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Pension and Postretirement Health Care
 6 Months Ended
Jun. 30, 2022
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, 2022 and 2021.
TABLE 70: NET PERIODIC PENSION EXPENSE (BENEFIT)
U.S. QUALIFIED PLANTHREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
(In Millions)2022202120222021
Service Cost$13.2 $13.2 $26.4 $26.4 
Interest Cost10.3 9.8 20.6 19.6 
Expected Return on Plan Assets(20.2)(20.1)(40.4)(40.2)
Amortization
Net Actuarial Loss5.7 9.4 11.4 18.8 
Prior Service Cost (Credit)— (0.1)(0.1)(0.2)
Net Periodic Pension Expense$9.0 $12.2 $17.9 $24.4 
Settlement Expense20.3 17.6 20.3 17.6 
Total Pension Expense$29.3 $29.8 $38.2 $42.0 
NON-U.S. PENSION PLANSTHREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
(In Millions)2022202120222021
Service Cost$0.5 $0.6 $0.9 $1.1 
Interest Cost0.6 0.5 1.3 1.1 
Expected Return on Plan Assets(0.8)(0.7)(1.5)(1.3)
Amortization
Net Actuarial Loss0.2 0.2 0.4 0.5 
Prior Service Cost— 0.1 — 0.1 
Net Periodic Pension Expense$0.5 $0.7 $1.1 $1.5 
Settlement Expense— 0.7 0.7 0.9 
Total Pension Expense$0.5 $1.4 $1.8 $2.4 
U.S. NON-QUALIFIED PLANTHREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
(In Millions)2022202120222021
Service Cost$1.4 $1.3 $2.8 $2.6 
Interest Cost1.0 1.0 2.0 1.9 
Amortization
Net Actuarial Loss 1.8 2.0 3.6 4.1 
Net Periodic Pension Expense$4.2 $4.3 $8.4 $8.6 
POSTRETIREMENT HEALTH CARE PLANTHREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
(In Millions)2022202120222021
Service Cost$— $— $— $— 
Interest Cost0.1 0.1 0.2 0.2 
Amortization
Net Actuarial (Gain)(0.1)— (0.2)(0.1)
Prior Service Cost (Credit)(0.2)(0.3)(0.4)(0.5)
Net Periodic Postretirement (Benefit)$(0.2)$(0.2)$(0.4)$(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. During the three and six months ended June 30, 2022, Northern Trust recognized settlement charges of $20.3 million related to its U.S. Qualified Plan, as in the second quarter of 2022 it became probable that total lump-sum payments in 2022 would exceed the settlement threshold of the sum of annual service and interest cost. During the three and six months ended June 30, 2021, Northern Trust recognized settlement charges of $17.6 million. 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 and is resulting from the normal operation of the plan and not as a result of any special event.

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 4.81% based on the established discount rate methodology, and an expected rate of
return of 6.00%. The remeasurement and the recognition of settlement charges decreased the Projected Benefit Obligation of the U.S Qualified Plan by $295.0 million from $1,401.3 million as of December 31, 2021 to $1,106.3 million as of June 30, 2022, and decreased the net funded status of the U.S. Qualified Plan by $118.7 million from $307.6 million as of December 31, 2021 to $188.9 million as of June 30, 2022.

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, 2022 and 2021, and $20.7 million and $6.7 million of contributions to the U.S. Non-Qualified Plan during the six months ended June 30, 2022 and 2021, respectively.