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Retirement Benefits
 9 Months Ended
Sep. 30, 2021
Retirement Benefits [Abstract]  
Retirement Benefits Retirement Benefits
The Company has defined contribution retirement plans or defined benefit pension plans covering substantially all employees. Company contributions to defined contribution retirement plans are generally based on a percentage of eligible pay or based on hours worked. Benefits under the defined benefit pension plans are generally based on years of service and/or final average pay. The Company funds the U.S. pension plans in accordance with the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended (IRC). The Company also sponsors several postretirement plans covering certain collectively-bargained salaried and hourly employees. The plans provide health care and life insurance benefits for eligible retirees. In most retiree health care plans, Company contributions towards premiums are capped based on the cost as of a certain date, thereby creating a defined contribution. All defined benefit pension and retiree health care plans are closed to new entrants.
As a result of the American Rescue Plan Act (ARPA) enacted in March 2021, the rules governing pension funding calculations have changed, and minimum funding requirements were reduced. Prior to the ARPA changes, ATI’s fiscal year 2021 funding requirements and expected cash contributions were approximately $87 million. As a result of these ARPA changes, ATI’s prior contributions have generated a credit balance that may be utilized to offset future minimum required contributions. ATI made a $50 million voluntary cash contribution to ATI Pension Plan in the third quarter 2021 to improve the plan’s funded position, bringing the total U.S. qualified defined benefit pension plan contributions to $67.5 million for fiscal year 2021.
For the three month periods ended September 30, 2021 and 2020, the components of pension and other postretirement benefit expense (income) for the Company’s defined benefit plans included the following (in millions): 
Pension BenefitsOther Postretirement Benefits
Three months ended September 30,Three months ended September 30,
 2021202020212020
Service cost - benefits earned during the year$3.8 $3.2 $0.4 $0.6 
Interest cost on benefits earned in prior years17.1 21.6 1.9 2.6 
Expected return on plan assets(34.1)(33.6)— — 
Amortization of prior service cost (credit)0.2 0.1 (0.6)(0.9)
Amortization of net actuarial loss18.9 18.6 3.6 2.7 
Settlement gain— — (64.9)— 
Total retirement benefit expense (income)$5.9 $9.9 $(59.6)$5.0 
For the nine month periods ended September 30, 2021 and 2020, the components of pension and other postretirement benefit expense for the Company’s defined benefit plans included the following (in millions):
Pension BenefitsOther Postretirement Benefits
Nine months ended September 30,Nine months ended September 30,
 2021202020212020
Service cost - benefits earned during the year$11.3 $9.5 $1.1 $1.7 
Interest cost on benefits earned in prior years51.3 64.7 6.1 8.0 
Expected return on plan assets(102.3)(100.8)— — 
Amortization of prior service cost (credit)0.5 0.5 (1.9)(2.8)
Amortization of net actuarial loss56.7 55.8 10.2 8.1 
Settlement gain— — (64.9)— 
Total retirement benefit expense (income)$17.5 $29.7 $(49.4)$15.0 

On July 14, 2021, ATI announced that a new four-year labor agreement with the USW was ratified (see Note 11 for further discussion). As a result of this new CBA, ATI recognized a $64.9 million pretax gain in the third quarter of 2021, which is recorded in nonoperating retirement benefit income/expense on the consolidated statement of operations, related to a plan termination that eliminated certain postretirement medical benefit liabilities, comprised of $43.0 million of long-term postretirement benefit liabilities as of July 2021 and $21.9 million of amounts recorded in accumulated other comprehensive income at that date. Discrete tax effects related to this event were $15.5 million of income tax expense (see Note 13 for further discussion).