Quarterly report pursuant to Section 13 or 15(d)

Employee Benefit Plans

v2.4.0.8
Employee Benefit Plans
 6 Months Ended
Jun. 30, 2013
Pension and Other Postretirement Benefit Expense [Abstract]  
Employee Benefit Plans
Note 15.
Employee Benefit Plans

Merrill Lynch provides pension and other postretirement benefits to its employees worldwide through sponsorship of defined contribution pension, defined benefit pension and other postretirement plans. These plans vary based on the country and local practices. The Bank of America Corporation Corporate Benefits Committee has overall responsibility for the administration of all of Merrill Lynch's employee benefit plans. Merrill Lynch continues as the plan sponsor. See Note 15 to the Consolidated Financial Statements contained in the 2012 Annual Report for a complete discussion of employee benefit plans.
Defined Benefit Pension Plans

Merrill Lynch previously purchased an annuity contract that guarantees the payment of benefits vested under a U.S. defined benefit pension plan that was terminated (the “U.S. terminated pension plan”) in accordance with the applicable provisions of ERISA. 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 six months ended June 30, 2013 and 2012. Contributions may be required in the future under this agreement.

The net periodic benefit (income) cost of the U.S. defined benefit pension plans, non-U.S. defined benefit pension plans and postretirement plans sponsored by Merrill Lynch for the three and six months ended June 30, 2013 and 2012 included the following components:

(dollars in millions)
 
 
 
 
 
Three Months Ended June 30, 2013
 
Six Months Ended June 30, 2013
 
U.S. Defined
Benefit
Pension Plans
Non-U.S. Defined
Benefit
Pension Plans
Postretirement
Plans(1)
 
U.S. Defined
Benefit
Pension Plans
Non-U.S. Defined
Benefit
Pension Plans
Postretirement
Plans(1)
Service cost
$
—

$
8

$
1

 
$
—

$
16

$
2

Interest cost
19

21

2

 
39

43

5

Expected return on plan assets
(27
)
(27
)
—

 
(55
)
(55
)
—

Amortization of prior service cost
—

—

1

 
—

—

2

Amortization of net actuarial losses (gains)
3

—

(1
)
 
6

1

(2
)
Recognized gain due to settlements and curtailments
—

—

—

 
—

(7
)
—

Net periodic benefit (income) cost
$
(5
)
$
2

$
3

 
$
(10
)
$
(2
)
$
7

(1)Approximately 93% of the postretirement benefit obligation at June 30, 2013 relates to the U.S. postretirement plan.

 
 
 
 
 
 
 
 
(dollars in millions)
 
 
 
 
 
Three Months Ended June 30, 2012
 
Six Months Ended June 30, 2012
 
U.S. Defined
Benefit
Pension Plans
Non-U.S. Defined
Benefit
Pension Plans
Postretirement
Plans(1)
 
U.S. Defined
Benefit
Pension Plans
Non-U.S. Defined
Benefit
Pension Plans
Postretirement
Plans(1)
Service cost
$
—

$
10

$
1

 
$
—

$
19

$
2

Interest cost
23

21

4

 
45

41

8

Expected return on plan assets
(38
)
(32
)
—

 
(76
)
(62
)
—

Amortization of prior service cost
—

—

1

 
—

—

2

Amortization of net actuarial (gains) losses
—

(2
)
2

 
1

(4
)
4

Net periodic benefit (income)cost
$
(15
)
$
(3
)
$
8

 
$
(30
)
$
(6
)
$
16

(1)Approximately 96% of the postretirement benefit obligation at June 30, 2012 relates to the U.S. postretirement plan.

For the full year 2013, Merrill Lynch expects to contribute approximately $1 million to its nonqualified pension plans, $96 million to its non-U.S. pension plans, and $19 million to its postretirement health and life plans. Through the second quarter of 2013, Merrill Lynch has contributed $64 million to the non-U.S. pension plans and $10 million to its postretirement health and life plans.