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Pension and Other Postretirement Benefit Plans
3 Months Ended
Mar. 31, 2015
Pension and Other Postretirement Benefit Plans [Abstract]  
Pension and Other Postretirement Benefit Plans

Note 11 — Pension and Other Postretirement Benefit Plans

 

The Company and certain of its subsidiaries provide pension, health care and life insurance defined benefits to eligible retired employees, spouses and other eligible dependents through various domestic and foreign plans. The effect of its foreign pension and other postretirement benefit plans is immaterial to the Company's results of operations, liquidity and financial position. The Company froze its defined benefit postretirement medical plan in 2013 and its primary domestic pension plans in 2009.

 

As further discussed in Note 16, the Company and the Cigna Pension Plan are defendants in a class action lawsuit that has yet to be resolved. When the parties agree on a final plan amendment, the pension benefit obligation will be updated to reflect additional benefits resulting from this litigation.

 

For the three months ended March 31, 2015, the Company's unrecognized actuarial losses and prior service costs (reported in accumulated other comprehensive income) decreased by $ 16 million pre-tax in the aggregate ($ 11 million after-tax) resulting in an increase in shareholders' equity. This change was primarily a result of amortization.

 

 

Pension and Other Postretirement Benefits. Components of net pension and net other postretirement benefit costs were as follows:

   
 Pension BenefitsOther Postretirement Benefits
 Three Months Ended Three Months Ended
 March 31,March 31,
(In millions)2015201420152014
Service cost$ 1$ -$ -$ -
Interest cost  48  51  3  3
Expected long-term return on plan assets  (66)  (66)  -  -
Amortization of:        
Net loss from past experience  17  14  -  -
Prior service cost  -  -  (1)  (1)
Settlement loss  -  6  -  -
Net cost$ -$ 5$ 2$ 2

The Company funds its domestic qualified pension plans at least at the minimum amount required by the Pension Protection Act of 2006. For the three months ended March 31, 2015, the Company did not make any pension contributions. For the remainder of 2015, the Company is expected to make required contributions of $5 million.