PENSION AND OTHER POST-RETIREMENT BENEFITS |
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PENSION AND OTHER RETIREMENT BENEFITS | NOTE 12. PENSION AND OTHER RETIREMENT BENEFITS Moody’s maintains funded and unfunded noncontributory Defined Benefit Pension Plans. The U.S. plans provide defined benefits using a cash balance formula based on years of service and career average salary for its employees or final average pay for selected executives. The Company also provides certain healthcare and life insurance benefits for retired U.S. employees. The retirement healthcare plans are contributory; the life insurance plans are noncontributory. Moody’s funded and unfunded U.S. pension plans, the U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Retirement Plans”. The U.S. retirement healthcare plans and the U.S. retirement life insurance plans are collectively referred to herein as the “Other Retirement Plans”. Effective January 1, 2008, the Company no longer offers DBPPs to U.S. employees hired or rehired on or after January 1, 2008. New U.S. employees will instead receive a retirement contribution of similar benefit value under the Company’s Profit Participation Plan. Current participants of the Company’s DBPPs continue to accrue benefits based on existing plan formulas. The components of net periodic benefit expense related to the Retirement Plans are as follows:
The Company made a contribution of $22.4 million to its funded pension plan well as payments of $1.9 million related to its unfunded U.S. DBPPs and $0.3 million to its U.S. other retirement plans during the six months ended June 30, 2016. The Company anticipates making payments of $3.2 million related to its unfunded U.S. DBPPs and $0.5 million to its U.S. other retirement plans, respectively, during the remainder of 2016. |