Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

The following table presents a reconciliation of benefit obligations and plan assets.


	Pension Benefits				Postretirement Benefits
(In millions)	2020		2019		2020		2019
Benefit obligation as of January 1	$	2,661	$	2,466	$	8	$	9
Changes in benefit obligation:
Interest cost	80		100		—		—
Participants' contributions	—		—		2		4
Actuarial (gain) loss	205		261		2		1
Benefits paid	(173)		(169)		(5)		(6)
Foreign currency translation and other	3		3		—		—
Settlements	(7)		—		—		—
Benefit obligation as of December 31	2,769		2,661		7		8
Fair value of plan assets as of January 1	2,285		2,025		—		—
Change in plan assets:
Actual return on plan assets	295		292		—		—
Company contributions	16		134		3		2
Participants' contributions	—		—		2		4
Benefits paid	(173)		(169)		(5)		(6)
Foreign currency translation and other	4		3		—		—
Settlements	(7)		—		—		—
Fair value of plan assets as of December 31	2,420		2,285		—		—
Funded status	$	(349)	$	(376)	$	(7)	$	(8)
Amounts recognized on the Consolidated Balance Sheets as of December 31:
Other assets	$	2	$	5	$	—	$	—
Other liabilities	(351)		(381)		(7)		(8)
Net amount recognized	$	(349)	$	(376)	$	(7)	$	(8)
Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit):
Net actuarial (gain) loss	$	1,073	$	1,056	$	—	$	(2)
Net amount recognized	$	1,073	$	1,056	$	—	$	(2)

Components of net periodic cost (benefit)

The components of net periodic pension cost (benefit) are presented in the following table.


Years ended December 31
(In millions)	2020		2019		2018
Net periodic pension cost (benefit)
Interest cost on projected benefit obligation	$	80	$	100	$	93
Expected return on plan assets	(155)		(142)		(159)
Amortization of net actuarial (gain) loss	45		39		37
Settlement loss	3		—		6
Total net periodic pension cost (benefit)	$	(27)	$	(3)	$	(23)

Schedule of amounts recognized in Other comprehensive income

The amounts recognized in Other comprehensive income are presented in the following table.


Years ended December 31
(In millions)	2020		2019		2018
Pension and postretirement benefits
Amounts arising during the period	$	(67)	$	(112)	$	(41)
Settlement	3		—		6
Reclassification adjustment relating to prior service credit	—		—		(2)
Reclassification adjustment relating to actuarial loss	45		39		36
Total increase (decrease) in Other comprehensive income	$	(19)	$	(73)	$	(1)

Actuarial assumptions for benefit obligations and for net cost or benefit

Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine benefit obligations are presented in the following table. The interest crediting rate is the weighted average interest rate applied to the individual pension balances for employees who elected to cease accruals effective December 31, 1999.


December 31	2020		2019
Pension benefits
Discount rate	2.350	%	3.150	%
Interest crediting rate	3.000		5.000
Postretirement benefits
Discount rate	1.600	%	2.300	%

Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine net cost or benefit are presented in the following table.


Years ended December 31	2020		2019		2018
Pension benefits
Discount rate	3.150	%	4.250	%	3.550	%
Expected long term rate of return	7.250		7.500		7.500
Interest crediting rate	5.000		5.000		5.000
Postretirement benefits
Discount rate	2.300	%	3.550	%	2.750	%

Fair value of plan assets measured on a recurring basis

Pension plan assets measured at fair value on a recurring basis as well as cash are presented in the following tables.


December 31, 2020
(In millions)	Level 1		Level 2		Level 3		Total
Assets
Fixed maturity securities:
Corporate bonds and other	$	—	$	643	$	9	$	652
States, municipalities and political subdivisions	—		32		—		32
Asset-backed	—		98		—		98
Total fixed maturity securities	—		773		9		782
Equity securities	666		137		—		803
Short term investments	20		38		—		58
Other assets	—		8		—		8
Cash	13		—		—		13
Total assets measured at fair value	$	699	$	956	$	9	1,664
Total limited partnerships measured at net asset value (1)							756
Total							$	2,420


December 31, 2019
(In millions)	Level 1		Level 2		Level 3		Total
Assets
Fixed maturity securities:
Corporate bonds and other	$	—	$	587	$	10	$	597
States, municipalities and political subdivisions	—		51		—		51
Asset-backed	—		154		—		154
Total fixed maturity securities	—		792		10		802
Equity securities	458		128		—		586
Short term investments	55		7		—		62
Other assets	—		9		—		9
Cash	13		—		—		13
Total assets measured at fair value	$	526	$	936	$	10	1,472
Total limited partnerships measured at net asset value (1)							813
Total							$	2,285

(1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Plan's Statement of Financial Position.

Schedule of expected benefit payments

The table below presents the estimated future minimum benefit payments to participants as of December 31, 2020.


(In millions)	Pension Benefits		Postretirement Benefits
2021	$	179	$	1
2022	180		1
2023	180		1
2024	177		1
2025	176		—
2026-2030	823		2