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Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2017
Retirement Benefits [Abstract] |
Employee Benefit Plans | Investment and Savings Plan Substantially all U.S. employees of the Company are eligible to participate in The Hartford Investment and Savings Plan under which designated contributions may be invested in a variety of investments, including up to 10% in a fund consisting largely of common stock of The Hartford. The Company's contributions include a non-elective contribution of 2.0% of eligible compensation and a dollar-for-dollar matching contribution of up to 6.0% of eligible compensation contributed by the employee each pay period. The Company also maintains a non-qualified savings plan, The Hartford Excess Savings Plan, with the dollar-for-dollar matching contributions of employee compensation in excess of the amount that can be contributed under the tax-qualified Investment and Savings Plan. An employee's eligible compensation includes overtime and bonuses but for the Investment and Savings Plan and Excess Savings Plan combined, is limited to $1 annually. The total cost to The Hartford for these plans was approximately $113, $115 and $117 for the years ended December 31, 2017, 2016 and 2015, respectively. Additionally, The Hartford has established defined contribution pension plans for certain employees of the Company’s international subsidiaries. The cost to The Hartford for the years ended December 31, 2017, 2016 and 2015 for these plans was immaterial. As of December 31, 2017 and 2016 , Investment and Savings Plan assets totaling $540 and $438, respectively, were invested in the separate accounts of HLIC. Post Retirement Benefit Plans Defined Benefit Pension Plan- The Company maintains The Hartford Retirement Plan for U.S. Employees, a U.S. qualified defined benefit pension plan (the “Plan”) that covers substantially all U.S. employees hired prior to January 1, 2013. The Company also maintains non-qualified pension plans to provide retirement benefits previously accrued that are in excess of Internal Revenue Code limitations. The Plan includes two benefit formulas, both of which are frozen: a final average pay formula (for which all accruals ceased as of December 31, 2008) and a cash balance formula for which benefit accruals ceased as of December 31, 2012, although interest will continue to accrue to existing cash balance formula account balances. Employees who were participants as of December 31, 2012 continue to earn vesting credit with respect to their frozen accrued benefits if they continue to work. The Hartford Excess Pension Plan II, the Company's non-qualified excess pension benefit plan for certain highly compensated employees, is also frozen. Group Retiree Health Plan- The Company provides certain health care and life insurance benefits for eligible retired employees. The Company’s contribution for health care benefits will depend upon the retiree’s date of retirement and years of service. In addition, the plan has a defined dollar cap for certain retirees which limits average Company contributions. The Hartford has prefunded a portion of the health care obligations through a trust fund where such prefunding can be accomplished on a tax effective basis. Beginning January 1, 2017, for retirees 65 and older who were participating in the Retiree PPO Medical Plan, the Company funds the cost of medical and dental health care benefits through contributions to a Health Reimbursement Account and covered individuals can access a variety of insurance plans from a health care exchange. Effective January 1, 2002, Company-subsidized retiree medical, retiree dental and retiree life insurance benefits were eliminated for employees with original hire dates with the Company on or after January 1, 2002. The Company also amended its postretirement medical, dental and life insurance coverage plans to no longer provide subsidized coverage for employees who retired on or after January 1, 2014. Assumptions Pursuant to accounting principles related to the Company’s pension and other postretirement obligations to employees under its various benefit plans, the Company is required to make a significant number of assumptions in order to calculate the related liabilities and expenses each period. The two economic assumptions that have the most impact on pension and other postretirement expense under the defined benefit pension plan and group retiree health plan are the discount rate and the expected long-term rate of return on plan assets. The assumed discount rates and yield curve is based on high-quality fixed income investments consistent with the maturity profile of the expected liability cash flows. Based on all available market and industry information, it was determined that 3.73% and 3.55% were the appropriate discount rates as of December 31, 2017 to calculate the Company’s pension and other postretirement obligations, respectively. The expected long-term rate of return is based on actual compound rates of return earned over various historical time periods. The Company also considers the investment volatility, duration and total returns for various time periods related to the