Pension and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2018

Pension and Other Postretirement Benefit Plans [Abstract]

Pension and Other Postretirement Benefit Plans

Note 14 — 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, Cigna Corporation and the Cigna Pension Plan are defendants in a class action lawsuit related to the Plan’s conversion of certain employees from an annuity to a cash balance benefit in 1997. When the required plan amendment related to this litigation is adopted, the pension benefit obligation will be updated to reflect benefits resulting from this litigation.

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

	Pension Benefits								Other Postretirement Benefits
	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
(In millions)	2018		2017		2018		2017		2018		2017		2018		2017
Service cost	$	-	$	1	$	1	$	1	$	-	$	-	$	-	$	-
Interest cost		42		45		84		93		2		2		4		5
Expected long-term return on plan assets		(64)		(64)		(128)		(129)		-		-		-		-
Amortization of:
Net loss from past experience		18		17		35		33		-		-		-		-
Prior service cost		-		-		-		-		(1)		-		(1)		(1)
Settlement loss		-		-		-		6		-		-		-		-
Net cost	$	(4)	$	(1)	$	(8)	$	4	$	1	$	2	$	3	$	4

All components of pension and other postretirement benefit costs are reported in operating expenses. The Company funds its domestic qualified pension plans at least at the minimum amount required by the Employee Retirement Income Security Act of 1974 and the Pension Protection Act of 2006. The Company did not make any pension contributions during the six months endedJune 30, 2018, and does not expect to make any pension contributions for the remainder of 2018.