Employee Benefits

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

Employee Benefits

Employee Benefits

The Corporation and certain of its subsidiaries provide various benefit programs, including defined benefit pension, postretirement health care, and defined contribution plans. A description of each major plan and related disclosures are provided below.

Pension. A noncontributory qualified defined benefit pension plan covers substantially all U.S. employees of Northern Trust. Employees of certain European subsidiaries retain benefits in local defined benefit plans, although those plans are closed to new participants and to future benefit accruals. Employees continue to accrue benefits under the Swiss pension plan, which is accounted for as a defined benefit plan under U.S. GAAP.

Northern Trust also maintains a noncontributory supplemental pension plan for participants whose retirement benefits under the U.S. Qualified Plan are expected to exceed the limits imposed by federal tax law. Northern Trust has a nonqualified trust, referred to as a “Rabbi” Trust, used to hold assets designated for the funding of benefits in excess of those permitted in certain of its qualified retirement plans. This arrangement offers participants a degree of assurance for payment of benefits in excess of those permitted in the related qualified plans. As the “Rabbi” Trust assets remain subject to the claims of creditors and are not the property of the employees, they are accounted for as corporate assets and are included in Other Assets on the consolidated balance sheets. Total assets in the “Rabbi” Trust related to the nonqualified pension plan at December 31, 2022 and 2021 amounted to $92.3 million and $117.8 million, respectively. Contributions of $20.7 million and $6.7 million were made to the “Rabbi” Trust in 2022 and 2021, respectively.

The following tables set forth the status, amounts included in AOCI, and net periodic pension expense of the U.S. Qualified Plan, Non-U.S. Pension Plans, and U.S. Non-Qualified Plan for 2022, 2021, and 2020. Prior service credits for the U.S. Qualified Plan were amortized on a straight-line basis over 11 years and were amortized in full as of December 31, 2022. Prior service costs for the U.S. Non-Qualified Plan were amortized on a straight-line basis over 10 years and were amortized in full as of December 31, 2021.

TABLE 105: EMPLOYEE BENEFIT PLAN STATUS

	U.S. QUALIFIED PLAN						NON-U.S. PENSION PLANS						U.S. NON-QUALIFIED PLAN
($ In Millions)	2022			2021			2022			2021			2022			2021
Accumulated Benefit Obligation	$	963.3		$	1,246.6		$	126.2		$	204.5		$	97.4		$	125.5
Projected Benefit Obligation	$	1,077.7		$	1,401.3		$	129.0		$	210.1		$	113.6		$	147.7
Plan Assets at Fair Value	1,176.8			1,708.9			134.5			198.7			—			—
Funded Status at December 31	$	99.1		$	307.6		$	5.5		$	(11.4)		$	(113.6)		$	(147.7)
Weighted-Average Assumptions:
Discount Rates	5.22		%	3.03		%	3.76		%	1.34		%	5.15		%	2.80		%
Rate of Increase in Compensation Level	5.56			4.97			1.75			1.50			5.56			4.97
Expected Long-Term Rate of Return on Assets	7.25			5.25			3.99			1.79			N/A			N/A

TABLE 106: AMOUNTS INCLUDED IN ACCUMULATED OTHER COMPREHENSIVE INCOME

	U.S. QUALIFIED PLAN				NON-U.S. PENSION PLANS				U.S. NON-QUALIFIED PLAN
(In Millions)	2022		2021		2022		2021		2022		2021
Net Actuarial Loss	$	418.3	$	273.8	$	24.3	$	40.4	$	59.2	$	86.6
Prior Service (Credit) Cost	—		(0.1)		0.2		0.6		—		—
Gross Amount in Accumulated Other Comprehensive Income	418.3		273.7		24.5		41.0		59.2		86.6
Income Tax Effect	105.1		68.7		4.9		5.2		14.8		21.7
Net Amount in Accumulated Other Comprehensive Income	$	313.2	$	205.0	$	19.6	$	35.8	$	44.4	$	64.9

