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Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2018
Employee Benefit Plans [Abstract]  
Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets
Table 68: Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets
 
Qualified
Pension
 
Nonqualified
Pension
 
Postretirement
Benefits
December 31 (Measurement Date) – in millions
2018

 
2017

 
2018

 
2017

 
2018

 
2017

Accumulated benefit obligation at end of year
$
4,315

 
$
4,726

 
$
253

 
$
280

 
 
 
 
Projected benefit obligation at beginning of year
$
4,789

 
$
4,547

 
$
286

 
$
289

 
$
355

 
$
373

Service cost
116

 
160

 
3

 
3

 
5

 
5

Interest cost
171

 
179

 
9

 
10

 
12

 
14

Amendments
 
 
17

 
 
 


 
 
 
2

Actuarial (gains)/losses and changes in assumptions
(424
)
 
172

 
(16
)
 
8

 
(28
)
 
(18
)
Participant contributions
 
 

 
 
 

 
3

 
3

Federal Medicare subsidy on benefits paid
 
 

 
 
 

 
1

 
1

Benefits paid
(297
)
 
(286
)
 
(24
)
 
(24
)
 
(26
)
 
(25
)
Projected benefit obligation at end of year
$
4,355

 
$
4,789

 
$
258

 
$
286

 
$
322

 
$
355

Fair value of plan assets at beginning of year
$
5,253

 
$
4,617

 

 
 
 
$
230

 
$
208

Actual return on plan assets
(193
)
 
722

 
 
 

 
3

 
9

Employer contribution
200

 
200

 
$
24

 
$
24

 
21

 
34

Participant contributions
 
 

 
 
 

 
3

 
3

Federal Medicare subsidy on benefits paid
 
 

 
 
 

 
1

 
1

Benefits paid
(297
)
 
(286
)
 
(24
)
 
(24
)
 
(26
)
 
(25
)
Fair value of plan assets at end of year
$
4,963

 
$
5,253

 
$
—

 
$
—

 
$
232

 
$
230

Funded status
$
608

 
$
464

 
$
(258
)
 
$
(286
)
 
$
(90
)
 
$
(125
)
Amounts recognized on the consolidated balance sheet
 
 
 
 
 
 
 
 
 
 
 
Noncurrent asset
$
608

 
$
464

 
 
 

 
 
 

Current liability
 
 

 
$
(26
)
 
$
(28
)
 
$
(2
)
 
$
(2
)
Noncurrent liability
 
 


 
(232
)
 
(258
)
 
(88
)
 
(123
)
Net amount recognized on the consolidated balance sheet
$
608

 
$
464

 
$
(258
)
 
$
(286
)
 
$
(90
)
 
$
(125
)
Amounts recognized in AOCI consist of:
 
 
 
 
 
 
 
 
 
 
 
Prior service cost (credit)
$
12

 
$
13

 
 
 


 
$
1

 
$
1

Net actuarial loss (gain)
608

 
534

 
$
57

 
$
77

 
(7
)
 
18

Amount recognized in AOCI
$
620

 
$
547

 
$
57

 
$
77

 
$
(6
)
 
$
19
Asset Strategy Allocations
Table 69: Asset Strategy Allocations
 
Target Allocation Range

Percentage of Plan Assets by Strategy at December 31
 
PNC Pension Plan
  
2018

2017

Asset Category
 
 
 
Domestic Equity
20 – 40%

27
%
30
%
International Equity
10 – 25%

22
%
24
%
Private Equity
0 – 15%

11
%
9
%
Total Equity
40 – 70%

60
%
63
%
Domestic Fixed Income
10 – 40%

18
%
16
%
High Yield Fixed Income
0 – 25%

9
%
10
%
Total Fixed Income
10 – 65%

27
%
26
%
Real estate
0 – 10%

5
%
5
%
Other
0 – 15%

8
%
6
%
Total
100
%
100
%
100
%
Pension Plan Assets - Fair Value Hierarchy
The following table sets forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2018 and 2017.
Table 70: Pension Plan Assets - Fair Value Hierarchy
 
December 31, 2018
 
 
December 31, 2017
 
In millions
Level 1

 
Level 2

 
Level 3

 
Total Fair Value

 
 
Level 1

 
Level 2

 
Level 3

 
Total Fair Value

 
Interest bearing cash
$
7

 
$
2

 
 
 
$
9

 
 
$
10

 
$
1

 

 
$
11

 
Money market funds
149

 
 
 
 
 
149

 
 
339

 

 

 
339

 
U.S. government and agency securities
512

 
130

 
 
 
642

 
 
233

 
105

 

 
338

 
Corporate debt
 
 
580

 
$
6

 
586

 
 


 
578

 
$
5

 
583

 
Common stock
623

 
6

 
 
 
629

 
 
791

 
13

 

 
804

 
Mutual funds
 
 
236

 
 
 
236

 
 

 
271

 

 
271

 
Other
4

 
42

 
4

 
50

 
 
