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Employee Benefits | 12 Months Ended
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Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract] |
Employee Benefits | Employee Benefits Defined Contribution Savings Plans Aon maintains defined contribution savings plans for the benefit of its U.S., U.K., Netherlands and Canada employees. The expense recognized for these plans is included in Compensation and benefits in the Consolidated Statements of Income, as follows (in millions):
Years ended December 31 | 2015 |  | 2014 |  | 2013
U.S. | $ | 133 |  |  | $ | 123 |  |  | $ | 123 |
U.K. | 42 |  |  | 42 |  |  | 45 |
Netherlands and Canada | 25 |  |  | 30 |  |  | 18 |
| $ | 200 |  |  | $ | 195 |  |  | $ | 186 |
Pension and Other Post-retirement Benefits The Company sponsors defined benefit pension and post-retirement health and welfare plans that provide retirement, medical, and life insurance benefits. The post-retirement healthcare plans are contributory, with retiree contributions adjusted annually, and the life insurance and pension plans are generally noncontributory. The significant U.S., U.K., Netherlands and Canadian pension plans are closed to new entrants. Pension Plans The following tables provide a reconciliation of the changes in the projected benefit obligations and fair value of assets for the years ended December 31, 2015 and 2014 and a statement of the funded status as of December 31, 2015 and 2014, for the material U.K. plans, U.S. plans and other major plans, which are located in the Netherlands and Canada. These plans represent approximately 93% of the Company's projected benefit obligations.
| U.K. |  | U.S. |  | Other
(millions) | 2015 |  | 2014 |  | 2015 |  | 2014 |  | 2015 |  | 2014
Change in projected benefit obligation |  |  |  |  |  |  |  |  |  |  |
At January 1 | $ | 5,529 |  |  | $ | 5,106 |  |  | $ | 3,350 |  |  | $ | 2,744 |  |  | $ | 1,399 |  |  | $ | 1,252 |
Service cost | 1 |  |  | 1 |  |  | — |  |  | 2 |  |  | — |  |  | — |
Interest cost | 198 |  |  | 230 |  |  | 131 |  |  | 129 |  |  | 33 |  |  | 47 |
Participant contributions | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Plan amendment | 27 |  |  | — |  |  | — |  |  | — |  |  | (10 | ) |  | — |
Curtailments | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (16 | )
Plan transfer and acquisitions | (2 | ) |  | — |  |  | (18 | ) |  | 13 |  |  | — |  |  | — |
Actuarial loss (gain) | (83 | ) |  | (211 | ) |  | (25 | ) |  | 265 |  |  | 24 |  |  | (5 | )
Benefit payments | (217 | ) |  | (192 | ) |  | (133 | ) |  | (130 | ) |  | (38 | ) |  | (51 | )
Actual expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2 | )
Change in discount rate | (247 | ) |  | 902 |  |  | (145 | ) |  | 327 |  |  | (66 | ) |  | 324 |
Foreign currency impact | (221 | ) |  | (307 | ) |  | — |  |  | — |  |  | (165 | ) |  | (150 | )
At December 31 | $ | 4,985 |  |  | $ | 5,529 |  |  | $ | 3,160 |  |  | $ | 3,350 |  |  | $ | 1,177 |  |  | $ | 1,399 |
Accumulated benefit obligation at end of year | $ | 4,985 |  |  | $ | 5,529 |  |  | $ | 3,160 |  |  | $ | 3,350 |  |  | $ | 1,135 |  |  | $ | 1,316 |
Change in fair value of plan assets |  |  |  |  |  |  |  |  |  |  |
At January 1 | $ | 6,224 |  |  | $ | 5,398 |  |  | $ | 2,036 |  |  | $ | 1,855 |  |  | $ | 1,161 |  |  | $ | 1,061 |
Actual return on plan assets | 91 |  |  | 1,199 |  |  | (60 | ) |  | 190 |  |  | 8 |  |  | 253 |
Participant contributions | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Employer contributions | 65 |  |  | 166 |  |  | 108 |  |  | 121 |  |  | 21 |  |  | 28 |
Plan transfer and acquisitions | (3 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Benefit payments | (217 | ) |  | (192 | ) |  | (133 | ) |  | (130 | ) |  | (38 | ) |  | (51 | )
