Employee Benefit Plans

12 Months Ended

Dec. 31, 2015

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Employee Benefit Plans

Employee benefit plans

BNY Mellon has defined benefit and/or defined contribution retirement plans covering substantially all full-time and eligible part-time employees and other post-retirement plans providing healthcare benefits for certain retired employees. On Jan. 29, 2015, the board of directors approved an amendment to freeze benefit accruals under the U.S. qualified and nonqualified defined benefit plans effective June 30, 2015. This change resulted in no additional benefits being earned by participants in those plans based on service or pay after June 30, 2015. As a result of the amendment to the U.S. pension plans, liabilities were re-measured as of Jan. 29, 2015 at a discount rate of 3.73%. The market-related value of plan assets was $4,713 million at Jan. 29, 2015.

Pension and post-retirement healthcare plans

The following tables report the combined data for our domestic and foreign defined benefit pension and post-retirement healthcare plans.

	Pension Benefits												Healthcare Benefits
	Domestic						Foreign						Domestic						Foreign
(dollar amounts in millions)	2015			2014			2015			2014			2015			2014			2015			2014
Weighted-average assumptions used to determine benefit obligations
Discount rate	4.48		%	4.13		%	3.45		%	3.33		%	4.48		%	4.13		%	3.60		%	3.10		%
Rate of compensation increase	N/A			3.00			3.51			3.29			3.00			3.00			—			—
Change in benefit obligation(a)
Benefit obligation at beginning of period	$	(4,460	)	$	(3,712	)	$	(1,177	)	$	(1,021	)	$	(210	)	$	(224	)	$	(8	)	$	(7	)
Service cost	(30		)	(58		)	(32		)	(33		)	(1		)	(1		)	—			—
Interest cost	(170		)	(180		)	(38		)	(43		)	(8		)	(11		)	—			—
Employee contributions	—			—			(1		)	(1		)	—			—			—			—
Amendments	—			—			—			3			—			—			—			—
Actuarial gain (loss)	178			(687		)	(1		)	(169		)	17			(8		)	1			(1		)
(Acquisitions) divestitures	—			—			12			—			—			—			2			—
Curtailments	94			—			—			—			—			—			—			—
Special termination benefits	—			(1		)	—			—			—			—			—			—
Benefits paid	211			178			17			19			18			34			—			—
Foreign exchange adjustment	N/A			N/A			73			68			N/A			N/A			1			—
Benefit obligation at end of period	(4,177		)	(4,460		)	(1,147		)	(1,177		)	(184		)	(210		)	(4		)	(8		)
Change in fair value of plan assets
Fair value at beginning of period	4,942			4,721			997			930			93			86			—			—
Actual return on plan assets	(61		)	383			40			88			(1		)	7			—			—
Employer contributions	19			16			51			56			18			34			—			—
Employee contributions	—			—			1			1			—			—			—			—
Acquisitions (divestitures)	—			—			1			—			—			—			—			—
Benefit payments	(211		)	(178		)	(17		)	(19		)	(18		)	(34		)	—			—
Foreign exchange adjustment	N/A			N/A			(59		)	(59		)	N/A			N/A			—			—
Fair value at end of period	4,689			4,942			1,014			997			92			93			—			—
Funded status at end of period	$	512		$	482		$	(133	)	$	(180	)	$	(92	)	$	(117	)	$	(4	)	$	(8	)
Amounts recognized in accumulated other comprehensive (income) loss consist of:
Net loss (gain)	$	1,678		$	1,668		$	368		$	382		$	111		$	146		$	(1	)	$	—
Prior service cost (credit)	—			(31		)	1			1			(69		)	(79		)	—			—
Total (before tax effects)	$	1,678		$	1,637		$	369		$	383		$	42		$	67		$	(1	)	$	—

(a) The benefit obligation for pension benefits is the projected benefit obligation and for healthcare benefits, it is the accumulated benefit obligation.

