Employee Benefits

Defined Contribution Savings Plans

Aon maintains defined contribution savings plans for the benefit of its employees. The expense recognized for these plans is included in Compensation and benefits in the Consolidated Statements of Income. The expense for the significant plans in the U.S., U.K., Netherlands and Canada is as follows (in millions):



Years ended December 31	2018		2017		2016
U.S.	$	98	$	105	$	121
U.K.	45		43		43
Netherlands and Canada	25		25		27
Total	$	168	$	173	$	191

Pension and Other Postretirement Benefits

The Company sponsors defined benefit pension and postretirement health and welfare plans that provide retirement, medical, and life insurance benefits. The postretirement health care plans are contributory, with retiree contributions adjusted annually, and the life insurance and pension plans are generally noncontributory. The significant U.S., U.K., Netherlands and Canadian pension plans are closed to new entrants.

Pension Plans

The following tables provide a reconciliation of the changes in the projected benefit obligations and fair value of assets for the years ended December 31, 2018 and 2017 and a statement of the funded status as of December 31, 2018 and 2017, for the material U.K., U.S., and other major plans, which are located in the Netherlands, and Canada. These plans represent approximately 90% of the Company’s projected benefit obligations.



	U.K.						U.S.						Other
(millions)	2018			2017			2018			2017			2018			2017
Change in projected benefit obligation
At January 1	$	4,893		$	4,874		$	3,155		$	2,902		$	1,401		$	1,227
Service cost	—			—			—			—			—			—
Interest cost	109			123			99			96			27			26
Plan amendment	13			—			—			—			—			—
Settlements	(176		)	(496		)	—			—			—			—
Actuarial loss (gain)	(297		)	100			(221		)	309			(47		)	49
Benefit payments	(160		)	(146		)	(156		)	(152		)	(43		)	(39		)
Foreign currency impact	(253		)	438			—			—			(67		)	138
At December 31	$	4,129		$	4,893		$	2,877		$	3,155		$	1,271		$	1,401
Accumulated benefit obligation at end of year	$	4,129		$	4,893		$	2,877		$	3,155		$	1,247		$	1,373
Change in fair value of plan assets
At January 1	$	5,906		$	5,675		$	1,958		$	1,683		$	1,256		$	1,076
Actual return on plan assets	(125		)	274			(141		)	308			(19		)	70
Employer contributions	97			86			135			119			20			21
Settlements	(176		)	(496		)	—			—			—			—
Benefit payments	(160		)	(146		)	(156		)	(152		)	(43		)	(39		)
Foreign currency impact	(317		)	513			—			—			(59		)	128
At December 31	$	5,225		$	5,906		$	1,796		$	1,958		$	1,155		$	1,256
Market related value at end of year	$	5,225		$	5,906		$	1,981		$	1,926		$	1,155		$	1,256
Amount recognized in Statement of Financial Position at December 31
Funded status	$	1,096		$	1,013		$	(1,081	)	$	(1,197	)	$	(116	)	$	(145	)
Unrecognized prior-service cost	30			19			3			5			(7		)	(7		)
Unrecognized loss	1,106			1,217			1,705			1,701			440			459
Net amount recognized	$	2,232		$	2,249		$	627		$	509		$	317		$	307

In September 2018, the Company made a cash contribution of $100 million to the qualified U.S. pension plan, which allowed the pension contribution tax deduction to be taken at the 2017 federal tax rate of 35%.

In July 2017, the Company made a non-cash contribution of approximately $80 million to its U.S. pension plan.

