Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2023

The following table reflects the portion of pension (income) expense and its related components of the combined HSBC North America Pension Plan which has been allocated to us and is recorded in our consolidated statement of income. We have not been allocated any portion of the Plan's net pension asset.



Year Ended December 31,	2023		2022		2021
	(in millions)
Interest cost on projected benefit obligation	$	57	$	52	$	42
Expected return on plan assets	(65)		(56)		(58)
Amortization of net actuarial loss	5		3		—
Administrative costs	3		3		3

Pension (income) expense	$	—	$	2	$	(13)

Schedule of Assumptions Used

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


	2023	2022	2021
Discount rate(1)	5.00% / 4.80% / 5.00% / 5.65%	2.85% / 3.55% / 4.60% / 4.75%	2.45% / 3.10% / 2.70% / 2.80%
Expected long-term rate of return on Plan assets(2)	5.25	4.75	3.50

(1)Since the Plan is measured on a quarterly basis, pension (income) expense for the Plan is calculated each quarter based on the preceding quarter-end rate. Shown are the discount rates used to determine pension (income) expense for each respective quarter (i.e., first quarter / second quarter / third quarter / fourth quarter).

(2)In 2022, as a result of significantly increasing yields on fixed income securities and subsequent increases in longer term capital market returns, HSBC North America decided to increase its expected long-term rate of return on Plan assets assumption to 4.00 percent during the third quarter of 2022 and 4.75 percent during the fourth quarter of 2022. The expected long-term rate of return on Plan assets assumption used during the first half of 2022 was 3.50 percent.

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


	2023		2022		2021
Discount rate	4.80	%	4.95	%	2.70	%
Salary increase assumption	3.00		3.00		3.00