TABLE 107: NET PERIODIC PENSION EXPENSE

	U.S. QUALIFIED PLAN(1)													NON-U.S. PENSION PLANS									U.S. NON-QUALIFIED PLAN
($ In Millions)	2022					2021					2020			2022			2021			2020			2022			2021			2020
Service Cost	$	48.0				$	52.3				$	47.4		$	1.7		$	2.2		$	1.9		$	5.6		$	5.3		$	4.6
Interest Cost	46.3					40.4					43.3			2.5			2.2			2.9			3.9			3.7			4.8
Expected Return on Plan Assets	(85.7)					(79.0)					(76.8)			(3.2)			(3.2)			(3.1)			—			—			—
Amortization:
Net Actuarial Loss	11.4					32.4					35.0			0.6			1.0			0.8			7.4			8.2			7.0
Prior Service (Credit) Cost	(0.1)					(0.4)					(0.4)			—			0.2			0.4			—			0.1			0.2
Net Periodic Pension Expense	$	19.9				$	45.7				$	48.5		$	1.6		$	2.4		$	2.9		$	16.9		$	17.3		$	16.6
Settlement Expense	44.1					27.9					—			0.8			0.4			0.8			—			—			—
Total Pension Expense	$	64.0				$	73.6				$	48.5		$	2.4		$	2.8		$	3.7		$	16.9		$	17.3		$	16.6
Weighted-Average Assumptions:
Discount Rates	3.03		%	4.81	%	2.75		%	3.05	%	3.37		%	1.34		%	0.93		%	1.40		%	2.80		%	2.45		%	3.37		%
	5.49		%	5.22	%	3.06		%	3.03	%
Rate of Increase in Compensation Level				4.97		4.97					4.97			1.50			1.50			1.50			4.97			4.97			4.97
Expected Long-Term Rate of Return on Assets	5.25			6.00		5.25			5.00		5.25			1.79			1.28			1.72			N/A			N/A			N/A
				6.50

(1) In determining the pension expense for the U.S. Qualified Plan for 2022, Northern Trust utilized a discount rate of 3.03% as of December 31, 2021, 4.81% as of June 30, 2022, 5.49% as of September 30, 2022, and 5.22% as of December 31, 2022 and the expected long-term rate of return was 5.25% as of December 31, 2021, 6.00% as of June 30, 2022, and 6.50% as of September 30, 2022.

In determining the pension expense for the U.S. Qualified Plan for 2021, Northern Trust utilized a discount rate of 2.75% as of December 31, 2020, 3.05% as of June 30, 2021, 3.06% as of September 30, 2021, and 3.03% as of December 31, 2021 and an expected long-term rate of return of 5.25% as of both December 31, 2020 and June 30, 2021, and 5.00% as of September 30, 2021.

Northern Trust’s U.S. Qualified Plan provides participants the option to select lump-sum benefit payments upon retirement and termination of service. In the second quarter of both 2022 and 2021, it became probable that total lump-sum payments during each year would exceed the settlement threshold of the sum of annual service and interest cost. Therefore, Northern Trust recognized settlement charges related to its U.S. Qualified Plan in the second, third, and fourth quarter of both 2022 and 2021, which required interim remeasurements of the U.S. Qualified Plan as of each respective quarter-end. 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 amounted to a total of $44.1 million and $27.9 million in 2022 and 2021, respectively.

The components of net periodic pension expense are included in Employee Benefits expense on the consolidated statements of income.

TABLE 108: CHANGE IN PROJECTED BENEFIT OBLIGATION

	U.S. QUALIFIED PLAN				NON-U.S. PENSION PLANS				U.S. NON-QUALIFIED PLAN
(In Millions)	2022		2021		2022		2021		2022		2021
Beginning Balance	$	1,401.3	$	1,470.6	$	210.1	$	236.1	$	147.7	$	162.3
Service Cost	48.0		52.3		1.7		2.2		5.6		5.3
Interest Cost	46.3		40.4		2.5		2.2		3.9		3.7
Employee Contributions	—		—		0.7		0.6		—		—
Plan Amendment	—		—		(0.3)		(1.4)		—		—
Actuarial Loss (Gain)	(281.2)		(19.1)		(64.3)		(10.4)		(20.0)		(2.0)
Settlements	(125.0)		(132.1)		(0.9)		(9.4)		—		—
Benefits Paid	(11.7)		(10.8)		(4.6)		(5.5)		(23.6)		(21.6)
Foreign Exchange Rate Changes	—		—		(15.9)		(4.3)		—		—
Ending Balance	$	1,077.7	$	1,401.3	$	129.0	$	210.1	$	113.6	$	147.7

Actuarial gains of $365.5 million in 2022 were primarily caused by substantial increases in discount rates, while actuarial gains of $31.5 million in 2021 were primarily also caused by increases in discount rates, but to a lesser extent.

