EMPLOYEE BENEFITS

9 Months Ended

Sep. 30, 2017

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

14. Employee Benefits

We sponsor various defined benefit pension plans, post-retirement medical and life insurance plans for eligible employees and retirees in the U.S. and certain non-U.S. countries.

The following table presents the components of net periodic benefit cost with respect to pensions and other postretirement benefits:

	Pension						Postretirement
		U.S.		Non-U.S.				U.S.		Non-U.S.
(in millions)		Plans		Plans		Total		Plans		Plans		Total
Three Months Ended September 30, 2017
Components of net periodic benefit cost:
Service cost	$	(5)	$	7	$	2	$	-	$	1	$	1
Interest cost		41		4		45		2		1		3
Expected return on assets		(66)		(6)		(72)		-		-		-
Amortization of prior service credit		-		-		-		-		-		-
Amortization of net (gain) loss		6		3		9		-		-		-
Curtailment gain		-		(5)		(5)		-		-		-
Settlement (Credit)/Charges		50		-		50		-		-		-
Net periodic benefit cost (credit)	$	26	$	3	$	29	$	2	$	2	$	4
Three Months Ended September 30, 2016
Components of net periodic benefit cost:
Service cost	$	6	$	8	$	14	$	1	$	-	$	1
Interest cost		45		5		50		2		-		2
Expected return on assets		(72)		(7)		(79)		-		-		-
Amortization of prior service credit		-		-		-		(2)		-		(2)
Amortization of net loss		7		2		9		(1)		1		-
Curtailment gain		-		(2)		(2)		-		-		-
Settlement (Credit)/Charges		-		-		-		-		-		-
Net periodic benefit cost (credit)	$	(14)	$	6	$	(8)	$	-	$	1	$	1
Nine Months Ended September 30, 2017
Components of net periodic benefit cost:
Service cost	$	8	$	23	$	31	$	1	$	2	$	3
Interest cost		126		12		138		5		3		8
Expected return on assets		(194)		(18)		(212)		-		-		-
Amortization of prior service credit		-		-		-		(1)		-		(1)
Amortization of net (gain) loss		20		9		29		-		-		-
Curtailment gain		-		(5)		(5)		-		-		-
Settlement (Credit)/Charges		50		-		50		-		-		-
Net periodic benefit cost (credit)	$	10	$	21	$	31	$	5	$	5	$	10
Nine Months Ended September 30, 2016
Components of net periodic benefit cost:
Service cost	$	15	$	23	$	38	$	2	$	2	$	4
Interest cost		136		15		151		5		2		7
Expected return on assets		(219)		(20)		(239)		-		-		-
Amortization of prior service credit		-		-		-		(7)		-		(7)
Amortization of net loss		19		6		25		(1)		1		-
Curtailment gain		-		(5)		(5)		-		-		-
Settlement (Credit)/Charges		-		-		-		-		-		-
Net periodic benefit cost (credit)	$	(49)	$	19	$	(30)	$	(1)	$	5	$	4

For the nine-month period ended September 30,2017, we contributed $310 million to the U.S. AIG Retirement Plan.

The lump sum benefit payments through September 30,2017 exceeded the annual service cost and interest cost components of the pension expense resulting in a settlement loss as of September 30,2017.