characteristics of the pension obligation, which are influenced by the Company's workforce demographics. In addition, the Company considers long-term market return expectations for an investment mix that generally anticipates 60% fixed income securities and 40% non fixed income securities (global equities, hedge funds and private market alternatives) to derive an expected long-term rate of return. Based upon these analyses, management determined the long-term rate of return assumption to be 6.60% and 6.70% for the years ended December 31, 2017 and 2016, respectively. To determine the Company's 2018 expense, the Company is currently assuming an expected long-term rate of return on plan assets of 6.60%. Weighted Average Assumptions Used in Calculating the Benefit Obligations and the Net Amount Recognized
| Pension Benefits | Other Postretirement Benefits
| For the years ended December 31,
| 2017 | 2016 | 2017 | 2016
Discount rate | 3.73 | % | 4.22 | % | 3.55 | % | 3.97 | %
Weighted Average Assumptions Used in Calculating the Net Periodic Benefit Cost for Pension Plans
| For the years ended December 31,
| 2017 | 2016 | 2015
Discount rate | 4.22 | % | 4.25 | % | 4.00 | %
Expected long-term rate of return on plan assets | 6.60 | % | 6.70 | % | 6.90 | %
Weighted Average Assumptions Used in Calculating the Net Periodic Benefit Cost for Other Postretirement Plans
| For the years ended December 31,
| 2017 | 2016 | 2015
Discount rate | 3.97 | % | 4.00 | % | 3.75 | %
Expected long-term rate of return on plan assets | 6.60 | % | 6.60 | % | 6.90 | %
Assumed Health Care Cost Trend Rates
| For the years ended December 31,
| 2017 | 2016 | 2015
Pre-65 health care cost trend rate | 6.75 | % | 6.90 | % | 7.30 | %
Post-65 health care cost trend rate | N/A |  | N/A |  | 5.50 | %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50 | % | 5.00 | % | 5.00 | %
Year that the rate reaches the ultimate trend rate | 2028 |  | 2024 |  | 2023 |
A one-percentage point change in assumed health care cost trend rates would have an insignificant effect on the amounts reported for other postretirement plans. Obligations and Funded Status The following tables set forth a reconciliation of beginning and ending balances of the benefit obligation and fair value of plan assets, as well as the funded status of the Company's defined benefit pension and postretirement health care and life insurance benefit plans. International plans represent an immaterial percentage of total pension assets, liabilities and expense and, for reporting purposes, are combined with domestic plans. Change in Benefit Obligation
| Pension Benefits | Other Postretirement Benefits
| For the years ended December 31,
| 2017 | 2016 | 2017 | 2016
Benefit obligation — beginning of year | $ | 5,650 |  | $ | 5,734 |  | $ | 272 |  | $ | 301 |
Service cost | 4 |  | 2 |  | — |  | — |
Interest cost | 170 |  | 237 |  | 8 |  | 11 |
Plan participants’ contributions | — |  | — |  | 11 |  | 25 |
Actuarial loss | 139 |  | 9 |  | 5 |  | 4 |
Settlements | (1,647 | ) | — |  | — |  | — |
Plan Amendment | — |  | — |  | — |  | (1 | )
Changes in assumptions | 332 |  | (30 | ) | 10 |  | — |
Benefits and expenses paid | (273 | ) | (303 | ) | (51 | ) | (68 | )
Retiree drug subsidy | — |  | — |  | 1 |  | — |
Foreign exchange adjustment | 1 |  | 1 |  | — |  | — |
Benefit obligation — end of year | $ | 4,376 |  | $ | 5,650 |  | $ | 256 |  | $ | 272 |
Changes in assumptions in 2017 primarily included a $350 increase in the benefit obligation for pension benefits as a result of a decline in the discount rate from 4.22% as of the December 31, 2016 valuation to 3.73% as of the December 31, 2017 valuation. Changes in assumptions in 2016 included a decrease of $51 related to the Company's use of updated mortality rates, partially offset by an increase of $21 related to a reduction in the discount rate. On June 30, 2017, the Company transferred invested assets and cash from plan assets to purchase a group annuity contract that transferred approximately $1.6 billion of the Company's outstanding pension obligations related to certain U.S. retirees, terminated vested participants and beneficiaries. As a result of this transaction, the Company recognized a pre-tax settlement charge of $750. The settlement charge was included in the corporate category for segment reporting. Change in Plan Assets
| Pension Benefits | Other Postretirement Benefits
| For the years ended December 31,
| 2017 | 2016 | 2017 | 2016
Fair value of plan assets — beginning of year | $ | 4,678 |  | $ | 4,430 |  | $ | 138 |  | $ | 162 |
Actual return on plan assets | 549 |  | 250 |  | 11 |  | 9 |
Employer contributions | 280 |  | 301 |  | — |  | — |
Benefits paid [1] | (248 | ) | (279 | ) | (35 | ) | (33 | )
Expenses paid | (21 | ) | (24 | ) | — |  | — |
Settlements | (1,647 | ) | — |  | — |  | — |
Foreign exchange adjustment | 1 |  | — |  | — |  | — |
Fair value of plan assets — end of year | $ | 3,592 |  | $ | 4,678 |  | $ | 114 |  | $ | 138 |
Funded status — end of year | $ | (784 | ) | $ | (972 | ) | $ | (142 | ) | $ | (134 | )
[1] | Other postretirement benefits paid represent non-key employee postretirement medical benefits paid from the Company's prefunded trust fund.
