Quarterly report pursuant to Section 13 or 15(d)

Employee Benefit Plans

v2.3.0.15
Employee Benefit Plans
 9 Months Ended
Sep. 30, 2011
Employee Benefit Plans [Abstract]  
Employee Benefit Plans
 
Note 15. Employee Benefit Plans
 
Merrill Lynch provides pension and other postretirement benefits to its employees worldwide through defined contribution pension, defined benefit pension and other postretirement plans. These plans vary based on the country and local practices. Effective January 1, 2009, the Bank of America Corporation Corporate Benefits Committee assumed overall responsibility for the administration of all of Merrill Lynch’s employee benefit plans. Merrill Lynch continues as the plan sponsor. Refer to Note 15 to the Consolidated Financial Statements contained in the 2010 Annual Report for a complete discussion of employee benefit plans.
 
Defined Benefit Pension Plans
 
In 1988, Merrill Lynch purchased a group annuity contract that guarantees the payment of benefits vested under the terminated U.S. pension plan. Merrill Lynch, under a supplemental agreement, may be responsible for, or benefit from, actual experience and investment performance of the annuity assets. Merrill Lynch made no contribution under this agreement for the three and nine months ended September 30, 2011 and 2010. Additional contributions may be required in the future under this agreement.
 
The net periodic benefit cost of Merrill Lynch’s plans for the three and nine months ended September 30, 2011 and 2010 included the following components:
 
                                                 
(dollars in millions)
    Three Months Ended September 30, 2011   Nine Months Ended September 30, 2011
        Non-U.S.
 		          Non-U.S.
 		   
    U.S. Defined
 		  Defined
 		      U.S. Defined
 		  Defined
 		   
    Benefit
 		  Benefit
 		      Benefit
 		  Benefit
 		   
    Pension
 		  Pension
 		  Postretirement
 		  Pension
 		  Pension
 		  Postretirement
    Plans   Plans   Plans(1)   Plans   Plans   Plans(1)
 
 
Service cost
  $ -     $ 11     $ 1     $ -     $ 31     $ 3  
Interest cost
    24       23       4       72       63       11  
Expected return on plan assets
    (35 )     (28 )     -       (106 )     (78 )     -  
Amortization of prior service cost
    -       -       1       -       -       3  
Amortization of net actuarial losses
    1       -       1       4       -       3  
                                                 
Net periodic benefit cost
  $ (10 )   $ 6     $ 7     $ (30 )   $ 16     $ 20  
                                                 
 
 
(1) Approximately 95% of the postretirement benefit obligation at September 30, 2011 relates to the U.S. postretirement plan.
 
                                                 
(dollars in millions)
    Three Months Ended September 30, 2010   Nine Months Ended September 30, 2010
        Non-U.S.
 		          Non-U.S.
 		   
    U.S. Defined
 		  Defined
 		      U.S. Defined
 		  Defined
 		   
    Benefit
 		  Benefit
 		      Benefit
 		  Benefit
 		   
    Pension
 		  Pension
 		  Postretirement
 		  Pension
 		  Pension
 		  Postretirement
    Plans   Plans   Plans(1)   Plans   Plans   Plans(1)
 
 
Service cost
  $ -     $ 7     $ 1     $ -     $ 21     $ 3  
Interest cost
    26       20       4       79       60       12  
Expected return on plan assets
    (34 )     (22 )     -       (103 )     (66 )     -  
Amortization of prior service cost
    -       -       2       -       -       5  
Amortization of net actuarial losses
    1       -       1       2       -       3  
                                                 
Net periodic benefit cost
  $ (7 )   $ 5     $ 8     $ (22 )   $ 15     $ 23  
                                                 
 
 
(1) Approximately 96% of the postretirement benefit obligation at September 30, 2010 relates to the U.S. postretirement plan.
 
For the full year 2011, Merrill Lynch expects to contribute approximately $1 million to its nonqualified pension plans, $84 million to its non-U.S. pension plans, and $22 million to its postretirement health and life plans. Through the third quarter of 2011, Merrill Lynch has contributed $77 million to the non-U.S. pension plans and $17 million to its postretirement health and life plans.