Net periodic benefit cost (credit)	Pension Benefits																		Healthcare Benefits
	Domestic									Foreign									Domestic									Foreign
(dollar amounts in millions)	2015			2014			2013			2015			2014			2013			2015			2014			2013			2015			2014			2013
Weighted-average assumptions as of Jan. 1:
Market-related value of plan assets	$	4,696		$	4,430		$	4,121		$	959		$	898		$	790		$	92		$	86		$	80		N/A			N/A			N/A
Discount rate	4.13		%	4.99		%	4.25		%	3.33		%	4.29		%	4.49		%	4.13		%	4.99		%	4.25		%	3.10		%	4.21		%	4.50		%
Expected rate of return on plan assets	7.25			7.25			7.25			5.25			6.26			6.04			7.25			7.25			7.25			N/A			N/A			N/A
Rate of compensation increase	3.00			3.00			3.00			3.29			3.71			3.49			3.00			3.00			3.00			N/A			N/A			N/A
Components of net periodic benefit cost (credit):
Service cost	$	30		$	58		$	63		$	32		$	33		$	36		$	1		$	1		$	2		$	—		$	—		$	—
Interest cost	170			180			170			38			43			38			8			11			9			—			—			—
Expected return on assets	(333		)	(315		)	(292		)	(51		)	(58		)	(46		)	(6		)	(6		)	(6		)	—			—			—
Amortization of:
Prior service cost (credit)	(1		)	(15		)	(16		)	—			1			—			(10		)	(10		)	(10		)	—			—			—
Net actuarial (gain) loss	111			125			205			23			15			15			10			11			12			—			—			—
Settlement (gain) loss	1			—			3			—			—			—			—			—			—			—			—			—
Curtailment (gain) loss	(30		)	—			—			—			—			—			—			—			—			—			—			—
Special termination benefit charge	—			1			—			—			—			—			—			—			—			—			—			—
Net periodic benefit cost (credit)	$	(52	)	$	34		$	133		$	42		$	34		$	43		$	3		$	7		$	7		$	—		$	—		$	—

Changes in other comprehensive (income) loss in 2015	Pension Benefits						Healthcare Benefits
(in millions)	Domestic			Foreign			Domestic			Foreign
Net loss (gain) arising during period	$	122		$	9		$	(25	)	$	(1	)
Recognition of prior years’ net (loss)	(112		)	(23		)	(10		)	—
Prior service cost (credit) arising during period	—			—			—			—
Recognition of prior years’ service credit	31			—			10			—
Foreign exchange adjustment	N/A			—			N/A			—
Total recognized in other comprehensive (income) loss (before tax effects)	$	41		$	(14	)	$	(25	)	$	(1	)

Amounts expected to be recognized in net periodic benefit cost (income) in 2016 (before tax effects)	Pension Benefits				Healthcare Benefits
(in millions)	Domestic		Foreign		Domestic			Foreign
Loss recognition	$	69	$	20	$	8		$	—
Prior service (credit) recognition	—		—		(10		)	—

	Domestic						Foreign
(in millions)	2015			2014			2015			2014
Pension benefits:
Prepaid benefit cost	$	724		$	708		$	3		$	—
Accrued benefit cost	(212		)	(226		)	(136		)	(180		)
Total pension benefits	$	512		$	482		$	(133	)	$	(180	)
Healthcare benefits:
Accrued benefit cost	$	(92	)	$	(117	)	$	(4	)	$	(8	)
Total healthcare benefits	$	(92	)	$	(117	)	$	(4	)	$	(8	)

The accumulated benefit obligation for all defined benefit plans was $5.2 billion at Dec. 31, 2015 and $5.4 billion at Dec. 31, 2014.

Plans with obligations in excess of plan assets	Domestic				Foreign
(in millions)	2015		2014		2015		2014
Projected benefit obligation	$	233	$	227	$	132	$	392
Accumulated benefit obligation	233		225		115		375
Fair value of plan assets	20		—		79		313

For information on pension assumptions see “Critical accounting estimates.”

