Employee Retirement Plans

9 Months Ended

Sep. 30, 2011

Employee Retirement Plans

Employee Retirement Plans

13.      Employee Retirement Plans

The following table summarizes the components of net periodic benefit cost for Corning's defined benefit pension and postretirement health care and life insurance plans (in millions):

	Pension benefits								Postretirement benefits
	Three months ended September 30,				Nine months ended September 30,				Three months ended September 30,				Nine months ended September 30,
	2011		2010		2011		2010		2011		2010		2011		2010
Service cost	$	13	$	11	$	40	$	34	$	3	$	2	$	11	$	9
Interest cost		39		39		116		116		12		13		36		38
Expected return on plan assets		(41)		(42)		(122)		(126)
Amortization of net loss		20		12		57		37		4		3		13		12
Amortization of prior service cost		2		2		6		7		(1)		(1)		(4)		(5)
Total pension and postretirement benefit expense	$	33	$	22	$	97	$	68	$	18	$	17	$	56	$	54

Corning and certain of its domestic subsidiaries offer postretirement plans that provide health care and life insurance benefits for retirees and eligible dependents.  Certain employees may become eligible for such postretirement benefits upon reaching retirement age and service requirements.  In response to rising health care costs, we changed our cost-sharing approach for retiree medical coverage.  For current retirees (including surviving spouses) and active employees eligible for the salaried retiree medical program, we placed a "cap" on the amount we will contribute toward retiree medical coverage in the future.  The cap equals 120% of our 2005 contributions toward retiree medical benefits.  Once our contributions toward salaried retiree medical costs reach this cap, impacted retirees will have to pay the excess amount in addition to their regular contributions for coverage.  This cap was attained for post-65 retirees in 2008 and has impacted their contribution rate in 2009 and going forward.  The pre-65 retirees triggered the cap in 2010, which has impacted their contribution rate in 2011.  Furthermore, employees hired or rehired on or after January 1, 2007 will be eligible for Corning retiree medical upon retirement; however, these employees will pay 100% of the cost.