Actual Expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2 | )
Foreign currency impact | (257 | ) |  | (347 | ) |  | — |  |  | — |  |  | (133 | ) |  | (128 | )
At December 31 | $ | 5,903 |  |  | $ | 6,224 |  |  | $ | 1,951 |  |  | $ | 2,036 |  |  | $ | 1,019 |  |  | $ | 1,161 |
Market related value at end of year | $ | 5,903 |  |  | $ | 6,224 |  |  | $ | 2,064 |  |  | $ | 1,950 |  |  | $ | 1,019 |  |  | $ | 1,161 |
Amount recognized in Statement of Financial Position at December 31 |  |  |  |  |  |  |  |  |  |  |
Funded status | $ | 918 |  |  | $ | 695 |  |  | $ | (1,209 | ) |  | $ | (1,314 | ) |  | $ | (158 | ) |  | $ | (238 | )
Unrecognized prior-service cost | 46 |  |  | 22 |  |  | 9 |  |  | 11 |  |  | (7 | ) |  | 3 |
Unrecognized loss | 1,465 |  |  | 1,687 |  |  | 1,723 |  |  | 1,737 |  |  | 389 |  |  | 456 |
Net amount recognized | $ | 2,429 |  |  | $ | 2,404 |  |  | $ | 523 |  |  | $ | 434 |  |  | $ | 224 |  |  | $ | 221 |
Amounts recognized in the Consolidated Statements of Financial Position consist of (in millions):
| U.K. |  | U.S. |  | Other
| 2015 |  | 2014 |  | 2015 |  | 2014 |  | 2015 |  | 2014
Prepaid benefit cost (1) | $ | 1,012 |  |  | $ | 918 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Accrued benefit liability (2) | (94 | ) |  | (223 | ) |  | (1,209 | ) |  | (1,314 | ) |  | (158 | ) |  | (238 | )
Accumulated other comprehensive loss | 1,511 |  |  | 1,709 |  |  | 1,732 |  |  | 1,748 |  |  | 382 |  |  | 459 |
Net amount recognized | $ | 2,429 |  |  | $ | 2,404 |  |  | $ | 523 |  |  | $ | 434 |  |  | $ | 224 |  |  | $ | 221 |
(1) | Included in Prepaid pension
(2) | Included in Other current liabilities and Pension, other post retirement, and post employment liabilities
Amounts recognized in Accumulated other comprehensive loss (income) that have not yet been recognized as components of net periodic benefit cost at December 31, 2015 and 2014 consist of (in millions):
| U.K. |  | U.S. |  | Other
| 2015 |  | 2014 |  | 2015 |  | 2014 |  | 2015 |  | 2014
Net loss | $ | 1,465 |  |  | $ | 1,687 |  |  | $ | 1,723 |  |  | $ | 1,737 |  |  | $ | 389 |  |  | $ | 456 |
Prior service cost (income) | 46 |  |  | 22 |  |  | 9 |  |  | 11 |  |  | (7 | ) |  | 3 |
| $ | 1,511 |  |  | $ | 1,709 |  |  | $ | 1,732 |  |  | $ | 1,748 |  |  | $ | 382 |  |  | $ | 459 |
In 2015, U.S. plans with a projected benefit obligation ("PBO") and an accumulated benefit obligation ("ABO") in excess of the fair value of plan assets had a PBO of $3.2 billion, an ABO of $3.2 billion, and plan assets of $2.0 billion. U.K. plans with a PBO in excess of the fair value of plan assets had a PBO of $1.2 billion and plan assets with a fair value of $1.1 billion, and plans with an ABO in excess of the fair value of plan assets had an ABO of $1.2 billion and plan assets with a fair value of $1.1 billion. Other plans with a PBO in excess of the fair value of plan assets had a PBO of $1.2 billion and plan assets with a fair value of $1.0 billion, and plans with an ABO in excess of the fair value of plan assets had an ABO of $1.1 billion and plan assets with a fair value of $1.0 billion. In 2014, U.S. plans with a PBO and an ABO in excess of the fair value of plan assets had a PBO of $3.3 billion, an ABO of $3.3 billion, and plan assets of $2.0 billion. U.K. plans with a PBO in excess of the fair value of plan assets had a PBO of $1.3 billion and plan assets with a fair value of $1.1 billion, and plans with an ABO in excess of the fair value of plan assets had an ABO of $1.3 billion and plan assets with a fair value of $1.1 billion. Other plans with a PBO in excess of the fair value of plan assets had a PBO of $1.4 billion and plan assets with a fair value of $1.2 billion, and plans with an ABO in excess of the fair value of plan assets had an ABO of $1.3 billion and plan assets with a fair value of $1.2 billion. The following table provides the components of net periodic benefit (income) cost for the plans (in millions):
