Policy

Pension and Postretirement Benefit Plans and Defined Contribution Plans

The majority of our employees worldwide are covered by defined benefit pension plans, defined contribution plans or both. In the U.S., we have both qualified and supplemental (non-qualified) defined contribution and defined benefit plans. A qualified plan meets the requirements of certain sections of the Internal Revenue Code, and, generally, contributions to qualified plans are tax deductible. A qualified plan typically provides benefits to a broad group of employees with restrictions on discriminating in favor of highly compensated employees with regard to coverage, benefits and contributions. A supplemental (non-qualified) plan provides additional benefits to certain employees. In addition, we provide medical and life insurance benefits to certain retirees and their eligible dependents through our postretirement plans.

On May 8, 2012, we announced to employees that as of January 1, 2018, Pfizer will transition its U.S. and Puerto Rico employees from its defined benefit plans to enhanced defined contribution plans. As a result of this decision to freeze the U.S. and Puerto Rico defined benefit plans, a curtailment was triggered and we performed a re-measurement of the pension obligations and plan assets in the second quarter of 2012, which had an immaterial impact to the funded status of the plans. For the year ended December 31, 2012, we recorded, among other impacts, a curtailment gain of approximately $59 million in the consolidated statement of income.

A. Components of Net Periodic Benefit Costs and Changes in Other Comprehensive Loss



The following table provides the annual cost (including costs reported as part of discontinued operations) and changes in Other comprehensive income/(loss) for our benefit plans:
	Year Ended December 31,
	Pension Plans
	U.S. Qualified^(a)									U.S. Supplemental (Non-Qualified)^(b)									International^(c)									Postretirement Plans^(d)
(MILLIONS OF DOLLARS)	2013			2012			2011			2013			2012			2011			2013			2012			2011			2013			2012			2011
Service cost	$	301		$	357		$	351		$	26		$	35		$	36		$	216		$	215		$	243		$	61		$	68		$	68
Interest cost	666			697			734			67			62			72			378			406			443			166			182			195
Expected return on plan assets	(999		)	(983		)	(871		)	—			—			—			(407		)	(424		)	(437		)	(55		)	(46		)	(35		)
Amortization of:
Actuarial losses	355			306			145			51			41			36			129			93			86			46			33			17
Prior service credits	(7		)	(10		)	(8		)	(2		)	(3		)	(3		)	(5		)	(7		)	(5		)	(44		)	(49		)	(53		)
Curtailments	—			(62		)	(4		)	—			(9		)	(1		)	(20		)	(16		)	(14		)	(11		)	(65		)	(68		)
Settlements	113			145			99			40			33			24			22			7			14			—			—			—
Special termination benefits	—			8			23			—			30			26			4			5			5			—			6			3
Net periodic benefit costs reported in Income	429			458			469			182			189			190			317			279			335			163			129			127
(Income)/cost reported in Other comprehensive income/(loss)	(3,044		)	461			1,879			(255		)	110			36			(569		)	759			(365		)	(736		)	267			421
(Income)/cost recognized in Comprehensive income	$	(2,615	)	$	919		$	2,348		$	(73	)	$	299		$	226		$	(252	)	$	1,038		$	(30	)	$	(573	)	$	396		$	548

^(a)

2013 v. 2012––The decrease in net periodic benefit cost for our U.S. qualified plans was primarily driven by (i) lower service cost resulting from cost reduction initiatives, (ii) lower settlements and (iii) higher expected return on plan assets resulting from an increased plan asset base partially offset by the curtailment gain in the second quarter of 2012 resulting from the decision to freeze the defined benefit plans in the U.S. and Puerto Rico. Also, the decrease in the discount rate resulted in lower interest costs, as well as an increase in the amounts amortized for actuarial losses. 2012 v. 2011––The decrease in net periodic benefit cost for our U.S. qualified plans was primarily driven by (i) higher expected return on plan assets (resulting from contributions made to the plan in 2011 that increased the plan asset base), (ii) lower interest costs, (iii) a decrease in special termination benefits, and (iv) higher curtailments resulting from the decision to freeze the defined benefit plans in the U.S. and Puerto Rico largely offset by higher settlements and an increase in the amounts amortized for actuarial losses (resulting from a decrease in the discount rate and lower than expected actual returns in 2011).