Assumed healthcare cost trend - Domestic post-retirement healthcare benefits

The assumed healthcare cost trend rate used in determining benefit expense for 2016 is 6.50% decreasing to 4.75% in 2022. This projection is based on various economic models that forecast a decreasing growth rate of healthcare expenses over time. The underlying assumption is that healthcare expense growth cannot outpace gross national product (“GNP”) growth indefinitely, and over time a lower equilibrium growth rate will be achieved. Further, the growth rate assumed in 2022 bears a reasonable relationship to the discount rate.

An increase in the healthcare cost trend rate of one percentage point for each year would increase the accumulated post-retirement benefit obligation by $12 million, or 6%, and the sum of the service and interest costs by $1 million, or 7%. Conversely, a decrease in this rate of one percentage point for each year would decrease the benefit obligation by $10 million, or 6%, and the sum of the service and interest costs by $1 million, or 6%.

Assumed healthcare cost trend - Foreign post-retirement healthcare benefits

An increase in the healthcare cost trend rate of one percentage point for each year would increase the accumulated post-retirement benefit obligation by less than $1 million and the sum of the service and interest costs by less than $1 million. Conversely, a decrease in this rate of one percentage point for each year would decrease the benefit obligation by less than $1 million and the sum of the service and interest costs by less than $1 million.

The following benefit payments for BNY Mellon’s pension and healthcare plans, which reflect expected future service as appropriate, are expected to be paid: 

Expected benefit payments
(in millions)		Domestic		Foreign
Pension benefits:
Year	2016	$	252	$	16
	2017	267		15
	2018	254		17
	2019	250		17
	2020	253		20
	2021-2025	1,275		116
Total pension benefits		$	2,551	$	201
Healthcare benefits:
Year	2016	$	14	$	—
	2017	14		—
	2018	14		—
	2019	14		—
	2020	14		—
	2021-2025	62		1
Total healthcare benefits		$	132	$	1

Plan contributions

BNY Mellon expects to make cash contributions to fund its defined benefit pension plans in 2016 of $22 million for the domestic plans and $22 million for the foreign plans.

BNY Mellon expects to make cash contributions to fund its post-retirement healthcare plans in 2016 of $14 million for the domestic plans and less than $1 million for the foreign plans.

Investment strategy and asset allocation

BNY Mellon is responsible for the administration of various employee pension and healthcare post-retirement benefits plans, both domestically and internationally. The domestic plans are administered by BNY Mellon’s Benefits Administration Committee, a named fiduciary. Subject to the following, at all relevant times, BNY Mellon’s Benefits Investment Committee, another named fiduciary to the domestic plans, is responsible for the investment of plan assets. The Benefits Investment Committee’s responsibilities include the investment of all domestic defined benefit plan assets, as well as the determination of investment options offered to participants in all domestic defined contribution plans. The Benefits Investment Committee conducts periodic reviews of investment performance, asset allocation and investment manager suitability. In addition, the Benefits Investment Committee has oversight of the Regional Governance Committees for the foreign defined benefit plans.

Our investment objective for U.S. and foreign plans is to maximize total return while maintaining a broadly diversified portfolio for the primary purpose of satisfying obligations for future benefit payments.

Equities are the main holding of the plans. Alternative investments (including private equities) and fixed income securities provide diversification and, in certain cases, lower the volatility of returns. In general, equity securities and alternative investments within any domestic plan’s portfolio can be maintained in the range of 30% to 70% of total plan assets, fixed-income securities can range from 20% to 50% of plan assets and cash equivalents can be held in amounts ranging from 0% to 5% of plan assets. Actual asset allocation within the approved ranges varies from time to time based on economic conditions (both current and forecast) and the advice of professional advisors.