| U.K. |  | U.S. |  | Other
| 2015 |  | 2014 |  | 2013 |  | 2015 |  | 2014 |  | 2013 |  | 2015 |  | 2014 |  | 2013
Service cost | $ | 1 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 7 |  |  | $ | — |  |  | $ | — |  |  | $ | 18 |
Interest cost | 198 |  |  | 230 |  |  | 210 |  |  | 131 |  |  | 129 |  |  | 114 |  |  | 33 |  |  | 47 |  |  | 45 |
Expected return on plan assets, net of administration expenses | (307 | ) |  | (326 | ) |  | (302 | ) |  | (154 | ) |  | (157 | ) |  | (139 | ) |  | (50 | ) |  | (59 | ) |  | (59 | )
Amortization of prior-service cost | 1 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |
Amortization of net actuarial loss | 41 |  |  | 52 |  |  | 49 |  |  | 54 |  |  | 42 |  |  | 52 |  |  | 11 |  |  | 10 |  |  | 23 |
Curtailment gain and other | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2 | ) |  | — |
Net periodic benefit (income) cost | $ | (66 | ) |  | $ | (42 | ) |  | $ | (41 | ) |  | $ | 33 |  |  | $ | 18 |  |  | $ | 34 |  |  | $ | (6 | ) |  | $ | (4 | ) |  | $ | 27 |
Effective December 31, 2015 and for 2016 expense, the Company has elected to utilize a full yield curve approach in the estimation of the service and interest cost components of net periodic pension and post-retirement benefit cost for our major pension and other post-retirement benefit plans by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. In 2015 and prior years, the Company estimated these components of net periodic pension and post-retirement benefit cost by applying a single weighted-average discount rate, derived from the yield curve used to measure the benefit obligation at the beginning of the period. The Company made this change to improve the correlation between projected benefit cash flows and the corresponding yield curve spot rates and to provide a more precise measurement of service and interest costs. This change does not affect the measurement of the projected benefit obligation as the change in the service cost and interest cost is completely offset in the actuarial (gain) loss recorded in other comprehensive income. The Company accounted for this change as a change in estimate and, accordingly, will account for it prospectively. The weighted-average assumptions used to determine benefit obligations are as follows:
| U.K. |  | U.S. |  | Other
| 2015 |  | 2014 |  | 2015 |  | 2014 |  | 2015 |  | 2014
Discount rate | 3.96% |  | 3.70% |  | 3.69-4.43% |  | 3.37-4.08% |  | 2.43-3.96% |  | 2.03-3.91%
Rate of compensation increase | 3.63-4.13% |  | 3.35-4.05% |  | N/A |  | N/A |  | 2.00-3.50% |  | 2.25-3.50%
Underlying price inflation | 1.88% |  | 1.95% |  | N/A |  | N/A |  | 2.00-2.50% |  | 2.00-2.50%
The weighted-average assumptions used to determine the net periodic benefit cost are as follows:
| U.K. |  | U.S. |  | Other
| 2015 |  | 2014 |  | 2013 |  | 2015 |  | 2014 |  | 2013 |  | 2015 |  | 2014 |  | 2013
Discount rate | 3.70% |  | 4.55% |  | 4.45% |  | 3.37 - 4.08% |  | 3.97 - 4.87% |  | 3.73 - 4.05% |  | 2.03 - 3.91% |  | 3.60 - 4.71% |  | 3.25 - 3.89%
Expected return on plan assets, net of administration expenses | 5.09% |  | 6.00% |  | 6.30% |  | 7.96% |  | 8.80% |  | 8.80% |  | 3.99 - 5.21% |  | 4.70 - 6.50% |  | 4.60 - 6.50%
Rate of compensation increase | 3.55 - 4.05% |  | 3.70 - 4.40% |  | 3.25 - 3.85% |  | NA |  | NA |  | N/A |  | 2.25 - 3.50% |  | 2.25 - 3.50% |  | 2.25 - 3.50%