The fair value of assets for pension benefits, and hence the funded status, presented in the table above excludes assets of $144 and $132 as of December 31, 2017 and 2016, respectively, held in rabbi trusts and designated for the non-qualified pension plans. The assets do not qualify as plan assets; however, the assets are available to pay benefits for certain retired, terminated and active participants. Such assets are available to the Company’s general creditors in the event of insolvency. The rabbi trust assets consist of equity and fixed income investments. To the extent the fair value of these rabbi trusts were included in the table above, pension plan assets would have been $3,736 and $4,811 as of December 31, 2017 and 2016, respectively, and the funded status of pension benefits would have been $(640) and $(840) as of December 31, 2017 and 2016, respectively. Defined Benefit Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets
| As of December 31,
| 2017 | 2016
Projected benefit obligation | $ | 4,376 |  | $ | 5,650 |
Accumulated benefit obligation | 4,376 |  | 5,650 |
Fair value of plan assets | 3,592 |  | 4,678 |
As of December 31, 2017 and 2016 , pension and other postretirement benefits plan assets totaling $3.7 billion and $4.8 billion, respectively, were invested in the separate accounts of HLIC. On January 2, 2018, all the invested assets of the defined benefit pension plans and post-retirement benefit plan were transferred to a third party custodian. Amounts Recognized in the Consolidated Balance Sheets
| Pension Benefits | Other Postretirement Benefits
| As of December 31,
| 2017 | 2016 | 2017 | 2016
Other liabilities | $ | 784 |  | $ | 972 |  | $ | 142 |  | $ | 134 |
Components of Net Periodic Benefit Cost (Benefit) and Other Amounts Recognized in Other Comprehensive Income (Loss) As a result of the pension settlement, in 2017, the Company recognized a pre-tax settlement charge of $750 ($488 after-tax) and a reduction to shareholders' equity of $144. In connection with this transaction, the Company made a contribution of $280 in September 2017 to the U.S. qualified pension plan in order to maintain the plan's pre-transaction funded status. Beginning with the first quarter of 2017, the Company adopted the full yield curve approach in the estimation of the interest cost component of net periodic benefit costs for its qualified and non-qualified pension plans and the postretirement benefit plan. The full yield curve approach applies the specific spot rates along the yield curve that are used in its determination of the projected benefit obligation at the beginning of the year. The change has been made to provide a better estimate of the interest cost component of net periodic benefit cost by better aligning projected benefit cash flows with corresponding spot rates on the yield curve rather than using a single weighted average discount rate derived from the yield curve as had been done historically. This change does not affect the measurement of the Company's total benefit obligations as the change in the interest cost in net income is completely offset in the actuarial (gain) loss reported for the period in other comprehensive income. The change reduced the before tax interest cost component of net periodic benefit cost by $32 as of December 31, 2017. The discount rate being used to measure interest cost is 3.58% for the period from January 1, 2017 to June 30, 2017 and 3.37% for the period from July 1, 2017 to December 31, 2017 for the qualified pension plan, 3.55% for the non-qualified pension plan, and 3.13% for the postretirement benefit plan. Under the Company's historical estimation approach, the weighted average discount rate for the interest cost component would have been 4.22% for the period from January 1, 2017 to June 30, 2017 and 3.92% for the period from July 1, 2017 to December 31, 2017 for the qualified pension plan, 4.19% for the non-qualified pension plan and 3.97% for the postretirement benefit plan. The Company accounted for this change as a change in estimate, and accordingly, has recognized the effect prospectively beginning in 2017. Net Periodic Cost (Benefit)
| Pension Benefits | Other Postretirement Benefits
| For the years ended December 31,
| 2017 | 2016 | 2015 | 2017 | 2016 | 2015