Amounts recognized in the Consolidated Statements of Financial Position consist of (in millions):



	U.K.						U.S.						Other
	2018			2017			2018			2017			2018			2017
Prepaid benefit cost ⁽¹⁾	$	1,113		$	1,034		$	—		$	—		$	—		$	—
Accrued benefit liability - current⁽²⁾	(1		)	(1		)	(46		)	(43		)	(5		)	(5		)
Accrued benefit liability - non-current⁽³⁾	(16		)	(20		)	(1,035		)	(1,154		)	(111		)	(140		)
Accumulated other comprehensive loss	1,136			1,236			1,708			1,706			433			452
Net amount recognized	$	2,232		$	2,249		$	627		$	509		$	317		$	307


(1)	Included in Prepaid pension


(2)	Included in Other current liabilities


(3)	Included in Pension, other postretirement, and postemployment liabilities

Amounts recognized in Accumulated other comprehensive loss (income) that have not yet been recognized as components of net periodic benefit cost at December 31, 2018 and 2017 consist of (in millions):



	U.K.				U.S.				Other
	2018		2017		2018		2017		2018			2017
Net loss	$	1,106	$	1,217	$	1,705	$	1,701	$	440		$	459
Prior service cost (income)	30		19		3		5		(7		)	(7		)
Total	$	1,136	$	1,236	$	1,708	$	1,706	$	433		$	452

In 2018, U.S. plans with a projected benefit obligation (“PBO”) and an accumulated benefit obligation (“ABO”) in excess of the fair value of plan assets had a PBO of $2.9 billion, an ABO of $2.9 billion, and plan assets with a fair value of $1.8 billion. U.K. plans with a PBO in excess of the fair value of plan assets had a PBO of $47 million and plan assets with a fair value of $30 million, and U.K. plans with an ABO in excess of the fair value of plan assets had an ABO of $47 million and plan assets with a fair value of $30 million. Other plans with a PBO in excess of the fair value of plan assets had a PBO of $1.2 billion and plan assets with a fair value of $1.1 billion, and other plans with an ABO in excess of the fair value of plan assets had an ABO of $363 million and plan assets with a fair value of $271 million.

In 2017, U.S. plans with a PBO and an ABO in excess of the fair value of plan assets had a PBO of $3.2 billion, an ABO of $3.2 billion, and plan assets of $2.0 billion. U.K. plans with a PBO in excess of the fair value of plan assets had a PBO of $52 million and plan assets with a fair value of $30 million, and plans with an ABO in excess of the fair value of plan assets had an ABO of $52 million and plan assets with a fair value of $30 million. Other plans with a PBO in excess of the fair value of plan assets had a PBO of $1.4 billion and plan assets with a fair value of $1.2 billion, and plans with an ABO in excess of the fair value of plan assets had an ABO of $1.3 billion and plan assets with a fair value of $1.2 billion.

Service cost is reported in Compensation and benefits and all other components are reported in Other income (expense) as follows (in millions):



	U.K.									U.S.									Other
	2018			2017			2016			2018			2017			2016			2018			2017			2016
Service cost	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Interest cost	109			123			158			99			96			111			27			26			29
Expected return on plan assets, net of administration expenses	(192		)	(199		)	(243		)	(144		)	(140		)	(156		)	(45		)	(47		)	(48		)
Amortization of prior-service cost	1			1			2			2			2			2			—			—			—
Amortization of net actuarial loss	28			31			31			59			50			50			12			11			10
Net periodic benefit (income) cost	(54		)	(44		)	(52		)	16			8			7			(6		)	(10		)	(9		)
Settlement expense	37			125			61			—			—			158			—			—			—
Total net periodic benefit cost (income)	$	(17	)	$	81		$	9		$	16		$	8		$	165		$	(6	)	$	(10	)	$	(9	)

The Company uses a full-yield curve approach in the estimation of the service and interest cost components of net periodic pension and postretirement benefit cost for its major pension and other postretirement benefit plans; this was obtained by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows.

In March 2017, the Company approved a plan to offer a voluntary one-time lump sum payment option to certain eligible employees of the Company’s U.K. pension plans that, if accepted, would settle the Company’s pension obligations to them. The lump sum cash payment offer closed during 2018. As of December 31, 2018, lump sum payments from plan assets of £139 million ($176 million using December 31, 2018 exchange rates) were paid. As a result of this settlement, the Company remeasured the assets and liabilities of the U.K. pension plan during the fourth quarter of 2018, which in aggregate resulted in a reduction to the projected benefit obligation of £122 million ($154 million using December 31, 2018 exchange rates) as well as a non-cash settlement charge of £28 million ($37 million using average exchange rates) for the year ended December 31, 2018.