The amounts in Accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost during 2016 are $52 million in the U.S. and $47 million outside the U.S. Expected Return on Plan Assets To determine the expected long-term rate of return on plan assets, the historical performance, investment community forecasts and current market conditions are analyzed to develop expected returns for each asset class used by the plans. The expected returns for each asset class are weighted by the target allocations of the plans. The expected return on plan assets in the U.S. of 7.96% reflects a portfolio that is seeking asset growth through a higher equity allocation while maintaining prudent risk levels. The portfolio contains certain assets that have historically resulted in higher returns and other financial instruments to minimize downside risk. No plan assets are expected to be returned to the Company during 2016. Fair value of plan assets The Company determined the fair value of plan assets through numerous procedures based on the asset class and available information. See Note 15 "Fair Value Measurements and Financial Instruments" for a description of the procedures performed to determine the fair value of the plan assets. The fair values of the Company's U.S. pension plan assets at December 31, 2015 and December 31, 2014, by asset category, are as follows (in millions):
|  |  | Fair Value Measurements Using
Asset Category | Balance at December 31, 2015 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Cash and cash equivalents (1) | $ | 33 |  |  | $ | 33 |  |  | $ | — |  |  | $ | — |
Equity investments: (2) |  |  |  |  |  |  |
Large cap domestic | 299 |  |  | 299 |  |  | — |  |  | — |
Small cap domestic | 88 |  |  | 30 |  |  | 58 |  |  | — |
International | 262 |  |  | 52 |  |  | 210 |  |  | — |
Equity derivatives | 203 |  |  | 170 |  |  | 33 |  |  | — |
Fixed income investments: (3) |  |  |  |  |  |  |
Corporate bonds | 484 |  |  | — |  |  | 148 |  |  | 336 |
Government and agency bonds | 128 |  |  | 52 |  |  | 76 |  |  | — |
Asset-backed securities | — |  |  | — |  |  | — |  |  | — |
Fixed income derivatives | 69 |  |  | 47 |  |  | 22 |  |  | — |
Other investments: |  |  |  |  |  |  |
Alternative investments (4) | 305 |  |  | — |  |  | — |  |  | 305 |
Commodity derivatives (5) | 13 |  |  | — |  |  | 13 |  |  | — |
Real estate and REITS (6) | 67 |  |  | 67 |  |  | — |  |  | — |
Total | $ | 1,951 |  |  | $ | 750 |  |  | $ | 560 |  |  | $ | 641 |
(1) | Consists of cash and institutional short-term investment funds.
(2) | Consists of equity securities, equity derivatives, and pooled equity funds.
(3) | Consists of corporate and government bonds, asset-backed securities, and fixed income derivatives.
(4) | Consists of limited partnerships, private equity and hedge funds.
(5) | Consists of long-dated options and swaps on a commodity index.
(6) | Consists of exchange traded real estate investment trusts ("REITS").
|  |  | Fair Value Measurements Using
Asset Category | Balance at December 31, 2014 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Cash and cash equivalents (1) | $ | 68 |  |  | $ | 68 |  |  | $ | — |  |  | $ | — |
Equity investments: (2) |  |  |  |  |  |  |
Large cap domestic | 329 |  |  | 329 |  |  | — |  |  | — |
Small cap domestic | 85 |  |  | 22 |  |  | 63 |  |  | — |
International | 258 |  |  | 114 |  |  | 144 |  |  | — |
Equity derivatives | 285 |  |  | 209 |  |  | 76 |  |  | — |
Fixed income investments: (3) |  |  |  |  |  |  |
Corporate bonds | 503 |  |  | — |  |  | 151 |  |  | 352 |
Government and agency bonds | 109 |  |  | 29 |  |  | 80 |  |  | — |
Asset-backed securities | 20 |  |  | — |  |  | 20 |  |  | — |
Fixed income derivatives | 49 |  |  | — |  |  | 49 |  |  | — |
Other investments: |  |  |  |  |  |  |
Alternative investments (4) | 272 |  |  | — |  |  | — |  |  | 272 |
Commodity derivatives (5) | (8 | ) |  | — |  |  | (8 | ) |  | — |
Real estate and REITS (6) | 66 |  |  | 66 |  |  | — |  |  | — |
Total | $ | 2,036 |  |  | $ | 837 |  |  | $ | 575 |  |  | $ | 624 |
(1) | Consists of cash and institutional short-term investment funds.
