JP Morgan Chase 2015 Annual Report Download - page 234

Notes to consolidated financial statements
224 JPMorgan Chase & Co./2015 Annual Report
Employees begin to receive matching contributions after
completing a one-year-of-service requirement. Employees
with total annual cash compensation of $250,000 or more
are not eligible for matching contributions. Matching
contributions vest after three years of service. The 401(k)
Savings Plan also permits discretionary profit-sharing
contributions by participating companies for certain
employees, subject to a specified vesting schedule.
OPEB plans
JPMorgan Chase offers postretirement medical and life
insurance benefits to certain retirees and postretirement
medical benefits to qualifying U.S. employees. These
benefits vary with the length of service and the date of hire
and provide for limits on the Firm’s share of covered
medical benefits. The medical and life insurance benefits
are both contributory. Effective January 1, 2015, there was
a transition of certain Medicare eligible retirees from JPMC
group sponsored coverage to Medicare exchanges. As a
result of this change, eligible retirees will receive a
Healthcare Reimbursement Account amount each year if
they enroll through the Medicare exchange. The impact of
this change was not material. Postretirement medical
benefits also are offered to qualifying United Kingdom
(“U.K.”) employees.
JPMorgan Chase’s U.S. OPEB obligation is funded with
corporate-owned life insurance (“COLI”) purchased on the
lives of eligible employees and retirees. While the Firm
owns the COLI policies, COLI proceeds (death benefits,
withdrawals and other distributions) may be used only to
reimburse the Firm for its net postretirement benefit claim
payments and related administrative expense. The U.K.
OPEB plan is unfunded.
The following table presents the changes in benefit obligations, plan assets and funded status amounts reported on the
Consolidated balance sheets for the Firm’s U.S. and non-U.S. defined benefit pension and OPEB plans.
Defined benefit pension plans
As of or for the year ended December 31, U.S. Non-U.S. OPEB plans(d)
(in millions) 2015 2014 2015 2014 2015 2014
Change in benefit obligation
Benefit obligation, beginning of year $ (12,536) $(10,776) $ (3,640) $ (3,433) $ (842) $ (826)
Benefits earned during the year (340) (281) (37) (33) (1) —
Interest cost on benefit obligations (498) (534) (112) (137) (31) (38)
Plan amendments —(53) ————
Special termination benefits — — (1) (1) ——
Curtailments —— — ——(3)
Employee contributions NA NA (7) (7) (25) (62)
Net gain/(loss) 702 (1,669) 146 (408) 71 (58)
Benefits paid 760 777 120 119 88 145
Expected Medicare Part D subsidy receipts NA NA NA NA (6) (2)
Foreign exchange impact and other — — 184 260 22
Benefit obligation, end of year $ (11,912) $(12,536) $ (3,347) $ (3,640) $ (744) $ (842)
Change in plan assets
Fair value of plan assets, beginning of year $ 14,623 $ 14,354 $ 3,718 $ 3,532 $ 1,903 $ 1,757
Actual return on plan assets 231 1,010 52 518 13 159
Firm contributions 31 36 45 46 23
Employee contributions ——77——
Benefits paid (760) (777) (120) (119) (63) (16)
Foreign exchange impact and other — — (191) (266) ——
Fair value of plan assets, end of year $ 14,125 $ 14,623 (b)(c) $ 3,511 $ 3,718 $ 1,855 $ 1,903
Net funded status(a) $ 2,213 $ 2,087 $ 164 $78$ 1,111 $ 1,061
Accumulated benefit obligation, end of year $ (11,774) $(12,375) $ (3,322) $ (3,615) NA NA
(a) Represents plans with an aggregate overfunded balance of $4.1 billion and $3.9 billion at December 31, 2015 and 2014, respectively, and plans with an
aggregate underfunded balance of $636 million and $708 million at December 31, 2015 and 2014, respectively.
(b) At December 31, 2015 and 2014, approximately $533 million and $336 million, respectively, of U.S. plan assets included participation rights under
participating annuity contracts.
(c) At December 31, 2015 and 2014, defined benefit pension plan amounts not measured at fair value included $74 million and $106 million, respectively, of
accrued receivables, and $123 million and $257 million, respectively, of accrued liabilities, for U.S. plans.
(d) Includes an unfunded accumulated postretirement benefit obligation of $32 million and $37 million at December 31, 2015 and 2014, respectively, for the
U.K. plan.