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Pension and Other Postretirement Plans (Tables)
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Reconciliation of the Change in Benefit Obligation and Plan Assets and Funded Status
The following tables set forth the reconciliation of the beginning and ending balances of the benefit obligation and plan assets, the funded status and the amounts recognized in these financial statements for the defined benefit and other postretirement plans (in millions):
Pension Benefits
Year Ended December 31, 2020Year Ended December 31, 2019
Accumulated benefit obligation:$5,387 $5,333 
Change in projected benefit obligation:
Projected benefit obligation at beginning of year$6,398 $5,396 
Service cost216 184 
Interest cost209 226 
Actuarial loss1,181 784 
Special termination benefit54 — 
Benefits paid(1,445)(200)
Curtailment(105)— 
Other17 8 
Projected benefit obligation at end of year$6,525 $6,398 
Change in plan assets:
Fair value of plan assets at beginning of year$4,964 $3,827 
Actual return on plan assets521 684 
Employer contributions16 649 
Benefits paid(1,445)(200)
Other13 4 
Fair value of plan assets at end of year$4,069 $4,964 
Funded status—Net amount recognized$(2,456)$(1,434)
Pension Benefits
December 31, 2020December 31, 2019
Amounts recognized in the consolidated balance sheets consist of:
Noncurrent asset$8 $14 
Current liability(4)(2)
Noncurrent liability(2,460)(1,446)
Total liability$(2,456)$(1,434)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss$(1,924)$(1,652)
Prior service cost(3)(4)
Total accumulated other comprehensive loss$(1,927)$(1,656)
Other Postretirement Benefits
Year Ended December 31, 2020Year Ended December 31, 2019
Change in benefit obligation:
Benefit obligation at beginning of year$842 $1,391 
Service cost10 10 
Interest cost28 47 
Plan participants' contributions58 67 
Benefits paid(164)(180)
Actuarial loss107 99 
Plan amendments — (597)
Special termination benefit201 — 
Other— 5 
Benefit obligation at end of year$1,082 $842 
Change in plan assets:
Fair value of plan assets at beginning of year$52 $53 
Actual return on plan assets1 1 
Employer contributions104 111
Plan participants' contributions58 67 
Benefits paid(164)(180)
Fair value of plan assets at end of year51 52 
Funded status—Net amount recognized$(1,031)$(790)
Amounts Recognized in Consolidated Balance Sheet and Accumulated Other Comprehensive Income (Loss)
Other Postretirement Benefits
Year Ended December 31, 2020Year Ended December 31, 2019
Change in benefit obligation:
Benefit obligation at beginning of year$842 $1,391 
Service cost10 10 
Interest cost28 47 
Plan participants' contributions58 67 
Benefits paid(164)(180)
Actuarial loss107 99 
Plan amendments — (597)
Special termination benefit201 — 
Other— 5 
Benefit obligation at end of year$1,082 $842 
Change in plan assets:
Fair value of plan assets at beginning of year$52 $53 
Actual return on plan assets1 1 
Employer contributions104 111
Plan participants' contributions58 67 
Benefits paid(164)(180)
Fair value of plan assets at end of year51 52 
Funded status—Net amount recognized$(1,031)$(790)
Other Postretirement Benefits
December 31, 2020December 31, 2019
Amounts recognized in the consolidated balance sheets consist of:
Current liability$(37)$(1)
Noncurrent liability(994)(789)
Total liability$(1,031)$(790)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial gain$255 $403 
Prior service credit570 693 
Total accumulated other comprehensive income$825 $1,096 
Accumulated Benefit Obligation and Projected Benefit Obligation in Excess of Plan Assets
The following information relates to all pension plans with an accumulated benefit obligation and a projected benefit obligation in excess of plan assets at December 31 (in millions):
20202019
Projected benefit obligation$6,250 $6,161 
Accumulated benefit obligation5,163 5,137 
Fair value of plan assets3,786 4,714 
Components Of Net Periodic Benefit Cost Net periodic benefit cost for the years ended December 31 included the following components (in millions):
202020192018
Pension BenefitsOther Postretirement BenefitsPension BenefitsOther Postretirement BenefitsPension BenefitsOther Postretirement Benefits
Service cost$216 $10 $184 $10 $228 $12 
Interest cost209 28 226 47 217 61 
Expected return on plan assets(328)(1)(291)(1)(292)(2)
Amortization of unrecognized actuarial (gain) loss162 (40)118 (52)130 (32)
Amortization of prior service credits— (124)— (73)— (37)
Settlement loss - VSPs430 — — — — — 
Special termination benefit - VSPs54 201 — — — — 
Curtailment1 — — — — — 
Other22 — 5 — 1 — 
Net periodic benefit cost (credit)$766 $74 $242 $(69)$284 $2 
Assumptions Used for Benefit Plans
The assumptions used for the benefit plans were as follows: 
Pension Benefits
Assumptions used to determine benefit obligations20202019
Discount rate2.72 %3.52 %
