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Penson and Other Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2012

		Pension				Other Postretirement
		Benefits				Benefits
(In millions)	2012		2011		2012		2011
Change in benefit obligation
Benefit obligation, January 1	$	5,067	$	4,691	$	452	$	444
Service cost		3		2		2		2
Interest cost		198		228		16		20
(Gain) loss from past experience		283		453		(2)		16
Benefits paid from plan assets		(256)		(273)		(3)		(2)
Benefits paid - other		(28)		(34)		(23)		(28)
Benefit obligation, December 31		5,267		5,067		442		452
Change in plan assets
Fair value of plan assets, January 1		3,298		3,163		22		23
Actual return on plan assets		370		156		1		1
Benefits paid		(256)		(273)		(3)		(2)
Contributions		253		252		-		-
Fair value of plan assets, December 31		3,665		3,298		20		22
Funded Status	$	(1,602)	$	(1,769)	$	(422)	$	(430)

	Pension				Other
	Benefits				Postretirement Benefits
(In millions)	2012		2011		2012		2011
Unrecognized net loss	$	(2,450)	$	(2,331)	$	(28)	$	(30)
Unrecognized prior service cost		(5)		(5)		23		35
Postretirement benefits liability adjustment	$	(2,455)	$	(2,336)	$	(5)	$	5

(In millions)	2012		2011		2010
Service cost	$	3	$	2	$	2
Interest cost		198		228		240
Expected long-term return on plan assets		(270)		(267)		(253)
Amortization of:
Net loss from past experience		58		38		28
Settlement loss		6		-		-
Net pension cost	$	(5)	$	1	$	17

(In millions)	2012		2011		2010
Service cost	$	2	$	2	$	1
Interest cost		16		20		22
Expected long-term return on plan assets		(1)		(1)		(1)
Amortization of:
Prior service cost		(12)		(16)		(18)
Net other postretirement benefit cost	$	5	$	5	$	4

(In millions)	Increase		Decrease
Effect on total service and interest cost	$	-	$	-
Effect on postretirement benefit obligation	$	12	$	10

December 31, 2012
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Plan assets at fair value:
Fixed maturities:
Federal government and agency	$	-	$	4	$	-	$	4
Corporate		-		416		27		443
Mortgage and other asset-backed		-		8		5		13
Fund investments and pooled separate accounts (1)		-		519		3		522
Total fixed maturities		-		947		35		982
Equity securities:
Domestic		1,202		4		10		1,216
International, including funds and pooled separate accounts (1)		158		149		-		307
Total equity securities		1,360		153		10		1,523
Real estate and mortgage loans, including pooled separate accounts (1)		-		-		351		351
Securities partnerships		-		-		328		328
Hedge funds		-		-		327		327
Guaranteed deposit account contract		-		-		47		47
Cash equivalents		-		107		-		107
Total plan assets at fair value	$	1,360	$	1,207	$	1,098	$	3,665

(1) A pooled separate account has several participating benefit plans and each owns a share of the total pool of investments.

December 31, 2011
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Plan assets at fair value:
Fixed maturities:
Federal government and agency	$	-	$	5	$	-	$	5
Corporate		-		332		7		339
Mortgage and other asset-backed		-		8		2		10
Fund investments and pooled separate accounts (1)		-		546		3		549
Total fixed maturities		-		891		12		903
Equity securities:
Domestic		1,153		1		14		1,168
International, including funds and pooled separate accounts (1)		141		137		-		278
Total equity securities		1,294		138		14		1,446
Real estate and mortgage loans, including pooled separate accounts (1)		-		-		303		303
Securities partnerships		-		-		314		314
Hedge Fund		-		-		148		148
Guaranteed deposit account contract		-		-		39		39
Cash equivalents		-		145		-		145
Total plan assets at fair value	$	1,294	$	1,174	$	830	$	3,298

(1) A pooled separate account has several participating benefit plans and each owns a share of the total pool of investments.

(In millions)	Fixed Maturities & Equity Securities		Real Estate & Mortgage Loans		Securities Partnerships		Hedge Funds		Guaranteed Deposit Account Contract		Total

Balance at January 1, 2012	$	26	$	303	$	314	$	148	$	39	$	830
Actual return on plan assets:
Assets still held at the reporting date		-		38		18		10		3		69
Assets sold during the period		-		-		-		-		-		-
Total actual return on plan assets		-		38		18		10		3		69
Purchases, sales, settlements, net		5		11		(4)		169		5		186
Transfers into/out of Level 3		13		-		-		-		-		13
Balance at December 31, 2012	$	44	$	352	$	328	$	327	$	47	$	1,098

(In millions)	Fixed Maturities & Equity Securities		Real Estate & Mortgage Loans		Securities Partnerships		Hedge Fund		Guaranteed Deposit Account Contract		Total

Balance at January 1, 2011	$	46	$	240	$	347	$	-	$	24	$	657
Actual return on plan assets:
Assets still held at the reporting date		1		44		66		(2)		3		112
Assets sold during the period		18		-		-		-		-		18
Total actual return on plan assets		19		44		66		(2)		3		130
Purchases, sales, settlements, net		(33)		21		(99)		150		12		51
Transfers into/out of Level 3		(6)		(2)		-		-		-		(8)
Balance at December 31, 2011	$	26	$	303	$	314	$	148	$	39	$	830

	2012	2011
Discount rate:
Pension benefit obligation	3.50%	4.00%
Other postretirement benefit obligation	3.25%	3.75%
Pension benefit cost	4.00%	5.00%
Other postretirement benefit cost	3.75%	4.75%
Expected long-term return on plan assets:
Pension benefit cost	8.00%	8.00%
Other postretirement benefit cost	5.00%	5.00%