Note 11. Retirement Plans: The Company has various contributory and noncontributory pension plans covering substantially all employees. Cummins common stock represented 9 percent of pension plan assets  at December 31, 2000. Cummins also provides various health care and life insurance benefits to eligible retirees and their dependents but reserves the right to change benefits covered under these plans. The plans are contributory with retireesGLYPH<213> contributions adjusted annually, and they contain other cost-sharing features, such  as deductibles, coinsurance and spousal contributions. The general policy is to fund benefits as claims and premiums  are incurred. The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for plans with accumulated benefit obligations in excess of plan assets were $697 million,  $682 million and $558 million, respectively, as of December 31, 2000, and $651 million, $636 million and $513 million, respec- tively, as of December 31, 1999. The assumed long-term rate of compensation increase for salaried plans was 5.25 percent in 2000 and 1999. Other significant assumptions for the CompanyGLYPH<213>s principal plans were: For measurement purposes a 7 percent annual increase in health care costs was assumed for 2001, decreasing gradually to 5.5 percent in five years and remaining constant thereafter. Increasing the health care cost trend rate by 1 percent would increase the obligation by $48 million and annual expense by  $4 million. Decreasing the health care cost trend rate by 1 percent would decrease the obligation by $43 million and annual expense by $3 million. The CompanyGLYPH<213>s net periodic benefit cost under these plans was as follows: Pension Benefits Other Benefits 2000 1999 2000 1999 Weighted-average discount rate 7.75% 7.5% 7.75% 7.5%  Long-term rate of return on plan assets 10.0% 9.0% Pension Benefits Other Benefits $ Millions 2000 1999 1998 2000 1999 1998 Service cost $ 50 $ 53  $ 47 $ 6  $ 8  $ 8  Interest cost 126 116 123 46 40 44 Expected return on plan assets (161)  (161) (153) - - -  Amortization of transition asset (2)  (3) (4) - - -  Other 9 12 12 3  4 3  $ 22 $ 17  $ 25 $ 55 $ 52  $ 55 30