1

 
69

 
7

 
77

 
Investments measured at net asset value (a)
 
 
 
 
 
 
2,662

 
 
 
 
 
 
 
 
2,830

 
Total
$
1,295

 
$
996

 
$
10

 
$
4,963

 
 
$
1,374

 
$
1,037

 
$
12

 
$
5,253

 
(a)
In accordance with ASC 820-10, collective trust fund investments and limited partnerships are measured at fair value using the NAV per share (or its equivalent) practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in Table 68: Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets.
Estimated Cash Flows
The following table provides information regarding our estimated future cash flows related to our various plans.
Table 71: Estimated Cash Flows
 
Pension Plans
 
Postretirement Benefits
 
In millions
Qualified Pension

 
Nonqualified Pension

 
Gross PNC Benefit Payments

 
 
Estimated 2019 employer contributions
 
 
$
26

 
$
28

 
 
Estimated future benefit payments
 
 
 
 
 
 
 
2019
$
293

 
$
26

 
$
28

 
 
2020
$
308

 
$
26

 
$
27

 
 
2021
$
322

 
$
25

 
$
27

 
 
2022
$
322

 
$
22

 
$
26

 
 
2023
$
314

 
$
21

 
$
25

 
 
2024-2028
$
1,555

 
$
94

 
$
117

 
 
Components of Net Periodic Benefit Cost
The components of net periodic benefit cost/(income) and other amounts recognized in Other comprehensive income (OCI) were as follows.

Table 72: Components of Net Periodic Benefit Cost (a)
 
Qualified Pension Plan
Nonqualified Pension Plan
Postretirement Benefits
Year ended December 31 – in millions
2018

2017

2016

2018

2017

2016

2018

2017

2016

Net periodic cost consists of:
 
 
 
 
 
 
 
 
 
Service cost (b)
$
116

$
160

$
102

$
3

$
3

$
3

$
5

5

$
6

Interest cost
171

179

186

9

10

12

12

14

15

Expected return on plan assets
(306
)
(285
)
(281
)
 


(6
)
(5
)
(6
)
Amortization of prior service cost/(credit)
1

(3
)
(7
)
 


 
(1
)
(1
)
Amortization of actuarial (gain)/loss
 
43

45

5

4

5

 
 
 
Net periodic cost (benefit)
(18
)
94

45

17

17

20

11

13

14

Other changes in plan assets and benefit obligations recognized in OCI:
 
 
 
 
 
 
 
 
 
Current year prior service cost/(credit)
 
17



 


 
2


Amortization of prior service (cost)/credit
(1
)
3

7

 


 
1

1

Current year actuarial loss/(gain)
75

(264
)
91

(16
)
7

7

(25
)
(22
)
17

Amortization of actuarial gain/(loss)
 
(43
)
(45
)
(5
)
(4
)
(5
)
 
 
 
Total recognized in OCI
74

(287
)
53

(21
)
3

2

(25
)
(19
)
18

Total amounts recognized in net periodic cost and OCI
$
56

$
(193
)
$
98

$
(4
)
$
20

$
22

$
(14
)
$
(6
)
$
32


(a) The service cost component is included in Personnel expense on the Consolidated Income Statement. All other components are included in Other noninterest expense on the Consolidated Income Statement.
(b) 2017 Qualified Pension service cost includes $57 million of additional service cost due to the special, one-time cash balance credit announced at the end of 2017.
Net Periodic Costs - Assumptions
The weighted-average assumptions used (as of the beginning of each year) to determine the net periodic costs shown in Table 72 were as follows.
Table 73: Net Period Costs - Assumptions
 
Net Periodic Cost Determination
As of January 1
2018

2017

2016

Discount rate
 
 
 
Qualified pension
3.60
%
4.00
%
4.25
%
Nonqualified pension
3.45
%
3.80
%
3.95
%
Postretirement benefits
3.55
%
3.90
%
4.15
%
Rate of compensation increase (average)
3.50
%
3.50
%
3.50
%
Assumed health care cost trend rate
 
 
 
Initial trend
6.75
%
7.00
%
7.25
%
Ultimate trend
5.00
%
5.00
%
5.00
%
Year ultimate trend reached
2025

2025

2025

Expected long-term return on plan assets
6.00
%
6.38
%
6.75
%
Other Pension Assumptions
The weighted-average assumptions used (as of the end of each year) to determine year end obligations for pension and postretirement benefits were as follows.
Table 74: Other Pension Assumptions
Year ended December 31
2018

 
2017

 
Discount rate
 
 
 
 
Qualified pension
4.30
%
 
3.60
%
 
Nonqualified pension
4.15
%
 
3.45
%
 
Postretirement benefits
4.20
%
 
3.55
%
 
Rate of compensation increase (average)
3.50
%
 
3.50
%
 
Assumed health care cost trend rate
 
 
 
 
Initial trend
6.50
%
 
6.75
%
 
Ultimate trend
5.00
%
 
5.00
%
 
Year ultimate trend reached
2025

 
2025