Employee and Agent Benefits (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Defined Benefit Plans and Other Postretirement Benefit Plans |
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| Obligations and Funded Status (Table) |
| | | | | | | | | | | | | | | | | | | | | | Other postretirement | | | | Pension benefits | | benefits | | | | December 31, | | December 31, | | | | 2019 | | 2018 | | 2019 | | 2018 | | | | (in millions) | | Change in benefit obligation | | | | | | | | | | | | | | Benefit obligation at beginning of year | | $ | (3,239.2) | | $ | (3,383.6) | | $ | (98.9) | | $ | (109.1) | | Service cost | | | (66.0) | | | (73.0) | | | — | | | (0.1) | | Interest cost | | | (126.5) | | | (119.5) | | | (3.7) | | | (3.5) | | Actuarial gain (loss) | | | (506.4) | | | 220.9 | | | (4.8) | | | 7.9 | | Participant contributions | | | — | | | — | | | (4.4) | | | (3.7) | | Benefits paid | | | 123.6 | | | 109.6 | | | 12.2 | | | 9.7 | | Plan amendments | | | 122.4 | | | 6.4 | | | (1.8) | | | — | | Other | | | — | | | — | | | — | | | (0.1) | | Benefit obligation at end of year | | $ | (3,692.1) | | $ | (3,239.2) | | $ | (101.4) | | $ | (98.9) | | | | | | | | | | | | | | | | Change in plan assets | | | | | | | | | | | | | | Fair value of plan assets at beginning of year | | $ | 2,498.2 | | $ | 2,542.2 | | $ | 643.9 | | $ | 696.8 | | Actual return on plan assets | | | 520.9 | | | (122.2) | | | 95.5 | | | (47.7) | | Employer contribution | | | 30.5 | | | 187.8 | | | 1.2 | | | 0.8 | | Participant contributions | | | — | | | — | | | 4.4 | | | 3.7 | | Benefits paid | | | (123.6) | | | (109.6) | | | (12.2) | | | (9.7) | | Fair value of plan assets at end of year | | $ | 2,926.0 | | $ | 2,498.2 | | $ | 732.8 | | $ | 643.9 | | | | | | | | | | | | | | | | Amount recognized in statement of financial position | | | | | | | | | | | | | | Other assets | | $ | — | | $ | — | | $ | 635.1 | | $ | 546.9 | | Other liabilities | | | (766.1) | | | (741.0) | | | (3.7) | | | (1.9) | | Total | | $ | (766.1) | | $ | (741.0) | | $ | 631.4 | | $ | 545.0 | | | | | | | | | | | | | | | | Amount recognized in accumulated other comprehensive (income) loss | | | | | | | | | | | | | | Total net actuarial (gain) loss | | $ | 737.5 | | $ | 673.3 | | $ | (17.4) | | $ | 40.2 | | Prior service benefit | | | (137.8) | | | (26.7) | | | (7.3) | | | (10.2) | | Pre-tax accumulated other comprehensive (income) loss | | $ | 599.7 | | $ | 646.6 | | $ | (24.7) | | $ | 30.0 | |
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| Components of Net Periodic Benefit Cost (Income) (Table) |
| | | | | | | | | | | | | | | | | | | | | | Pension benefits | | Other postretirement benefits | | | | For the year ended December 31, | | | | 2019 | | 2018 | | 2017 | | 2019 | | 2018 | | 2017 | | | | (in millions) | | Service cost | | $ | 66.0 | | $ | 73.0 | | $ | 67.1 | | $ | — | | $ | 0.1 | | $ | 0.1 | | Interest cost | | | 126.5 | | | 119.5 | | | 124.4 | | | 3.7 | | | 3.5 | | | 3.9 | | Expected return on plan assets | | | (148.8) | | | (157.0) | | | (144.2) | | | (33.2) | | | (33.6) | | | (27.5) | | Amortization of prior service benefit | | | (11.3) | | | (3.4) | | | (2.3) | | | (1.2) | | | (13.9) | | | (34.6) | | Recognized net actuarial (gain) loss | | | 70.1 | | | 67.8 | | | 68.0 | | | 0.1 | | | (1.5) | | | — | | Net periodic benefit cost (income) | | $ | 102.5 | | $ | 99.9 | | $ | 113.0 | | $ | (30.6) | | $ | (45.4) | | $ | (58.1) | |
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| Amounts Recognized in Net Periodic Benefit Cost and Accumulated Other Comprehensive (Income) Loss (Table) |
