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BENEFIT PLANS
 12 Months Ended
Dec. 31, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
BENEFIT PLANS BENEFIT PLANS
Pension and Other Postretirement Plans
The Company has funded defined benefit plans in Japan and the U.S., however the U.S. plan was frozen to new participants effective October 1, 2013. The Company also maintains non-qualified, unfunded supplemental retirement plans that provide defined pension benefits in excess of limits imposed by federal tax law for certain Japanese, U.S. and former employees, however the U.S. plan was frozen to new participants effective January 1, 2015. U.S. employees who are not participants in the defined benefit plan receive a nonelective 401(k) employer contribution.

The Company provides certain health care benefits for eligible U.S. retired employees, their beneficiaries and covered dependents (other postretirement benefits). The health care plan is contributory and unfunded. Effective January 1, 2014, employees eligible for benefits included the following: (1) active employees whose age plus service, in years, equaled or exceeded 80 (rule of 80); (2) active employees who were age 55 or older and have met the 15 years of service requirement; (3) active employees who would meet the rule of 80 in the next five years; (4) active employees who were age 55 or older and who would meet the 15 years of service requirement within the next five years; and (5) current retirees. For certain employees and former employees, additional coverage is provided for all medical expenses for life.

Information with respect to the Company's benefit plans' assets and obligations as of December 31 was as follows:
Pension BenefitsOther
JapanU.S.Postretirement Benefits
(In millions)202120202021202020212020
Projected benefit obligation:
      Benefit obligation, beginning of year$473 $436 $1,204 $1,058 $42 $39 
      Service cost23 24 28 29 0 0 
      Interest cost6 5 32 34 1 1 
      Actuarial (gain) loss(9)(6)(50)106 (2)6 
      Benefits and expenses paid(15)(12)(28)(23)(5)(4)
      Effect of foreign exchange
         rate changes		(46)26 0 0 0 0 
               Benefit obligation, end of year432 473 1,186 1,204 36 42 
Plan assets:
      Fair value of plan assets,
         beginning of year		416 344 824 644 0 0 
      Actual return on plan assets14 21 81 96 0 0 
      Employer contributions44 41 8 107 5 4 
      Benefits and expenses paid(15)(12)(28)(23)(5)(4)
      Effect of foreign exchange
         rate changes		(44)22 0 0 0 0 
               Fair value of plan assets,
                  end of year		415 416 885 824 0 0 
Funded status of the plans(1)
$(17)$(57)$(301)$(380)$(36)$(42)
Amounts recognized in accumulated other
    comprehensive income:
      Net actuarial (gain) loss$50 $74 $158 $278 $10 $15 
      Prior service (credit) cost0 (1)(2)(2)0 0 
               Total included in accumulated
                  other comprehensive income		$50 $73 $156 $276 $10 $15 
Accumulated benefit obligation$346 $425 $1,010 $1,017   N/AN/A
(1) Recognized in other liabilities in the consolidated balance sheets
Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets
Pension Benefits
JapanU.S.
(In millions)2021202020212020
Accumulated benefit obligation $346 $425 $1,010 $1,017 
Fair value of plan assets415 416 885 824 
Information for Pension Plans with a Projected Benefit Obligation in Excess of Plan Assets
Pension Benefits
Japan (1)
U.S.(2)
(In millions)2021202020212020
Projected benefit obligation $432 $473 $1,186 $1,204 
Fair value of plan assets415 416 885 824 
(1) The net amount of projected benefit obligation and plan assets for the underfunded (including unfunded) Japan pension plan was $17 and $57 at December 31, 2021 and 2020, respectively, and was classified as liabilities on the statement of financial position.
(2) The net amount of projected benefit obligation and plan assets for the underfunded (including unfunded) U.S. pension plan was $301 and $380 at December 31, 2021 and 2020, respectively, and was classified as liabilities on the statement of financial position.