^(b)

2013 v. 2012––The decrease in net periodic benefit cost for our U.S. supplemental (non-qualified) pension plans was primarily driven by special termination benefits in 2012, partially offset by an increase in the amounts amortized for actuarial losses resulting from a decrease in the discount rate, and the curtailment gain in the second quarter of 2012 resulting from the decision to freeze the defined benefit plans in the U.S. and Puerto Rico. 2012 v. 2011––The net periodic benefit cost for our U.S. supplemental (non-qualified) pension plans was largely unchanged as the curtailment gain resulting from the decision to freeze the defined benefit plans in the U.S. and Puerto Rico was more than offset by higher settlement activity.

^(c)

2013 v. 2012––The increase in net periodic benefit costs for our international pension plans was primarily driven by (i) an increase in the amounts amortized for actuarial losses resulting from changes in assumptions, (ii) lower expected return on plan assets driven by lower expected rate of return in certain significant plans, (iii) higher settlements and (iv) 2012 curtailment gains, partially offset by lower interest costs resulting from the decrease in discount rates. 2012 v. 2011––The decrease in net periodic benefit costs for our international pension plans was primarily driven by restructuring activities in the U.K. and Ireland in 2011. Also, the decrease in discount rates resulted in lower interest costs, as well as an increase in the amounts amortized for actuarial losses.

^(d)

2013 v. 2012––The increase in net periodic benefit cost for our postretirement plans was primarily driven by 2012 curtailment gains, partially offset by higher expected return on plan assets and 2012 special termination benefits. Also, the decrease in the discount rate resulted in lower interest costs, as well as an increase in the amounts amortized for actuarial losses. 2012 v. 2011––The net periodic benefit cost for our postretirement plans was largely unchanged, as an increase in amounts amortized for actuarial plan losses was partially offset by higher expected return on plan assets.



The following table provides the amounts in Accumulated other comprehensive loss expected to be amortized into 2014 net periodic benefit costs:
	Pension Plans
(MILLIONS OF DOLLARS)	U.S. Qualified			U.S. Supplemental (Non-Qualified)			International			Postretirement Plans
Actuarial losses	$	(62	)	$	(30	)	$	(98	)	$	(5	)
Prior service credits and other	7			2			7			58
Total	$	(55	)	$	(28	)	$	(91	)	$	53

B. Actuarial Assumptions



The following table provides the weighted-average actuarial assumptions of our benefit plans:
(PERCENTAGES)	2013		2012		2011
Weighted-average assumptions used to determine benefit obligations
Discount rate:
U.S. qualified pension plans	5.2	%	4.3	%	5.1	%
U.S. non-qualified pension plans	4.8	%	3.9	%	5.0	%
International pension plans	3.9	%	3.8	%	4.7	%
Postretirement plans	5.1	%	4.1	%	4.8	%
Rate of compensation increase:
U.S. qualified pension plans	2.8	%	2.8	%	3.5	%
U.S. non-qualified pension plans	2.8	%	2.8	%	3.5	%
International pension plans	2.9	%	3.1	%	3.3	%
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate:
U.S. qualified pension plans	4.3	%	5.1	%	5.9	%
U.S. non-qualified pension plans	3.9	%	5.0	%	5.8	%
International pension plans	3.8	%	4.7	%	4.8	%
Postretirement plans	4.1	%	4.8	%	5.6	%
Expected return on plan assets:
U.S. qualified pension plans	8.5	%	8.5	%	8.5	%
International pension plans	5.6	%	5.9	%	6.0	%
Postretirement plans	8.5	%	8.5	%	8.5	%
Rate of compensation increase:
U.S. qualified pension plans	2.8	%	3.5	%	4.0	%
U.S. non-qualified pension plans	2.8	%	3.5	%	4.0	%
International pension plans	3.1	%	3.3	%	3.5	%

The assumptions above are used to develop the benefit obligations at fiscal year-end and to develop the net periodic benefit cost for the subsequent fiscal year. Therefore, the assumptions used to determine net periodic benefit cost for each year are established at the end of each previous year, while the assumptions used to determine benefit obligations are established at each year-end.

The net periodic benefit cost and the benefit obligations are based on actuarial assumptions that are reviewed on an annual basis. We revise these assumptions based on an annual evaluation of long-term trends, as well as market conditions that may have an impact on the cost of providing retirement benefits.

The discount rate for our U.S. defined benefit plans is determined annually and evaluated and modified to reflect at year-end the prevailing market rate of a portfolio of high-quality corporate bond investments rated AA/Aa or better that would provide the future cash flows needed to settle benefit obligations as they come due. For our international plans, the discount rates are set by benchmarking against investment grade corporate bonds rated AA/Aa or better, including, when there is sufficient data, a yield curve approach. These rate determinations are made consistent with local requirements. Overall, the yield curves used to determine the discount rates at year-end 2013 exhibited higher interest rates as compared to the prior year.

