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Pension and Postretirement Health Care
 6 Months Ended
Jun. 30, 2021
Retirement Benefits [Abstract]  
Pension and Postretirement Health Care Pension and Postretirement Health Care
The following table sets forth the net periodic pension and postretirement benefit expense for Northern Trust’s U.S. Qualified Plan, Non-U.S. Pension Plans, U.S. Non-Qualified Plan, and postretirement health care plan for the three and six months ended June 30, 2021 and 2020.
TABLE 72: NET PERIODIC PENSION EXPENSE (BENEFIT)
U.S. QUALIFIED PLANTHREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
(In Millions)2021202020212020
Service Cost$13.2 $11.8 $26.4 $23.6 
Interest Cost9.8 10.8 19.6 21.6 
Expected Return on Plan Assets(20.1)(19.2)(40.2)(38.4)
Amortization
Net Actuarial Loss9.4 8.8 18.8 17.6 
Prior Service Cost(0.1)(0.1)(0.2)(0.2)
Settlement Expense17.6 — 17.6 — 
Net Periodic Pension Expense$29.8 $12.1 $42.0 $24.2 
NON-U.S. PENSION PLANSTHREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
(In Millions)2021202020212020
Service Cost$0.6 $0.5 $1.1 $1.0 
Interest Cost0.5 0.7 1.1 1.4 
Expected Return on Plan Assets(0.7)(0.8)(1.3)(1.5)
Amortization
Net Actuarial Loss0.2 0.3 0.5 0.6 
Prior Service Cost0.1 — 0.1 — 
Settlement Expense0.7 — 0.9 0.2 
Net Periodic Pension Expense$1.4 $0.7 $2.4 $1.7 
U.S. NON-QUALIFIED PLANTHREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
(In Millions)2021202020212020
Service Cost$1.3 $1.1 $2.6 $2.2 
Interest Cost1.0 1.2 1.9 2.4 
Amortization
Net Actuarial Loss 2.0 1.8 4.1 3.6 
Prior Service Cost— 0.1 — 0.1 
Net Periodic Pension Expense$4.3 $4.2 $8.6 $8.3 
POSTRETIREMENT HEALTH CARE PLANTHREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
(In Millions)2021202020212020
Service Cost$— $— $— $— 
Interest Cost0.1 0.2 0.2 0.4 
Amortization
Net Actuarial (Gain)— (0.2)(0.1)(0.4)
Prior Service Cost(0.3)— (0.5)— 
Net Periodic Postretirement Expense$(0.2)$— $(0.4)$— 
Northern Trust’s U.S. Qualified Plan provides participants the option to select lump-sum benefit payments upon retirement and termination of service. As of June 30, 2021, Northern Trust recognized settlement charges of $17.6 million related to its U.S. Qualified Plan as in the second quarter of 2021 it became probable that total lump-sum payments in 2021 would exceed the settlement threshold of the sum of annual service and interest cost. The settlement charge represents the pro rata amount of the net loss in AOCI that is charged to income based on the proportion of the Projected Benefit Obligation settled to the total Projected Benefit Obligation.
The application of settlement accounting required an interim remeasurement of the U.S. Qualified Plan as of quarter-end. Northern Trust utilized a discount rate of 3.05% based on the established discount rate methodology and an expected rate of return of 5.25%. The remeasurement and the recognition of settlement charges decreased the Projected Benefit Obligation of the U.S Qualified Plan by $74.5 million from $1,470.6 million as of December 31, 2020 to $1,396.1 million as of June 30, 2021, resulting in an overall change of a $7.1 million decrease to the net funded status of the U.S. Qualified Plan.
The components of net periodic pension expense are recorded in Employee Benefits expense on the consolidated statements of income.
There were no contributions to the U.S. Qualified Plan during the six months ended June 30, 2021 and 2020, respectively, and $6.7 million and $10.6 million of contributions to the U.S. Non-Qualified Plan during the six months ended June 30, 2021 and 2020, respectively.