Our pension assets were invested as follows at Dec. 31, 2015 and 2014:

Asset allocations	Domestic				Foreign
	2015		2014		2015		2014
Equities	63	%	63	%	57	%	56	%
Fixed income	31		31		34		36
Private equities	1		2		—		—
Alternative investment	3		3		3		2
Real estate	—		—		5		5
Cash	2		1		1		1
Total pension benefits	100	%	100	%	100	%	100	%

Our pension plans did not hold any shares of The Bank of New York Mellon Corporation common stock at Dec. 31, 2015 and 2014. Assets of the U.S. post-retirement healthcare plan are invested in an insurance contract.

Fair value measurement of plan assets

In accordance with ASC 715, BNY Mellon has established a three-level hierarchy for fair value measurements of its pension plan assets based upon the transparency of inputs to the valuation of an asset as of the measurement date. The valuation hierarchy is consistent with guidance in ASC 820 which is detailed in Note 20 of the Notes to Consolidated Financial Statements.

The following is a description of the valuation methodologies used for assets measured at fair value, as well as the general classification of such assets pursuant to the valuation hierarchy.

Cash and currency

This category consists primarily of foreign currency balances and is included in Level 1 of the valuation hierarchy. Foreign currency is translated monthly based on current exchange rates.

Common and preferred stock, exchange traded funds and equity funds

These investments include equities, exchange traded funds and equity funds and are valued at the closing price reported in the active market in which the individual securities are traded, if available. Where there are no readily available market quotations, we determine fair value primarily based on pricing sources with reasonable levels of price transparency.

Collective trust funds

Collective trust funds include commingled and U.S. equity funds that have no readily available market quotations. The fair value of the funds are based on the securities in the portfolio, which typically are the amount that the fund might reasonably expect to receive for the securities upon a sale. These funds are valued using observable inputs on either a daily or monthly basis. Collective trust funds are included as Level 2 of the valuation hierarchy.

Fixed income investments

Fixed income investments include U.S. Treasury securities, U.S. Government agencies, sovereign government obligations, U.S. corporate bonds and foreign corporate debt funds. U.S. Treasury securities are valued at the closing price reported in the active market in which the individual security is traded and included as Level 1 of the valuation hierarchy. U.S. Government agencies, sovereign government obligations, U.S. corporate bonds and foreign corporate debt funds are valued based on quoted prices for comparable securities with similar yields and credit ratings. When quoted prices are not available for identical or similar bonds, the bonds are valued using discounted cash flows that maximize observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. U.S. Government agencies, sovereign government obligations, U.S. corporate bonds and foreign corporate debt funds are primarily included as Level 2 of the valuation hierarchy with a small portion of U.S. corporate debt funds included as Level 1.

Other assets measured at NAV

Other assets measured at NAV include venture capital investments and partnership interests, funds of funds, property funds and other funds. There are no readily available market quotations for these funds. The fair value of the venture capital investments is based on the pension plan’s ownership percentage of the fair value of the underlying funds as provided by the fund managers. These funds are typically valued on a quarterly basis. The pension plan’s venture capital investments and partnership interests are valued at NAV as a practical expedient for fair value. The fair value of the funds of funds is based on NAVs of the funds in the portfolio, which reflects the value of the underlying securities. The fair value of the underlying securities is typically the amount that the fund might reasonably expect to receive upon selling those hard to value or illiquid securities within the portfolios.

The following tables present the fair value of each major category of plan assets as of Dec. 31, 2015 and Dec. 31, 2014, by captions and by ASC 820 valuation hierarchy. There were no transfers between Level 1 and Level 2.

