Note 18 PENSION, POSTRETIREMENT AND POSTEMPLOYMENT LIABILITIES  Bristol-Myers Squibb  The Company and certain of its subsidiaries sponsor defined benefit pension plans, defined contribution plans and termination  indemnity plans for regular full-time employees. The principal defined benefit pension plan is the Bristol-Myers Squibb Retirement  Income Plan, which covers most U.S. employees and represents approximately 70% of the consolidated pension plan assets and  obligations. The funding policy is to contribute at least the minimum amount required by the Employee Retirement Income Security  Act of 1974 (ERISA). Plan benefits are based primarily on the participant’s years of credited service and final average compensation. Plan assets consist principally of equity and fixed-income securities.  Comprehensive medical and group life benefits are provided for substantially all U.S. retirees who elect to participate in  comprehensive medical and group life plans. The medical plan is contributory. Contributions are adjusted periodically and vary by  date of retirement. The life insurance plan is noncontributory. Plan assets consist principally of equity and fixed-income securities. Similar plans exist for employees in certain countries outside of the U.S.  The net periodic benefit cost of defined benefit pension and postretirement benefit plans includes:  A $151 million pension settlement charge was recognized in 2012 for the primary U.S. pension plan as a result of annual lump sum  payments exceeding interest and service costs during the fourth quarter. The charge included the acceleration of a portion of  unrecognized actuarial losses.  Net actuarial loss and prior service cost of $147 million is expected to be amortized from accumulated OCI into net periodic benefit  cost for pension and postretirement benefit plans in 2013.  58 Pension Benefits Other Benefits Dollars in Millions 2012 2011 2010 2012 2011 2010 Service cost — benefits earned during the year $  32  $  43 $  44 $  8 $   8 $  6  Interest cost on projected benefit obligation   319   337  347  22  26  30  Expected return on plan assets   (508)  (464)  (453)  (25)   (26)  (24) Amortization of prior service cost/(benefit)   (3)  (1)  -  (2)   (3)  (3) Amortization of net actuarial loss   129   112  95  10  7  10  Curtailments   (1)  (3)  5  -  (1)  -  Settlements   160   15  22  - Special termination benefits   -   -  1  -  -  Total net periodic benefit cost  $  128  $  39 $  61 $  13 $   11 $  19 