Information for other postretirement benefit plans with an accumulated postretirement benefit obligation in excess of plan assets has been disclosed in the note on “Obligations and Funded Status” because all the other postretirement benefit plans are unfunded or underfunded.
Pension BenefitsOther
JapanU.S.Postretirement Benefits
202120202019202120202019202120202019
Weighted-average
  actuarial assumptions:		                    
Discount rate - net periodic benefit cost.75%.75%1.25%2.68%3.25%4.25%2.68%3.25%4.25%
Discount rate - benefit
  obligations		.94.75.752.942.683.25  2.942.683.25  
Expected long-term return
  on plan assets		2.002.002.005.756.006.25N/AN/AN/A
Rate of compensation
  increase		N/AN/AN/A4.004.004.00N/AN/AN/A
Health care cost trend ratesN/AN/AN/AN/AN/AN/A5.80
(2)
6.30
(2)
7.50
(2)
(2) For the years 2021, 2020 and 2019, the health care cost trend rates are expected to trend down to 3.7% in 52 years, 3.7% in 53 years, and 3.8% in 54 years, respectively.

The Company determines its discount rate assumption for its pension retirement obligations based on indices for AA corporate bonds with an average duration of approximately 20 years for the Japan pension plans and 17 years for the U.S. pension plans, and determination of the U.S. pension plans discount rate utilizes the 85-year extrapolated yield curve. In Japan, participant salary and future salary increases are not factors in determining pension benefit cost or the related pension benefit obligation.

The Company bases its assumption for the long-term rate of return on assets on historical trends (10-year or longer historical rates of return for the Japanese plan assets and 15-year historical rates of return for the U.S. plan assets), expected future market movement, as well as the portfolio mix of securities in the asset portfolio including, but not limited to, style, class and equity and fixed income allocations. In addition, the Company's consulting actuaries evaluate its assumptions for long-term rates of return under Actuarial Standards of Practice (ASOP). Under the ASOP, the actual portfolio type, mix and class is modeled to determine a best estimate of the long-term rate of return. The Company in turn use those results to further validate its own assumptions.
Components of Net Periodic Benefit Cost
Pension and other postretirement benefit expenses are included in acquisition and operating expenses in the consolidated statements of earnings, which includes $25 million, $30 million and $8 million of other components of net periodic pension cost and postretirement costs (other than services costs) for the years ended December 31, 2021, 2020 and 2019, respectively. Total net periodic benefit cost includes the following components:
Pension BenefitsOther
JapanU.S.Postretirement Benefits
(In millions)202120202019202120202019202120202019
Service cost$23 $24 $22 $28 $29 $23 $0 $0 $0 
Interest cost6 5 7 32 34 20 1 1 1 
Expected return on plan assets(8)(7)(6)(41)(35)(29)0 0 0 
Amortization of net actuarial loss2 4 4 30 26 10 3 2 1 
Amortization of prior service cost0 (1)0 0 (2)0 0 0 0 
Net periodic (benefit) cost$23 $25 $27 $49 $52 $24 $4 $3 $2 

Changes in Accumulated Other Comprehensive Income
The following table summarizes the amounts recognized in other comprehensive loss (income) for the years ended December 31:
Pension BenefitsOther
JapanU.S.Postretirement Benefits
(In millions)202120202019202120202019202120202019
Net actuarial loss (gain)$(22)$(14)$1 $(90)$45 $95 $(2)$5 $4 
Amortization of net actuarial loss(2)(4)(4)(30)(26)(10)(3)(2)(1)
Amortization of prior
  service cost 		1 1 0 0 2 0 0 0 0 
     Total$(23)$(17)$(3)$(120)$21 $85 $(5)$3 $3 

No transition obligations arose during 2021.

Benefit Payments
The following table provides expected benefit payments, which reflect expected future service, as appropriate.
Pension BenefitsOther
(In millions)JapanU.S.Postretirement Benefits
2022$17 $32 $5 
202314 32 5 
202416 34 5 
202517 35 4 
202617 37 4 
2027-203188 237 9 

Funding

The Company plans to make contributions of $36 million to the Japanese funded defined benefit plan in 2022. The Company does not plan to make any contributions to the U.S. funded defined benefit plan in 2022. The Company did not make a contribution to the U.S. funded defined benefit plan in 2021. The funding policy for the Company's non-qualified supplemental defined benefit pension plans and other postretirement benefits plan is to contribute the amount of the benefit payments made during the year.
Plan Assets