TABLE 109: ESTIMATED FUTURE BENEFIT PAYMENTS

(In Millions)	U.S. QUALIFIED PLAN		NON-U.S.PENSION PLANS		U.S. NON-QUALIFIED PLAN
2023	$	90.7	$	4.2	$	20.2
2024	90.7		4.4		13.6
2025	93.9		4.3		14.1
2026	93.5		5.2		11.6
2027	95.3		6.4		12.2
2028-2032	464.7		33.6		54.4

TABLE 110: CHANGE IN PLAN ASSETS

	U.S. QUALIFIED PLAN				NON-U.S PENSION PLANS
(In Millions)	2022		2021		2022		2021
Fair Value of Assets at Beginning of Period	$	1,708.9	$	1,793.7	$	198.7	$	211.5
Actual Return on Assets(1)	(395.4)		58.1		(46.9)		(0.8)
Employer Contributions	—		—		3.6		4.5
Employee Contributions	—		—		0.7		0.6
Settlements	(125.0)		(132.1)		(0.9)		(9.4)
Benefits Paid	(11.7)		(10.8)		(4.6)		(5.5)
Foreign Exchange Rate Changes	—		—		(16.1)		(2.2)
Fair Value of Assets at End of Period	$	1,176.8	$	1,708.9	$	134.5	$	198.7

(1) The 2021 actual return on assets for the U.S. Qualified Plan includes a reimbursement of $0.1 million of historical investment expenses paid from the pension trust.

The decrease in plan assets of $532.1 million from the prior year was driven by unfavorable market conditions in 2022.

The minimum required and maximum remaining deductible contributions for the U.S. Qualified Plan in 2023 are estimated to be zero and $561.0 million, respectively.

The investment strategy employed for Northern Trust’s U.S. Qualified Plan utilizes a dynamic glide path based on a set of pre-approved asset allocations to return-seeking and liability-hedging assets that vary in accordance with the U.S. Qualified Plan’s projected benefit obligation funded ratio. In general, as the U.S. Qualified Plan’s projected benefit obligation funded ratio increases beyond an established threshold, the U.S. Qualified Plan’s allocation to liability-hedging assets will increase while the allocation to return-seeking assets will decrease. Conversely, a decrease in the U.S. Qualified Plan’s projected benefit obligation funded ratio beyond an established threshold will generally result in a decrease in the U.S. Qualified Plan’s allocation to liability-hedging assets and increase in the allocation to return-seeking assets. Liability-hedging assets include U.S. long credit bonds, U.S. long government bonds, and a custom completion strategy used to hedge more closely the liability duration of projected plan benefits with bond duration across all durations. Return-seeking assets include: U.S. equity, international developed equity, emerging markets equity, real estate, high yield bonds, global listed infrastructure, emerging market debt, private equity and hedge funds. During 2022, the funded ratio fell below the threshold and in early 2023 the asset allocation of the U.S. Qualified Plan was adjusted to a stage of the glide path which allows for a greater component of return-seeking assets.

Northern Trust utilizes an asset/liability methodology to determine the investment policies that will best meet its short and long-term objectives. The process is performed by modeling current and alternative strategies for asset allocation, funding policy and actuarial methods and assumptions. The financial modeling uses projections of expected capital market returns and expected volatility of those returns to determine alternative asset mixes having the greatest probability of meeting the U.S. Qualified Plan’s investment objectives. Risk tolerance is established through careful consideration of the U.S. Qualified Plan liabilities, funded status, and corporate financial condition. The intent of this strategy is to protect the U.S. Qualified Plan’s healthy funded status and generate returns, which in combination with minimal voluntary contributions are expected to outpace the U.S. Qualified Plan’s liability growth over the long run.

As of December 31, 2022, the target allocation of the U.S. Qualified Plan assets consisted of 55% U.S. long credit bonds, 15% global equities (developed and emerging markets), 10% custom completion, 5% private equity, 4% high yield bonds, 3% emerging market debt, 3% global listed infrastructure, 3% private real estate, and 2% hedge funds.

