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Benefit Plans
 12 Months Ended
Nov. 30, 2022
Retirement Benefits [Abstract]  
Benefit Plans Benefit Plans
U.S. Pension Plans
Pursuant to the agreement to sell one of our former subsidiaries, WilTel Communications Group, LLC, ("WilTel") the responsibility for WilTel's defined benefit pension plan was retained by us. All benefits under this plan were frozen as of October 30, 2005. Jefferies Group LLC Employees’ Pension Plan (the “U.S. Pension Plan”) is a defined benefit pension plan covering certain employees; benefits under that plan were frozen as of December 31, 2005. We contributed $1.0 million to the U.S. Pension Plan during the year ended November 30, 2022 and we anticipate making $1.0 million contribution to the plan for the year ending November 30, 2023.
A summary of activity with respect to both plans is as follows (in thousands):
Year Ended November 30,
 20222021
Change in projected benefit obligation:
Projected benefit obligation, beginning of year$226,728 $236,572 
Interest cost5,805 4,946 
Actuarial (gains) losses(47,362)(4,977)
Settlements(4,702)— 
Benefits paid(8,403)(9,813)
Projected benefit obligation, end of year$172,066 $226,728 
Change in plan assets:  
Fair value of plan assets, beginning of year$199,215 $190,220 
Actual return on plan assets(37,574)13,619 
Employer contributions1,000 7,089 
Benefits paid(8,403)(9,813)
Settlements(4,702)— 
Administrative expenses paid(2,264)(1,900)
Fair value of plan assets, end of year$147,272 $199,215 
Funded status at end of year$(24,794)$(27,513)
As of November 30, 2022 and 2021, $40.5 million and $44.9 million, respectively, of the net amount recognized in the Consolidated Statements of Financial Condition was reflected as a charge to Accumulated other comprehensive income (loss) (substantially all of which were cumulative losses) and $24.8 million and $27.5 million, respectively, was reflected as accrued pension cost.
The following table summarizes the components of net periodic pension cost and other amounts recognized in other comprehensive income (loss) excluding taxes (in thousands):
Year Ended November 30,
 202220212020
Interest cost$5,805 $4,946 $6,349 
Expected return on plan assets(7,311)(8,433)(7,934)
Settlement losses833 — 376 
Actuarial losses3,348 4,192 3,453 
Net periodic pension cost$2,675 $705 $2,244 
Amounts recognized in other comprehensive income (loss):
Net (gains) losses arising during the period$(211)$(8,264)$3,821 
Settlement losses(833)— (376)
Amortization of net loss(3,348)(4,192)(3,453)
Total recognized in other comprehensive income (loss)$(4,392)$(12,456)$(8)
   
Net amount recognized in net periodic benefit cost and other
  comprehensive income (loss)
$(1,717)$(11,751)$2,236 
The amounts in Accumulated other comprehensive income (loss) at November 30, 2022 and 2021 have not yet been recognized as components of net periodic pension cost in the Consolidated Statements of Operations.
The assumptions used are as follows:
November 30,
 20222021
WilTel Plan
Discount rate used to determine benefit obligation4.90 %2.60 %
Weighted-average assumptions used to determine net pension cost:
Discount rate
2.60 %2.20 %
Expected long-term return on plan assets
6.00 %7.00 %
U.S. Pension Plan
Discount rate used to determine benefit obligation4.80 %2.40 %
Weighted-average assumptions used to determine net pension cost:
Discount rate
2.40 %2.00 %
Expected long-term return on plan assets
5.00 %5.00 %

The following pension benefit payments are expected to be paid (in thousands):
Fiscal Year:
2023$15,869 
202412,362 
202512,015 
202612,933 
202713,487 
2028 – 203263,356 
U.S. Plan Assets
The information below on the plan assets for the WilTel plan and the U.S. Pension Plan is presented separately for the plans as the investments are managed independently. 
WilTel Plan Assets 
The current investment objectives are designed to close the funding gap while mitigating funded status volatility through a combination of liability hedging and investment returns. As plan funded status improves, the asset allocation will move along a predetermined, de-risking glide path that reallocates capital from growth assets to liability-hedging assets in order to reduce funded status volatility and lock in funded status gains. Plan assets are split into two separate portfolios, each with different asset mixes and objectives. The portfolios are valued at their NAV as a practical expedient for fair value.
•The Growth Portfolio consists of global equities and high yield investments.
•The Liability-Driven Investing ("LDI") Portfolio consists of long duration credit bonds and a suite of long duration, Treasury-based instruments designed to provide capital-efficient interest rate exposure as well as target specific maturities. The objective of the LDI Portfolio is to seek to achieve performance similar to the WilTel plan's liability by seeking to match the interest rate sensitivity and credit sensitivity. The LDI Portfolio is managed to mitigate volatility in funded status deriving from changes in the discounted value of benefit obligations from market movements in the interest rate and credit components of the underlying discount curve.
U.S. Pension Plan Assets
We have an agreement with an external investment manager to invest and manage the plan’s assets under a strategy using a combination of two portfolios. The investment manager allocates the plan’s assets between a growth portfolio and a liability-driven portfolio according to certain target allocations and tolerance bands that are agreed to by the Administrative Committee of the U.S. Pension Plan. Such target allocations will take into consideration the plan’s funded ratio. The manager will also monitor the strategy and, as the plan’s funded ratio changes over time, will rebalance the strategy, if necessary, to be within the agreed tolerance bands and target allocations. The portfolios are composed of certain common collective investment trusts that are established and maintained by the investment manager. The common collective trusts are valued at their NAV as a practical expedient for fair value.
Plan Assumptions
To develop the assumption for the expected long-term rate of return on plan assets, we considered the following underlying assumptions: 2.5% current expected inflation, (0.5)% to 1.5% real rate of return for long duration risk free investments and an additional 0.5% to 1.5% return premium for corporate credit risk. For U.S. and international equity, we assume an equity risk premium over risk-free assets equal to 4.6%. We then weighted these assumptions based on invested assets and assumed that investment expenses were offset by expected returns in excess of benchmarks, which resulted in the selection of 6.0% and 5.0% expected long-term rate of return assumption for WilTel and U.S. Pension plan, respectively, for 2022.
Other
We have defined contribution pension plans, including 401(k) plans, that cover certain employees. Amounts charged to expense related to such plans were $12.7 million, $9.8 million and $9.5 million for the years ended November 30, 2022, 2021 and 2020, respectively.