Decrease in net periodic benefit cost

  
We expect 2022 net periodic benefit income for principal pension, other pension and principal retiree benefit plans to be about $40 million, which is a decrease of approximately $2,420 million in costs from 2021. The decrease is primarily due to expiration of the period over which some large losses from earlier years were being amortized and lower overall amortization of net actuarial losses as a result of actuarial and investment gains during 2021. The components of net periodic benefit costs, other than the service cost component, are included in Non-operating benefit costs in our Statement of Earnings (Loss).

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| PLAN FUNDED STATUS AND AMOUNTS RECORDED IN ACCUMULATED OTHER COMPREHENSIVE LOSS (INCOME) |
|  | 2021 |  | 2020 |  |
|  | Principal pension  |  | Other pension  |  | Principal retiree benefit  |  | Principal pension  |  | Other pension  |  | Principal retiree benefit  |  |
| Change in benefit obligations |  |  |  |  |  |  |  |  |  |  |  |  |
| Balance at January 1 | $ | 76,298  |  |  | $ | 24,658  |  |  | $ | 5,019  |  |  | $ | 71,756  |  |  | $ | 22,921  |  |  | $ | 5,160  |  |  |
| Service cost | 237  |  |  | 233  |  |  | 44  |  |  | 657  |  |  | 243  |  |  | 59  |  |  |
| Interest cost | 1,951  |  |  | 383  |  |  | 103  |  |  | 2,350  |  |  | 422  |  |  | 150  |  |  |
| Participant contributions | 15  |  |  | 24  |  |  | 60  |  |  | 69  |  |  | 28  |  |  | 63  |  |  |
| Plan amendments | —  |  |  | (1) |  |  | —  |  |  | —  |  |  | 27  |  |  | (7) |  |  |
| Actuarial loss (gain) - net | (2,448) |  | (a) | (1,561) |  | (a) | (446) |  |  | 7,057  |  | (a) | 1,927  |  | (a) | 85  |  |  |
| Benefits paid | (3,754) |  |  | (998) |  |  | (472) |  |  | (3,885) |  |  | (1,062) |  |  | (491) |  |    |
| Curtailments | —  |  |  | (74) |  |  | —  |  |  | —  |  |  | (69) |  |  | —  |  |  |
| Settlements | —  |  |  | —  |  |  | —  |  |  | (1,706) |  | (b) | —  |  |  | —  |  |  |
| Dispositions/ acquisitions / other - net | —  |  |  | (188) |  |  | —  |  |  | —  |  |  | (335) |  |  | —  |  |    |
| Exchange rate adjustments | —  |  |  | (220) |  |  | —  |  |  | —  |  |  | 556  |  |  | —  |  |    |
| Balance at December 31 | $ | 72,299  |  | (c) | $ | 22,256  |  |  | $ | 4,308  |  | (d) | $ | 76,298  |  | (c) | $ | 24,658  |  |  | $ | 5,019  |  | (d) |
| Change in plan assets |  |  |  |  |  |  |  |  |  |  |  |  |
| Balance at January 1 | 58,843  |  |  | 21,506  |  |  | 134  |  |  | 52,633  |  |  | 19,142  |  |  | 289  |  |  |
| Actual gain (loss) on plan assets | 5,559  |  |  | 1,602  |  |  | 41  |  |  | 8,926  |  |  | 2,542  |  |  | (22) |  |  |
| Employer contributions | 327  |  |  | 594  |  |  | 279  |  |  | 2,806  |  |  | 509  |  |  | 295  |  |  |
| Participant contributions | 15  |  |  | 24  |  |  | 60  |  |  | 69  |  |  | 28  |  |  | 63  |  |  |
| Benefits paid | (3,754) |  |  | (998) |  |  | (472) |  |  | (3,885) |  |  | (1,062) |  |  | (491) |  |  |
| Settlements | —  |  |  | —  |  |  | —  |  |  | (1,706) |  | (b) | —  |  |  | —  |  |  |
| Dispositions/ acquisitions / other - net | —  |  |  | (138) |  |  | —  |  |  | —  |  |  | (59) |  |  | —  |  |  |
| Exchange rate adjustments | —  |  |  | (100) |  |  | —  |  |  | —  |  |  | 406  |  |  | —  |  |  |
| Balance at December 31 | $ | 60,990  |  |  | $ | 22,490  |  |  | $ | 42  |  |  | $ | 58,843  |  |  | $ | 21,506  |  |  | $ | 134  |  |  |
| Funded status - surplus (deficit) | $ | (11,309) |  |  | $ | 234  |  |  | $ | (4,266) |  |  | $ | (17,455) |  |  | $ | (3,152) |  |  | $ | (4,885) |  |  |
| Amounts recorded inStatement of Financial Position |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-current assets - other | —  |  |  | 2,898 |  | —  |  |  | —  |  |  | 845  |  |  | —  |  |  |
| Current liabilities - other | (337) |  |  | (107) |  | (362) |  |  | (315) |  |  | (106) |  |  | (330) |  |  |
| Non-current liabilities - compensation and benefits | (10,972) |  |  | (2,557) |  |  | (3,904) |  |  | (17,140) |  |  | (3,891) |  |  | (4,555) |  |  |
| Net amount recorded | $ | (11,309) |  |  | $ | 234  |  |  | $ | (4,266) |  |  | $ | (17,455) |  |  | $ | (3,152) |  |  | $ | (4,885) |  |  |
| Amounts recorded in Accumulated other comprehensive loss (income) |  |  |  |  |  |  |  |  |  |  |  |  |
| Prior service cost (credit) | (109) |  |  | (52) |  |  | (1,912) |  |  | (80) |  |  | 19  |  |  | (2,148) |  |  |
| Net loss (gain) | (2,754) |  |  | 2,012 |  | (1,042) |  |  | 5,687  |  |  | 4,582  |  |  | (633) |  |  |
| Total recorded in Accumulated other comprehensive loss (income) | $ | (2,863) |  |  | $ | 1,960  |  |  | $ | (2,954) |  |  | $ | 5,607  |  |  | $ | 4,601  |  |  | $ | (2,781) |  |  |

(a)Principally associated with discount rate changes.(b)Irrevocable commitment to purchase group annuity contracts from a third-party insurance company in December 2020.(c)The benefit obligation for the GE Supplementary Pension Plan, which is an unfunded plan, was $7,226 million and $7,353 million at year-end 2021 and 2020, respectively.(d)The benefit obligation for retiree health plans was $2,548 million and $3,094 million at December 31, 2021 and 2020, respectively.  
ASSUMPTIONS USED IN CALCULATIONS. Our defined benefit pension plans are accounted for on an actuarial basis, which requires the selection of various assumptions, including a discount rate, a compensation assumption, an expected return on assets, mortality rates of participants and expectation of mortality improvement.   
Projected benefit obligations are measured as the present value of expected benefit payments. We discount those cash payments using a discount rate. We determine the discount rate using the weighted-average yields on high-quality fixed-income securities with maturities that correspond to the payment of benefits. Lower discount rates increase present values and generally increase subsequent-year pension expense; higher discount rates decrease present values and generally reduce subsequent-year pension expense.2021 FORM 10-K 68