Global equity investments include common stocks that are listed on an exchange and investments in commingled funds that invest primarily in publicly traded equities. Equity investments are diversified across country, region, investment style and market capitalization. Fixed income securities held include U.S. treasury securities, corporate bonds, and investments in commingled funds that invest in a diversified blend of longer duration fixed income securities; the custom completion strategy uses U.S. treasury securities and interest rate futures (or similar instruments) to align more closely with the target hedge ratio across maturities. Diversifying investments, including private equity, hedge funds, private real estate,

emerging market debt, high yield bonds, and global listed infrastructure, are used judiciously to enhance long-term returns while improving portfolio diversification. Private equity assets consist primarily of investments in limited partnerships that invest in individual companies in the form of non-public equity or non-public debt positions. Direct or co-investment in non-public stock by the U.S. Qualified Plan is prohibited. The U.S. Qualified Plan’s private equity investments are limited to 20% of each of the total limited partnership or fund of funds and the maximum allowable loss cannot exceed the commitment amount. The U.S. Qualified Plan invests in one hedge fund of funds, which invests, either directly or indirectly, in diversified portfolios of funds or other pooled investment vehicles.

Investments in private real estate, high yield bonds, emerging market debt, and global listed infrastructure are designed to provide income and added diversification.

Derivatives may be used, depending on the nature of the asset class to which they relate, to gain market exposure in an efficient and timely manner, to hedge foreign currency exposure or interest rate risk, or to alter the duration of a portfolio. There were four and three derivatives held by the U.S. Qualified Plan at December 31, 2022 and 2021, respectively.

Investment risk is measured and monitored on an ongoing basis through monthly liability measurements, periodic asset/liability studies, and quarterly investment portfolio reviews. Standards used to evaluate the U.S. Qualified Plan’s investment manager performance include, but are not limited to, the achievement of objectives, operation within guidelines and policy, and comparison against a benchmark. In addition, each manager of the investment funds held by the U.S. Qualified Plan is ranked against a universe of peers and compared to a benchmark. Total U.S. Qualified Plan performance analysis includes an analysis of the market environment, asset allocation impact on performance, risk and return relative to other ERISA plans, and manager impacts upon U.S. Qualified Plan performance.

The following describes the hierarchy of inputs used to measure fair value and the primary valuation methodologies used by Northern Trust for the U.S. Qualified Plan assets measured at fair value.

Level 1 – Quoted, active market prices for identical assets or liabilities. The U.S. Qualified Plan’s Level 1 assets are comprised primarily of mutual funds and domestic common stocks. The U.S. Qualified Plan’s Level 1 investments that are exchange traded are valued at the closing price reported by the respective exchanges on the day of valuation.

Level 2 – Observable inputs other than Level 1 prices, such as quoted active market prices for similar assets or liabilities, quoted prices for identical or similar assets in inactive markets, and model-derived valuations in which all significant inputs are observable in active markets. The U.S. Qualified Plan’s Level 2 assets are comprised of collective trust funds, corporate bonds, government obligations, and municipal and provincial bonds. The investments in collective trust funds fair values are calculated on a scheduled basis using the closing market prices and accruals of securities in the funds (total value of the funds) divided by the number of fund shares currently issued and outstanding. Redemptions of the collective trust funds occur by contract at the respective fund’s redemption date net asset value (NAV).

Level 3 – Valuation techniques in which one or more significant inputs are unobservable in the marketplace. The U.S. Qualified Plan did not hold Level 3 assets as of December 31, 2022 and 2021.

Assets valued at fair value using NAV per share - The U.S. Qualified Plan’s assets valued at fair value using NAV per share include investments in private equity funds and a hedge fund, which invest in underlying groups of investment funds or other pooled investment vehicles that are selected by the respective funds’ investment managers. The investment funds and the underlying investments held by these investment funds are valued at fair value. In determining the fair value of the underlying investments of each fund, the fund’s investment manager or general partner takes into account the estimated value reported by the underlying funds as well as any other considerations that may, in their judgment, increase or decrease such estimated value. The investments in the private equity funds and a hedge fund are considered to be long-term investments. There are no capital withdrawal options related to the investments in the private equity funds. However, capital is periodically distributed as underlying investments are sold. It is estimated that the current private equity investments would be liquidated over 1 to 15 years, depending on the vintage year of a particular fund. With sixty days advance notice, the Plan’s investment in the hedge fund can be withdrawn at the next calendar quarter end.

