Pension and Other Postretirement Plans

3 Months Ended

Mar. 31, 2012

Pension and Other Postretirement Plans

14. Pension and Other Postretirement Plans – The following tables set forth the net periodic pension and postretirement benefit expense for Northern Trust’s U.S. and non-U.S. pension plans, supplemental pension plan, and other postretirement plan for the three months ended March 31, 2012 and 2011.

Net Periodic Pension Expense U.S. Plan	Three Months Ended March  31,
(In Millions)	2012			2011
Service Cost	$	8.8		$	10.7
Interest Cost		10.4			10.2
Expected Return on Plan Assets		(21.8	)		(19.7	)
Amortization
Net Loss		8.6			6.5
Prior Service Cost		(0.1	)		0.4
Net Periodic Pension Expense	$	5.9		$	8.1
Net Periodic Pension Expense Non U.S. Plans	Three Months Ended March 31,
(In Millions)	2012			2011
Service Cost	$	—		$	—
Interest Cost		1.6			1.6
Expected Return on Plan Assets		(1.6	)		(2.0	)
Net Loss Amortization		0.2			—
Gain on Curtailment of Non-U.S. Plan		—			—
Net Periodic Pension Expense (Benefit)	$	0.2		$	(0.4	)
Net Periodic Pension Expense Supplemental Plan	Three Months Ended March 31,
(In Millions)	2012			2011
Service Cost	$	0.7		$	0.8
Interest Cost		1.1			1.1
Amortization
Net Loss		1.5			1.4
Prior Service Cost		0.1			0.1
Net Periodic Pension Expense	$	3.4		$	3.4
Net Periodic Benefit Expense Other Postretirement Plan	Three Months Ended March 31,
(In Millions)	2012			2011
Service Cost	$	0.1		$	0.1
Interest Cost		0.4			0.7
Amortization
Net (Gain) Loss		(0.3	)		0.4
Prior Service Cost		(1.3	)		(1.3	)
Net Periodic Benefit	$	(1.1	)	$	(0.1	)

The other postretirement plan net periodic benefit for the three-month period ended March 31, 2012 was impacted by Northern Trust’s decision to enroll in an Employee Group Waiver Plan (EGWP) beginning in January 2013. Participation in the EGWP will allow Northern Trust to offer substantially the same postretirement benefits to eligible participants while increasing subsidy reimbursements received by Northern Trust from the U.S. government. This action served to reduce the postretirement health care plan liability by approximately $26.7 million as of January 31, 2012 and increase amortization of the net actuarial gain for the three-month period ended March 31, 2012 by approximately $0.9 million.