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Pension and Other Postretirement Plans (Tables)
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Reconciliation of the Change in Benefit Obligation and Plan Assets and Funded Status
The following tables set forth the reconciliation of the beginning and ending balances of the benefit obligation and plan assets, the funded status and the amounts recognized in these financial statements for the defined benefit and other postretirement plans (in millions):
Pension Benefits
Year Ended December 31, 2021Year Ended December 31, 2020
Accumulated benefit obligation:$5,496 $5,387 
Change in projected benefit obligation:
Projected benefit obligation at beginning of year$6,525 $6,398 
Service cost239 216 
Interest cost184 209 
Actuarial (gain) loss(188)1,181 
Special termination benefit— 54 
Benefits paid(263)(1,445)
Curtailment(12)(105)
Other(12)17 
Projected benefit obligation at end of year$6,473 $6,525 
Change in plan assets:
Fair value of plan assets at beginning of year$4,069 $4,964 
Actual return on plan assets437 521 
Employer contributions387 16 
Benefits paid(263)(1,445)
Other(4)13 
Fair value of plan assets at end of year$4,626 $4,069 
Funded status—Net amount recognized$(1,847)$(2,456)
Pension Benefits
December 31, 2021December 31, 2020
Amounts recognized in the consolidated balance sheets consist of:
Noncurrent asset$75 $8 
Current liability(2)(4)
Noncurrent liability(1,920)(2,460)
Total liability$(1,847)$(2,456)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss$(1,406)$(1,924)
Prior service cost(1)(3)
Total accumulated other comprehensive loss$(1,407)$(1,927)
Other Postretirement Benefits
Year Ended December 31, 2021Year Ended December 31, 2020
Change in benefit obligation:
Benefit obligation at beginning of year$1,082 $842 
Service cost10 10 
Interest cost25 28 
Plan participants' contributions66 58 
Benefits paid(199)(164)
Actuarial loss114 107 
Special termination benefit31 201 
Benefit obligation at end of year$1,129 $1,082 
Change in plan assets:
Fair value of plan assets at beginning of year$51 $52 
Actual return on plan assets1 1 
Employer contributions130 104
Plan participants' contributions66 58 
Benefits paid(199)(164)
Fair value of plan assets at end of year49 51 
Funded status—Net amount recognized$(1,080)$(1,031)
Amounts Recognized in Consolidated Balance Sheet and Accumulated Other Comprehensive Income (Loss)
Other Postretirement Benefits
December 31, 2021December 31, 2020
Amounts recognized in the consolidated balance sheets consist of:
Current liability$(80)$(37)
Noncurrent liability(1,000)(994)
Total liability$(1,080)$(1,031)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial gain$113 $255 
Prior service credit447 570 
Total accumulated other comprehensive income$560 $825 
Accumulated Benefit Obligation and Projected Benefit Obligation in Excess of Plan Assets
The following information relates to all pension plans with an accumulated benefit obligation and a projected benefit obligation in excess of plan assets at December 31 (in millions):
20212020
Projected benefit obligation$6,231 $6,250 
Accumulated benefit obligation5,255 5,163 
Fair value of plan assets4,309 3,786 
Components Of Net Periodic Benefit Cost
Net periodic benefit cost for the years ended December 31 included the following components (in millions):
202120202019
Pension BenefitsOther Postretirement BenefitsPension BenefitsOther Postretirement BenefitsPension BenefitsOther Postretirement Benefits
Service cost$239 $10 $216 $10 $184 $10 
Interest cost184 25 209 28 226 47 
Expected return on plan assets(283)(1)(328)(1)(291)(1)
Amortization of unrecognized actuarial (gain) loss170 (28)162 (40)118 (52)
Amortization of prior service credits— (123)— (124)— (73)
Settlement loss - Voluntary Programs— — 430 — — — 
Special termination benefit - Voluntary Programs— 31 54 201 — — 
Curtailment(8)— 1 — — — 
Other5 — 22 — 5 — 
Net periodic benefit cost (credit)$307 $(86)$766 $74 $242 $(69)
Assumptions Used for Benefit Plans
The assumptions used for the benefit plans were as follows: 
Pension Benefits
Assumptions used to determine benefit obligations20212020
Discount rate2.90 %2.72 %
Rate of compensation increase3.83 %3.88 %
Assumptions used to determine net expense
Discount rate2.72 %3.51 %
Expected return on plan assets7.28 %7.31 %
Rate of compensation increase3.88 %3.88 %
Other Postretirement Benefits
Assumptions used to determine benefit obligations20212020
Discount rate2.82 %2.43 %
Assumptions used to determine net expense