| | | | | | | | | | | | | | | | Pension | | Other postretirement | | | | benefits | | benefits | | | | For the year ended December 31, | | | | 2019 | | 2018 | | 2019 | | 2018 | | | | (in millions) | | Other changes recognized in accumulated other comprehensive (income) loss | | | | | | | | | | | | | | Net actuarial (gain) loss | | $ | 134.3 | | $ | 58.3 | | $ | (57.5) | | $ | 73.4 | | Prior service (benefit) cost | | | (122.4) | | | (6.4) | | | 1.7 | | | — | | Amortization of gain (loss) | | | (70.1) | | | (67.8) | | | (0.1) | | | 1.5 | | Amortization of prior service benefit | | | 11.3 | | | 3.4 | | | 1.2 | | | 13.9 | | Total recognized in pre-tax accumulated other comprehensive (income) loss | | $ | (46.9) | | $ | (12.5) | | $ | (54.7) | | $ | 88.8 | | Total recognized in net periodic benefit cost and pre-tax accumulated other comprehensive (income) loss | | $ | 55.6 | | $ | 87.4 | | $ | (85.3) | | $ | 43.4 | |
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| Weighted-Average Assumptions Used to Determine Benefit Obligations (Table) |
| | | | | | | | Pension benefits | | | | For the year ended December 31, | | | | 2019 | | 2018 | | Discount rate | | 3.25 | % | 4.15 | % | Rate of compensation increase: | | | | | | Cash balance benefit | | 4.95 | % | 4.94 | % | Traditional benefit | | 2.98 | % | 2.73 | % | | | | | | | | | Other postretirement benefits | | | | For the year ended December 31, | | | | 2019 | | 2018 | | Discount rate | | 2.95 | % | 3.95 | % | Rate of compensation increase | | N/A | | N/A | |
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| Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost (Table) |
| | | | | | | | | | Pension benefits | | | | For the year ended December 31, | | | | 2019 | | 2018 | | 2017 | | Discount rate (1) | | 3.70 | % | 3.60 | % | 4.15 | % | Expected long-term return on plan assets | | 5.95 | % | 6.30 | % | 6.70 | % | Rate of compensation increase: | | | | | | | | Cash balance benefit | | 4.94 | % | 4.96 | % | 5.02 | % | Traditional benefit | | 2.73 | % | 2.77 | % | 2.82 | % | | | | | | | | | | | Other postretirement benefits | | | | For the year ended December 31, | | | | 2019 | | 2018 | | 2017 | | Discount rate | | 3.95 | % | 3.35 | % | 3.75 | % | Expected long-term return on plan assets | | 5.19 | % | 4.85 | % | 4.40 | % | Rate of compensation increase | | N/A | | 2.39 | % | 2.44 | % |
| (1) | During the second quarter of 2019, we amended The Principal Pension Plan and The Principal Financial Group Nonqualified Defined Benefit Plan for Employees to end traditional benefit accruals as of December 31, 2022, and begin cash balance accruals January 1, 2023. We remeasured the associated plan assets and pension benefit obligations as of May 31, 2019. A discount rate of 4.15% was used until the remeasurement date at which time a discount rate of 3.70% was used. See "Pension Plan Changes and Plan Gains/Losses" for further details. |
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| Assumed Health Care Cost Trend Rates (Table) |
| | | | | | | | December 31, | | | | 2019 | | 2018 | | Health care cost trend rate assumed for next year under age 65 | | 6.75 | % | 7.00 | % | Health care cost trend rate assumed for next year age 65 and over | | 6.00 | % | 6.00 | % | Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | | 4.50 | % | 4.50 | % | Year that the rate reaches the ultimate trend rate (under age 65) | | 2029 | | 2026 | | Year that the rate reaches the ultimate trend rate (65 and older) | | 2026 | | 2025 | |
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| Effects of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Table) |
| | | | | | | | | | 1-percentage | | 1-percentage | | | | point increase | | point decrease | | | | (in millions) | | Effect on total of service cost and interest cost components | | $ | — | | $ | — | | Effect on accumulated postretirement benefit obligation | | | (1.2) | | | 1.1 | |
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| Estimated Future Benefit Payments (Table) |
| | | | | | | | | | | | | Other postretirement | | | | | | | benefits (gross benefit | | | | | | | payments, including | | | | Pension benefits | | prescription drug benefits) | | | | (in millions) | | Year ending December 31: | | | | | | | | 2020 | | $ | 164.5 | | $ | 14.0 | | 2021 | | | 150.1 | | | 12.2 | | 2022 | | | 161.4 | | | 11.5 | | 2023 | | | 170.1 | | | 10.6 | | 2024 | | | 177.9 | | | 9.8 | | 2025-2029 | | | 1,014.6 | | | 37.9 | |