In total for 2017, lump sum payments from plan assets of £371 million ($496 million using December 31, 2017 exchange rates) were paid. As a result of this settlement, the Company remeasured the assets and liabilities of the U.K. pension plan during the fourth quarter of 2017, which in aggregate resulted in a reduction to the projected benefit obligation of £325 million ($434 million using December 31, 2017 exchange rates) as well as a non-cash settlement charge of £93 million ($125 million using average December 31, 2017 exchange rate) in the fourth quarter of 2017.

In March 2016, the Company announced a plan to offer a voluntary one-time lump sum payment option to certain eligible former employees under one of the Company’s U.K. pension plans that, if accepted, would settle the Company’s pension obligations to them. The lump sum cash payment offer closed during the second quarter of 2016. In total, lump sum payments from plan assets of £116 million ($159 million using June 30, 2016 exchange rates) were paid. As a result of this settlement, the Company remeasured the assets and liabilities of the U.K. pension plan during the second quarter of 2016, which in aggregate resulted in a reduction to the projected benefit obligation of £103 million ($141 million using June 30, 2016 Exchange rates) as well as a non-cash settlement charge of £42 million ($61 million using average June 30, 2016 exchange rate) in the second quarter of 2016.

In August 2016, the Company announced a plan to offer a voluntary one-time lump sum payment option to certain eligible former employees under one of the Company’s U.S. pension plans, that if accepted, would settle the Company’s pension obligations to them. The lump sum cash payment offer closed during the fourth quarter of 2016. In total, lump sum payments from plan assets of $281 million were paid. As a result of this settlement, the Company remeasured the assets and liabilities of the U.S. pension plan during the fourth quarter of 2016, which in aggregate resulted in a reduction to the projected benefit obligation of $325 million as well as a non-cash settlement charge of $158 million in the fourth quarter of 2016.

The weighted-average assumptions used to determine benefit obligations are as follows:



	U.K.		U.S. ⁽¹⁾		Other
	2018	2017	2018	2017	2018	2017
Discount rate	2.95%	2.63%	3.92 - 4.26%	3.27 - 3.61%	1.89 - 3.88%	1.78 - 3.39%
Rate of compensation increase	3.73 - 4.23%	3.70 - 4.20%	N/A	N/A	1.00 - 3.00%	1.00 - 3.00%
Underlying price inflation	1.88%	1.87%	N/A	N/A	2.00%	2.00%


(1)	U.S. pension plans are frozen and therefore not impacted by compensation increases or price inflation.

The weighted-average assumptions used to determine the net periodic benefit cost are as follows:



	U.K.			U.S.			Other
	2018	2017	2016	2018	2017	2016	2018	2017	2016
Discount rate	2.63%	2.77%	3.96%	3.27 - 3.61%	3.53 - 4.11%	3.69 - 4.43%	1.78 - 3.39%	1.85 - 3.81%	2.43 - 3.96%
Expected return on plan assets, net of administration expenses	3.34%	3.36%	4.55%	7.71%	7.88%	7.81%	1.70 - 4.85%	2.68 - 5.15%	3.47 - 4.95%
Rate of compensation increase	3.70 - 4.20%	3.70 - 4.20%	3.63 - 4.13%	N/A	N/A	N/A	1.00 - 3.00%	1.00 - 3.50%	2.00 - 3.50%

The amounts in Accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost during 2019, not including voluntary one-time lump sum payments, are $55 million in the U.S. and $42 million outside the U.S.

Expected Return on Plan Assets

To determine the expected long-term rate of return on plan assets, the historical performance, investment community forecasts and current market conditions are analyzed to develop expected returns for each asset class used by the plans. The expected returns for each asset class are weighted by the target allocations of the plans. The expected return of 7.71% on U.S. plan assets reflects a portfolio that is seeking asset growth through a higher equity allocation while maintaining prudent risk levels. The portfolio contains certain assets that have historically resulted in higher returns, as well as other financial instruments to minimize downside risk.

