The Company provides retirement and other post-retirement benefits to certain of its employees through defined benefit pension plans (the “pension plans”). The Company also offers defined contribution plans to its employees. The pension plans generally provide benefits to participants based on average levels of compensation. Expenses related to the Company’s employee benefit plans are included in “compensation and benefits” expense for the service cost component, and “operating expenses–other” for the other components of benefit costs on the consolidated statements of operations.

Employer Contributions to Pension Plans—The Company’s funding policy for its U.S. and non-U.S. pension plans is to fund when required or when applicable upon an agreement with the plans’ trustees. Management also evaluates from time to time whether to make voluntary contributions to the plans.

The Company expects to contribute approximately $1,000 to the U.S. pension plan during the year ending December 31, 2020 and approximately $5,000 to the other non-U.S. pension plans during the year ending December 31, 2020.

The following table summarizes the changes in the benefit obligations, the fair value of the assets, the funded status and amounts recognized in the consolidated statements of financial condition for the post-retirement plans. The Company uses December 31 as the measurement date for its post-retirement plans.

	Pension Plans
	2019			2018
Change in benefit obligation
Benefit obligation at beginning of year	$	655,015		$	763,831
Service cost		815			884
Interest cost		15,350			15,569
Amendments		-			3,196
Actuarial (gain) loss		89,242			(27,623	)
Benefits paid		(30,817	)		(64,747	)
Foreign currency translation and other adjustments		15,100			(36,095	)
Benefit obligation at end of year		744,705			655,015
Change in plan assets
Fair value of plan assets at beginning of year		642,837			728,281
Actual return on plan assets		74,844			(10,608	)
Employer contributions		5,623			22,153
Benefits paid		(30,760	)		(62,056	)
Foreign currency translation and other adjustments		18,048			(34,933	)
Fair value of plan assets at end of year		710,592			642,837
Funded (deficit) at end of year	$	(34,113	)	$	(12,178	)
Amounts recognized in the consolidated statements of financial condition at December 31, 2019 and 2018 consist of:
Prepaid pension asset (included in “other assets”)	$	2,922		$	19,573
Accrued benefit liability (included in “other liabilities”)		(37,035	)		(31,751	)
Net amount recognized	$	(34,113	)	$	(12,178	)
Amounts recognized in AOCI (excluding tax benefits of $41,298 and $33,231 at December 31, 2019 and 2018, respectively) consist of:
Actuarial net loss (gain)	$	211,197		$	173,732
Prior service cost (credit)		3,165			3,178
Net amount recognized	$	214,362		$	176,910

The following table summarizes the fair value of plan assets, the accumulated benefit obligation and the projected benefit obligation at December 31, 2019 and 2018:

	U.S. Pension Plans				Non-U.S. Pension Plans				Total
	As Of December 31,				As Of December 31,				As Of December 31,
	2019		2018		2019		2018		2019		2018
Fair value of plan assets	$	22,914	$	20,813	$	687,678	$	622,024	$	710,592	$	642,837
Accumulated benefit obligation	$	32,314	$	28,869	$	712,391	$	626,146	$	744,705	$	655,015
Projected benefit obligation	$	32,314	$	28,869	$	712,391	$	626,146	$	744,705	$	655,015

The following table summarizes the components of net periodic benefit cost (credit), the return on the Company’s post-retirement plan assets, benefits paid, contributions and other amounts recognized in AOCI for the years ended December 31, 2019, 2018 and 2017:

	Pension Plans
	For The Year Ended
	December 31,
	2019			2018			2017
Components of Net Periodic Benefit Cost (Credit):
Service cost	$	815		$	884		$	1,413
Interest cost		15,350			15,569			16,240
Expected return on plan assets		(27,470	)		(29,622	)		(25,300	)
Amortization of:
Prior service cost		110			18			30
Net actuarial loss (gain)		5,025			11,840			10,141
Settlement loss (gain)		749			1,212			807
Net periodic benefit cost (credit)	$	(5,421	)	$	(99	)	$	3,331


Actual return on plan assets	$	74,844		$	(10,608	)	$	43,624
Employer contributions	$	5,623		$	22,153		$	16,844
Benefits paid	$	30,760		$	62,056		$	42,022
Other changes in plan assets and benefit obligations recognized in AOCI (excluding tax expense (benefit) of $(8,067), $1,923 and $(1,287) during the years ended December 31, 2019, 2018 and 2017, respectively):
Net actuarial (gain) loss	$	40,311		$	11,073		$	(17,357	)
Prior service cost (credit)		-			3,196			-
Reclassification of prior service (cost) credit to earnings		(110	)		(18	)		(30	)
Reclassification of actuarial gain (loss) to earnings		(5,774	)		(13,052	)		(10,141	)
Currency translation and other adjustments		3,025			(8,424	)		18,778
Total recognized in AOCI	$	37,452		$	(7,225	)	$	(8,750	)
Net amount recognized in total periodic benefit cost and AOCI	$	32,031		$	(7,324	)	$	(5,419	)