Plan assets measured at fair value on a recurring basis— domestic plans at Dec. 31, 2015
(in millions)	Level 1		Level 2		Level 3		Total fair value
Common and preferred stock:
U.S. equity	$	1,473	$	—	$	—	$	1,473
Non-U.S. equity	132		—		—		132
Collective trust funds:
Commingled	—		318		—		318
U.S. equity	—		1,181		—		1,181
Fixed income:
U.S. Treasury securities	450		—		—		450
U.S. Government agencies	—		20		—		20
Sovereign government obligations	—		77		—		77
U.S. corporate bonds	—		726		—		726
Other	—		39		—		39
Exchange traded funds	60		—		—		60
Other assets measured at NAV							213
Total domestic plan assets, at fair value	$	2,115	$	2,361	$	—	$	4,689

Plan assets measured at fair value on a recurring basis— foreign plans at Dec. 31, 2015
(in millions)	Level 1		Level 2		Level 3		Total fair value
Equity funds	$	375	$	163	$	—	$	538
Sovereign/government obligation funds	52		84		—		136
Corporate debt funds	—		158		19		177
Cash and currency	5		—		—		5
Other assets measured at NAV							80
Total foreign plan assets, at fair value	$	432	$	405	$	19	$	936

Plan assets measured at fair value on a recurring basis— domestic plans at Dec. 31, 2014
(in millions)	Level 1		Level 2		Level 3		Total fair value
Common and preferred stock:
U.S. equity	$	1,468	$	—	$	—	$	1,468
Non-U.S. equity	132		—		—		132
Collective trust funds:
Commingled	—		342		—		342
U.S. equity	—		1,344		—		1,344
Fixed income:
U.S. Treasury securities	438		—		—		438
U.S. Government agencies	—		59		—		59
Sovereign government obligations	—		91		—		91
U.S. corporate bonds	—		724		—		724
Other	—		32		—		32
Exchange traded funds	70		—		—		70
Other assets measured at NAV							242
Total domestic plan assets, at fair value	$	2,108	$	2,592	$	—	$	4,942

Plan assets measured at fair value on a recurring basis— foreign plans at Dec. 31, 2014
(in millions)	Level 1		Level 2		Level 3		Total fair value
Equity funds	$	432	$	125	$	—	$	557
Sovereign/government obligation funds	75		130		—		205
Corporate debt funds	60		74		20		154
Cash and currency	13		—		—		13
Other assets measured at NAV							68
Total foreign plan assets, at fair value	$	580	$	329	$	20	$	997

Changes in Level 3 fair value measurements

The table below includes a roll forward of the plan assets for the years ended Dec. 31, 2015 and 2014 (including the change in fair value), for financial instruments classified in Level 3 of the valuation hierarchy.

Fair value measurements using significant unobservable inputs—foreign plans—for the year ended Dec. 31, 2015
(in millions)	Corporate debt funds
Fair value at Dec. 31, 2014	$	20
Transfers into Level 3	—
Total gains or (losses) included in earnings (or changes in net assets)	(1		)
Fair value at Dec. 31, 2015	$	19
Change in unrealized gains or (losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period	$	(1	)

Fair value measurements using significant unobservable inputs—foreign plans—for the year ended Dec. 31, 2014
(in millions)	Corporate debt funds
Fair value at Dec. 31, 2013	$	19
Transfers into Level 3	—
Total gains or (losses) included in earnings (or changes in net assets)	1
Fair value at Dec. 31, 2014	$	20
Change in unrealized gains or (losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period	$	1

Assets valued using net asset value per share

BNY Mellon had pension and post-retirement plan assets invested in venture capital and partnership interests, funds of funds, property funds and other contracts valued using NAV. The fund of funds investments are redeemable at NAV under agreements with the fund of funds managers.

Assets valued using NAV—Dec. 31, 2015
(dollar amounts in millions)	Fair value		Unfunded commitments		Redemption frequency	Redemption notice period
Venture capital and partnership interests (a)	$	60	$	8	N/A	N/A
Funds of funds (b)	177		—		Monthly	30-45 days
Property funds (c)	49		—		Daily-Quarterly	0-90 days
Other contracts (d)	7		—		N/A	N/A
Total	$	293	$	8

Assets valued using NAV—Dec. 31, 2014
(dollar amounts in millions)	Fair value		Unfunded commitments		Redemption frequency	Redemption notice period
Venture capital and partnership interests (a)	$	159	$	11	N/A	N/A
Funds of funds (b)	151		—		Monthly	30-45 days
Total	$	310	$	11

(a) Venture capital and partnership interests do not have redemption rights. Distributions from such funds will be received as the underlying investments are liquidated.