Rate of compensation increase3.88 %3.89 %
Assumptions used to determine net expense
Discount rate3.51 %4.21 %
Expected return on plan assets7.31 %7.40 %
Rate of compensation increase3.88 %3.89 %
Other Postretirement Benefits
Assumptions used to determine benefit obligations20202019
Discount rate2.43 %3.35 %
Assumptions used to determine net expense
Discount rate3.35 %4.30 %
Expected return on plan assets3.00 %3.00 %
Health care cost trend rate assumed for next year5.80 %6.00 %
Rate to which the cost trend rate is assumed to decline (ultimate trend rate in 2033)4.50 %5.00 %
Allocation of Plan Assets United's plan assets are allocated within the following guidelines:
  Percent of TotalExpected Long-Term
Rate of Return
Equity securities
30-45
%10 %
Fixed-income securities
 35-50
 4  
Alternatives
15-25
 7  
Pension and Other Postretirement Plan Assets
The following tables present information about United's pension and other postretirement plan assets at December 31 (in millions):
20202019
Pension Plan Assets:TotalLevel 1Level 2Level 3Assets Measured at NAV(a)TotalLevel 1Level 2Level 3Assets Measured at NAV(a)
Equity securities funds$1,606 $55 $125 $96 $1,330 $1,957 $47 $117 $71 $1,722 
Fixed-income securities1,644 — 548 49 1,047 1,732 — 687 69 976 
Alternatives669 — — 195 474 776 — — 205 571 
Other investments150 132 8 10 — 499 466 21 12 — 
Total$4,069 $187 $681 $350 $2,851 $4,964 $513 $825 $357 $3,269 
Other Postretirement Benefit Plan Assets:
Deposit administration fund$51 $— $— $51 $— $52 $— $— $52 $— 
(a) In accordance with the relevant accounting standards, certain investments that are measured at fair value using the net asset value ("NAV") per share (or its equivalent) have not been classified in the fair value hierarchy. These investments are commingled funds that invest in fixed-income instruments including bonds, debt securities, and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. Redemption periods for these investments range from daily to semiannually.
Defined Benefit Plan Assets Measured at Fair Value Using Unobservable Inputs
The reconciliation of United's benefit plan assets measured at fair value using unobservable inputs (Level 3) for the years ended December 31, 2020 and 2019 is as follows (in millions):
20202019
Balance at beginning of year$409 $350 
Actual return (loss) on plan assets:
Sold during the year4 12 
Held at year end13 (1)
Purchases, sales, issuances and settlements (net)(25)48 
Balance at end of year$401 $409 
Estimated Future Benefit Payments
The estimated future benefit payments, net of expected participant contributions, in United's pension plans and other postretirement benefit plans as of December 31, 2020 are as follows (in millions):
PensionOther Postretirement
2021$325 $88 
2022339 118 
2023353 100 
2024351 87 
2025376 83 
Years 2026 – 20302,113 359 
Participation in the IAM National Pension Plan United's participation in the IAM National Pension Plan ("IAM Plan") for the annual period ended December 31, 2020 is outlined in the table below. In addition to the additional required contributions described in table below, contributions in 2020 were affected by COVID-19 impacts on United's operations and consequently employee hours paid. The risks of participating in these multi-employer plans are different from single-employer plans, as United may be subject to additional risks that others do not meet their obligations, which in certain circumstances could revert to United. The IAM Plan reported $510 million in employers' contributions for the year ended December 31, 2019. For 2019, the Company's contributions to the IAM Plan represented more than 10% of total contributions to the IAM Plan. The 2020 information is not available as Form 5500 is not final for the plan year.
Pension FundIAM National Pension Fund ("Fund")
EIN/ Pension Plan Number51-6031295 — 002
Pension Protection Act Zone Status (2020 and 2019)Critical (2020) and Endangered (2019). A plan generally is in "endangered" status if its funded percentage is less than 80 percent. A plan is in "critical" status if the funded percentage is less than 65 percent. On April 17, 2019, the IAM National Pension Fund Board of Trustees voluntarily elected for the Fund to be in critical status effective for the plan year beginning January 1, 2019 to strengthen the Fund's financial health.
FIP/RP Status Pending/Implemented
A 10-year Rehabilitation Plan effective, January 1, 2022, was adopted on April 17, 2019 that requires the Company to make an additional contribution of 2.5% of the hourly contribution rate, compounded annually for the length of the Rehabilitation Plan, effective June 1, 2019.
United's Contributions
$53 million, $59 million and $52 million in the years ended December 31, 2020, 2019 and 2018, respectively
Surcharge ImposedNo
Expiration Date of Collective Bargaining AgreementN/A