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| Defined Benefit Pension Plans Supplemental Information (Table) |
| | | | | | | | | | | | | | | | | | | | | | For the year ended December 31, | | | | 2019 | | 2018 | | | | Qualified | | Nonqualified | | | | | Qualified | | Nonqualified | | | | | | | Plan | | Plan | | Total | | Plan | | Plan | | Total | | | | (in millions) | | Amount recognized in statement of financial position | | | | | | | | | | | | | | | | | | | | Other assets | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Other liabilities | | | (258.7) | | | (507.4) | | | (766.1) | | | (266.3) | | | (474.7) | | | (741.0) | | Total | | $ | (258.7) | | $ | (507.4) | | $ | (766.1) | | $ | (266.3) | | $ | (474.7) | | $ | (741.0) | | | | | | | | | | | | | | | | | | | | | | Amount recognized in accumulated other comprehensive loss | | | | | | | | | | | | | | | | | | | | Total net actuarial loss | | $ | 567.6 | | $ | 169.9 | | $ | 737.5 | | $ | 544.4 | | $ | 128.9 | | $ | 673.3 | | Prior service benefit | | | (110.3) | | | (27.5) | | | (137.8) | | | (11.0) | | | (15.7) | | | (26.7) | | Pre-tax accumulated other comprehensive loss | | $ | 457.3 | | $ | 142.4 | | $ | 599.7 | | $ | 533.4 | | $ | 113.2 | | $ | 646.6 | | | | | | | | | | | | | | | | | | | | | | Components of net periodic benefit cost | | | | | | | | | | | | | | | | | | | | Service cost | | $ | 59.7 | | $ | 6.3 | | $ | 66.0 | | $ | 65.7 | | $ | 7.3 | | $ | 73.0 | | Interest cost | | | 108.0 | | | 18.5 | | | 126.5 | | | 102.0 | | | 17.5 | | | 119.5 | | Expected return on plan assets | | | (148.8) | | | — | | | (148.8) | | | (157.0) | | | — | | | (157.0) | | Amortization of prior service benefit | | | (7.8) | | | (3.5) | | | (11.3) | | | (1.5) | | | (1.9) | | | (3.4) | | Recognized net actuarial loss | | | 57.6 | | | 12.5 | | | 70.1 | | | 53.6 | | | 14.2 | | | 67.8 | | Net periodic benefit cost | | $ | 68.7 | | $ | 33.8 | | $ | 102.5 | | $ | 62.8 | | $ | 37.1 | | $ | 99.9 | | | | | | | | | | | | | | | | | | | | | | Other changes recognized in accumulated other comprehensive (income) loss | | | | | | | | | | | | | | | | | | | | Net actuarial (gain) loss | | $ | 80.8 | | $ | 53.5 | | $ | 134.3 | | $ | 81.7 | | $ | (23.4) | | $ | 58.3 | | Prior service benefit | | | (107.2) | | | (15.2) | | | (122.4) | | | — | | | (6.4) | | | (6.4) | | Amortization of net loss | | | (57.6) | | | (12.5) | | | (70.1) | | | (53.6) | | | (14.2) | | | (67.8) | | Amortization of prior service benefit | | | 7.8 | | | 3.5 | | | 11.3 | | | 1.5 | | | 1.9 | | | 3.4 | | Total recognized in pre-tax accumulated other comprehensive (income) loss | | $ | (76.2) | | $ | 29.3 | | $ | (46.9) | | $ | 29.6 | | $ | (42.1) | | $ | (12.5) | | Total recognized in net periodic benefit cost and pre-tax accumulated other comprehensive (income) loss | | $ | (7.5) | | $ | 63.1 | | $ | 55.6 | | $ | 92.4 | | $ | (5.0) | | $ | 87.4 | |
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| Pension benefits |
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| Defined Benefit Plans and Other Postretirement Benefit Plans |
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| Accumulated Benefit Obligation in Excess of Plan Assets (Table) |
| | | | | | | | | | December 31, | | | | 2019 | | 2018 | | | | (in millions) | | Projected benefit obligation | | $ | 3,692.1 | | $ | 3,239.2 | | Accumulated benefit obligation | | | 3,599.5 | | | 3,029.0 | | Fair value of plan assets | | | 2,926.0 | | | 2,498.2 | |
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| Fair Value of Plan Assets (Table) |