(2) | Consists of equity securities, equity derivatives, and pooled equity funds.
(3) | Consists of corporate and government bonds, asset-backed securities, and fixed income derivatives.
(4) | Consists of limited partnerships, private equity and hedge funds.
(5) | Consists of long-dated options on a commodity index.
(6) | Consists of exchange traded REITS.
The following table presents the changes in the Level 3 fair-value category in the Company's U.S. pension plans for the years ended December 31, 2015 and December 31, 2014 (in millions):
| Fair Value Measurement Using Level 3 Inputs
Balance at January 1, 2014 | $ | 266 |
Actual return on plan assets: |
Relating to assets still held at December 31, 2014 | 32 |
Relating to assets sold during 2014 | 5 |
Purchases, sales and settlements—net | 321 |
Transfer in/(out) of Level 3 | — |
Balance at December 31, 2014 | 624 |
Actual return on plan assets: |
Relating to assets still held at December 31, 2015 | (4 | )
Relating to assets sold during 2015 | (3 | )
Purchases, sales and settlements—net | 24 |
Transfer in/(out) of Level 3 | — |
Balance at December 31, 2015 | $ | 641 |
The fair values of the Company's major U.K. pension plan assets at December 31, 2015 and December 31, 2014, by asset category, are as follows (in millions):
|  |  | Fair Value Measurements Using
| Balance at December 31, 2015 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Cash and cash equivalents | $ | 159 |  |  | $ | 159 |  |  | $ | — |  |  | $ | — |
Equity investments: |  |  |  |  |  |  |
Pooled funds: (1) |  |  |  |  |  |  |
Global | 360 |  |  | 61 |  |  | 299 |  |  | — |
Europe | 17 |  |  | — |  |  | 17 |  |  | — |
Equity securities — global (2) | 133 |  |  | 133 |  |  | — |  |  | — |
Derivatives (2) | 66 |  |  | — |  |  | 66 |  |  | — |
Fixed income investments: |  |  |  |  |  |  |
Pooled funds: (1) |  |  |  |  |  |  |
Fixed income securities | 283 |  |  | — |  |  | 259 |  |  | 24 |
Fixed income securities (3) | 3,145 |  |  | 2,268 |  |  | 877 |  |  | — |
Annuities | 827 |  |  | — |  |  | — |  |  | 827 |
Derivatives (3) | 111 |  |  | — |  |  | 111 |  |  | — |
Other investments: |  |  |  |  |  |  |
Pooled funds: (1) |  |  |  |  |  |  |
Real estate (4) | 65 |  |  | — |  |  | — |  |  | 65 |
Alternative investments (5) | 717 |  |  | — |  |  | 4 |  |  | 713 |
Real estate | 20 |  |  | — |  |  | — |  |  | 20 |
Total | $ | 5,903 |  |  | $ | 2,621 |  |  | $ | 1,633 |  |  | $ | 1,649 |
(1) | Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles.
(2) | Consists of equity securities and equity derivatives.
(3) | Consists of corporate and government bonds and fixed income derivatives.
(4) | Consists of property funds and trusts holding direct real estate investments.
