Pension and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

Defined Benefit Pension Plan  The components of pension expense for the defined benefit pension plan recorded in our consolidated statement of income and shown in the table below reflect the portion of pension expense of the combined HSBC North America Pension Plan (either the "HBSC North America Pension Plan" or the "Plan") which has been allocated to us.

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(in millions)
Service cost – benefits earned during the period	$	1		$	1		$	3		$	2
Interest cost on projected benefit obligation	16			18			33			36
Expected return on plan assets	(23		)	(21		)	(46		)	(42		)
Amortization of net actuarial loss	10			9			19			19
Pension expense	$	4		$	7		$	9		$	15

During the first quarter of 2015, HSBC North America made an additional contribution of $46 million to the Plan.

Mortality rates, which attempt to predict the expected life of plan participants, are a key input in establishing the HSBC North America Pension Plan liability. During the second quarter of 2015, we completed a review of our mortality assumptions using periodic demographic studies of the Plan and mortality data provided by the Society of Actuaries which will result in an increase to pension expense, of which our share is expected to be $3.5 million per quarter beginning in the third quarter of 2015.

Postretirement Plans Other Than Pensions  The components of net periodic benefit cost for our postretirement plans other than pension are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(in millions)
Interest cost on accumulated benefit obligation	$	—	$	1	$	1	$	1
Net periodic postretirement benefit cost	$	—	$	1	$	1	$	1