No plan assets are expected to be returned to the Company during 2019.

Fair value of plan assets

The Company determined the fair value of plan assets through numerous procedures based on the asset class and available information. Refer to Note 16 “Fair Value Measurements and Financial Instruments” for a description of the procedures performed to determine the fair value of the plan assets.

The fair values of the Company’s U.S. pension plan assets at December 31, 2018 and December 31, 2017, by asset category, are as follows (in millions):



				Fair Value Measurements Using
Asset Category	Balance at December 31, 2018			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Cash and cash equivalents ⁽¹⁾	$	130		$	130	$	—		$	—
Equity investments:
Large cap domestic	294			294		—			—
Small cap domestic	14			14		—			—
International	76			76		—			—
Equity derivatives	(14		)	—		(14		)	—
Pooled funds:
International ⁽²⁾	235			—		—			—
Large cap domestic ⁽²⁾	8			—		—			—
Small cap domestic ⁽²⁾	42			—		—			—
Fixed income investments: ⁽³⁾
Corporate bonds	111			—		111			—
Government and agency bonds	126			95		31			—
Asset-backed securities	2			—		2			—
Pooled funds:
Government and agency bonds ⁽²⁾	95			—		—			—
Corporate bonds ⁽²⁾	322			—		—			—
Other investments:
Real estate and REITs ⁽⁴⁾	78			78		—			—
Alternative investments ^{(2) (5)}	277			—		—			—
Total	$	1,796		$	687	$	130		$	—


(1)	Consists of cash and institutional short-term investment funds.


(2)	Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note.


(3)	Consists of corporate and government bonds, asset-backed securities, and fixed-income derivatives.


(4)	Consists of exchange traded real estate investment trusts (“REITs”).


(5)	Consists of limited partnerships, private equity, and hedge funds.



			Fair Value Measurements Using
Asset Category	Balance at December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents ⁽¹⁾	$	56	$	56	$	—	$	—
Equity investments:
Large cap domestic	313		313		—		—
Small cap domestic	17		17		—		—
International	90		90		—		—
Equity derivatives	111		—		111		—
Pooled funds:
International ⁽²⁾	270		—		—		—
Large cap domestic ⁽²⁾	12		—		—		—
Small cap domestic ⁽²⁾	114		—		—		—
Fixed income investments: ⁽³⁾
Corporate bonds	110		—		110		—
Government and agency bonds	148		114		34		—
Pooled funds:
Corporate bonds ⁽²⁾	290		—		—		—
Other investments:
Real estate and REITs ⁽⁴⁾	82		82		—		—
Alternative investments ^{(2) (5)}	345		—		—		—
Total	$	1,958	$	672	$	255	$	—


(1)	Consists of cash and institutional short-term investment funds.


(2)	Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note.


(3)	Consists of corporate and government bonds, asset-backed securities, and fixed-income derivatives.


(4)	Consists of exchange traded REITs.


(5)	Consists of limited partnerships, private equity, and hedge funds.

The fair values of the Company’s major U.K. pension plan assets at December 31, 2018 and December 31, 2017, by asset category, are as follows (in millions):



				Fair Value Measurements Using
	Balance at December 31, 2018			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Cash and cash equivalents ⁽¹⁾	$	96		$	96	$	—		$	—
Equity investments:
Pooled funds:
Global ⁽²⁾	209			—		—			—
Europe ⁽²⁾	3			—		—			—
Fixed income investments: ⁽³⁾
Derivatives ⁽⁴⁾	(949		)	—		(949		)	—
Fixed income securities ⁽⁵⁾	2,446			2,079		367			—
Annuities	1,688			—		—			1,688
Pooled funds:
Derivatives ⁽²⁾	39			—		—			—
Fixed income securities ⁽²⁾	850			—		—			—
Other investments:
Real estate ^{(2) (6)}	149			—		—			—
Alternative investments ^{(2) (7)}	694			—		—			—
Total	$	5,225		$	2,175	$	(582	)	$	1,688


(1)	Consists of cash and institutional short-term investment funds.