The investment objective of the Company's Japanese and U.S. funded defined benefit plans is to preserve the purchasing power of the plan's assets and earn a reasonable inflation-adjusted rate of return over the long term. Furthermore, the Company seeks to accomplish these objectives in a manner that allows for the adequate funding of plan benefits and expenses. In order to achieve these objectives, the Company's goal is to maintain a conservative, well-diversified and balanced portfolio of high-quality equity, fixed-income and money market securities. As a part of its strategy, the Company has established strict policies covering quality, type and concentration of investment securities. For the Company's Japanese plan, these policies include limitations on investments in derivatives including futures, options and swaps, and low-liquidity investments such as real estate, venture capital investments, and privately issued securities. For the Company's U.S. plan, these policies prohibit investments in precious metals, limited partnerships, venture capital, and direct investments in real estate. The Company is also prohibited from trading on margin.

The plan fiduciaries for the Company's funded defined benefit plans have developed guidelines for asset allocations reflecting a percentage of total assets by asset class, which are reviewed on an annual basis. Asset allocation targets as of December 31, 2021 were as follows:
Japan PensionU.S. Pension
Domestic equities5 %40 %
International equities21 20 
Fixed income securities66 40 
Other8 0 
     Total100 %100 %

The following table presents the fair value of Aflac Japan's pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 2 in the fair value hierarchy.
(In millions)20212020
Japan pension plan assets:
     Equities:
        Japanese equity securities$21 $20 
        International equity securities86 88 
     Fixed income securities:
        Japanese bonds22 23 
        International bonds252 249 
     Insurance contracts34 36 
        Total$415 $416 
The following table presents the fair value of Aflac U.S.'s pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 1 in the fair value hierarchy.
(In millions)20212020
U.S. pension plan assets:
     Mutual funds:
        Large cap equity funds$297 $234 
        Mid cap equity funds25 24 
        Real estate equity funds0 19 
        International equity funds208 136 
        Fixed income bond funds346 237 
     Aflac Incorporated common stock7 5 
     Cash and cash equivalents2 169 
        Total$885 $824 
The fair values of the Company's pension plan investments categorized as Level 1, consisting of mutual funds and common stock, are based on quoted market prices for identical securities traded in active markets that are readily and regularly available to the Company. The fair values of the Company's pension plan investments classified as Level 2 are based on quoted prices for similar assets in markets that are not active, other inputs that are observable, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates, or other market-corroborated inputs.

401(k) Plan

The Company sponsors a 401(k) plan in which it matches a portion of U.S. employees' contributions. The plan provides for salary reduction contributions by employees and, in 2021, 2020, and 2019, provided matching contributions by the Company of 100% of each employee's contributions which were not in excess of 4% of the employee's annual cash compensation. The Company also provides a nonelective contribution to the 401(k) plan of 2% of annual cash compensation for employees who opted out of the future benefits of the U.S. defined benefit plan and for new U.S. employees. Effective January 1, 2021, the Company increased this nonelective contribution to 4% of annual compensation.

The 401(k) contributions by the Company, included in acquisition and operating expenses in the consolidated statements of earnings, were $20 million in both 2021 and 2020 and $18 million in 2019. The plan trustee held approximately 2.2 million shares of the Company's common stock for plan participants at December 31, 2021.

Stock Bonus Plan

Aflac U.S. maintains a stock bonus plan for eligible U.S. sales associates. Plan participants receive shares of Aflac Incorporated common stock based on their new annualized premium sales and their first-year persistency of substantially all new insurance policies. The cost of this plan, which was capitalized as deferred policy acquisition costs, amounted to $15 million in 2021 and $24 million in 2020 and $31 million in 2019.

Voluntary Separation Program

In September 2020, the Company announced a voluntary separation program for certain U.S. employees. The program provides eligible employees with a severance package, including twelve months of salary, the employee's targeted bonus payout for 2020 and one year of Consolidated Omnibus Budget Reconciliation Act (COBRA) or retiree medical, if eligible. Employees accepted into this program were notified in October 2020 and most transitions were completed by December 31, 2020, with a small number continuing into the first quarter of 2021. The Company recorded a one-time severance charge of $43 million in the fourth quarter of 2020 related to the program.