The expected rates of return on plan assets for our U.S. qualified, international and postretirement plans represent our long-term assessment of return expectations, which we may change based on shifts in economic and financial market conditions. The 2013 expected rates of return for these plans reflect our long-term outlook for a globally diversified portfolio, which is influenced by a combination of return expectations for individual asset classes, actual historical experience and our diversified investment strategy. The historical returns are one of the inputs used to provide context for the development of our expectations for future returns. Using this information, we develop ranges of returns for each asset class and a weighted-average expected return for our targeted portfolio, which includes the impact of portfolio diversification and active portfolio management.



The following table provides the healthcare cost trend rate assumptions for our U.S. postretirement benefit plans:
	2013		2012
Healthcare cost trend rate assumed for next year	7.3	%	7.5	%
Rate to which the cost trend rate is assumed to decline	4.5	%	4.5	%
Year that the rate reaches the ultimate trend rate	2027		2027



The following table provides the effects as of December 31, 2013 of a one-percentage-point increase or decrease in the healthcare cost trend rate assumed for postretirement benefits:
(MILLIONS OF DOLLARS)	Increase		Decrease
Effect on total service and interest cost components	$	15	$	(14	)
Effect on postretirement benefit obligation	248		(222		)

Actuarial and other assumptions for pension and postretirement plans can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. For a description of the risks associated with estimates and assumptions, see Note 1C. Basis of Presentation and Significant Accounting Policies: Estimates and Assumptions.

C. Obligations and Funded Status



The following table provides an analysis of the changes in our benefit obligations, plan assets and funded status of our benefit plans (including those reported as part of discontinued operations):
	Year Ended December 31,
	Pension Plans
	U.S. Qualified^(a)						U.S. Supplemental (Non-Qualified)^(b)						International^(c)						Postretirement Plans^(d)
(MILLIONS OF DOLLARS)	2013			2012			2013			2012			2013			2012			2013			2012
Change in benefit obligation ^(e)

Benefit obligation, beginning	$	16,268		$	14,835		$	1,549		$	1,431		$	10,227		$	8,891		$	4,165		$	3,900
Service cost	301			357			26			35			216			215			61			68
Interest cost	666			697			67			62			378			406			166			182
Employee contributions	—			—			—			—			10			9			69			58
Plan amendments	—			—			—			—			1			(1		)	(152		)	(24		)
Changes in actuarial assumptions and other	(2,257		)	1,926			(165		)	252			229			1,232			(540		)	259
Foreign exchange impact	—			—			—			—			(66		)	(80		)	(9		)	1
Acquisitions/divestitures, net	—			(1		)	37			1			(63		)	71			—			—
Curtailments	(8		)	(605		)	(1		)	(80		)	(64		)	(101		)	(8		)	(11		)
Settlements	(444		)	(485		)	(105		)	(121		)	(156		)	(33		)	—			—
Special termination benefits	—			8			—			30			4			5			—			6
Benefits paid	(550		)	(464		)	(67		)	(61		)	(400		)	(387		)	(314		)	(274		)
Benefit obligation, ending^(e)	13,976			16,268			1,341			1,549			10,316			10,227			3,438			4,165

Change in plan assets
Fair value of plan assets, beginning	12,540			12,005			—			—			7,589			6,953			644			422
Actual gain on plan assets	1,318			1,464			—			—			976			668			98			85
Company contributions	5			20			172			182			380			383			244			353
Employee contributions	—			—			—			—			10			9			69			58
Foreign exchange impact	—			—			—			—			(95		)	(35		)	—			—
Acquisitions/divestitures, net	—			—			—			—			(54		)	31			—			—
Settlements	(444		)	(485		)	(105		)	(121		)	(156		)	(33		)	—			—
Benefits paid	(550		)	(464		)	(67		)	(61		)	(400		)	(387		)	(314		)	(274		)
Fair value of plan assets, ending	12,869			12,540			—			—			8,250			7,589			741			644
Funded status—Plan assets less than benefit obligation	$	(1,107	)	$	(3,728	)	$	(1,341	)	$	(1,549	)	$	(2,066	)	$	(2,638	)	$	(2,697	)	$	(3,521	)


^(a)	The favorable change in the funded status of our U.S. qualified plans is primarily due to the plan gains resulting from the increase in the discount rate and an increase in plan assets. The curtailments in 2012 resulting from the decision to freeze the defined benefit plans in the U.S. and Puerto Rico had a favorable impact on the 2012 funded status.