The U.S. Qualified Plan’s assets valued at fair value using NAV per share also include investments in real estate funds, which invest in real estate assets. The investment in properties by the real estate funds are carried at fair value, which is estimated based on the price that would be received to sell an asset in an orderly transaction between marketplace participants at the measurement date. The valuation plan for each real estate investment is subject to review on an annual basis which is based on either an external appraisal from appraisal firms or internal valuations prepared by the real estate fund’s investment advisor. The Plan’s investment in real estate funds are considered to be long-term investments and, with forty-five days advance notice, can be withdrawn at the next calendar quarter end to the extent the real estate funds have liquid assets.

As investments in the private equity funds, hedge fund, and real estate fund are valued at fair value using NAV per share, they are not required to be categorized within the fair value hierarchy.

While Northern Trust believes its valuation methods for U.S. Qualified Plan assets are appropriate and consistent with other market participants, the use of different methodologies or assumptions could have a material effect on the computation of the estimated fair values.

The following table presents the fair values of Northern Trust’s U.S. Qualified Plan assets, by major asset category, and their level within the fair value hierarchy defined by GAAP as of December 31, 2022 and 2021.

TABLE 111: FAIR VALUE OF U.S. QUALIFIED PLAN ASSETS

	DECEMBER 31, 2022
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
Domestic Common Stock	$	14.7	$	—	$	—	$	14.7
Foreign Common Stock	0.5		—		—		0.5
Domestic Corporate Bonds	—		263.6		—		263.6
Foreign Corporate Bonds	—		39.6		—		39.6
U.S. Government Obligations	—		77.5		—		77.5
Non-U.S. Government Obligations	—		13.8		—		13.8
Domestic Municipal and Provincial Bonds	—		16.8		—		16.8
Foreign Municipal and Provincial Bonds	—		0.2		—		0.2
Collective Trust Funds	—		522.3		—		522.3
Mutual Funds	61.4		—		—		61.4
Cash and Other(1)	(1.1)		—		—		(1.1)
Total Assets at Fair Value in the Fair Value Hierarchy	$	75.5	$	933.8	$	—	$	1,009.3
Assets Valued at NAV per share
Northern Trust Private Equity Funds							33.2
Northern Trust Hedge Fund							35.2
Real Estate Funds							99.1
Total Assets at Fair Value							$	1,176.8

(1) Negative balance in Cash and Other as of December 31, 2022 primarily relates to due to broker for securities purchased.

	DECEMBER 31, 2021
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
Domestic Common Stock	$	17.5	$	—	$	—	$	17.5
Foreign Common Stock	0.3		—		—		0.3
Domestic Corporate Bonds	—		341.7		—		341.7
Foreign Corporate Bonds	—		60.9		—		60.9
U.S. Government Obligations	—		103.9		—		103.9
Non-U.S. Government Obligations	—		20.0		—		20.0
Domestic Municipal and Provincial Bonds	—		21.0		—		21.0
Foreign Municipal and Provincial Bonds	—		0.3		—		0.3
Collective Trust Funds	—		875.3		—		875.3
Mutual Funds	108.9		—		—		108.9
Cash and Other	8.6		—		—		8.6
Total Assets at Fair Value in the Fair Value Hierarchy	$	135.3	$	1,423.1	$	—	$	1,558.4
Assets Valued at NAV per share
Northern Trust Private Equity Funds							34.5
Northern Trust Hedge Fund							36.7
Real Estate Funds							79.3
Total Assets at Fair Value							$	1,708.9

A building block approach is employed for Northern Trust’s U.S. Qualified Plan in determining the long-term rate of return for plan assets. Historical markets and long-term historical relationships between equities, fixed income and other asset classes are studied using the widely accepted capital market principle that assets with higher volatility generate a greater return over the long-run. Current market factors such as inflation expectations and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio rate of return is established with consideration given to diversification and rebalancing. The rate is reviewed against peer data and historical returns to verify the return is reasonable and appropriate. Based on this approach and the U.S. Qualified Plan’s target asset allocation, the expected long-term rate of return on assets as of the U.S. Qualified Plan’s December 31, 2022 measurement date was set at 7.25%.

