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v3.23.3

Employee Benefits | 9 Months Ended
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Sep. 30, 2023
Retirement Benefits [Abstract] |
Employee Benefits | Employee Benefits The following table provides the components of the net periodic (benefit) cost recognized in the Condensed Consolidated Statements of Income for Aon’s significant U.K., U.S., and other major pension plans, which are located in the Netherlands and Canada. Service cost is reported in Compensation and benefits and all other components are reported in Other income (expense) as follows (in millions):
| Three Months Ended September 30,
| U.K. |  | U.S. |  | Other
| 2023 |  | 2022 |  | 2023 |  | 2022 |  | 2023 |  | 2022
Service cost | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest cost | 38 |  |  | 20 |  |  | 26 |  |  | 17 |  |  | 10 |  |  | 5 |
Expected return on plan assets, net of administration expenses | (49) |  |  | (32) |  |  | (29) |  |  | (27) |  |  | (12) |  |  | (8) |
Amortization of prior-service cost | 1 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |
Amortization of net actuarial loss | 19 |  |  | 7 |  |  | 8 |  |  | 17 |  |  | 3 |  |  | 3 |
Net periodic (benefit) cost | 9 |  |  | (4) |  |  | 5 |  |  | 7 |  |  | 1 |  |  | — |
Loss on pension settlement | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total net periodic (benefit) cost | $ | 9 |  |  | $ | (4) |  |  | $ | 5 |  |  | $ | 7 |  |  | $ | 1 |  |  | $ | — |
| Nine Months Ended September 30,
| U.K. |  | U.S. |  | Other
| 2023 |  | 2022 |  | 2023 |  | 2022 |  | 2023 |  | 2022
Service cost | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest cost | 110 |  |  | 64 |  |  | 78 |  |  | 51 |  |  | 30 |  |  | 14 |
Expected return on plan assets, net of administration expenses | (143) |  |  | (102) |  |  | (89) |  |  | (81) |  |  | (36) |  |  | (25) |
Amortization of prior-service cost | 2 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |
Amortization of net actuarial loss | 56 |  |  | 22 |  |  | 25 |  |  | 50 |  |  | 10 |  |  | 10 |
Net periodic (benefit) cost | 25 |  |  | (14) |  |  | 14 |  |  | 20 |  |  | 4 |  |  | (1) |
Loss on pension settlement | — |  |  | — |  |  | — |  |  | 1 |  |  | 27 |  |  | — |
Total net periodic (benefit) cost | $ | 25 |  |  | $ | (14) |  |  | $ | 14 |  |  | $ | 21 |  |  | $ | 31 |  |  | $ | (1) |
In May 2023, to further its pension de-risking strategy, the Company settled certain pension obligations in the Netherlands through the purchase of annuities, where certain pension assets were liquidated to purchase the annuities. A non-cash settlement charge totaling $27 million was recognized in the second quarter of 2023. In the first quarter of 2022, the Company recognized a non-cash settlement charge of approximately $1 million. Settlements from a certain U.S. pension plan exceeded the plan’s service and interest cost. This triggered settlement accounting which required the immediate recognition of a portion of the accumulated losses associated with the plan. Contributions Assuming no additional contributions are agreed to with, or required by, the pension plan trustees, the Company expects to make total cash contributions of approximately $4 million, $43 million, and $14 million (at December 31, 2022 exchange rates) to its significant U.K., U.S., and other major pension plans, respectively, during 2023. The following table summarizes contributions made to the Company’s significant pension plans (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Contributions to U.K. pension plans | $ | 1 |  |  | $ | 1 |  |  | $ | 3 |  |  | $ | 6 |
Contributions to U.S. pension plans | 6 |  |  | 7 |  |  | 27 |  |  | 32 |
Contributions to other major pension plans | 2 |  |  | 2 |  |  | 10 |  |  | 12 |
Total contributions | $ | 9 |  |  | $ | 10 |  |  | $ | 40 |  |  | $ | 50 |

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