Benefit Plans

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Benefit Plans

Note 14 Benefit Plans

Components of net cost (benefit) for pension and other postretirement plans
	Three months ended June 30,				Six months ended June 30,
($ in millions)	2021		2020		2021		2020
Pension benefits
Service cost	$	25	$	25	$	51	$	53
Interest cost	52		56		98		112
Expected return on plan assets	(109)		(95)		(226)		(199)
Amortization of prior service credit	(12)		(14)		(25)		(28)
Costs and expenses	(44)		(28)		(102)		(62)
Remeasurement of projected benefit obligation	245		672		(267)		556
Remeasurement of plan assets	(388)		(623)		(167)		(189)
Remeasurement (gains) losses	(143)		49		(434)		367
Pension net (benefit) cost	$	(187)	$	21	$	(536)	$	305
Postretirement benefits
Service cost	$	1	$	2	$	1	$	3
Interest cost	2		3		4		6
Amortization of prior service credit	(7)		(1)		(13)		(2)
Costs and expenses	(4)		4		(8)		7
Remeasurement of projected benefit obligation	9		24		(10)		24
Remeasurement of plan assets	—		—		—		—
Remeasurement (gains) losses	9		24		(10)		24
Postretirement net cost (benefit)	$	5	$	28	$	(18)	$	31
Pension and postretirement benefits
Costs and expenses	$	(48)	$	(24)	$	(110)	$	(55)
Remeasurement (gains) losses	(134)		73		(444)		391
Total net (benefit) cost	$	(182)	$	49	$	(554)	$	336

Differences between expected and actual returns on plan assets and changes in assumptions affect the Company’s pension and other postretirement obligations, plan assets and expenses.

Pension and other postretirement service cost, interest cost, expected return on plan assets and amortization of prior service credit are reported in property and casualty insurance claims and claims expense, operating costs and expenses, net investment income and (if applicable) restructuring and related charges on the Condensed Consolidated Statement of Operations.

Pension and postretirement benefits remeasurement gains and losses
	Three months ended June 30,				Six months ended June 30,
($ in millions)	2021		2020		2021		2020
Remeasurement of projected benefit obligation (gains) losses:
Discount rate	$	178	$	433	$	(239)	$	397
Other assumptions	76		263		(38)		183
Remeasurement of plan assets (gains) losses	(388)		(623)		(167)		(189)
Remeasurement (gains) losses	$	(134)	$	73	$	(444)	$	391

Remeasurement gains for the second quarter of 2021 primarily related to favorable asset performance compared to the expected return on plan assets, partially offset by a decrease in the liability discount rate and changes in actuarial assumptions. Remeasurement gains in the first six months of 2021 primarily related to an increase in the liability discount rate and favorable asset performance compared to the expected return on plan assets.

The weighted average discount rate used to measure the benefit obligation decreased to 2.85% at June 30, 2021 compared to 3.13% at March 31, 2021 and increased compared to 2.51% at December 31, 2020 resulting in losses for the second quarter and gains for the first six months of 2021.

For the second quarter and first six months of 2021, the actual return on plan assets was higher due to strong equity performance. The increase in the second quarter of 2021 was also due to lower market yields resulting in higher fixed income valuations.