Service cost | $ | 4 |  | $ | 2 |  | $ | 2 |  | $ | — |  | $ | — |  | $ | — |
Interest cost | 170 |  | 237 |  | 235 |  | 8 |  | 11 |  | 12 |
Expected return on plan assets | (267 | ) | (311 | ) | (311 | ) | (8 | ) | (10 | ) | (12 | )
Amortization of prior service credit | — |  | — |  | — |  | (7 | ) | (6 | ) | (7 | )
Amortization of actuarial loss | 56 |  | 56 |  | 60 |  | 5 |  | 5 |  | 5 |
Settlements | 750 |  | — |  | — |  | — |  | — |  | — |
Net periodic cost (benefit) | $ | 713 |  | $ | (16 | ) | $ | (14 | ) | $ | (2 | ) | $ | — |  | $ | (2 | )
Amounts Recognized in Other Comprehensive Income (Loss)
| Pension Benefits | Other Postretirement Benefits
| For the years ended December 31,
| 2017 | 2016 | 2017 | 2016
Amortization of actuarial loss | $ | 56 |  | $ | 56 |  | $ | 5 |  | $ | 5 |
Settlement loss | 750 |  | — |  | — |  | — |
Amortization of prior service credit | — |  | — |  | (7 | ) | (6 | )
Net loss arising during the year | (209 | ) | (66 | ) | (12 | ) | (4 | )
Total | $ | 597 |  | $ | (10 | ) | $ | (14 | ) | $ | (5 | )
Amounts in Accumulated Other Comprehensive Income (Loss), Before Tax, not yet Recognized as Components of Net Periodic Benefit Cost
| Pension Benefits | Other Postretirement Benefits
| As of December 31,
| 2017 | 2016 | 2017 | 2016
Net loss | $ | (1,966 | ) | $ | (2,563 | ) | $ | (129 | ) | $ | (122 | )
Prior service credit | — |  | — |  | 78 |  | 85 |
Total | $ | (1,966 | ) | $ | (2,563 | ) | $ | (51 | ) | $ | (37 | )
The pension settlement transaction resulted in an decrease to unrecognized net loss of $750 in 2017. The estimated net loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost during 2018 is $48. The estimated prior service cost for the other postretirement benefit plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost during 2018 is $(7). The estimated net loss for the other postretirement plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2018 is $6. Plan Assets Investment Strategy and Target Allocation The overall investment strategy of the Plan is to maximize total investment returns to provide sufficient funding for present and anticipated future benefit obligations within the constraints of a prudent level of portfolio risk and diversification. With respect to asset management, the oversight responsibility of the Plan rests with The Hartford’s Pension Fund Trust and Investment Committee composed of individuals whose responsibilities include establishing overall objectives and the setting of investment policy; selecting appropriate investment options and ranges; reviewing the asset allocation mix and asset allocation targets on a regular basis; and monitoring performance to determine whether or not the rate of return objectives are being met and that policy and guidelines are being followed. The Company believes that the asset allocation decision will be the single most important factor determining the long-term performance of the Plan. Target Asset Allocation
| Pension Plans | Other Postretirement Plans
| minimum | maximum | minimum | maximum
Equity securities | 5 | % | 35 | % | 15 | % | 45 | %
Fixed income securities | 50 | % | 70 | % | 55 | % | 85 | %
Alternative assets | — | % | 45 | % | — | % | — | %
Divergent market performance among different asset classes may, from time to time, cause the asset allocation to deviate from the desired asset allocation ranges. The asset allocation mix is reviewed on a periodic basis. If it is determined that an asset allocation mix rebalancing is required, future portfolio additions and withdrawals will be used, as necessary, to bring the allocation within tactical ranges. The majority of the Plan assets are invested in Hartford Life Insurance Company separate accounts managed by HIMCO, a wholly-owned subsidiary of the Company. On January 2, 2018, the assets of the plan previously invested in the separate accounts of HLIC were transferred to a third party custodian. The Plan invests in commingled funds and partnerships managed by unaffiliated managers to gain exposure to emerging markets, equity, hedge funds and other alternative investments. These portfolios encompass multiple asset classes reflecting the current needs of the Plan, the investment preferences and risk tolerance of the Plan and the desired