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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Benefit Plans
NOTE 15—EMPLOYEE BENEFIT PLANS
Defined Contribution Plan
We sponsor a contributory Associate Savings Plan (the “Plan”) in which all full-time and part-time associates over the age of 18 are eligible to participate. We make non-elective contributions to each eligible associate’s account and match a portion of associate contributions. We also sponsor a voluntary non-qualified deferred compensation plan in which select groups of employees are eligible to participate. We make contributions to this plan based on participants’ deferral of salary, bonuses and other eligible pay. In addition, we match participants’ excess compensation (compensation over the Internal Revenue Service (“IRS”) compensation limit) less deferrals. As a result of the Transaction, we assumed Discover's qualified 401(k) plan in which eligible U.S. associates may participate. We make fixed contributions to eligible participants’ accounts and match a portion of participants’ contributions. In addition, we contribute a fixed contribution to eligible employees. We contributed $580 million during the year ended December 31, 2025 and $492 million during the years ended December 31, 2024 and 2023 to these plans.
Defined Benefit Pension and Other Postretirement Benefit Plans
We sponsor several frozen plans, including a qualified defined benefit pension plan (“Capital One Pension”), several non-qualified defined benefit pension plans, and a plan that provides other postretirement benefits, including medical and life insurance coverage. As a result of the Transaction, we assumed Discover’s qualified non-contributory defined benefit pension plan (the “Discover Pension Plan”). The Discover Pension Plan generally provides retirement benefits that are based on each participant’s years of credited service prior to 2009 and on compensation specified in the Discover Pension Plan. Effective December 31, 2008, the Discover Pension Plan was amended to discontinue the accrual of future benefits. As of the Closing Date, the accumulated benefit obligation assumed from the Discover Pension Plan was $478 million with acquired plan assets of $484 million.
As of December 31, 2025 and 2024, accumulated benefit obligation for our defined benefit pension plans and other postretirement benefit plan was $501 million and $127 million, respectively. Our pension plans and the other postretirement benefit plan are valued using December 31 as the measurement date each year. Our policy is to amortize prior service amounts on a straight-line basis over the average remaining years of service to full eligibility for benefits of active plan participants.
We invest using a total return investment approach whereby a mix of equity securities and debt securities are used to preserve asset values, diversify risk and enhance our ability to achieve our benchmark for long-term investment return. Investment strategies and asset allocations are based on careful consideration of plan liabilities, the plan’s funded status and our financial condition. Investment performance and asset allocation are measured and monitored on a daily basis. Our plan assets were classified as Level 2 in the fair value hierarchy as of December 31, 2025 and 2024. For information on fair value measurements, including descriptions of Level 1, 2 and 3 of the fair value hierarchy, see “Note 17—Fair Value Measurement.” Fair value of plan assets for these plans was $637 million and $247 million as of December 31, 2025 and 2024, respectively.
We recognize the funded status of our defined benefit pension plans and other postretirement benefit plans. As of December 31, 2025 and 2024, other assets included $147 million and $131 million related to overfunded pension plans and other liabilities included $10 million and $11 million related to these plans, respectively. As of December 31, 2025, the benefits expected to be paid in the next ten years totaled $316 million for the Discover Pension Plan.
Capital One Pension Termination
We are currently in the process of terminating the Capital One Pension and certain other postretirement benefits coverage. A Notice of Intent to Terminate (“NOIT”) the Capital One Pension was distributed to its participants on January 21, 2025 and a request for qualified status determination was filed with the IRS on February 13, 2025. The Capital One Pension Amendment to Terminate was executed on March 31, 2025. A Notice of Single-Employer Plan Termination was filed with the Pension Benefit Guaranty Corporation on June 16, 2025. In 2025, lump sum payments were distributed and annuity contracts were purchased by an independent insurance company for the remaining benefit obligation. Termination activities are expected to continue through the first quarter of 2026.
During the year ended December 31, 2025, the termination resulted in a $37 million loss that is included in our consolidated statements of income as a component of other non-interest expense.