^(b)	Our U.S. supplemental (non-qualified) plans are generally not funded and these obligations, which are substantially greater than the annual cash outlay for these liabilities, will be paid from cash generated from operations.


^(c)	The favorable change in the funded status of our international plans is primarily due to an increase in plan assets partially offset by plan losses resulting from changes in actuarial assumptions. Outside the U.S., in general, we fund our defined benefit plans to the extent that tax or other incentives exist or the law requires.


^(d)	The favorable change in the funded status of our postretirement plans is primarily due to the plan gains resulting from the increase in the discount rate and the impact of a decision to move participants to Medicare Advantage effective January 1, 2015.

^(e)

For the U.S. and international pension plans, the benefit obligation is the projected benefit obligation. For the postretirement plans, the benefit obligation is the accumulated postretirement benefit obligation (ABO). The ABO for all of our U.S. qualified pension plans was $13.7 billion in 2013 and $15.9 billion in 2012. The ABO for our U.S. supplemental (non-qualified) pension plans was $1.3 billion in 2013 and $1.5 billion 2012. The ABO for our international pension plans was $9.7 billion in 2013 and $9.4 billion in 2012.



The following table provides information as to how the funded status is recognized in our consolidated balance sheets:
	As of December 31,
	Pension Plans
	U.S. Qualified						U.S. Supplemental (Non-Qualified)						International						Postretirement Plans
(MILLIONS OF DOLLARS)	2013			2012			2013			2012			2013			2012			2013			2012
Noncurrent assets^(a)	$	—		$	—		$	—		$	—		$	318		$	124		$	—		$	—
Current liabilities^(b)	—			—			(151		)	(162		)	(46		)	(95		)	(29		)	(30		)
Noncurrent liabilities^(c)	(1,107		)	(3,728		)	(1,190		)	(1,387		)	(2,338		)	(2,667		)	(2,668		)	(3,491		)
Funded status	$	(1,107	)	$	(3,728	)	$	(1,341	)	$	(1,549	)	$	(2,066	)	$	(2,638	)	$	(2,697	)	$	(3,521	)


^(a)	Included primarily in Other noncurrent assets.


^(b)	Included in Accrued compensation and related items and Liabilities of discontinued operations, as appropriate.


^(c)	Included in Pension benefit obligations, net and Postretirement benefit obligations, net, as appropriate.



The following table provides the pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
	As of December 31,
	Pension Plans
	U.S. Qualified						U.S. Supplemental (Non-Qualified)						International						Postretirement Plans
(MILLIONS OF DOLLARS)	2013			2012			2013			2012			2013			2012			2013			2012
Actuarial losses^(a)	$	(1,974	)	$	(5,027	)	$	(406	)	$	(664	)	$	(2,213	)	$	(2,780	)	$	(292	)	$	(932	)
Prior service (costs)/credits and other	42			51			11			14			(18		)	(20		)	470			374
Total	$	(1,932	)	$	(4,976	)	$	(395	)	$	(650	)	$	(2,231	)	$	(2,800	)	$	178		$	(558	)

^(a)

The accumulated actuarial losses primarily represent the impact of changes in discount rates and other assumptions that result in cumulative changes in our projected benefit obligations as well as the cumulative difference between the expected return and actual return on plan assets. These accumulated actuarial losses are recognized in Accumulated other comprehensive loss and are amortized into net periodic benefit costs primarily over the average remaining service period for active participants, using the corridor approach. The average amortization periods utilized are 9.6 years for our U.S. qualified plans, 9.5 years for our U.S. supplemental (non-qualified) plans, 18.2 years for our international plans and 10.8 years for our postretirement plans.



The following table provides information related to the funded status of selected benefit plans (including those reported as part of Liabilities of discontinued operations):
	As of December 31,
	Pension Plans
	U.S. Qualified				U.S. Supplemental (Non-Qualified)				International
(MILLIONS OF DOLLARS)	2013		2012		2013		2012		2013		2012
Pension plans with an accumulated benefit obligation in excess of plan assets:
Fair value of plan assets	$	12,869	$	12,540	$	—	$	—	$	1,309	$	2,776
Accumulated benefit obligation	13,704		15,870		1,294		1,465		3,348		5,056
Pension plans with a projected benefit obligation in excess of plan assets:
Fair value of plan assets	12,869		12,540		—		—		2,499		6,432
Projected benefit obligation	13,976		16,268		1,341		1,549		4,883		9,194

All of our U.S. plans and many of our international plans were underfunded as of December 31, 2013.

