BENEFIT PLANS

9 Months Ended

Sep. 30, 2023

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

BENEFIT PLANS

BENEFIT 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. On June 9, 2023, the Company amended the U.S. defined benefit plan to freeze future benefits under the plan for all participants effective January 1, 2024, which resulted in the Company recognizing a curtailment gain of $49 million in the second quarter of 2023. U.S. employees who are not participants in the defined benefit plan currently receive a nonelective 401(k) employer contribution. Effective January 1, 2024, the nonelective 401(k) employer contribution will be extended to U.S. employees who are current participants in the defined benefit plan.

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 Company's Supplemental Executive Retirement Plan was frozen to new participants effective January 1, 2015. On June 9, 2023, the Company amended the Supplemental Executive Retirement Plan and the Retirement Plan for Senior Officers to freeze future benefits under these plans for all participants effective January 1, 2024.

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.

Pension and other postretirement benefit expenses are included in acquisition and operating expenses in the consolidated statements of earnings, which includes other components of net periodic pension cost and postretirement costs (other than service costs) of $2 million and $5 million for the three-month periods and $(41) million and $11 million for the nine-month periods ended September 30, 2023 and 2022, respectively. Total net periodic benefit cost includes the following components:

	Three Months Ended September 30,
	Pension Benefits												Other
	Japan						U.S.						Postretirement Benefits
(In millions)	2023			2022			2023			2022			2023			2022
Components of net periodic   benefit cost:
Service cost		$	4		$	5		$	0		$	6		$	0		$	0
Interest cost		2			1			10			9			0			1
Expected return on plan assets		(2)			(2)			(8)			(11)			0			0
Amortization of net actuarial loss		0			0			0			6			0			1
Curtailment (gain) loss		0			0			0			0			0			0
Net periodic (benefit) cost		$	4		$	4		$	2		$	10		$	0		$	2

	Nine Months Ended September 30,
	Pension Benefits												Other
	Japan						U.S.						Postretirement Benefits
(In millions)	2023			2022			2023			2022			2023			2022
Components of net periodic   benefit cost:
Service cost		$	11		$	15		$	7		$	19		$	0		$	0
Interest cost		6			4			31			26			1			1
Expected return on plan assets		(5)			(6)			(26)			(32)			0			0
Amortization of net actuarial loss		0			0			0			16			1			2
Curtailment (gain) loss		0			0			(49)			0			0			0
Net periodic (benefit) cost		$	12		$	13		$	(37)		$	29		$	2		$	3

During the nine months ended September 30, 2023, Aflac Japan contributed approximately $19 million (using the weighted-average yen/dollar exchange rate for the nine-month period ended September 30, 2023) to the Japanese funded defined benefit plan, and Aflac U.S. did not make a contribution to the U.S. funded defined benefit plan.

For additional information regarding the Company's Japanese and U.S. benefit plans, see Note 14 of the Notes to the Consolidated Financial Statements in the 2022 Annual Report.