degree of diversification. These asset classes include publicly traded equities, bonds and alternative investments and are made up of individual investments in cash and cash equivalents, equity securities, debt securities, asset-backed securities and hedge funds. Hedge fund investments represent a diversified portfolio of partnership investments in a variety of strategies. In addition, the Company uses U.S. Treasury bond futures contracts and U.S. Treasury STRIPS in a duration overlay program to adjust the duration of Plan assets to better match the duration of the benefit obligation. Investment Valuation For further discussion of the valuation of investments, see Note 5 - Fair Value Measurements of Notes to Consolidated Financial Statements. Pension Plan Assets at Fair Value as of December 31, 2017
Asset Category | Level 1 | Level 2 | Level 3 | Total
Short-term investments: | $ | 21 |  | $ | 168 |  | $ | — |  | $ | 189 |
Fixed Income Securities: |  |  |  |
Corporate | — |  | 1,549 |  | 14 |  | 1,563 |
RMBS | — |  | 28 |  | 2 |  | 30 |
U.S. Treasuries | 3 |  | 74 |  | — |  | 77 |
Foreign government | — |  | 16 |  | 1 |  | 17 |
CMBS | — |  | 28 |  | 2 |  | 30 |
Other fixed income [1] | — |  | 97 |  | 2 |  | 99 |
Mortgage Loans | — |  | — |  | 140 |  | 140 |
Equity Securities: |  |  |  |
Large-cap domestic | 595 |  | 89 |  | — |  | 684 |
Mid-cap domestic | 11 |  | — |  | — |  | 11 |
International | 343 |  | — |  | — |  | 343 |
Total pension plan assets at fair value, in the fair value hierarchy [2] | $ | 973 |  | $ | 2,049 |  | $ | 161 |  | $ | 3,183 |
Other Investments, at net asset value [3]: |  |  |  |
Private Market Alternatives | — |  | — |  | — |  | 168 |
Hedge funds | — |  | — |  | — |  | 212 |
Total pension plan assets at fair value. | $ | 973 |  | $ | 2,049 |  | $ | 161 |  | $ | 3,563 |
[1] | Includes ABS, municipal bonds, and CDOs.
[2] | Excludes approximately $1 of investment payables net of investment receivables that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. Also excludes approximately $30 of interest receivable.
[3] | Investments that are measured at net asset value per share or an equivalent and have not been classified in the fair value hierarchy.
Pension Plan Assets at Fair Value as of December 31, 2016
Asset Category | Level 1 | Level 2 | Level 3 | Total
Short-term investments: | $ | 12 |  | $ | 299 |  | $ | — |  | $ | 311 |
Fixed Income Securities: |  |  |  |
Corporate | — |  | 1,469 |  | 13 |  | 1,482 |
RMBS | — |  | 266 |  | 10 |  | 276 |
U.S. Treasuries | 69 |  | 649 |  | 4 |  | 722 |
Foreign government | — |  | 37 |  | 1 |  | 38 |
CMBS | — |  | 131 |  | — |  | 131 |
Other fixed income [1] | — |  | 96 |  | 18 |  | 114 |
Mortgage Loans | — |  | — |  | 121 |  | 121 |
Equity Securities: |  |  |  |
Large-cap domestic | 589 |  | 107 |  | — |  | 696 |
Mid-cap domestic | 23 |  | — |  | — |  | 23 |
International | 300 |  | — |  | — |  | 300 |
Total pension plan assets at fair value, in the fair value hierarchy [2] | $ | 993 |  | $ | 3,054 |  | $ | 167 |  | $ | 4,214 |
Other Investments, at net asset value [3]: |  |  |  |
Private Market Alternatives | — |  | — |  | — |  | 87 |
Hedge funds | — |  | — |  | — |  | 340 |
Total pension plan assets at fair value. | $ | 993 |  | $ | 3,054 |  | $ | 167 |  | $ | 4,641 |
[1] | Includes ABS,municipal bonds, and CDOs.
[2] | Excludes approximately $2 of investment payables net of investment receivables that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. Also excludes approximately $39 of interest receivable.
[3] | Investments that are measured at net asset value per share or an equivalent and have not been classified in the fair value hierarchy.
The tables below provide fair value level 3 roll-forwards for the Pension Plan Assets for which significant unobservable inputs (Level 3) are used in the fair value measurement on a recurring basis. The Plan classifies the fair value of financial instruments within Level 3 if there are no observable markets for the instruments or, in the absence of active markets, if one or more of the significant inputs used to determine fair value are based on the Plan’s own assumptions. Therefore, the gains and losses in the tables below include changes in fair value due to both observable and unobservable factors.