D. Plan Assets



The following table provides the components of plan assets (including those reported as part of Liabilities of discontinued operations):
			Fair Value^(a)								Fair Value^(a)
(MILLIONS OF DOLLARS)	As of December 31, 2013		Level 1		Level 2		Level 3		As of December 31, 2012		Level 1		Level 2		Level 3
U.S. qualified pension plans
Cash and cash equivalents	$	360	$	—	$	360	$	—	$	368	$	—	$	368	$	—
Equity securities:
Global equity securities	4,335		4,328		7		—		3,536		3,519		17		—
Equity commingled funds	2,294		—		2,294		—		2,215		—		2,215		—
Debt securities:
Fixed income commingled funds	675		—		675		—		943		—		943		—
Government bonds	971		—		971		—		1,093		—		1,093		—
Corporate debt securities	2,306		—		2,306		—		2,414		—		2,411		3
Other investments:
Private equity funds	822		—		—		822		866		—		—		866
Insurance contracts	281		—		281		—		348		—		348		—
Other	825		—		—		825		757		—		—		757
Total	12,869		4,328		6,894		1,647		12,540		3,519		7,395		1,626
International pension plans
Cash and cash equivalents	229		—		229		—		299		—		299		—
Equity securities:
Global equity securities	1,833		1,832		1		—		1,723		1,638		85		—
Equity commingled funds	2,446		—		2,446		—		2,194		—		2,194		—
Debt securities:
Fixed income commingled funds	967		—		967		—		825		—		825		—
Government bonds	812		—		812		—		914		—		914		—
Corporate debt securities	615		—		615		—		613		—		613		—
Other investments:
Private equity funds	54		—		10		44		110		—		14		96
Insurance contracts	421		—		121		300		465		—		117		348
Other	873		—		353		520		446		—		57		389
Total	8,250		1,832		5,554		864		7,589		1,638		5,118		833
U.S. postretirement plans^(b)
Cash and cash equivalents	29		—		29		—		28		—		28		—
Equity securities:
Global equity securities	105		105		—		—		79		79		—		—
Equity commingled funds	56		—		56		—		50		—		50		—
Debt securities:
Fixed income commingled funds	16		—		16		—		20		—		20		—
Government bonds	24		—		24		—		25		—		25		—
Corporate debt securities	56		—		56		—		55		—		55		—
Other investments:
Insurance contracts	415		—		415		—		350		—		350		—
Other	40		—		40		—		37		—		37		—
Total	$	741	$	105	$	636	$	—	$	644	$	79	$	565	$	—


^(a)	Fair values are determined based on valuation inputs categorized as Level 1, 2 or 3 (see Note 1E. Basis of Presentation and Significant Accounting Policies: Fair Value).


^(b)	Reflects postretirement plan assets, which support a portion of our U.S. retiree medical plans.



The following table provides an analysis of the changes in our more significant investments valued using significant unobservable inputs (including those reported as part of Liabilities of discontinued operations):
	Year Ended December 31,
	U.S. Qualified Pension Plans											International Pension Plans
	Private Equity Funds						Other					Insurance Contracts						Other
(MILLIONS OF DOLLARS)	2013			2012			2013			2012		2013			2012			2013		2012
Fair value, beginning	$	866		$	920		$	757		$	656	$	348		$	366		$	389	$	348
Actual return on plan assets:
Assets held, ending	75			4			29			61		15			8			8		(14		)
Assets sold during the period	—			—			(6		)	—		—			—			—		5
Purchases, sales and settlements, net	(119		)	(58		)	45			40		(41		)	(5		)	63		50
Transfer into/(out of) Level 3	—			—			—			—		(16		)	(5		)	58		—
Exchange rate changes	—			—			—			—		(6		)	(16		)	2		—
Fair value, ending	$	822		$	866		$	825		$	757	$	300		$	348		$	520	$	389

A single estimate of fair value can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. For a description of our general accounting policies associated with developing fair value estimates, see Note 1E. Basis of Presentation and Significant Accounting Policies: Fair Value. For a description of the risks associated with estimates and assumptions, see Note 1C. Basis of Presentation and Significant Accounting Policies: Estimates and Assumptions.