(b) Funds of funds include multi-strategy hedge funds that utilize investment strategies that invest over both long-term investment and short-term investment horizons.

(c) Property funds include funds invested in regional real estate vehicles that hold direct interest in real estate properties.

(d) Other contracts include assets invested in pooled accounts at insurance companies that are privately valued by the asset manager.

Defined contribution plans

BNY Mellon sponsors defined contribution plans in the U.S. and in certain non-U.S. locations, all of which are administered in accordance with local laws. The most significant defined contribution plan is The Bank of New York Mellon Corporation 401(k) Savings Plan sponsored by the Company in the U.S and covers substantially all U.S. employees.

Under The Bank of New York Mellon Corporation 401(k) Savings Plan, the Company matched 100% of the first 4% of an employee’s eligible base pay plus 50% of the next 2% of eligible pay contributed by the participant for a maximum matching contribution of 5% for 2015, 2014 and 2013, subject to statutory limits.

The U.S. qualified and nonqualified defined benefit plans were closed to new participants effective Dec. 31, 2010, at which time an annual non-elective contribution equal to 2% of eligible base pay was added to The Bank of New York Mellon Corporation 401(k) Savings Plan. For 2014 and 2013, employees who were hired on or after Jan. 1, 2010 and were not eligible to earn benefits in The Bank of New York Mellon Corporation Pension Plan received the annual non-elective contribution.

On Jan. 29, 2015, the board of directors approved an amendment to freeze benefit accruals under the U.S. qualified and nonqualified defined benefit plans effective June 30, 2015. Employees, who were hired before Jan. 1, 2010 and were eligible to earn benefits in the pension plan prior to freezing the benefit accrual, received the non-elective contribution starting July 1, 2015. All Company contributions areinvested according to participants’ individual elections.

At Dec. 31, 2015 and Dec. 31, 2014, The Bank of New York Mellon Corporation 401(k) Savings Plan owned 15.6 million and 16.7 million shares of our common stock, respectively. The fair value of total assets was $5.2 billion at Dec. 31, 2015 and $5.3 billion at Dec. 31, 2014. We recorded expense of $209 million in 2015, $198 million in 2014 and $192 million in 2013 primarily for contributions to our defined contribution plans.

We also have an Employee Stock Ownership Plan (“ESOP”) covering certain domestic full-time employees hired on or before July 1, 2008. The ESOP works in conjunction with the defined benefit pension plan. Employees are entitled to the higher of their benefit under the ESOP or such defined benefit pension plan at retirement. Benefits payable under the defined benefit pension plan are offset by the equivalent value of benefits earned under the ESOP.

At Dec. 31, 2015 and Dec. 31, 2014, the ESOP owned 6.0 million and 6.4 million shares of our common stock, respectively. The fair value of total ESOP assets was $251 million at Dec. 31, 2015 and $263 million at Dec. 31, 2014. The ESOP was amended effective June 30, 2015 to discontinue the ability of the Company to make contributions to the ESOP. There were no contributions to the ESOP in 2015, 2014 or 2013.

The Benefits Investment Committee appointed Fiduciary Counselors, Inc. to serve as the independent fiduciary to (i) make certain fiduciary decisions related to the continued prudence of offering the common stock of BNY Mellon or its affiliates as an investment option under the plans other than with respect to plan sponsor decisions, and (ii) select and monitor any managed investments (active or passive, including mutual funds) of BNY Mellon or its affiliates to be offered to participants as investment options under the plans.