The amounts in AOCI on the consolidated statement of financial condition as of December 31, 2019 that are expected to be recognized as components of net periodic benefit cost (credit) for the year ending December 31, 2020 are as follows:

The assumptions used to develop actuarial present value of the projected benefit obligation and net periodic pension cost as of or for the years ended December 31, 2019, 2018 and 2017 are set forth below:

	Pension Plans
	December 31,
	2019			2018			2017
Weighted average assumptions used to determine benefit obligations:
Discount rate		1.8	%		2.6	%		2.3	%
Weighted average assumptions used to determine net periodic benefit cost:
Discount rate		2.2	%		2.4	%		2.2	%
Expected long-term rate of return on plan assets		4.4	%		4.4	%		3.8	%

Generally, the Company determined the discount rates for its defined benefit plans by utilizing indices for long-term, high-quality bonds and ensuring that the discount rate does not exceed the yield reported for those indices after adjustment for the duration of the plans’ liabilities.

In selecting the expected long-term rate of return on plan assets, the Company considered the average rate of earnings expected on the funds invested or to be invested to provide for the benefits of the plan, giving consideration to expected returns on different asset classes held by the plans in light of prevailing economic conditions as well as historical returns. This basis is consistent for all years presented.

Expected Benefit Payments—The following table summarizes the expected benefit payments for the Company’s pension plans for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter:

Plan Assets—The following tables present the categorization of our pension plans’ assets as of December 31, 2019 and 2018, measured at fair value, into a fair value hierarchy and investments measured at NAV or its equivalent as a practical expedient in accordance with fair value measurement disclosure requirements:

	As of December 31, 2019
	Level 1		Level 2		Level 3		NAV (a)		Total
Assets:
Cash	$	11,742	$	-	$	-	$	-	$	11,742
Debt		77,940		-		-		-		77,940
Equities		37,898		-		-		-		37,898
Funds:
Alternative investments		-		-		-		26,692		26,692
Debt		8,828		81,898		-		269,183		359,909
Equity		183,727		4,697		-		6,442		194,866
Derivatives		-		1,545		-		-		1,545
Total	$	320,135	$	88,140	$	-	$	302,317	$	710,592

	As of December 31, 2018
	Level 1		Level 2		Level 3		NAV (a)		Total
Assets:
Cash	$	6,619	$	-	$	-	$	-	$	6,619
Debt		81,533		-		-		-		81,533
Equities		27,585		-		-		-		27,585
Funds:
Alternative investments		-		-		-		29,975		29,975
Debt		10,593		-		-		322,739		333,332
Equity		151,199		5,572		-		6,031		162,802
Derivatives		-		991		-		-		991
Total	$	277,529	$	6,563	$	-	$	358,745	$	642,837

Included in equity funds are $99,671 and $87,129 as of December 31, 2019 and 2018, respectively, that are invested in funds managed by the Company.

Consistent with the plans’ investment strategies, at December 31, 2019 and 2018, the Company’s U.S. pension plan had 60% and 49%, respectively, of the plans’ assets invested in equity funds in Level 1 and measured at NAV or its equivalent as a practical expedient, 39% and 51%, respectively, invested in Level 1 debt funds and at December 31, 2019, 1% invested in cash, which is a Level 1 asset. The Company’s non-U.S. pension plans at December 31, 2019 and 2018 had 32% and 29%, respectively, of the plans’ assets invested in equities and equity funds that are primarily Level 1 and Level 2 assets; 62% and 65%, respectively, of the plans’ assets invested in debt and debt funds that are Level 1 and Level 2 assets or measured at NAV or its equivalent as a practical expedient, and 6% and 6%, respectively, of the plans’ assets invested in cash, which is a Level 1 asset, or in alternative investment funds that are primarily measured at NAV.

Investment Policies and Strategies—The primary investment goal is to ensure that the pension plans remain well funded, taking account of the likely future risks to investment returns and contributions. As a result, a portfolio of assets is maintained with appropriate liquidity and diversification that can be expected to generate long-term future returns that minimize the long-term costs of the pension plans without exposing the plans to an unacceptable risk of under-funding. The Company’s likely future ability to pay such contributions as are required to maintain the

funded status of the plans over a reasonable time period is considered when determining the level of risk that is appropriate. The fair value of plan investments classified as Level 1 assets are based on market quotes. The fair value of plan investments measured at NAV or its equivalent as a practical expedient is determined based on information provided by external fund administrators and such investments are redeemable in the near term.

Defined Contribution Plans—Pursuant to certain matching contributions, the Company contributes to employer sponsored defined contribution plans. Such contributions amounted to $16,994, $15,872 and $15,065 for the years ended December 31, 2019, 2018 and 2017, respectively, which are included in “compensation and benefits” expense on the consolidated statements of operations.