(2)	Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note.


(3)	Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles.


(4)	Consists of equity securities and equity derivatives, including repurchase agreements.


(5)	Consists of corporate and government bonds.


(6)	Consists of property funds and trusts holding direct real estate investments.


(7)	Consists of limited partnerships, private equity, and hedge funds.



				Fair Value Measurements Using
	Balance at December 31, 2017			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Cash and cash equivalents ⁽¹⁾	$	209		$	209	$	—		$	—
Equity investments:
Pooled funds:
Global ⁽²⁾	401			—		—			—
Europe ⁽²⁾	6			—		—			—
Fixed income investments: ⁽³⁾
Derivatives ⁽⁴⁾	(771		)	—		(771		)	—
Fixed income securities ⁽⁵⁾	2,787			2,362		425			—
Annuities	1,909			—		—			1,909
Pooled funds:
Derivatives ⁽²⁾	57			—		—			—
Fixed income securities ⁽²⁾	251			—		—			—
Other investments:
Real estate ^{(2) (6)}	146			—		—			—
Alternative investments ^{(2) (7)}	911			—		—			—
Total	$	5,906		$	2,571	$	(346	)	$	1,909


(1)	Consists of cash and institutional short-term investment funds.


(2)	Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note.


(3)	Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles.


(4)	Consists of equity securities and equity derivatives, including repurchase agreements.


(5)	Consists of corporate and government bonds.


(6)	Consists of property funds and trusts holding direct real estate investments.


(7)	Consists of limited partnerships, private equity, and hedge funds.

The following table presents the changes in the Level 3 fair-value category in the Company’s U.K. pension plans for the years ended December 31, 2018 and December 31, 2017 (in millions):



Fair Value Measurements Using Level 3 Inputs	Annuities
Balance at January 1, 2017	$	1,773
Actual return on plan assets:
Relating to assets still held at December 31, 2017	(66		)
Purchases, sales and settlements—net	45
Foreign exchange	157
Balance at December 31, 2017	1,909
Actual return on plan assets:
Relating to assets still held at December 31, 2018	(122		)
Purchases, sales and settlements—net	7
Foreign exchange	(106		)
Balance at December 31, 2018	$	1,688

The fair values of the Company’s other major pension plan assets at December 31, 2018 and December 31, 2017, by asset category, are as follows (in millions):



			Fair Value Measurements Using
	Balance at December 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	10	$	10	$	—	$	—
Equity investments:
Pooled funds:
Global ⁽¹⁾	281		—		—		—
Fixed income investments:
Derivatives ⁽²⁾	9		—		9		—
Pooled funds:
Fixed income securities ⁽¹⁾	766		—		—		—
Derivatives ⁽¹⁾⁽²⁾	16		—		—		—
Other investments:
Alternative investments ^{(1) (3)}	63		—		—		—
Pooled funds:
REITs ^{(1) (4)}	10		—		—		—
Total	$	1,155	$	10	$	9	$	—


(1)	Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note.


(2)	Consists of corporate and government bonds and fixed-income derivatives.


(3)	Consists of limited partnerships, private equity, and hedge funds.


(4)	Consists of property funds and trusts holding direct real estate investments.



			Fair Value Measurements Using
	Balance at December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	11	$	11	$	—	$	—
Equity investments:
Pooled funds:
Global ⁽¹⁾	370		—		—		—
North America ⁽¹⁾	26		—		—		—
Fixed income investments:
Fixed income securities ⁽²⁾	211		—		211		—
Derivatives ⁽²⁾	40		—		40		—
Pooled funds:
Fixed income securities ⁽¹⁾	566		—		—		—
Other investments:
Alternative investments ^{(1) (3)}	26		—		—		—
Pooled funds:
REITs ^{(1) (4)}	6		—		—		—
Total	$	1,256	$	11	$	251	$	—


(1)	Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note.