2017 Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Assets | Corporate | RMBS | Foreign government | Mortgage loans | Other [1] | Totals
Fair Value as of January 1, 2017 | $ | 13 |  | $ | 10 |  | $ | 1 |  | $ | 121 |  | $ | 22 |  | $ | 167 |
Realized gains,net | — |  | — |  | — |  | — |  | 2 |  | 2 |
Changes in unrealized gains, net | 2 |  | — |  | — |  | 2 |  | 2 |  | 6 |
Purchases | 11 |  | 1 |  | — |  | 17 |  | 7 |  | 36 |
Settlements | — |  | (5 | ) | — |  | — |  | (1 | ) | (6 | )
Sales | (12 | ) | (4 | ) | — |  | — |  | (19 | ) | (35 | )
Transfers into Level 3 | — |  | — |  | — |  | — |  | 2 |  | 2 |
Transfers out of Level 3 | — |  | — |  | — |  | — |  | (11 | ) | (11 | )
Fair Value as of December 31, 2017 | $ | 14 |  | $ | 2 |  | $ | 1 |  | $ | 140 |  | $ | 4 |  | $ | 161 |
[1] | "Other" includes U.S. Treasuries, Other fixed income and CMBS investments.
During the year ended December 31, 2017, transfers into and (out) of Level 3 are primarily attributable to the appearance of or lack thereof of market observable information and the re-evaluation of the observability of pricing inputs.
2016 Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Assets | Corporate | RMBS | Foreign government | Mortgage loans | Other [1] | Totals
Fair Value as of January 1, 2016 | $ | 19 |  | $ | 24 |  | $ | 5 |  | $ | 54 |  | $ | 5 |  | $ | 107 |
Realized gains,net | — |  | — |  | — |  | — |  | 1 |  | 1 |
Changes in unrealized gains (losses), net | — |  | — |  | — |  | (3 | ) | — |  | (3 | )
Purchases | 15 |  | — |  | — |  | 70 |  | 24 |  | 109 |
Settlements | — |  | (14 | ) | — |  | — |  | (1 | ) | (15 | )
Sales | (10 | ) | — |  | (4 | ) | — |  | (9 | ) | (23 | )
Transfers into Level 3 | — |  | 2 |  | — |  | — |  | 3 |  | 5 |
Transfers out of Level 3 | (11 | ) | (2 | ) | — |  | — |  | (1 | ) | (14 | )
Fair Value as of December 31, 2016 | $ | 13 |  | $ | 10 |  | $ | 1 |  | $ | 121 |  | $ | 22 |  | $ | 167 |
[1]"Other" includes U.S. Treasuries and Other fixed income investments. During the year ended December 31, 2016, transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. There was no Company common stock included in the Plan’s assets as of December 31, 2017 and 2016.
Other Postretirement Plan Assets at Fair Value as of December 31, 2017
Asset Category | Level 1 | Level 2 | Level 3 | Total
Short-term investments | $ | 4 |  | $ | — |  | $ | — |  | $ | 4 |
Fixed Income Securities: |  |  |  |
Corporate | — |  | 25 |  | — |  | 25 |
RMBS | — |  | 17 |  | — |  | 17 |
U.S. Treasuries | 1 |  | 25 |  | — |  | 26 |
Foreign government | — |  | 1 |  | — |  | 1 |
CMBS | — |  | 5 |  | — |  | 5 |
Other fixed income | — |  | 4 |  | 1 |  | 5 |
Equity Securities: |  |  |  |
Large-cap | 30 |  | — |  | — |  | 30 |
Total other postretirement plan assets at fair value [1] | $ | 35 |  | $ | 77 |  | $ | 1 |  | $ | 113 |
[1] | Excludes approximately $0 of investment payables net of investment receivables that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. Also excludes approximately $1 of interest receivable.
Other Postretirement Plan Assets at Fair Value as of December 31, 2016
Asset Category | Level 1 | Level 2 | Level 3 | Total
Short-term investments | $ | 4 |  | $ | — |  | $ | — |  | $ | 4 |
Fixed Income Securities: |  |  |  |
Corporate | — |  | 35 |  | 1 |  | 36 |
RMBS | — |  | 24 |  | 1 |  | 25 |
U.S. Treasuries | 5 |  | 14 |  | — |  | 19 |
Foreign government | — |  | 2 |  | — |  | 2 |
CMBS | — |  | 9 |  | — |  | 9 |
Other fixed income | — |  | 4 |  | 1 |  | 5 |
Equity Securities: |  |  |  |
Large-cap | 37 |  | — |  | — |  | 37 |
Total other postretirement plan assets at fair value [1] | $ | 46 |  | $ | 88 |  | $ | 3 |  | $ | 137 |
[1] | Excludes approximately $1 of interest receivable carried at fair value.
