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Benefit Plans
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Benefit Plans Benefit Plans
Defined Benefit Retirement Plans

Truist provides defined benefit retirement plans qualified under the IRC. Benefits are based on years of service, age at retirement and the employee's compensation during the five highest consecutive years of earnings within the last ten years of employment. In addition, supplemental retirement benefits are provided to certain key officers under supplemental defined benefit executive retirement plans, which are not qualified under the IRC. Although technically unfunded plans, Rabbi Trusts and insurance policies on the lives of certain of the covered employees are available to finance future benefits.

The Company’s defined benefit plans obtained through the Merger were combined during 2020.

The following tables present a summary of the qualified and nonqualified defined benefit pension plans. On the Consolidated Balance Sheets, the qualified pension plan net asset is recorded as a component of Other assets and the nonqualified pension plans net liability is recorded as a component of Other liabilities. The data is calculated using an actuarial measurement date of December 31.
Year Ended December 31,
(Dollars in millions)
Location202120202019
Net periodic pension cost:   
Service costPersonnel expense$612 $518 $214 
Interest costOther expense319 313 233 
Estimated return on plan assetsOther expense(998)(866)(480)
Net amortization and otherOther expense35 76 111 
Net periodic benefit cost (income)(32)41 78 
Pre-tax amounts recognized in OCI:   
Net actuarial loss (gain)(1,012)(244)34 
Net amortization(35)(77)(110)
Net amount recognized in OCI(1,047)(321)(76)
Total net periodic pension costs (income) recognized in total comprehensive income, pre-tax
$(1,079)$(280)$2 
Weighted average assumptions used to determine net periodic pension cost:
Discount rate2.94 %3.45 %4.43 %
Expected long-term rate of return on plan assets6.70 6.90 7.00 
Assumed long-term rate of annual compensation increases4.50 4.50 4.50 
Weighted average assumptions used to determine net periodic pension cost for SunTrust plans prior to being combined:
Discount rateNANA3.22 %
Expected long-term rate of return on plan assetsNANA6.90 

The weighted average expected long-term rate of return on plan assets represents the average rate of return expected to be earned on plan assets over the period the benefits included in the benefit obligation are to be paid. In developing the expected rate of return, Truist considers long-term compound annualized returns of historical market data for each asset category, as well as historical actual returns on the plan assets. Using this reference information, the Company develops forward-looking return expectations for each asset category and a weighted average expected long-term rate of return for the plan based on target asset allocations contained in the Company’s Investment Policy Statement. For 2022, the expected rate of return on plan assets is 6.5%.

Activity in the projected benefit obligation is presented in the following table:
Year Ended December 31,
(Dollars in millions)
Qualified PlanNonqualified Plans
2021202020212020
Projected benefit obligation, January 1$10,277 $8,819 $661 $557 
Service cost573 479 39 39 
Interest cost300 294 20 19 
Actuarial (gain) loss(371)985 40 68 
Benefits paid(318)(300)(20)(22)
Projected benefit obligation, December 31$10,461 $10,277 $740 $661 
Accumulated benefit obligation, December 31$9,231 $9,044 $578 $503 
Weighted average assumptions used to determine projected benefit obligations:
Weighted average assumed discount rate3.18 %2.94 %3.18 %2.94 %
Assumed rate of annual compensation increases (1)4.50 3.50 4.50 3.50 
(1)The 2020 projected benefit obligation assumed a rate for qualified and nonqualified plans of 3.50% in 2021 and 4.50% thereafter.
For the qualified plan, the 2021 actuarial gains are primarily due to an increase in the assumed discount rate, net of the impact of actual plan experience, while the 2020 actuarial losses are primarily due to a decrease in the assumed discount rate, certain mortality updates, and the impact of actual plan experience. For the nonqualified plans, the 2021 loss is primarily due to the impact of actual plan experience, net of the increase in assumed discount rate. The 2020 actuarial loss was due to a decrease in the assumed discount rate and the impact of plan experience.

Activity in plan assets is presented in the following table:
Year Ended December 31,
(Dollars in millions)
Qualified PlanNonqualified Plans
2021202020212020
Fair value of plan assets, January 1$14,635 $12,398 $— $— 
Actual return on plan assets1,679 2,164 — — 
Employer contributions403 373 20 22 
Benefits paid(318)(300)(20)(22)
Fair value of plan assets, December 31$16,399 $14,635 $— $— 
Funded status, December 31$5,938 $4,358 $(740)$(661)

The following are the pre-tax amounts recognized in AOCI:
December 31,
(Dollars in millions)		Qualified PlanNonqualified Plans
2021202020212020
Prior service credit (cost)$(65)$(90)$58 $77 
Net actuarial gain (loss)194 (858)(274)(263)
Net amount recognized$129 $(948)$(216)$(186)

The following table presents the amount expected to be amortized from AOCI into net periodic pension cost during 2022:
(Dollars in millions)Qualified PlanNonqualified Plans
Net actuarial loss$— $(29)
Prior service credit (cost)(25)19 
Net amount expected to be amortized$(25)$(10)

Truist makes contributions to the qualified pension plan in amounts between the minimum required for funding and the maximum amount deductible for federal income tax purposes. Truist made discretionary contributions of $351 million during the first quarter of 2022. Management may make additional contributions in 2022. For the nonqualified plans, employer contributions are based on benefit payments.

