Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Schedule of cost of pension plans

Cost of pension plans

Pension plan cost includes the following components:

(in millions)	Erie Insurance Group
	2014			2013			2012
Service cost for benefits earned	$	23		$	27		$	21
Interest cost on benefit obligation	28			26			24
Expected return on plan assets	(32		)	(31		)	(27		)
Prior service cost amortization	1			1			1
Net actuarial loss amortization	6			15			11
Pension plan cost (1)	$	26		$	38		$	30

(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 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 obligations and the net periodic benefit costs for the subsequent year:

	Erie Insurance Group
	2014		2013		2012		2011
Employee pension plan:
Discount rate	4.17	%	5.11	%	4.19	%	4.99	%
Expected return on assets	7.00		7.50		7.50		8.00
Compensation increases (1)	3.32		4.15		4.15		4.15
SERP:
Discount rate – pre-retirement/post-retirement	4.17/3.67		5.11/4.61		4.19/3.69		4.99/4.49
Rate of compensation increase	5.00		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 3.32% in 2014 and 4.15% in 2013 and 2012 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 at December 31:

(in millions)	Erie Insurance Group
	2014			2013
Funded status at end of year, included in Indemnity Other Liabilities	$	(189	)	$	(95	)
Pension liabilities – due within one year	$	0		$	(1	)
Pension liabilities – due after one year	(189		)	(94		)
Net amount recognized	$	(189	)	$	(95	)

Schedule of reconciliation of beginning and ending balances of the projected benefit obligation, as well as the accumulated benefit obligation

The following table sets forth a reconciliation of beginning and ending balances of the projected benefit obligation, as well as the accumulated benefit obligation at December 31:

(in millions)	Erie Insurance Group
	2014			2013
Projected benefit obligation, beginning of year	$	557		$	612
Service cost for benefits earned	23			27
Interest cost on benefit obligation	28			26
Plan amendments	0			1
Actuarial loss (gain)	140			(98		)
Benefits paid	(11		)	(11		)
Projected benefit obligation, end of year	$	737		$	557
Accumulated benefit obligation, end of year	$	583		$	425

Schedule of defined benefit pension plans with assets less than accumulated benefit obligation

The following table describes plans with assets less than accumulated benefit obligation at December 31:

(in millions)	Erie Insurance Group
	2014		2013
Projected benefit obligation	$	737	$	557
Accumulated benefit obligation	583		425
Plan assets	548		462

Schedule of reconciliation of beginning and ending balances of the fair value of plan assets

Pension assets

The following table sets forth a reconciliation of beginning and ending balances of the fair value of plan assets at December 31:

(in millions)	Erie Insurance Group
	2014			2013
Fair value of plan assets, beginning of year	$	462		$	411
Actual gain on plan assets	73			43
Employer contributions	24			19
Benefits paid	(11		)	(11		)
Fair value of plan assets, end of year	$	548		$	462

Schedule of amounts included in accumulated other comprehensive income that were not yet recognized as components of net benefit costs

Accumulated other comprehensive income

Net actuarial loss and prior service cost included in accumulated other comprehensive income that were not yet recognized as components of net benefit costs were as follows:

(in millions)	Erie Insurance Group
	2014		2013
Net actuarial loss	$	187	$	95
Prior service cost	5		6
Net amount not yet recognized	$	192	$	101

Schedule of amounts recognized in other comprehensive income for pension plans

Other comprehensive income

Amounts recognized in other comprehensive income for pension plans:

(in millions)	Erie Insurance Group
	2014				2013
Net actuarial loss (gain) arising during the year	$	98			$	(110	)
Amortization of net actuarial loss	(6		)		(15		)
Amortization of prior service cost	(1		)		(1		)
Amendments	0			(1)	1			(2)
Total recognized in other comprehensive income	$	91			$	(125	)

(1) The charges recognized as amendments were the result of factoring in the prior service cost for four new plan participants in 2014.

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

Schedule of target and actual asset allocations for the portfolio

The target and actual asset allocations for the portfolio are 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:	2014			2013		2014		2013
Equity securities:
U.S. equity securities	35	%	(1)	35	%	37	%	36	%
Non-U.S. equity securities	20		(2)	20		19		20
Total equity securities	55			55		56		56
Debt securities	44		(3)	44		43		43
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, 2014
	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	$	202	$	0	$	202	$	0
Non-U.S. equity securities	106		0		106		0
Total equity securities	308		0		308		0
Debt securities	237		0		237		0
Other	3		3		0		0
Total	$	548	$	3	$	545	$	0

	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

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

Estimated future benefit payments

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 benefit payments
2015	$	13
2016	14
2017	16
2018	19
2019	21
2020 - 2024	150