Other Postretirement Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Assets | Corporate | RMBS | Foreign Government | Other Fixed Income | Totals
Fair Value as of January 1, 2017 | $ | 1 |  | $ | 1 |  | $ | — |  | $ | 1 |  | $ | 3 |
Changes in unrealized gains (losses), net | — |  | — |  | — |  | — |  | — |
Purchases | 1 |  | — |  | — |  | 1 |  | 2 |
Settlements | — |  | (1 | ) | — |  | — |  | (1 | )
Sales | (2 | ) | — |  | — |  | — |  | (2 | )
Transfers into Level 3 | — |  | — |  | — |  | — |  | — |
Transfers out of Level 3 | — |  | — |  | — |  | (1 | ) | (1 | )
Fair Value as of December 31, 2017 | $ | — |  | $ | — |  | $ | — |  | $ | 1 |  | $ | 1 |
Other Postretirement Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Assets | Corporate | RMBS | Foreign Government | Other Fixed Income | Totals
Fair Value as of January 1, 2016 | $ | 2 |  | $ | 3 |  | $ | — |  | $ | — |  | $ | 5 |
Changes in unrealized gains (losses), net | — |  | — |  | — |  | — |  | — |
Purchases | 1 |  | — |  | — |  | 1 |  | 2 |
Settlements | — |  | (2 | ) | — |  | — |  | (2 | )
Sales | (1 | ) | — |  | — |  | — |  | (1 | )
Transfers into Level 3 | — |  | — |  | — |  | — |  | — |
Transfers out of Level 3 | (1 | ) | — |  | — |  | — |  | (1 | )
Fair Value as of December 31, 2016 | $ | 1 |  | $ | 1 |  | $ | — |  | $ | 1 |  | $ | 3 |
There was no Company common stock included in the other postretirement benefit plan assets as of December 31, 2017 and 2016. Concentration of Risk In order to minimize risk, the Plan maintains a listing of permissible and prohibited investments. In addition, the Plan has certain concentration limits and investment quality requirements imposed on permissible investment options. Permissible investments include U.S. equity, international equity, alternative asset and fixed income investments including derivative instruments. Derivative instruments include future contracts, options, swaps, currency forwards, caps or floors and will be used to control risk or enhance return but will not be used for leverage purposes. Securities specifically prohibited from purchase include, but are not limited to: shares or fixed income instruments issued by The Hartford, short sales of any type within long-only portfolios, non-derivative securities involving the use of margin, leveraged floaters and inverse floaters, including money market obligations, natural resource real properties such as oil, gas or timber and precious metals. Other than U.S. government and certain U.S. government agencies backed by the full faith and credit of the U.S. government, the Plan does not have any material exposure to any concentration risk of a single issuer. Cash Flows Company Contributions
Employer Contributions | Pension Benefits | Other Postretirement Benefits
2017 | $ | 281 |  | $ | — |
2016 | $ | 301 |  | $ | — |
In 2017, the Company, at its discretion, made $280 in contributions to the U.S. qualified defined benefit pension plan. The Company does not have a 2018 required minimum funding contribution for the U.S. qualified defined benefit pension plan. The Company has not determined whether, and to what extent, contributions may be made to the U. S. qualified defined benefit pension plan in 2018. The Company will monitor the funded status of the U.S. qualified defined benefit pension plan during 2018 to make this determination. Employer contributions in 2017 and 2016 were made in cash and did not include contributions of the Company’s common stock. Benefit Payments Amounts of Benefits Expected to be Paid over the next Ten Years from Pension and other Postretirement Plans as of December 31, 2017
| Pension Benefits | Other Postretirement Benefits
2018 | $ | 221 |  | $ | 30 |
2019 | 237 |  | 27 |
2020 | 240 |  | 24 |
2021 | 247 |  | 22 |
2022 | 247 |  | 20 |
2023 - 2027 | 1,253 |  | 74 |
Total | $ | 2,445 |  | $ | 197 |

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