MCGRAW HILL FINANCIAL INC | 2013 | FY | 3

A summary of the benefit obligation and the fair value of plan assets, as well as the funded status for the retirement and postretirement plans as of December 31, is as follows (benefits paid in the table below include only those amounts contributed directly to or paid directly from plan assets): 
(in millions)
Retirement Plans
 
Postretirement Plans
 
2013
 
2012
 
2013
 
2012
Net benefit obligation at beginning of year
$
2,171

 
$
1,834

 
$
129

 
$
129

Service cost
10

 
24

 
2

 
3

Interest cost
91

 
93

 
5

 
5

Plan participants’ contributions
—

 
1

 
4

 
5

Actuarial (gain) loss
(178
)
 
287

 
(13
)
 
3

Gross benefits paid
(77
)
 
(71
)
 
(13
)
 
(17
)
Foreign currency effect
8

 
11

 
—

 
—

Curtailment 1
(26
)
 
—

 
(11
)
 
—

Other adjustments
5

 
(8
)
 
—

 
1

Net benefit obligation at end of year
2,004

 
2,171

 
103

 
129

Fair value of plan assets at beginning of year
1,851

 
1,505

 
—

 
—

Actual return on plan assets
281

 
212

 
—

 
—

Employer contributions
27

 
193

 
9

 
12

Plan participants’ contributions
—

 
1

 
4

 
5

Gross benefits paid
(77
)
 
(71
)
 
(13
)
 
(17
)
Foreign currency effect
6

 
11

 
—

 
—

Fair value of plan assets at end of year
2,088

 
1,851

 
—

 
—

Funded status
$
84

 
$
(320
)
 
$
(103
)
 
$
(129
)
Amounts recognized in consolidated balance sheets:
 
 
 
 
 
 
 
Non-current assets
$
261

 
$
98

 
$
—

 
$
—

Current liabilities
(7
)
 
(7
)
 
(9
)
 
(11
)
Non-current liabilities
(170
)
 
(411
)
 
(94
)
 
(118
)

$
84

 
$
(320
)
 
$
(103
)
 
$
(129
)
Accumulated benefit obligation
$
2,004

 
$
2,093

 
 
 
 
Plans with accumulated benefit obligation in excess of the fair value of plan assets:
 
 
 
 
 
 
 
Projected benefit obligation
$
176

 
$
1,773

 
 
 
 
Accumulated benefit obligation
$
158

 
$
1,756

 
 
 
 
Fair value of plan assets
$
—

 
$
1,356

 
 
 
 
Amounts recognized in accumulated other comprehensive loss, net of tax:
 
 
 
 
 
 
 
Net actuarial loss (gain)
$
227

 
$
455

 
$
(11
)
 
$
(3
)
Prior service credit
1

 
(4
)
 
(1
)
 
(1
)
Total recognized
$
228

 
$
451

 
$
(12
)
 
$
(4
)

1 
The curtailment gain for our retirement plans relates to a freeze of pension accruals for MHE employees as well as all remaining active employees in the United Kingdom ("U.K."). The curtailment gain for our postretirement plans relates to the sale of MHE on March 22, 2013.

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