(5) | Consists of limited partnerships, private equity and hedge funds.
|  |  | Fair Value Measurements Using
| Balance at December 31, 2014 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Cash and cash equivalents | $ | 224 |  |  | $ | 224 |  |  | $ | — |  |  | $ | — |
Equity investments: |  |  |  |  |  |  |
Pooled funds: (1) |  |  |  |  |  |  |
Global | 203 |  |  | — |  |  | 203 |  |  | — |
Europe | 16 |  |  | — |  |  | 16 |  |  | — |
Equity securities — global (2) | 127 |  |  | 127 |  |  | — |  |  | — |
Derivatives (2) | — |  |  | — |  |  | — |  |  | — |
Fixed income investments: |  |  |  |  |  |  |
Pooled funds: (1) |  |  |  |  |  |  |
Fixed income securities | 279 |  |  | — |  |  | 279 |  |  | — |
Fixed income securities (3) | 3,292 |  |  | 3,292 |  |  | — |  |  | — |
Annuities | 836 |  |  | — |  |  | — |  |  | 836 |
Derivatives (3) | 233 |  |  | — |  |  | 233 |  |  | — |
Other investments: |  |  |  |  |  |  |
Pooled funds: (1) |  |  |  |  |  |  |
Real estate (4) | 39 |  |  | — |  |  | — |  |  | 39 |
Alternative investments (5) | 968 |  |  | — |  |  | — |  |  | 968 |
Real estate | 7 |  |  | — |  |  | — |  |  | 7 |
Total | $ | 6,224 |  |  | $ | 3,643 |  |  | $ | 731 |  |  | $ | 1,850 |
(1) | Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles.
(2) | Consists of equity securities and equity derivatives.
(3) | Consists of corporate and government bonds and fixed income derivatives.
(4) | Consists of property funds and trusts holding direct real estate investments.
(5) | Consists of limited partnerships, private equity and hedge funds.
The following table presents the changes in the Level 3 fair-value category in the Company's U.K. pension plans for the years ended December 31, 2015 and December 31, 2014 (in millions):
| Fair Value Measurements Using Level 3 Inputs
| Annuities |  | Real Estate |  | Alternative Investments |  | Fixed |  | Total
Balance at January 1, 2014 | $ | 564 |  |  | $ | 23 |  |  | $ | 546 |  |  | $ | — |  |  | $ | 1,133 |
Actual return on plan assets: |  |  |  |  |  |  |  |  |
Relating to assets still held at December 31, 2014 | (13 | ) |  | 3 |  |  | 319 |  |  | — |  |  | 309 |
Relating to assets sold during 2014 | — |  |  | 1 |  |  | 5 |  |  | — |  |  | 6 |
Purchases, sales and settlements—net | 333 |  |  | 21 |  |  | 359 |  |  | — |  |  | 713 |
Transfers in/(out) of Level 3 | — |  |  | — |  |  | (206 | ) |  | — |  |  | (206 | )
Foreign exchange | (48 | ) |  | (2 | ) |  | (55 | ) |  | — |  |  | (105 | )
Balance at December 31, 2014 | 836 |  |  | 46 |  |  | 968 |  |  | — |  |  | 1,850 |
Actual return on plan assets: |  |  |  |  |  |  |  |  |
Relating to assets still held at December 31, 2015 | (32 | ) |  | 11 |  |  | (17 | ) |  | (7 | ) |  | (45 | )
Relating to assets sold during 2015 | — |  |  | (10 | ) |  | 2 |  |  | (1 | ) |  | (9 | )
Purchases, sales and settlements—net | 58 |  |  | 41 |  |  | 60 |  |  | 9 |  |  | 168 |
Transfers in/(out) of Level 3 | — |  |  | — |  |  | (266 | ) |  | 24 |  |  | (242 | )
Foreign exchange | (35 | ) |  | (3 | ) |  | (34 | ) |  | (1 | ) |  | (73 | )
Balance at December 31, 2015 | $ | 827 |  |  | $ | 85 |  |  | $ | 713 |  |  | $ | 24 |  |  | $ | 1,649 |
The fair values of the Company's Other major pension plan assets at December 31, 2015 and December 31, 2014, by asset category, are as follows (in millions):
|  |  | Fair Value Measurements Using
| Balance at December 31, 2015 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Cash and cash equivalents | $ | 11 |  |  | $ | 11 |  |  | $ | — |  |  | $ | — |
Equity investments: |  |  |  |  |  |  |
Pooled funds: (1) |  |  |  |  |  |  |
Global | 270 |  |  | — |  |  | 270 |  |  | — |
North America | 37 |  |  | — |  |  | 37 |  |  | — |
Fixed income investments: |  |  |  |  |  |  |
Pooled funds: (1) |  |  |  |  |  |  |
Fixed income securities | 576 |  |  | — |  |  | 576 |  |  | — |
Derivatives | 12 |  |  | — |  |  | 12 |  |  | — |
Fixed income securities (2) | 30 |  |  | — |  |  | 30 |  |  | — |
Derivatives (2) | 48 |  |  | — |  |  | 48 |  |  | — |
Other investments: |  |  |  |  |  |  |
Pooled funds: (1) |  |  |  |  |  |  |
Commodities | 2 |  |  | — |  |  | 2 |  |  | — |
REITS (3) | 3 |  |  | — |  |  | 3 |  |  | — |
Alternative investments (4) | 9 |  |  | — |  |  | — |  |  | 9 |
Derivatives | 21 |  |  | — |  |  | 21 |  |  | — |
Total | $ | 1,019 |  |  | $ | 11 |  |  | $ | 999 |  |  | $ | 9 |
(1) | Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles.