(2)	Consists of corporate and government bonds and fixed-income derivatives.


(3)	Consists of limited partnerships, private equity, and hedge funds.


(4)	Consists of property funds and trusts holding direct real estate investments.

Investment Policy and Strategy

The U.S. investment policy, as established by the Aon Retirement Plan Governance and Investment Committee (“RPGIC”), seeks reasonable asset growth at prudent risk levels within target allocations, which are 50% equity investments, 27% fixed income investments, and 23% other investments. Aon believes that plan assets are well-diversified and are of appropriate quality. The investment portfolio asset allocation is reviewed quarterly and re-balanced to be within policy target allocations. The investment policy is reviewed at least annually and revised, as deemed appropriate by the RPGIC. The investment policies for international plans are generally established by the local pension plan trustees and seek to maintain the plans’ ability to meet liabilities and to comply with local minimum funding requirements. Plan assets are invested in diversified portfolios that provide adequate levels of return at an acceptable level of risk. The investment policies are reviewed at least annually and revised, as deemed appropriate to ensure that the objectives are being met. At December 31, 2018, the weighted average targeted allocation for the U.K. and non-U.S. plans was 12% for equity investments, 79% for fixed income investments, and 9% for other investments.

Cash Flows

Contributions

Based on current assumptions, in 2019, the Company expects to contribute approximately $80 million, $46 million, and $19 million to its U.K., U.S. and other significant international pension plans, respectively.

Estimated Future Benefit Payments

Estimated future benefit payments for plans, not including voluntary one-time lump sum payments, are as follows at December 31, 2018 (in millions):



	U.K.		U.S.		Other
2019	$	137	$	178	$	42
2020	139		182		43
2021	144		185		44
2022	149		187		45
2023	152		177		46
2024 – 2028	795		879		248

U.S. and Canadian Other Postretirement Benefits

The following table provides an overview of the accumulated projected benefit obligation, fair value of plan assets, funded status and net amount recognized as of December 31, 2018 and 2017 for the Company’s other significant postretirement benefit plans located in the U.S. and Canada (in millions):



	2018			2017
Accumulated projected benefit obligation	$	91		$	99
Fair value of plan assets	14			17
Funded status	(77		)	(82		)
Unrecognized prior-service credit	(1		)	(1		)
Unrecognized (gain) loss	(6		)	(3		)
Net amount recognized	$	(84	)	$	(86	)

Other information related to the Company’s other postretirement benefit plans are as follows:



	2018	2017	2016
Net periodic benefit cost recognized (millions)	$3	$1	$5
Weighted-average discount rate used to determine future benefit obligations	3.91 - 4.26%	3.32 - 3.64%	3.71 - 4.15%
Weighted-average discount rate used to determine net periodic benefit costs	3.32 - 3.64%	3.71 - 4.15%	3.99 - 4.33%

Amounts recognized in Accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit cost at December 31, 2018 are $1 million and $6 million of prior service credit and net gain, respectively. The amount in Accumulated other comprehensive income expected to be recognized as a component of net periodic benefit cost during 2019 is $1.7 million and $0.1 million of net gain and prior service credit, respectively.

Based on current assumptions, the Company expects:


•	To contribute $5 million to fund significant other postretirement benefit plans during 2019.


•	Estimated future benefit payments will be approximately $5 million each year for 2019 through 2023, and $25 million in aggregate for 2024-2028.

The accumulated postretirement benefit obligation is increased by $5 million and decreased by $5 million by a respective 1% increase or decrease to the assumed health care trend rate. The service cost and interest cost components of net periodic benefits cost is increased by $0.5 million and decreased by $0.4 million by a respective 1% increase or decrease to the assumed health care trend rate.

For most of the participants in the U.S. plan, Aon’s liability for future plan cost increases for pre-65 and Medical Supplement plan coverage is limited to 5% per annum. Although the net employer trend rates range from 4% to 7% per year, because of this cap, these plans are effectively limited to 5% per year in the future.