Quarterly report pursuant to Section 13 or 15(d)

Pension and Postretirement plans

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Pension and Postretirement plans
 6 Months Ended
Jun. 30, 2011
Pension and Postretirement plans [Abstract]  
Pension and Postretirement plans
NOTE 15 – Pension and Postretirement Plans
     The Corporation sponsors noncontributory trusteed pension plans that cover substantially all officers and employees, a number of noncontributory nonqualified pension plans, and postretirement health and life plans. Additional information on these plans is presented in Note 19 – Employee Benefit Plans to the Consolidated Financial Statements of the Corporation’s 2010 Annual Report on Form 10-K.
     As a result of the Merrill Lynch acquisition, the Corporation assumed the obligations related to the plans of Merrill Lynch. These plans include a terminated U.S. pension plan, non-U.S. pension plans, nonqualified pension plans and postretirement plans. The non-U.S. pension plans vary based on the country and local practices. In 1988, Merrill Lynch purchased a group annuity contract that guarantees the payment of benefits vested under the terminated U.S. pension plan. The Corporation, under a supplemental agreement, may be responsible for, or benefit from actual experience and investment performance of the annuity assets. The Corporation made no contributions for the six months ended June 30, 2011 and 2010, under this agreement. Contributions may be required in the future under this agreement.
     Net periodic benefit cost of the Corporation’s plans for the three and six months ended June 30, 2011 and 2010 included the following components.
                                 
    Three Months Ended June 30, 2011
                    Nonqualified and   Postretirement
    Qualified Pension   Non-U.S. Pension   Other Pension   Health and Life
(Dollars in millions)
  Plans   Plans   Plans (1)   Plans
 
Components of net periodic benefit cost
                               
Service cost
  $ 104     $ 10     $ 1     $ 3  
Interest cost
    185       23       37       19  
Expected return on plan assets
    (324 )     (27 )     (35 )     (2 )
Amortization of transition obligation
    -       -       -       8  
Amortization of prior service cost (credits)
    4       -       (2 )     -  
Amortization of net actuarial loss (gain)
    93       -       3       (10 )
Recognized termination and settlement benefit cost
    -       -       3       -  
 
Net periodic benefit cost
  $ 62     $ 6     $ 7     $ 18  
 
 
                               
    Six Months Ended June 30, 2011
Components of net periodic benefit cost
                               
Service cost
  $ 212     $ 21     $ 1     $ 7  
Interest cost
    373       48       76       40  
Expected return on plan assets
    (649 )     (56 )     (70 )     (4 )
Amortization of transition obligation
    -       -       -       16  
Amortization of prior service cost (credits)
    10       -       (4 )     2  
Amortization of net actuarial loss (gain)
    194       -       8       (9 )
Recognized termination and settlement benefit cost
    -       -       3       -  
 
Net periodic benefit cost
  $ 140     $ 13     $ 14     $ 52  
 
 
                               
    Three Months Ended June 30, 2010
Components of net periodic benefit cost
                               
Service cost
  $ 95     $ 7     $ 1     $ 3  
Interest cost
    187       20       44       23  
Expected return on plan assets
    (315 )     (23 )     (34 )     (3 )
Amortization of transition obligation
    -       -       -       8  
Amortization of prior service cost (credits)
    7       -       (2 )     3  
Amortization of net actuarial loss (gain)
    92       -       3       (17 )
Recognized termination and settlement benefit cost
    -       -       3       -  
 
Net periodic benefit cost
  $ 66     $ 4     $ 15     $ 17  
 
 
                               
    Six Months Ended June 30, 2010
Components of net periodic benefit cost
                               
Service cost
  $ 198     $ 14     $ 2     $ 7  
Interest cost
    374       40       85       45  
Expected return on plan assets
    (631 )     (45 )     (69 )     (5 )
Amortization of transition obligation
    -       -       -       16  
Amortization of prior service cost (credits)
    14       -       (4 )     3  
Amortization of net actuarial loss (gain)
    181       -       3       (25 )
Recognized termination and settlement benefit cost
    -       -       13       -  
 
Net periodic benefit cost
  $ 136     $ 9     $ 30     $ 41  
 
(1)  
Includes nonqualified pension plans and the terminated Merrill Lynch U.S. pension plan.
     In 2011, the Corporation expects to contribute approximately $101 million to its non-U.S. pension plans, $103 million to its nonqualified and other pension plans and $121 million to its postretirement health and life plans. For the six months ended June 30, 2011, the Corporation contributed $79 million, $66 million and $61 million, respectively, to these plans. The Corporation does not expect to be required to contribute to its qualified pension plans during 2011.