| | | | | | | | | | | | | | | | | | | December 31, 2019 | | | | Assets | | Amount | | Fair value hierarchy level | | | | measured at | | measured at | | | | | | fair value | | net asset value | | Level 1 | | Level 2 | | Level 3 | | | | (in millions) | | Asset category | | | | | | | | | | | | | | | | | Pooled separate account investments: | | | | | | | | | | | | | | | | | U.S. large cap equity portfolios (1) | | $ | 509.7 | | $ | — | | $ | — | | $ | 509.7 | | $ | — | | U.S. small/mid cap equity portfolios (2) | | | 90.9 | | | — | | | — | | | 90.9 | | | — | | Balanced asset portfolios (3) | | | 78.5 | | | — | | | — | | | 78.5 | | | — | | International equity portfolios (4) | | | 328.6 | | | — | | | — | | | 328.6 | | | — | | Real estate investment portfolios (5) | | | 193.5 | | | — | | | — | | | 193.5 | | | — | | Single client separate account investments: | | | | | | | | | | | | | | | | | Fixed income securities: | | | | | | | | | | | | | | | | | U.S. government and agencies | | | 485.9 | | | — | | | 485.9 | | | — | | | — | | States and political subdivisions | | | 26.1 | | | — | | | — | | | 26.1 | | | — | | Corporate | | | 1,009.1 | | | — | | | — | | | 1,009.1 | | | — | | Commercial mortgage-backed securities | | | 32.7 | | | — | | | — | | | 32.7 | | | — | | Other debt obligations | | | 7.1 | | | — | | | — | | | 7.1 | | | — | | Hedge funds (6) | | | 129.0 | | | 129.0 | | | — | | | — | | | — | | Pooled separate account investment (7) | | | 31.5 | | | — | | | — | | | 31.5 | | | — | | Other (8) | | | 3.4 | | | — | | | — | | | 3.4 | | | — | | Total | | $ | 2,926.0 | | $ | 129.0 | | $ | 485.9 | | $ | 2,311.1 | | $ | — | |
| | | | | | | | | | | | | | | | | | | December 31, 2018 | | | | Assets | | Amount | | Fair value hierarchy level | | | | measured at | | measured at | | | | | | fair value | | net asset value | | Level 1 | | Level 2 | | Level 3 | | | | (in millions) | | Asset category | | | | | | | | | | | | | | | | | Pooled separate account investments: | | | | | | | | | | | | | | | | | U.S. large cap equity portfolios (1) | | $ | 387.7 | | $ | — | | $ | — | | $ | 387.7 | | $ | — | | U.S. small/mid cap equity portfolios (2) | | | 64.4 | | | — | | | — | | | 64.4 | | | — | | Balanced asset portfolios (3) | | | 116.3 | | | — | | | — | | | 116.3 | | | — | | International equity portfolios (4) | | | 220.9 | | | — | | | — | | | 220.9 | | | — | | Real estate investment portfolios (5) | | | 133.6 | | | — | | | — | | | 133.6 | | | — | | Single client separate account investments: | | | | | | | | | | | | | | | | | Fixed income securities: | | | | | | | | | | | | | | | | | U.S. government and agencies | | | 418.8 | | | — | | | 418.8 | | | — | | | — | | States and political subdivisions | | | 24.0 | | | — | | | — | | | 24.0 | | | — | | Corporate | | | 934.5 | | | — | | | — | | | 934.5 | | | — | | Commercial mortgage-backed securities | | | 30.7 | | | — | | | — | | | 30.7 | | | — | | Other debt obligations | | | 8.0 | | | — | | | — | | | 8.0 | | | — | | Hedge funds (6) | | | 124.7 | | | 124.7 | | | — | | | — | | | — | | Pooled separate account investment (7) | | | 23.9 | | | — | | | — | | | 23.9 | | | — | | Other (8) | | | 10.7 | | | — | | | 0.3 | | | 10.4 | | | — | | Total | | $ | 2,498.2 | | $ | 124.7 | | $ | 419.1 | | $ | 1,954.4 | | $ | — | |
| (1) | The portfolios invest primarily in publicly traded equity securities of large U.S. companies. |
| (2) | The portfolios invest primarily in publicly traded equity securities of mid-sized and small U.S. companies. |
11. Employee and Agent Benefits – (continued) | (3) | The portfolios are a combination of underlying fixed income and equity investment options. These investment options may include balanced, asset allocation, target-date and target-risk investment options. Although typically lower risk than investment options that invest solely in equities, all investment options in this category have the potential to lose value. |
| (4) | The portfolios invest primarily in publicly traded equity securities of non-U.S. companies. |
| (5) | The portfolio invests primarily in U.S. commercial real estate properties through a separate account. |