(2) | Consists of corporate and government bonds and fixed income derivatives.
(3) | Consists of property funds and trusts holding direct real estate investments.
(4) | Consists of limited partnerships, private equity and hedge funds.
|  |  | Fair Value Measurements Using
| Balance at December 31, 2014 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Cash and cash equivalents | $ | 12 |  |  | $ | 12 |  |  | $ | — |  |  | $ | — |
Equity investments: |  |  |  |  |  |  |
Pooled funds: (1) |  |  |  |  |  |  |
Global | 295 |  |  | — |  |  | 295 |  |  | — |
North America | 42 |  |  | — |  |  | 42 |  |  | — |
Fixed income investments: |  |  |  |  |  |  |
Pooled funds: (1) |  |  |  |  |  |  |
Fixed income securities | 629 |  |  | — |  |  | 629 |  |  | — |
Derivatives | 18 |  |  | — |  |  | 18 |  |  | — |
Fixed income securities (2) | 35 |  |  | — |  |  | 35 |  |  | — |
Derivatives (2) | 74 |  |  | — |  |  | 74 |  |  | — |
Other investments: |  |  |  |  |  |  |
Pooled funds: (1) |  |  |  |  |  |  |
Commodities | 21 |  |  | — |  |  | 21 |  |  | — |
REITS (3) | 3 |  |  | — |  |  | 3 |  |  | — |
Alternative investments (4) | 8 |  |  | — |  |  | — |  |  | 8 |
Derivatives | 24 |  |  | — |  |  | 24 |  |  | — |
Total | $ | 1,161 |  |  | $ | 12 |  |  | $ | 1,141 |  |  | $ | 8 |
(1) | Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles.
(2) | Consists of corporate and government bonds and fixed income derivatives.
(3) | Consists of property funds and trusts holding direct real estate investments.
(4) | Consists of limited partnerships, private equity and hedge funds.
The following table presents the changes in the Level 3 fair-value category in the Company's other pension plans for the years ended December 31, 2015 and December 31, 2014 (in millions):
| Fair Value Measurements Using Level 3 Inputs
| Real Estate |  | Alternative Investments |  | Total
Balance at January 1, 2014 | $ | 17 |  |  | $ | 8 |  |  | $ | 25 |
Actual return on plan assets: |  |  |  |  |
Relating to assets still held at December 31, 2014 | — |  |  | 1 |  |  | 1 |
Relating to assets sold during 2014 | — |  |  | — |  |  | — |
Purchases, sales and settlements—net | (17 | ) |  | — |  |  | (17 | )
Transfers in/(out) of Level 3 | — |  |  | — |  |  | — |
Foreign exchange | — |  |  | (1 | ) |  | (1 | )
Balance at December 31, 2014 | — |  |  | 8 |  |  | 8 |
Actual return on plan assets: |  |  |  |  |
Relating to assets still held at December 31, 2015 | — |  |  | 2 |  |  | 2 |
Relating to assets sold during 2015 | — |  |  | — |  |  | — |
Purchases, sales and settlements—net | — |  |  | — |  |  | — |
Transfers in/(out) of Level 3 | — |  |  | — |  |  | — |
Foreign exchange | — |  |  | (1 | ) |  | (1 | )
Balance at December 31, 2015 | $ | — |  |  | $ | 9 |  |  | $ | 9 |
Investment Policy and Strategy The U.S. investment policy, as established by the Aon Retirement Plan Governance and Investment Committee ("RPGIC"), seeks reasonable asset growth at prudent risk levels within target allocations, which are 49% equity investments, 30% fixed income investments, and 21% other investments. Aon believes that plan assets are well-diversified and are of appropriate quality. The investment portfolio asset allocation is reviewed quarterly and re-balanced to be within policy target allocations. The investment policy is reviewed at least annually and revised, as deemed appropriate by the RPGIC. The investment policies for international plans are generally established by the local pension plan trustees and seek to maintain the plans' ability to meet liabilities and to comply with local minimum funding requirements. Plan