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Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2018



Year Ended December 31,	2018			2017			2016
	(in millions)
Interest cost on projected benefit obligation	$	60		$	71		$	70
Expected return on plan assets	(78		)	(88		)	(86		)
Amortization of net actuarial loss	20			33			42
Administrative costs	6			4			4
Loss on partial settlement of Plan pension obligation	—			35			—
Pension expense	$	8		$	55		$	30

The assumptions used in determining pension expense of the HSBC North America Pension Plan are as follows:



	2018		2017		2016
Discount rate	4.25	%	3.60	%	4.25	%
Expected long-term rate of return on Plan assets	5.50		5.50		5.50

The following table reflects the components of the net periodic postretirement benefit cost:



Year Ended December 31,	2018			2017			2016
	(in millions)
Interest cost on accumulated benefit obligation	$	2		$	2		2
Amortization of net actuarial gain	(2		)	(1		)	—
Net periodic postretirement benefit cost	$	—		$	1		$	2

The assumptions used in determining the net periodic postretirement benefit cost for our postretirement benefit plans are as follows:

The assumptions used in determining the benefit obligation of our postretirement benefit plans at December 31 are as follows:

A reconciliation of the beginning and ending balances of the accumulated postretirement benefit obligation is as follows:



	2018			2017
	(in millions)
Accumulated benefit obligation at beginning of year	$	53		$	55
Interest cost	2			2
Actuarial gains	(8		)	—
Benefits paid, net	(5		)	(4		)
Accumulated benefit obligation at end of year	$	42		$	53

Estimated future benefit payments for our postretirement benefit plans are summarized in the following table: