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Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2025
Retirement Benefits [Abstract] |
Pension and Other Postretirement Benefits Disclosure | Defined Benefit Pension and Other Postretirement Benefit (OPEB) Plans We sponsor several defined benefit pension and OPEB plans for our employees, including non-qualified pension plans. The U.S. qualified and non-qualified defined benefit pension plans comprise the majority of our total benefit obligation and benefit cost. We maintain a separate defined benefit plan for eligible employees in our U.K. operation. The U.S. defined benefit pension plans were frozen and closed to new entrants on December 31, 2013, the OPEB plan was frozen and closed to new entrants on December 31, 2012, and the U.K. plan was frozen and closed to new entrants on December 31, 2002. U.S. Pension Plan Annuity Purchase In December 2025, we purchased a group annuity contract which transferred a portion of our U.S. qualified defined benefit pension plan obligation to a third-party. Under the transaction, which was funded with plan assets, we transferred the responsibility for pension benefits and annuity administration for approximately 2,550 retirees or their beneficiaries receiving $2,200 or less in monthly benefit payments from the plan. The purchase price of the annuity contract was $367.2 million, which is reflected in the settlement line items within the table below showing changes in our benefit obligation and the fair value of plan assets. The transaction resulted in the recognition of a pro-rata portion of the net actuarial loss that was previously included in AOCI of $103.8 million. This loss is reflected in the settlement loss line item within the tables below showing the changes recognized in other comprehensive income and the components of the net periodic benefit cost. The settlement loss is recorded within other expenses in the consolidated statements of income and is recorded within the Corporate segment. Amortization Period of Actuarial Gain or Loss and Prior Service Cost or Credit Because all participants in the U.S., OPEB, and U.K. pension plans are considered inactive, we amortize the net actuarial gain or loss and prior service credit or cost for these plans over the average remaining life expectancy of the plans. As of December 31, 2025, the estimate of the average remaining life expectancy of the plans was approximately 24 years for the U.S., 12 years for the OPEB plan, and 27 years for the U.K. plan. Prior to 2024, we amortized the net actuarial gain or loss and prior service credit or cost for the OPEB plan over the average remaining future working lifetime for active participants in the plan. The following table provides the changes in the benefit obligation and fair value of plan assets and the funded status of the plans.
| Pension Benefits |  |  |  |
| U.S. Plans |  | U.K. Plan |  | OPEB
| 2025 |  | 2024 |  | 2025 |  | 2024 |  | 2025 |  | 2024
| (in millions of dollars)
Change in Benefit Obligation |  |  |  |  |  |  |  |  |  |  |
Benefit Obligation at Beginning of Year | $ | 1,518.6 |  |  | $ | 1,575.3 |  |  | $ | 152.1 |  |  | $ | 172.3 |  |  | $ | 72.8 |  |  | $ | 79.0 |
Service Cost | 9.4 |  |  | 9.2 |  |  | — |  |  | — |  |  | — |  |  | — |
Interest Cost | 85.5 |  |  | 82.9 |  |  | 8.6 |  |  | 7.6 |  |  | 4.0 |  |  | 4.0 |
Plan Participant Contributions | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 0.1 |
Actuarial Loss (Gain) (1) | 8.7 |  |  | (57.7) |  |  | (6.4) |  |  | (19.3) |  |  | 2.1 |  |  | (1.5) |
Benefits and Expenses Paid | (94.9) |  |  | (91.1) |  |  | (5.7) |  |  | (5.9) |  |  | (8.5) |  |  | (8.8) |
Settlement | (367.2) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Change in Foreign Exchange Rates | — |  |  | — |  |  | 11.6 |  |  | (2.6) |  |  | — |  |  | — |
Benefit Obligation at End of Year | $ | 1,160.1 |  |  | $ | 1,518.6 |  |  | $ | 160.2 |  |  | $ | 152.1 |  |  | $ | 70.4 |  |  | $ | 72.8 |
Accumulated Benefit Obligation at December 31 | $ | 1,160.1 |  |  | $ | 1,518.6 |  |  | $ | 160.2 |  |  | $ | 152.1 |  |  | N/A |  | N/A
Change in Fair Value of Plan Assets |  |  |  |  |  |  |  |  |  |  |
Fair Value of Plan Assets at Beginning of Year | $ | 1,241.6 |  |  | $ | 1,295.9 |  |  | $ | 125.3 |  |  | $ | 145.4 |  |  | $ | 7.9 |  |  | $ | 8.2 |
Actual Return on Plan Assets | 147.3 |  |  | 27.1 |  |  | 5.1 |  |  | (12.1) |  |  | — |  |  | 0.1 |
Employer Contributions | 10.3 |  |  | 9.7 |  |  | 19.2 |  |  | — |  |  | 8.0 |  |  | 8.3 |
Plan Participant Contributions | — |  |  | — |  |  | — |  |  | — |  |  | 0.1 |  |  | 0.1 |
Benefits and Expenses Paid | (94.9) |  |  | (91.1) |  |  | (5.7) |  |  | (5.9) |  |  | (8.5) |  |  | (8.8) |
Settlement | (367.2) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Change in Foreign Exchange Rates | — |  |  | — |  |  | 10.0 |  |  | (2.1) |  |  | — |  |  | — |
Fair Value of Plan Assets at End of Year | $ | 937.1 |  |  | $ | 1,241.6 |  |  | $ | 153.9 |  |  | $ | 125.3 |  |  | $ | 7.5 |  |  | $ | 7.9 |
Underfunded Status | $ | 223.0 |  |  | $ | 277.0 |  |  | $ | 6.3 |  |  | $ | 26.8 |  |  | $ | 62.9 |  |  | $ | 64.9 |
(1) The actuarial loss recognized in 2025 for the U.S. plans was driven by unfavorable demographic experience. The actuarial gain recognized in 2025 for the U.K. plan was driven by a decrease in inflation-related assumptions and an increase in the discount rate assumption. The actuarial loss recognized in 2025 for the OPEB plan was driven by a decrease in the discount rate assumption. The actuarial gains recognized in 2024 for the U.S., U.K., and OPEB plans were driven by increases in the discount rate assumption. The amounts recognized in our consolidated balance sheets for our pension and OPEB plans at December 31, 2025 and 2024 are as follows.
| Pension Benefits |  |  |  |
| U.S. Plans |  | U.K. Plan |  | OPEB
| 2025 |  | 2024 |  | 2025 |  | 2024 |  | 2025 |  | 2024
| (in millions of dollars)
Current Liability | $ | 9.7 |  |  | $ | 9.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 0.7 |  |  | $ | 0.7 |
Noncurrent Liability | 213.3 |  |  | 267.6 |  |  | 6.3 |  |  | 26.8 |  |  | 62.2 |  |  | 64.2 |
Underfunded Status | $ | 223.0 |  |  | $ | 277.0 |  |  | $ | 6.3 |  |  | $ | 26.8 |  |  | $ | 62.9 |  |  | $ | 64.9 |
Unrecognized Pension and Postretirement Benefit Costs |  |  |  |  |  |  |  |  |  |  |
Net Actuarial Gain (Loss) | $ | (325.8) |  |  | $ | (496.0) |  |  | $ | (93.2) |  |  | $ | (91.7) |  |  | $ | 17.7 |  |  | $ | 21.2 |
Prior Service Credit (Cost) | (0.5) |  |  | (0.5) |  |  | (0.2) |  |  | (0.2) |  |  | 1.8 |  |  | 2.1 |
| (326.3) |  |  | (496.5) |  |  | (93.4) |  |  | (91.9) |  |  | 19.5 |  |  | 23.3 |
Income Tax | 163.4 |  |  | 200.1 |  |  | 21.7 |  |  | 21.4 |  |  | 4.2 |  |  | 3.4 |
Total Included in Accumulated Other Comprehensive Income (Loss) | $ | (162.9) |  |  | $ | (296.4) |  |  | $ | (71.7) |  |  | $ | (70.5) |  |  | $ | 23.7 |  |  | $ | 26.7 |
The following table provides the changes recognized in other comprehensive income for the years ended December 31, 2025 and 2024.
| Pension Benefits |  |  |  |
| U.S. Plans |  | U.K. Plan |  | OPEB
| 2025 |  | 2024 |  | 2025 |  | 2024 |  | 2025 |  | 2024
| (in millions of dollars)
Accumulated Other Comprehensive Income (Loss) at Beginning of Year | $ | (296.4) |  |  | $ | (299.6) |  |  | $ | (70.5) |  |  | $ | (73.0) |  |  | $ | 26.7 |  |  | $ | 26.9 |
Net Actuarial Gain (Loss) |  |  |  |  |  |  |  |  |  |  |
Amortization | 14.9 |  |  | 14.6 |  |  | 2.9 |  |  | 2.9 |  |  | (1.2) |  |  | (1.1) |
All Other Changes | 51.5 |  |  | (0.4) |  |  | (4.4) |  |  | 0.4 |  |  | (2.3) |  |  | 1.1 |
Prior Service Credit (Cost) |  |  |  |  |  |  |  |  |  |  |
Amortization | — |  |  | 0.1 |  |  | — |  |  | — |  |  | (0.3) |  |  | (0.2) |
Settlement Loss | 103.8 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Change in Income Tax | (36.7) |  |  | (11.1) |  |  | 0.3 |  |  | (0.8) |  |  | 0.8 |  |  | — |
Accumulated Other Comprehensive Income (Loss) at End of Year | $ | (162.9) |  |  | $ | (296.4) |  |  | $ | (71.7) |  |  | $ | (70.5) |  |  | $ | 23.7 |  |  | $ | 26.7 |
Plan Assets The objective of our U.S. pension and OPEB plans is to maximize long-term return, within acceptable risk levels, in a manner that is consistent with the fiduciary standards of the Employee Retirement Income Security Act (ERISA), while maintaining sufficient liquidity to pay current benefits and expenses. Our U.S. qualified defined benefit pension plan assets include a diversified blend of domestic, international, global, and emerging market equity securities, fixed income securities, opportunistic credit securities, real estate investments, alternative investments, and cash equivalents. Equity securities are comprised of funds and individual securities that are benchmarked against the respective indices specified below. International and global equity funds may allocate a certain percentage of assets to forward currency contracts. Fixed income securities include funds and U.S. government and agency asset-backed securities, treasury futures contracts, corporate investment-grade bonds, private placement securities, and bonds issued by states or other municipalities. Opportunistic credits consist of investments in funds that hold varied fixed income investments purchased at depressed values with the intention to later sell those investments for a gain. Real estate investments consist primarily of funds that hold commercial real estate investments. Alternative investments, which include private equity direct investments and private equity funds of funds, utilize proprietary strategies that are intended to have a low correlation to the U.S. stock market. Prohibited investments include, but are not limited to, unlisted securities, options, short sales, and investments in securities issued by Unum Group or its affiliates. We target approximately 38 percent to equity securities, 30 percent to fixed income securities, and 32 percent to opportunistic credits, alternative, and real estate investments. The invested asset classes, asset types, and benchmark indices for our U.S. qualified defined benefit pension plan is as follows.
Asset Class |  | Asset Type |  | Benchmark Indices
Equity Securities |  | Collective funds; Individual holdings |  | Morgan Stanley Capital International (MSCI) World Index
Fixed Income |  | Collective funds; Individual holdings |  | Bloomberg U. S. Long Corporate Index; Custom Index
Opportunistic Credits |  | Collective fund |  | Custom Index
Real Estate |  | Collective fund |  | Custom Index
Alternative Investments (Private Equity) |  | Fund of funds; Direct investments |  | Custom Index
In 2025, the asset manager of the U.K. pension plan changed. As a result, there were changes in the U.K. plan’s investment holdings. However, the overall investment strategy of the U.K. plan remains substantially unchanged. The investment strategy for our U.K. plan includes increasing the funded ratio in a risk-controlled manner where the risk taken in the investment strategy reduces as the funded status of the plan increases. Assets for our U.K. plan are invested in a diversified growth asset fund, a private asset fund, and a segregated liability driven investment (LDI) portfolio consisting primarily of U.K. government bonds (gilts). The diversified growth asset fund consists of funds invested in primarily global equity securities, investment-grade and below-investment-grade fixed interest securities, including emerging market securities, commodities, alternatives and equity with downside protection. The segregated LDI portfolio is designed to broadly match the interest rate and inflation sensitivities of the plan's funded liabilities. This means that when the funded status of the plan increases, the hedge ratio of interest rate and inflation risk will increase with the intention of reducing funding level volatility. At December 31, 2025, our portfolio target allocation was approximately 43 percent to the growth fund, 20 percent to the private asset fund, and 37 percent to LDI securities, with a specified target return on our plan assets. There are general guidelines that ensure prudent investment action is taken, including restrictions on any investments in illiquid assets and broad thresholds on the asset allocation across different asset classes. Assets for the OPEB plan are invested in life insurance contracts issued by one of our insurance subsidiaries. The assets support life insurance benefits payable to certain former retirees covered under the OPEB plan. The terms of these contracts are consistent in all material respects with those the subsidiary offers to unaffiliated parties that are similarly situated. There are no categories of investments specifically prohibited by the OPEB plan. We believe our investment portfolios are well diversified by asset class and sector, with no undue risk concentrations in any one category. The categorization of fair value measurements by input level for the invested assets in our U.S. plans is shown below. The carrying values of investment-related receivables and payables approximate fair value due to the short-term nature of the securities and are not included in the following chart. Investments valued using NAV as a practical expedient are not required to be categorized by input level, but these investments are included as follows to reconcile to total invested assets.
| December 31, 2025
| Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | NAV as a Practical Expedient |  | Total
| (in millions of dollars)
Invested Assets |  |  |  |  |  |  |  |  |
Equity Securities: |  |  |  |  |  |  |  |  |
Global | $ | 32.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 228.0 |  |  | $ | 260.1 |
Fixed Income Securities: |  |  |  |  |  |  |  |  |
U.S. Government and Agencies 1 | 323.5 |  |  | (7.8) |  |  | — |  |  | — |  |  | 315.7 |
Corporate | — |  |  | — |  |  | — |  |  | 92.9 |  |  | 92.9 |
Non-U.S. Emerging Markets | — |  |  | — |  |  | — |  |  | 44.6 |  |  | 44.6 |
Opportunistic Credits | — |  |  | — |  |  | — |  |  | 82.9 |  |  | 82.9 |
Real Estate | — |  |  | — |  |  | — |  |  | 177.6 |  |  | 177.6 |
Alternative Investments: |  |  |  |  |  |  |  |  |
Private Equity Direct Investments | — |  |  | — |  |  | — |  |  | 56.3 |  |  | 56.3 |
Private Equity Funds of Funds | — |  |  | — |  |  | — |  |  | 30.3 |  |  | 30.3 |
Repurchase Agreements | — |  |  | (141.9) |  |  | — |  |  | — |  |  | (141.9) |
Cash Equivalents | 26.6 |  |  | — |  |  | — |  |  | — |  |  | 26.6 |
Net Invested Assets | $ | 382.2 |  |  | $ | (149.7) |  |  | $ | — |  |  | $ | 712.6 |  |  | $ | 945.1 |
1 Includes derivatives which hedge the risk associated with certain U.S. Government and Agencies Securities.
| December 31, 2024
| Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | NAV as a Practical Expedient |  | Total
| (in millions of dollars)
Invested Assets |  |  |  |  |  |  |  |  |
Equity Securities: |  |  |  |  |  |  |  |  |
Global | $ | 52.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 372.3 |  |  | $ | 424.8 |
Fixed Income Securities: |  |  |  |  |  |  |  |  |
U.S. Government and Agencies 1 | 357.5 |  |  | (16.1) |  |  | — |  |  | — |  |  | 341.4 |
Corporate | — |  |  | — |  |  | — |  |  | 124.1 |  |  | 124.1 |
Non-U.S. Emerging Markets | — |  |  | — |  |  | — |  |  | 32.4 |  |  | 32.4 |
Opportunistic Credits | — |  |  | — |  |  | — |  |  | 139.6 |  |  | 139.6 |
Real Estate | — |  |  | — |  |  | — |  |  | 166.1 |  |  | 166.1 |
Alternative Investments: |  |  |  |  |  |  |  |  |
Private Equity Direct Investments | — |  |  | — |  |  | — |  |  | 63.1 |  |  | 63.1 |
Private Equity Funds of Funds | — |  |  | — |  |  | — |  |  | 35.2 |  |  | 35.2 |
Repurchase Agreements | — |  |  | (123.0) |  |  | — |  |  | — |  |  | (123.0) |
Cash Equivalents | 17.2 |  |  | — |  |  | — |  |  | — |  |  | 17.2 |
Net Invested Assets | $ | 427.2 |  |  | $ | (139.1) |  |  | $ | — |  |  | $ | 932.8 |  |  | $ | 1,220.9 |
1 Includes derivatives which hedge the risk associated with certain U.S. Government and Agencies Securities. Prior year amounts in the table above were reclassified to conform to current year presentation. Level 1 investments consist of individual holdings that are valued based on unadjusted quoted prices from active markets for identical securities. Level 2 investments consist of individual holdings that are valued using either directly or indirectly observable inputs other than quoted prices from active markets. Certain equity, opportunistic credit, and fixed-income securities are valued based on the NAV of the underlying holdings as of the reporting date. We made no adjustments to the NAV for 2025 or 2024. These investments have no unfunded commitments and no specific redemption restrictions. Alternative investments are valued based on NAV one quarter in arrears and our real estate investments are valued based on NAV one month in arrears. We evaluate the need for adjustments to the NAV based on market conditions and discussions with fund managers in the period subsequent to the valuation date and prior to issuance of the financial statements. We made no adjustments to the NAV for 2025 or 2024. The private equity direct investments and private equity funds of funds generally cannot be redeemed by investors. Distributions of capital from the sale of underlying fund assets may occur at any time, but are generally concentrated between five and eight years from the formation of the fund. At December 31, 2025 and 2024, these investments had unfunded commitments of $14.8 million and $15.2 million, respectively. The categorization of fair value measurements by input level for the invested assets in our U.K. plan is shown below. The carrying values of investment-related receivables and payables approximate fair value due to the short-term nature of the securities and are not included in the following chart. Investments valued using NAV as a practical expedient are not required to be categorized by input level, but these investments are included as follows to reconcile to total invested assets.
| December 31, 2025
| Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | NAV as a Practical Expedient |  | Total
| (in millions of dollars)
Invested Assets |  |  |  |  |  |  |  |  |
Diversified Growth Assets | $ | 64.7 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 64.7 |
Liability Driven Investments | — |  |  | 56.3 |  |  | — |  |  | — |  |  | 56.3 |
Alternative Investments | — |  |  | — |  |  | — |  |  | 30.9 |  |  | 30.9 |
Cash Equivalents | 2.6 |  |  | — |  |  | — |  |  | — |  |  | 2.6 |
Total Invested Assets | $ | 67.3 |  |  | $ | 56.3 |  |  | $ | — |  |  | $ | 30.9 |  |  | $ | 154.5 |
| December 31, 2024
| Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | NAV as a Practical Expedient |  | Total
| (in millions of dollars)
Invested Assets |  |  |  |  |  |  |  |  |
Diversified Growth Assets | $ | 25.6 |  |  | $ | — |  |  | $ | — |  |  | $ | 9.8 |  |  | $ | 35.4 |
Fixed Income and Index-linked Securities | 50.5 |  |  | — |  |  | — |  |  | — |  |  | 50.5 |
Alternative Investments | — |  |  | — |  |  | — |  |  | 34.5 |  |  | 34.5 |
Cash Equivalents | 5.3 |  |  | — |  |  | — |  |  | — |  |  | 5.3 |
Total Invested Assets | $ | 81.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 44.3 |  |  | $ | 125.7 |
The level 1 diversified growth assets and fixed interest and index-linked securities consist of individual funds that are valued based on unadjusted quoted prices from active markets for identical securities. The level 2 liability driven investment portfolio consists of individual gilts that are valued using either directly or indirectly observable inputs other than quoted prices from active markets. Certain diversified growth assets were valued based on the NAV of the underlying holdings as of the reporting date. Alternative investments are valued based on NAV one quarter in arrears. We evaluate the need for adjustments to the NAV of the alternative investments based on an evaluation of cash flows in the period subsequent to the valuation date and prior to issuance of the financial statements. We made no adjustments to the NAV for 2025 or 2024. These investments generally cannot be redeemed by investors. These investments had unfunded commitments at December 31, 2025 and 2024 of $2.5 million and $7.1 million, respectively. The categorization of fair value measurements by input level for the assets in our OPEB plan is as follows:
| December 31, 2025
| Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
| (in millions of dollars)
Assets |  |  |  |  |  |  |
Life Insurance Contracts | $ | — |  |  | $ | — |  |  | $ | 7.5 |  |  | $ | 7.5 |
| December 31, 2024
| Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
| (in millions of dollars)
Assets |  |  |  |  |  |  |
Life Insurance Contracts | $ | — |  |  | $ | — |  |  | $ | 7.9 |  |  | $ | 7.9 |
The fair value is represented by the actuarial present value of future cash flows of the contracts. Changes in our OPEB plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2025 and 2024 are as follows:
| Year Ended December 31, 2025
| Beginning of Year |  | Actual Return on Plan Assets |  | Contributions |  | Net Benefits and Expenses Paid |  | End of Year
| (in millions of dollars)
Life Insurance Contracts | $ | 7.9 |  |  | $ | — |  |  | $ | 8.1 |  |  | $ | (8.5) |  |  | $ | 7.5 |
| Year Ended December 31, 2024
| Beginning of Year |  | Actual Return on Plan Assets |  | Contributions |  | Net Benefits and Expenses Paid |  | End of Year
| (in millions of dollars)
Life Insurance Contracts | $ | 8.2 |  |  | $ | 0.1 |  |  | $ | 8.4 |  |  | $ | (8.8) |  |  | $ | 7.9 |
For the years ended December 31, 2025 and 2024, the actual return on plan assets relates solely to investments still held at the reporting date. There were no transfers into or out of Level 3 during 2025 or 2024. Measurement Assumptions We use a December 31 measurement date for each of our plans. The weighted average assumptions used in the measurement of our benefit obligations as of December 31 and our net periodic benefit costs for the years ended December 31 are as follows:
| Pension Benefits |  |  |  |
| U.S. Plans |  | U.K. Plan |  | OPEB
| 2025 |  | 2024 |  | 2025 |  | 2024 |  | 2025 |  | 2024
Benefit Obligations |  |  |  |  |  |  |  |  |  |  |
Discount Rate | 5.80 | % |  | 5.80 | % |  | 5.60 | % |  | 5.50 | % |  | 5.40 | % |  | 5.80 | %
Rate of Compensation Increase | N/A |  | N/A |  | 2.30 | % |  | 2.50 | % |  | N/A |  | N/A
Net Periodic Benefit Cost |  |  |  |  |  |  |  |  |  |  |
Discount Rate | 5.80 | % |  | 5.40 | % |  | 5.50 | % |  | 4.50 | % |  | 5.80 | % |  | 5.40 | %
Expected Return on Plan Assets | 7.25 | % |  | 7.25 | % |  | 7.40 | % |  | 6.50 | % |  | 5.75 | % |  | 5.75 | %
Rate of Compensation Increase | N/A |  | N/A |  | 2.40 | % |  | 2.40 | % |  | N/A |  | N/A
We set the discount rate assumption annually for each of our retirement-related benefit plans at the measurement date to reflect the yield on a portfolio of high quality fixed income corporate debt instruments matched against projected cash flows for future benefits. Our long-term rate of return on plan assets assumption is selected from a range of probable return outcomes from an analysis of the asset portfolio. Our expectations for the future investment returns of the asset categories are based on a combination of historical market performance, evaluations of investment forecasts obtained from external consultants and economists, and current market yields. The methodology underlying the return assumption includes the various elements of the expected return for each asset class such as long-term rates of return, volatility of returns, and the correlation of returns between various asset classes. The expected return for the total portfolio is calculated based on the plan's strategic asset allocation. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies, and quarterly investment portfolio reviews. Risk tolerance is established through consideration of plan liabilities, plan funded status, and corporate financial condition. Our mortality rate assumption reflects our best estimate, as of the measurement date, of the life expectancies of plan participants in order to determine the expected length of time for benefit payments. We derive our assumptions from industry mortality tables. The expected return assumption for the life insurance reserve for our OPEB plan is based on full investment in fixed income securities with an average book yield of 4.96 percent and 5.01 percent in 2025 and 2024, respectively. The rate of compensation increase assumption for our U.K. plan is generally based on periodic studies of compensation trends. For our OPEB plan, at December 31, 2025 and 2024, the annual rates of increase in the per capita cost of covered postretirement health care benefits assumed for the next calendar year are 7.50 percent and 7.00 percent, respectively, for benefits payable to both retirees prior to Medicare eligibility as well as Medicare eligible retirees. The rates are assumed to change gradually to 5.00 percent by 2036 for measurement at December 31, 2025 and remain at that level thereafter. The annual rates of increase in the per capita cost of covered postretirement health benefits do not apply to retirees whose postretirement health care benefits are provided through an exchange. Net Periodic Benefit Cost The following table provides the components of the net periodic benefit cost (credit) for the years ended December 31.
| Pension Benefits |  |  |  |  |  |
| U.S. Plans |  | U.K. Plan |  | OPEB
| 2025 |  | 2024 |  | 2023 |  | 2025 |  | 2024 |  | 2023 |  | 2025 |  | 2024 |  | 2023
| (in millions of dollars)
Service Cost | $ | 9.4 |  |  | $ | 9.2 |  |  | $ | 9.2 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest Cost | 85.5 |  |  | 82.9 |  |  | 87.9 |  |  | 8.6 |  |  | 7.6 |  |  | 7.7 |  |  | 4.0 |  |  | 4.0 |  |  | 4.5 |
Expected Return on Plan Assets | (87.2) |  |  | (91.3) |  |  | (92.0) |  |  | (8.8) |  |  | (8.4) |  |  | (8.5) |  |  | (0.3) |  |  | (0.4) |  |  | (0.5) |
Amortization of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Actuarial Loss (Gain) | 14.9 |  |  | 14.6 |  |  | 15.2 |  |  | 2.9 |  |  | 2.9 |  |  | 2.5 |  |  | (1.2) |  |  | (1.1) |  |  | (10.5) |
Prior Service Cost (Credit) | — |  |  | 0.1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (0.3) |  |  | (0.2) |  |  | (0.2) |
Settlement Loss | 103.8 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Net Periodic Benefit Cost (Credit) | $ | 126.4 |  |  | $ | 15.5 |  |  | $ | 20.3 |  |  | $ | 2.7 |  |  | $ | 2.1 |  |  | $ | 1.7 |  |  | $ | 2.2 |  |  | $ | 2.3 |  |  | $ | (6.7) |
The service cost component of net periodic pension and postretirement benefit cost (credit) is included as a component of compensation expense in our consolidated statements of income. All other components of net periodic pension and postretirement benefit cost (credit) are included in other expenses. Benefit Payments The following table provides expected benefit payments, which reflect expected future service, as appropriate.
| U.S. Plans |  | U.K. Plan |  | OPEB
| (in millions of dollars)
Year | Pension Benefits |  | Gross |  | Subsidy Payments |  | Net
2026 | $ | 59.0 |  |  | $ | 6.0 |  |  | $ | 8.4 |  |  | $ | — |  |  | $ | 8.4 |
2027 | 63.1 |  |  | 6.1 |  |  | 8.0 |  |  | — |  |  | 8.0 |
2028 | 66.4 |  |  | 6.3 |  |  | 7.6 |  |  | — |  |  | 7.6 |
2029 | 69.3 |  |  | 6.4 |  |  | 7.3 |  |  | — |  |  | 7.3 |
2030 | 72.1 |  |  | 6.5 |  |  | 6.9 |  |  | — |  |  | 6.9 |
2031-2035 | 402.9 |  |  | 35.0 |  |  | 28.7 |  |  | 0.1 |  |  | 28.6 |
Funding Policy The funding policy for our U.S. qualified defined benefit pension plan is to contribute an amount at least equal to the minimum contributions required under ERISA and other applicable laws, but generally not greater than the maximum amount that can be deducted for federal income tax purposes. During 2025, we had no regulatory contribution requirements for our U.S. qualified defined benefit pension plan and made no voluntary contributions. We expect to make regulatory contributions of approximately $15 million for our U.S. qualified defined benefit pension plan in 2026 and we reserve the right to make additional voluntary contributions during 2026. The funding policy for our U.S. non-qualified defined benefit pension plan, which is not subject to ERISA, is to contribute the amount necessary to satisfy the liabilities of the plan as they come due to participants. We expect to make contributions to the U.S. non-qualified defined benefit pension plan of approximately $10 million to fund the benefit payments in 2026. During 2025, we made regulatory contributions of £14.6 million to our U.K. defined benefit pension plan and made no voluntary contributions. We expect to make regulatory contributions of approximately £2 million for our U.K. defined benefit pension plan in 2026, and we reserve the right to make voluntary contributions during 2026. Our OPEB plan represents a non-vested, non-guaranteed obligation, and current regulations do not require specific funding levels for these benefits, which are comprised of retiree life, medical, and dental benefits. It is our practice to use general assets to pay medical and dental claims as they come due in lieu of utilizing plan assets for the medical and dental benefit portions of our OPEB plan. Defined Contribution Plans We offer a 401(k) plan to all eligible U.S. employees under which a portion of employee contributions is matched. We match dollar-for-dollar up to 5.0 percent of base salary and any recognized sales and performance-based incentive compensation for employee contributions into the plan. We also make an additional non-elective contribution of 4.5 percent of earnings for all eligible employees. The 401(k) plan remains in compliance with ERISA guidelines and continues to qualify for a “safe harbor” from most annual discrimination testing. We also offer a defined contribution plan to all eligible U.K. employees and offer related employer contributions. If an employee elects to make a minimum contribution of at least 1.0 percent of their base salary, we match with a contribution of 8.0 percent. We increase our contribution to a maximum of 12.0 percent as the employee increases their contribution from 1.0 percent to 5.0 percent. We do not increase our contribution percentage on employee contributions in excess of 5.0 percent. During the years ended December 31, 2025, 2024, and 2023, we recognized costs of $83.2 million, $81.6 million, and $74.3 million, respectively, for our U.S. defined contribution plan. We recognized costs of $7.3 million, $6.6 million, and $5.7 million in 2025, 2024, and 2023, respectively, for our U.K. defined contribution plan.

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