Defined Benefit Pension Plans | |||||||||||||||||||||||
Qualified | Non-Qualified | Postretirement Benefit Plan | |||||||||||||||||||||
(dollar amounts in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Change in fair value of plan assets: | |||||||||||||||||||||||
Fair value of plan assets at January 1 | $ | 1,955 | $ | 1,508 | $ | — | $ | — | $ | 72 | $ | 69 | |||||||||||
Actual return on plan assets | 136 | 199 | — | — | (2 | ) | 4 | ||||||||||||||||
Employer contributions | — | 300 | — | — | 3 | 4 | |||||||||||||||||
Benefits paid | (56 | ) | (52 | ) | — | — | (6 | ) | (5 | ) | |||||||||||||
Fair value of plan assets at December 31 | $ | 2,035 | $ | 1,955 | $ | — | $ | — | $ | 67 | $ | 72 | |||||||||||
Change in projected benefit obligation: | |||||||||||||||||||||||
Projected benefit obligation at January 1 | $ | 1,897 | $ | 1,592 | $ | 245 | $ | 210 | $ | 79 | $ | 78 | |||||||||||
Service cost | 37 | 33 | 4 | 4 | — | — | |||||||||||||||||
Interest cost | 80 | 79 | 9 | 10 | 3 | 3 | |||||||||||||||||
Actuarial (gain) loss | (260 | ) | 245 | (21 | ) | 30 | (7 | ) | 3 | ||||||||||||||
Benefits paid | (56 | ) | (52 | ) | (9 | ) | (9 | ) | (6 | ) | (5 | ) | |||||||||||
Transfer between plans | 33 | — | (33 | ) | — | — | — | ||||||||||||||||
Projected benefit obligation at December 31 | $ | 1,731 | $ | 1,897 | $ | 195 | $ | 245 | $ | 69 | $ | 79 | |||||||||||
Accumulated benefit obligation | $ | 1,598 | $ | 1,718 | $ | 163 | $ | 209 | $ | 69 | $ | 79 | |||||||||||
Funded status at December 31 (a) (b) | $ | 304 | $ | 58 | $ | (195 | ) | $ | (245 | ) | $ | (2 | ) | $ | (7 | ) | |||||||
Weighted-average assumptions used: | |||||||||||||||||||||||
Discount rate | 5.17 | % | 4.20 | % | 5.17 | % | 4.20 | % | 4.59 | % | 3.81 | % | |||||||||||
Rate of compensation increase | 4.00 | 4.00 | 4.00 | 4.00 | n/a | n/a | |||||||||||||||||
Healthcare cost trend rate: | |||||||||||||||||||||||
Cost trend rate assumed for next year | n/a | n/a | n/a | n/a | 7.50 | 8.00 | |||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | n/a | n/a | n/a | n/a | 5.00 | 5.00 | |||||||||||||||||
Year when rate reaches the ultimate trend rate | n/a | n/a | n/a | n/a | 2033 | 2033 | |||||||||||||||||
Amounts recognized in accumulated other comprehensive income (loss) before income taxes: | |||||||||||||||||||||||
Net actuarial loss | $ | (403 | ) | $ | (743 | ) | $ | (73 | ) | $ | (106 | ) | $ | (23 | ) | $ | (27 | ) | |||||
Prior service (cost) credit | (31 | ) | (5 | ) | 28 | 2 | (3 | ) | (3 | ) | |||||||||||||
Balance at December 31 | $ | (434 | ) | $ | (748 | ) | $ | (45 | ) | $ | (104 | ) | $ | (26 | ) | $ | (30 | ) | |||||
(a) | Based on projected benefit obligation for defined benefit pension plans and accumulated benefit obligation for postretirement benefit plan. |
(b) | The Corporation recognizes the overfunded and underfunded status of the plans in “accrued income and other assets” and “accrued expenses and other liabilities,” respectively, on the consolidated balance sheets. |