Discount rate2.43 %3.35 %
Expected return on plan assets3.00 %3.00 %
Health care cost trend rate assumed for next year5.70 %5.80 %
Rate to which the cost trend rate is assumed to decline (ultimate trend rate in 2033)4.50 %4.50 %
Allocation of Plan Assets United's plan assets are allocated within the following guidelines:
  Percent of TotalExpected Long-Term
Rate of Return
Equity securities
30-45
%10 %
Fixed-income securities
 35-50
 4  
Alternatives
15-25
 7  
Pension and Other Postretirement Plan Assets
The following tables present information about United's pension and other postretirement plan assets at December 31 (in millions):
20212020
Pension Plan Assets:TotalLevel 1Level 2Level 3Assets Measured at NAV(a)TotalLevel 1Level 2Level 3Assets Measured at NAV(a)
Equity securities funds$1,754 $71 $44 $147 $1,492 $1,606 $55 $125 $96 $1,330 
Fixed-income securities1,850 — 739 15 1,096 1,644 — 548 49 1,047 
Alternatives847 — — 216 631 669 — — 195 474 
Other investments175 108 59 8 — 150 132 8 10 — 
Total$4,626 $179 $842 $386 $3,219 $4,069 $187 $681 $350 $2,851 
Other Postretirement Benefit Plan Assets:
Deposit administration fund$49 $— $— $49 $— $51 $— $— $51 $— 
(a) In accordance with the relevant accounting standards, certain investments that are measured at fair value using the net asset value ("NAV") per share (or its equivalent) have not been classified in the fair value hierarchy. These investments are commingled funds that invest in equity securities and fixed-income instruments including bonds, debt securities, and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. Redemption periods for these investments range from daily to semiannually.
Defined Benefit Plan Assets Measured at Fair Value Using Unobservable Inputs
The reconciliation of United's benefit plan assets measured at fair value using unobservable inputs (Level 3) for the years ended December 31, 2021 and 2020 is as follows (in millions):
20212020
Balance at beginning of year$401 $409 
Actual return (loss) on plan assets:
Sold during the year2 4 
Held at year end48 13 
Purchases, sales, issuances and settlements (net)(14)(25)
Balance at end of year$437 $401 
Estimated Future Benefit Payments
The estimated future benefit payments, net of expected participant contributions, in United's pension plans and other postretirement benefit plans as of December 31, 2021 are as follows (in millions):
PensionOther Postretirement
2022$546 $131 
2023321 124 
2024320 107 
2025349 98 
2026374 92 
Years 2027 – 20312,070 365 
Participation in the IAM National Pension Plan United's participation in the IAM National Pension Plan ("IAM Plan") for the annual period ended December 31, 2021 is outlined in the table below. In addition to the additional required contributions described in table below, contributions in 2021 were affected by COVID-19 impacts on United's operations and consequently employee hours paid. The risks of participating in these multi-employer plans are different from single-employer plans, as United may be subject to additional risks that others do not meet their obligations, which in certain circumstances could revert to United. The IAM Plan reported $494 million in employers' contributions for the year ended December 31, 2020. For 2020, the Company's contributions to the IAM Plan represented more than 5% of total contributions to the IAM Plan. The 2021 information is not available as the applicable Form 5500 is not final for the plan year.
Pension FundIAM National Pension Fund ("Fund")
EIN/ Pension Plan Number51-6031295 — 002
Pension Protection Act Zone Status (2021 and 2020)
Critical (2021 and 2020). A plan is in "critical" status if the funded percentage is less than 65 percent. On April 17, 2019, the IAM National Pension Fund Board of Trustees voluntarily elected for the Fund to be in critical status effective for the plan year beginning January 1, 2019 to strengthen the Fund's financial health. The Fund's funded percentage was 85.1% as of January 1, 2020.
FIP/RP Status Pending/Implemented
A 10-year Rehabilitation Plan effective, January 1, 2022, was adopted on April 17, 2019 that requires the Company to make an additional contribution of 2.5% of the hourly contribution rate, compounded annually for the length of the Rehabilitation Plan, effective June 1, 2019.
United's Contributions
$58 million, $53 million and $59 million in the years ended December 31, 2021, 2020 and 2019, respectively
Surcharge ImposedNo
Expiration Date of Collective Bargaining AgreementN/A