The following table reflects the estimated benefit payments for the periods presented:
(Dollars in millions)Qualified PlanNonqualified Plans
2022$391 $25 
2023355 33 
2024364 28 
2025381 30 
2026398 32 
2027-20312,270 182 

The Company’s primary total return objective is to achieve returns that, over the long term, will fund retirement liabilities and provide for the desired plan benefits in a manner that satisfies the fiduciary requirements of the ERISA. The plan assets have a long-term time horizon that runs concurrent with the average life expectancy of the participants. As such, the Plan can assume a time horizon that extends well beyond a full market cycle, and can assume an above-average level of risk, as measured by the standard deviation of annual return. The investments are broadly diversified among economic sector, industry, quality, and size in order to reduce risk and to produce incremental return. Within approved guidelines and restrictions, investment managers have wide discretion over the timing and selection of individual investments.
Truist periodically reviews its asset allocation and investment policy and makes changes to its target asset allocation. During 2021, Truist revised its target allocation to decrease the allocation to equity securities and increase the allocation to fixed income securities based on consideration of the plan’s long term investment objectives and funding status. Truist has established guidelines within each asset category to ensure the appropriate balance of risk and reward. The following table presents the fair values of the qualified pension plan assets by asset category:
December 31,
(Dollars in millions)
Target Allocation20212020
MinMaxTotalLevel 1Level 2TotalLevel 1Level 2
Cash and cash-equivalents$212 $212 $— $290 $290 $— 
U.S. equity securities (1)23 %33 %5,452 2,744 2,708 6,424 3,368 3,056 
International equity securities7 17 2,378 260 2,118 2,281 360 1,921 
Fixed income securities45 55 7,782 — 7,782 5,357 — 5,357 
Total$15,824 $3,216 $12,608 $14,352 $4,018 $10,334 
(1)The plan may hold up to 10% of its assets in Truist common stock.

International equity securities include certain pooled investment vehicles, such as a common/commingled fund, which consist of assets from several investors, pooled together, to reduce management and administration costs. At December 31, 2021 and 2020, investments totaling $513 million and $280 million, respectively, have been excluded from the table above as valued based on net asset value as a practical expedient. Certain collective investment trusts and similar pooled investment vehicles in the table above have been reclassified as level 2 as these investments have readily determinable fair values, with net asset value made available to the plan daily or monthly as the basis for current transactions. Prior periods were revised consistent with the current presentation.

Defined Contribution Plans

Truist offers a 401(k) Savings Plan and other defined contribution plans that permit teammates to contribute up to 50% of cash compensation. For full-time teammates who are 21 years of age or older with one year or more of service, Truist makes matching contributions of up to 6% of the employee's compensation. The Company’s contribution expense for the 401(k) Savings Plan and nonqualified defined contribution plans totaled $272 million, $272 million and $152 million for the years ended December 31, 2021, 2020 and 2019, respectively. Certain teammates of subsidiaries participate in the 401(k) Savings Plan with different matching formulas. The Company’s defined contribution plans obtained through the Merger were combined during 2020.

Equity-Based Compensation Plans

At December 31, 2021, RSAs, RSUs, and PSUs were outstanding from equity-based compensation plans that have been approved by shareholders and plans assumed from acquired entities. Those plans are intended to assist the Company in recruiting and retaining teammates, directors, and independent contractors and to align the interests of eligible participants with those of Truist and its shareholders.

The majority of outstanding awards and awards available to be issued relate to plans that allow for accelerated vesting of awards for holders who retire and have met all retirement eligibility requirements or in connection with certain other events. Until vested, certain of these awards are subject to forfeiture under specified circumstances. The fair value of RSUs and PSUs is based on the common stock price on the grant date less the present value of expected dividends that will be foregone during the vesting period. Substantially all awards are granted in February of each year. Grants to non-executive teammates primarily consist of RSUs.

The following table provides a summary of the equity-based compensation plans:
December 31, 2021
Shares available for future grants (in thousands)13,146 
Vesting period, minimum1.0 year
Vesting period, maximum5.0 years

The following table presents a summary of selected data related to equity-based compensation costs:
As of / For the Year Ended December 31,
(Dollars in millions)
202120202019
Equity-based compensation expense$320 $353 $165 
Income tax benefit from equity-based compensation expense75 84 38 
Intrinsic value of options exercised, and RSUs and PSUs that vested during the year474 412 216 
Grant date fair value of equity-based awards that vested during the year395 420 134 
Unrecognized compensation cost related to equity-based awards254 234 274 
Weighted-average life over which compensation cost is expected to be recognized2.5 years2.3 years2.3 years
The following table presents the activity related to awards of RSUs, PSUs and restricted shares:
(Shares in thousands)Units/SharesWtd. Avg. Grant Date Fair Value
Nonvested at January 1, 202118,088 $47.93 
Granted7,556 53.12 
Vested(7,554)52.36 
Forfeited(1,029)51.41 
Nonvested at December 31, 202117,061 50.01 

Other Benefits

There are various other employment contracts, deferred compensation arrangements and non-compete covenants with selected members of management and certain retirees. These plans and their obligations are not material to the financial statements.