| (6) | The hedge funds have varying investment strategies that also have a variety of redemption terms and conditions. We do not have unfunded commitments associated with these hedge funds. |
| (7) | The single client separate accounts invest in a money market pooled separate account. |
| (8) | Includes cash and net (payables)/receivables for the single client separate accounts. |
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| Target Asset Allocation (Table) |
| | | | | | | Asset category | | Target allocation | | Fixed income security portfolios | | 25 | % | - | 80 | % | Equity portfolios | | 5 | % | - | 60 | % | Real estate investment portfolios | | | | | 10 | % | Alternatives | | | | | 5 | % |
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| Other postretirement benefits |
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| Defined Benefit Plans and Other Postretirement Benefit Plans |
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| Accumulated Benefit Obligation in Excess of Plan Assets (Table) |
| | | | | | | | | | December 31, | | | | 2019 | | 2018 | | | | (in millions) | | Accumulated postretirement benefit obligation | | $ | 3.8 | | $ | 2.1 | | Fair value of plan assets | | | — | | | 0.2 | |
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| Fair Value of Plan Assets (Table) |
| | | | | | | | | | | | | | | | December 31, 2019 | | | | Assets | | Fair value hierarchy level | | | | measured at | | | | | | fair value | | Level 1 | | Level 2 | | Level 3 | | | | (in millions) | | Asset category | | | | | | | | | | | | | | Cash and cash equivalents | | $ | 0.6 | | $ | 0.6 | | $ | — | | $ | — | | Fixed income security portfolios: | | | | | | | | | | | | | | Fixed income investment funds (1) | | | 370.5 | | | 331.0 | | | 39.5 | | | — | | U.S. equity portfolios (2) | | | 254.5 | | | 210.3 | | | 44.2 | | | — | | International equity portfolios (3) | | | 107.2 | | | 88.9 | | | 18.3 | | | — | | Total | | $ | 732.8 | | $ | 630.8 | | $ | 102.0 | | $ | — | |
| | | | | | | | | | | | | | | | December 31, 2018 | | | | Assets | | Fair value hierarchy level | | | | measured at | | | | | | fair value | | Level 1 | | Level 2 | | Level 3 | | | | (in millions) | | Asset category | | | | | | | | | | | | | | Cash and cash equivalents | | $ | 0.3 | | $ | 0.3 | | $ | — | | $ | — | | Fixed income security portfolios: | | | | | | | | | | | | | | Fixed income investment funds (1) | | | 203.7 | | | 166.2 | | | 37.5 | | | — | | U.S. equity portfolios (2) | | | 135.8 | | | 101.0 | | | 34.8 | | | — | | International equity portfolios (3) | | | 61.2 | | | 47.4 | | | 13.8 | | | — | | Alternative mutual fund portfolios (4) | | | 235.4 | | | 235.4 | | | — | | | — | | Real estate mutual fund (5) | | | 7.5 | | | 7.5 | | | — | | | — | | Total | | $ | 643.9 | | $ | 557.8 | | $ | 86.1 | | $ | — | |
| (1) | The portfolios invest in various fixed income securities, primarily of U.S. origin. These include, but are not limited to, corporate bonds, residential mortgage-backed securities, commercial mortgage-backed securities, U.S. Treasury securities, agency securities, asset-backed securities and collateralized mortgage obligations. |
| (2) | The portfolios invest primarily in publicly traded equity securities of large U.S. companies. |
| (3) | The portfolios invest primarily in publicly traded equity securities of non-U.S. companies. |
| (4) | The portfolios invest primarily in equities, corporate bonds, foreign currencies, convertible securities and derivatives. |
| (5) | The mutual fund invests primarily in U.S. commercial real estate properties. |
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| Target Asset Allocation (Table) |
| | | | Asset category | | Target allocation | | U.S. equity portfolios | | 35 | % | International equity portfolios | | 15 | % | Fixed income security portfolios | | 50 | % |
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