RETIREMENT BENEFITS

Ameren’s pension and postretirement plans are funded in compliance with income tax regulations and to meet federal funding or regulatory requirements. As a result, Ameren expects to fund its pension plans at a level equal to the greater of the pension expense or the legally required minimum contribution. Considering Ameren’s assumptions at June 30, 2014, the plan’s estimated investment performance through June 30, 2014, and Ameren’s pension funding policy, Ameren expects to make annual contributions of $20 million to $100 million in each of the next five years, with aggregate estimated contributions of $270 million. These amounts are estimates which may change with actual investment performance, changes in interest rates, any pertinent changes in government regulations, and any voluntary contributions. Our policy for postretirement benefits is primarily to fund the voluntary employees’ beneficiary association trusts to match the annual postretirement expense.

The following table presents the components of the net periodic benefit cost (benefit) for Ameren’s pension and postretirement benefit plans for the three and six months ended June 30, 2014, and 2013:



	Pension Benefits														Postretirement Benefits
	Three Months							Six Months							Three Months							Six Months
	2014			2013				2014			2013				2014			2013				2014			2013
Service cost	$	19		$	22			$	40		$	46			$	4		$	5			$	9		$	11
Interest cost	42			41				91			81				12			11				25			23
Expected return on plan assets	(57		)	(54		)		(114		)	(108		)		(16		)	(15		)		(32		)	(31		)
Amortization of:
Prior service cost (benefit)	—			(1		)		—			(2		)		(1		)	(1		)		(2		)	(2		)
Actuarial loss (gain)	12			24				24			46				(2		)	2				(3		)	4
Net periodic benefit cost (benefit)	$	16		$	32		^(a)	$	41		$	63		^(a)	$	(3	)	$	2		^(a)	$	(3	)	$	5		^(a)

(a)

The net periodic benefit cost includes $3 million and $6 million in total net costs for pension benefits, for the three and six months ended June 30, 2013, respectively, which were included in “Loss from discontinued operations, net of taxes” on Ameren’s consolidated statement of income (loss). The net periodic benefit cost includes $1 million and $- million in total net costs for postretirement benefits, for the three and six months ended June 30, 2013, respectively, which were included in “Loss from discontinued operations, net of taxes” on Ameren’s consolidated statement of income (loss).

Ameren Missouri and Ameren Illinois are responsible for their respective shares of Ameren’s pension and postretirement costs. The following table presents the pension costs and the postretirement benefit costs incurred for the three and six months ended June 30, 2014, and 2013:



	Pension Benefits										Postretirement Benefits
	Three Months					Six Months					Three Months							Six Months
	2014		2013			2014		2013			2014			2013				2014			2013
Ameren Missouri	$	8	$	18		$	25	$	36		$	1		$	2			$	2		$	5
Ameren Illinois	7		11			15		21			(3		)	(1		)		(4		)	—
Other	1		3		^(b)	1		6		^(b)	(1		)	1			^(b)	(1		)	—		^(b)
Ameren^(a)	$	16	$	32		$	41	$	63		$	(3	)	$	2			$	(3	)	$	5


(a)	Includes amounts for Ameren registrants and nonregistrant subsidiaries.

(b)