Postretirement Health Care. Northern Trust maintains an unfunded postretirement health care plan under which those employees who retire at age 55 or older under the provisions of the U.S. defined benefit plan and had attained 15

years of service as of December 31, 2011 may be eligible for subsidized postretirement health care coverage. The provisions of this health care plan may be changed further at the discretion of Northern Trust, which also reserves the right to terminate these benefits at any time.

Northern Trust changed the plan design of its post-retirement health care plan as of January 1, 2021, which resulted in the recognition of a prior service credit of $12.7 million at the time these changes were communicated to participants in August 2020. Concurrently, a further shift in population from active to inactive participants required an adjustment to the amortization period from the average remaining service period of active participants to the average life expectancy of the inactive participants. Prior service credits are being amortized on a straight-line basis over 13.9 years.

The following tables set forth the postretirement health care plan status and amounts included in AOCI at December 31, 2022 and 2021, the net periodic postretirement benefit cost of the plan for 2022 and 2021, and the change in the accumulated postretirement benefit obligation during 2022 and 2021.

TABLE 112: POSTRETIREMENT HEALTH CARE PLAN STATUS

	DECEMBER 31,
(In Millions)	2022		2021
Accumulated Postretirement Benefit Obligation at Measurement Date:
Retirees and Dependents	$	8.1	$	8.7
Actives Eligible for Benefits	0.7		1.5
Net Postretirement Benefit Obligation	$	8.8	$	10.2

TABLE 113: AMOUNTS INCLUDED IN ACCUMULATED OTHER COMPREHENSIVE INCOME

	DECEMBER 31,
(In Millions)	2022		2021
Net Actuarial (Gain) Loss	$	(5.6)	$	(5.3)
Prior Service (Credit) Cost	(10.6)		(11.5)
Gross Amount in Accumulated Other Comprehensive Income	(16.2)		(16.8)
Income Tax Effect	(4.1)		(4.2)
Net Amount in Accumulated Other Comprehensive Income	$	(12.1)	$	(12.6)

TABLE 114: NET PERIODIC POSTRETIREMENT EXPENSE (BENEFIT)

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2022		2021		2020
Service Cost	$	—	$	—	$	—
Interest Cost	0.3		0.3		0.7
Expected Return on Plan Assets	—		—		—
Amortization
Net Actuarial (Gain) Loss	(0.3)		(0.2)		(0.6)
Prior Service (Credit) Cost	(0.9)		(0.9)		(0.3)
Net Periodic Postretirement Expense	$	(0.9)	$	(0.8)	$	(0.2)

TABLE 115: CHANGE IN ACCUMULATED POSTRETIREMENT BENEFIT OBLIGATION

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2022		2021
Beginning Balance	$	10.2	$	15.7
Service Cost	—		—
Interest Cost	0.3		0.3
Plan Amendment	—		—
Actuarial (Gain) Loss	1.6		(3.3)
Net Claims Paid	(3.3)		(2.5)
Ending Balance	$	8.8	$	10.2

Northern Trust uses the aggregate Pri-2012 mortality table with a 2012 base year and proposed future improvements under scale MP-2021, as released by the Society of Actuaries in October 2021. No change to these assumptions was made in 2022 since the Society of Actuaries did not release any updates to its mortality tables and improvement scales in 2022.

TABLE 116: ESTIMATED FUTURE BENEFIT PAYMENTS

(In Millions)	TOTAL POSTRETIREMENT MEDICAL BENEFITS
2023	$	1.2
2024	1.1
2025	1.1
2026	1.0
2027	0.9
2028-2032	3.8

The weighted average discount rate used in determining the accumulated postretirement benefit obligation was 5.08% at December 31, 2022, and 2.56% at December 31, 2021. Due to the changes in the plan design as of January 1, 2021, the health care cost trend rate assumptions including the assumption for drug claims, are not currently impacting the measurement of the postretirement health care plan.

Defined Contribution Plans. The Corporation and its subsidiaries maintain various defined contribution plans covering substantially all employees. The Corporation’s contribution to the U.S. plan and to certain European-based plans includes a matching component. The expense associated with defined contribution plans is charged to Employee Benefits expense on the consolidated statements of income and totaled $67.2 million in 2022, $65.3 million in 2021, and $62.9 million in 2020.