of Financial Position

The following table sets forth the funded status of the pension plans and the amounts recognized in the Consolidated Statements of Financial Position as of December 31:

(in millions)	Erie Insurance Group
	2013			2012
Funded status at end of period	$	(95	)	$	(201	)
Pension liability recorded in the Consolidated Statement of Financial Position:
Pension liabilities – due within one year	$	(1	)	$	(2	)
Pension liabilities – due after one year	(94		)	(199		)
Net amount recognized	$	(95	)	$	(201	)

Schedule of change in projected benefit obligation and accumulated benefit obligation

The following tables set forth the change in our projected benefit obligation, the accumulated benefit obligation, and information for the defined benefit pension plans with an accumulated benefit obligation in excess of plan assets as of December 31:

(in millions)	Erie Insurance Group
	2013			2012
Projected benefit obligation:
Balance, beginning of year	$	612		$	488
Service cost for benefits earned	27			21
Interest cost on benefit obligation	26			24
Plan amendments	1			0
Actuarial (gain) loss	(98		)	87
Benefits paid	(11		)	(8		)
Balance, end of year	$	557		$	612
Accumulated benefit obligation, December 31,	$	425		$	453

Schedule of defined benefit pension plans with an accumulated benefit obligation in excess of plan assets

(in millions)	Erie Insurance Group
	2013		2012
Plans with assets less than ABO, December 31:
Plan assets	$	462	$	411
Accumulated benefit obligations	425		453
Projected benefit obligations	557		612

Schedule of changes in fair value of plan assets

Pension assets

(in millions)	Erie Insurance Group
	2013			2012
Fair value of plan assets:
Balance, beginning of year	$	411		$	348
Actual gain on plan assets	43			55
Employer contributions	19			16
Benefits paid	(11		)	(8		)
Balance, end of year	$	462		$	411

Schedule of amounts included in shareholders' equity (unamortized)

Shareholders’ equity

(in millions)	Erie Insurance Group
	2013		2012
Amounts included in shareholders’ equity (unamortized):
Net actuarial loss	$	95	$	220
Prior service cost	6		6
Net amount not yet recognized	$	101	$	226

Schedule of amounts recognized in other comprehensive income for pension plans

Other comprehensive income

(in millions)	Erie Insurance Group
	2013				2012
Amounts recognized in other comprehensive incomefor pension plans:
Amortization of net actuarial loss	$	(15	)		$	(11	)
Amortization of prior service cost	(1		)		(1		)
Net actuarial (gain) loss arising during the year	(110		)		59
Amendments	1			(1)	0			(2)
Total recognized in other comprehensive income	$	(125	)		$	47

(1) The charges recognized as amendments were the result of factoring in the prior service cost for four new plan participants in 2013.

(2) The charges recognized as amendments were the result of factoring in the prior service cost for one new plan participant in 2012.

Schedule of target and actual asset allocations for the portfolio

The target and actual asset allocation for the portfolio is as follows for the years ended December 31:

	Erie Insurance Group
	Target asset allocation			Target asset allocation		Actual asset allocation		Actual asset allocation
Asset allocation:	2013			2012		2013		2012
Equity securities:
U.S. equity securities	35	%	(1)	40	%	36	%	41	%
Non-U.S. equity securities	20		(2)	20		20		21
Total equity securities	55			60		56		62
Debt securities	44		(3)	39		43		37
Other	1		(4)	1		1		1
Total	100	%		100	%	100	%	100	%

(1) U.S. equity securities –22% seek to achieve excess returns relative to the Russell 2000 Index, while 30% seek to achieve excess returns relative to the S&P 500.  The remaining 48% of the allocation to U.S. equity securities are comprised of equity index funds that track the S&P 500.

(2) Non-U.S. equity securities –11% are allocated to international small cap investments, while another 11% are allocated to international emerging market investments.  The remaining 78% of the Non-U.S. equity securities are allocated to investments seeking to achieve excess returns relative to an international market index.

(3) Debt securities –44% are allocated to long U.S. Treasury Strips, 44% are allocated to U.S. corporate bonds with an emphasis on long duration bonds rated A or better, while the remaining 12% are allocated to floating rate high income leverage loans.

(4) Institutional money market fund.

Schedule of fair value measurements of pension plan assets by major category and level of input

The following tables represent the fair value measurements for the pension plan assets by major category and level of input:

	Erie Insurance Group
	At December 31, 2013
	Fair value measurements of plan assets using:
(in millions)	Total		Quoted prices in active markets for identical assets Level 1		Significant observable inputs Level 2		Significant unobservable inputs Level 3
Equity securities:
U.S. equity securities	$	165	$	0	$	165	$	0
Non-U.S. equity securities	94		0		94		0
Total equity securities	259		0		259		0
Debt securities	199		0		199		0
Other	4		4		0		0
Total	$	462	$	4	$	458	$	0

	Erie Insurance Group
	At December 31, 2012
	Fair value measurements of plan assets using:
(in millions)	Total		Quoted prices in active markets for identical assets Level 1		Significant observable inputs Level 2		Significant unobservable inputs Level 3
Equity securities:
U.S. equity securities	$	168	$	0	$	168	$	0
Non-U.S. equity securities	87		0		87		0
Total equity securities	255		0		255		0
Debt securities	153		0		153		0
Other	3		3		0		0
Total	$	411	$	3	$	408	$	0

Schedule of benefits expected to be paid over the next 10 years from pension and other postretirement plans

The following table sets forth amounts of benefits expected to be paid over the next 10 years from our pension and other postretirement plans as of December 31:

(in millions)	Erie Insurance Group
Year ending December 31,	Expected future cash flows
2014	$	12
2015	13
2016	15
2017	17
2018	20
2019 - 2023	139