Specifically, the following methods and assumptions were used to estimate the fair value of our pension and postretirement plans’ assets:


•	Cash and cash equivalents, Equity commingled funds, Fixed-income commingled funds––observable prices.


•	Global equity securities—quoted market prices.


•	Government bonds, Corporate debt securities—observable market prices.


•	Other investments—principally unobservable inputs that are significant to the estimation of fair value. These unobservable inputs could include, for example, the investment managers’ assumptions about earnings multiples and future cash flows.

We review the methodologies, inputs and outputs of third-party pricing services for reasonableness.



The following table provides the long-term target asset allocations ranges and the percentage of the fair value of plan assets for benefit plans:
	As of December 31,
	Target Allocation Percentage		Percentage of Plan Assets
(PERCENTAGES)	2013		2013		2012
U.S. qualified pension plans
Cash and cash equivalents	0-10		2.8	%	2.9	%
Equity securities	35-55		51.5	%	45.9	%
Debt securities	30-55		30.7	%	35.5	%
Real estate and other investments	5-18		15.0	%	15.7	%
Total	100	%	100	%	100	%
International pension plans
Cash and cash equivalents	0-10		2.8	%	3.9	%
Equity securities	35-55		51.9	%	51.6	%
Debt securities	30-55		29.0	%	31.0	%
Real estate and other investments	5-18		16.3	%	13.5	%
Total	100	%	100	%	100.0	%
U.S. postretirement plans
Cash and cash equivalents	0-5		4.0	%	4.4	%
Equity securities	10-35		21.7	%	20.1	%
Debt securities	5-30		13.0	%	15.5	%
Real estate, insurance contracts and other investments	55-70		61.3	%	60.0	%
Total	100	%	100	%	100	%

The plans assets are managed with the objectives of minimizing pension expense and cash contributions over the long term. We utilize long-term asset allocation ranges in the management of our plans’ invested assets. Our long-term return expectations are developed based on a diversified, global investment strategy that takes into account historical experience, as well as the impact of portfolio diversification, active portfolio management, and our view of current and future economic and financial market conditions. As market conditions and other factors change, we may adjust our targets accordingly and our asset allocations may vary from the target allocations.

Our long-term asset allocation ranges reflect our asset class return expectations and tolerance for investment risk within the context of the respective plans’ long-term benefit obligations. These ranges are supported by analysis that incorporates historical and expected returns by asset class, as well as volatilities and correlations across asset classes and our liability profile. This analysis, referred to as an asset-liability analysis, also provides an estimate of expected returns on plan assets, as well as a forecast of potential future asset and liability balances.

The investment managers of certain separately managed accounts may be permitted to use derivative securities as described in each respective investment management agreement.

Investment performance is reviewed on a monthly basis in total, as well as by asset class and individual manager, relative to one or more benchmarks. Investment performance and detailed statistical analysis of both investment performance and portfolio holdings are conducted, a large portion of which is presented to senior management on a quarterly basis. Periodic formal meetings are held with each investment manager to review the investments.

E. Cash Flows

It is our practice to fund amounts for our qualified pension plans that are at least sufficient to meet the minimum requirements set forth in applicable employee benefit laws and local tax laws.



The following table provides the expected future cash flow information related to our benefit plans:
	Pension Plans
(MILLIONS OF DOLLARS)	U.S. Qualified		U.S. Supplemental (Non-Qualified)		International		Postretirement Plans
Expected employer contributions:
2014	$	6	$	150	$	305	$	246
Expected benefit payments:
2014	$	828	$	150	$	390	$	286
2015	792		123		398		285
2016	803		107		410		293
2017	868		110		418		303
2018	958		124		429		311
2019–2023	4,579		490		2,314		1,661

The table reflects the total U.S. and international plan benefits projected to be paid from the plans or from our general assets under the current actuarial assumptions used for the calculation of the benefit obligation and, therefore, actual benefit payments may differ from projected benefit payments.

F. Defined Contribution Plans

We have savings and investment plans in several countries, including the U.S., U.K., Italy, Japan and Canada. For the majority of U.S. plans, employees may contribute a portion of their salaries and bonuses to the plans, and we match, largely in company stock or company stock units, a portion of the employee contributions. In the U.S., the matching contributions in company stock are sourced through open market purchases. Employees are permitted to subsequently diversify all or any portion of their company matching contribution. We recorded charges related to our plans of $266 million in 2013, $297 million in 2012 and $288 million in 2011.

PFIZER INC | 2013 | FY |

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