assets are invested in diversified portfolios that provide adequate levels of return at an acceptable level of risk. The investment policies are reviewed at least annually and revised, as deemed appropriate to ensure that the objectives are being met. At December 31, 2015, the weighted average targeted allocation for the U.K. and non-U.S. plans was 20% for equity investments and 80% for fixed income investments. Cash Flows Contributions Based on current assumptions, in 2016, the Company expects to contribute approximately $79 million, $54 million, and $17 million to its U.K., U.S. and other significant international pension plans, respectively. Estimated Future Benefit Payments Estimated future benefit payments for plans are as follows at December 31, 2015 (in millions):
|  | U.K. |  | U.S. |  | Other
2016 |  | $ | 143 |  |  | $ | 164 |  |  | $ | 38 |
2017 |  | 149 |  |  | 172 |  |  | 39 |
2018 |  | 157 |  |  | 184 |  |  | 40 |
2019 |  | 170 |  |  | 192 |  |  | 41 |
2020 |  | 180 |  |  | 187 |  |  | 42 |
2021 – 2025 |  | 1,048 |  |  | 952 |  |  | 227 |
U.S. and Canadian Other Post-Retirement Benefits The following table provides an overview of the accumulated projected benefit obligation, fair value of plan assets, funded status and net amount recognized as of December 31, 2015 and 2014 for the Company's other significant post-retirement benefit plans located in the U.S. and Canada (in millions):
| 2015 |  | 2014
Accumulated projected benefit obligation | $ | 105 |  |  | $ | 116 |
Fair value of plan assets | 18 |  |  | 19 |
Funded status | (87 | ) |  | (97 | )
Unrecognized prior-service credit | (3 | ) |  | (4 | )
Unrecognized loss | 7 |  |  | 15 |
Net amount recognized | $ | (83 | ) |  | $ | (86 | )
Other information related to the Company's other post-retirement benefit plans are as follows:
| 2015 |  | 2014 |  | 2013
Net periodic benefit cost recognized (millions) | $6 |  | $3 |  | $4
Weighted-average discount rate used to determine future benefit obligations | 3.99-4.33% |  | 3.83 - 4.08 |  | 4.44 - 4.95
Weighted-average discount rate used to determine net periodic benefit costs | 3.83-4.08% |  | 4.44 - 4.95 |  | 3.67 - 4.00
Amounts recognized in Accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2015 are $7 million and $3 million of net loss and prior service credit, respectively. The amount in Accumulated other comprehensive income expected to be recognized as a component of net periodic benefit cost during 2016 is $0.1 million and $0.3 million of net gain and prior service credit, respectively. Based on current assumptions, the Company expects:
• | To contribute $4 million to fund significant other post-retirement benefit plans during 2016.
• | Estimated future benefit payments will be approximately $6 million each year for 2016 through 2020, and $30 million in aggregate for 2021-2025.
The accumulated post-retirement benefit obligation is increased by $6 million and decreased by $5 million by a respective 1% increase or decrease to the assumed healthcare trend rate. The service cost and interest cost components of net periodic benefits cost is increased by $0.6 million and decreased by $0.5 million by a respective 1% increase or decrease to the assumed healthcare trend rate. For most of the participants in the U.S. plan, Aon's liability for future plan cost increases for pre-65 and Medical Supplement plan coverage is limited to 5% per annum. Although the net employer trend rates range from 4% to 9% per year, because of this cap, these plans are effectively limited to 5% per year in the future.

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