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PENSION AND POSTRETIREMENT BENEFIT PLANS
 6 Months Ended
Jun. 30, 2019
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits [Text Block] RETIREMENT BENEFITS

The Company sponsors defined benefit pension plans, defined contribution plans and termination indemnity plans for regular full-time employees. The principal defined benefit pension plan is the Bristol-Myers Squibb Retirement Income Plan (the “Plan”), covering most U.S. employees and representing approximately 67% of the consolidated pension plan assets and 61% of the obligations. Future benefits related to service for this plan were eliminated in 2009. BMS contributes at least the minimum amount required by the ERISA. Plan benefits are based primarily on the participant’s years of credited service and final average compensation. As of June 30, 2019, Plan assets consist primarily of fixed-income securities.

In December 2018, BMS announced plans to fully terminate the Plan. Pension obligations related to the Plan of $3.8 billion will be distributed through a combination of lump sum payments to eligible Plan participants who elected such payments and through the purchase of group annuity contracts from wholly owned insurance subsidiaries of Athene Holding Ltd. (“Athene”). The benefit obligation for the Plan as of June 30, 2019 was therefore determined on a plan termination basis and included the obligation attributable to eligible active and deferred vested participants who elected lump sum payments during the election window which will be paid in July 2019. The remaining obligation expected to be transferred to Athene includes an annuity purchase price premium. The Plan has sufficient assets to satisfy all transaction obligations. The transaction is expected to close in the third quarter 2019 and will result in a non-cash pre-tax pension settlement charge of approximately $1.5 billion.

The net periodic benefit cost/(credit) of defined benefit pension plans includes:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Dollars in Millions
2019
 
2018
 
2019
 
2018
Service cost – benefits earned during the year
$
5

 
$
7

 
$
12

 
$
14

Interest cost on projected benefit obligation
37

 
50

 
81

 
96

Expected return on plan assets
(70
)
 
(109
)
 
(134
)
 
(218
)
Amortization of prior service credits
(1
)
 
(1
)
 
(2
)
 
(2
)
Amortization of net actuarial loss
17

 
19

 
35

 
40

Curtailments and settlements
44

 
38

 
93

 
69

Net periodic pension benefit cost/(credit)
$
32

 
$
4

 
$
85

 
$
(1
)


Pension settlement charges were recognized after determining that the annual lump sum payments will likely exceed the annual interest and service costs for the primary and certain other U.S. and international pension plans. The charges included the acceleration of a portion of unrecognized actuarial losses. Non-current pension liabilities were $423 million at June 30, 2019 and $427 million at December 31, 2018. Defined contribution plan expense in the U.S. was approximately $50 million and $90 million for the three and six months ended June 30, 2019 and 2018, respectively. Comprehensive medical and group life benefits are provided for substantially all U.S. retirees electing to participate in comprehensive medical and group life plans and to a lesser extent certain benefits for non-U.S. employees. The net periodic benefit credits were not material in both periods.