ÐÇ¿Õ´«Ã½

Annual report pursuant to Section 13 and 15(d)

PENSIONS AND OTHER POSTRETIREMENT BENEFITS

v3.22.4
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
 12 Months Ended
Dec. 31, 2022
Postemployment Benefits [Abstract] Ìý
PENSION AND OTHER POSTRETIREMENT BENEFITS
NOTE 9 - PENSIONS AND OTHER POSTRETIREMENT BENEFITS
We offer defined benefit pension plans, defined contribution pension plans and OPEB plans to a significant portion of our employees and retirees. Benefits are also provided through multiemployer plans for certain union members.
DEFINED BENEFIT PENSION PLANS
The defined benefit pension plans are largely noncontributory and limited in participation. Most plans are closed to new participants with only the legacy iron ore hourly and salaried plans still open. The pension benefit calculations vary by plan but are generally based on employees' years of service and compensation or a fixed rate and years of service. Certain salaried plans calculate benefits using a cash balance formula, which earns interest credits and allocations based on a percent of pay.
OPEB PLANS
We offer postretirement health care and life insurance benefits to retirees through various funded and unfunded plans. The vast majority of our plans are closed to new participants. In lieu of retiree medical coverage, many union-represented employees receive a 401(k) contribution per hour worked to a restricted Retiree Health Care Account. Cost sharing features between the employer and retiree vary by plan and several plans include employer caps. Retiree healthcare coverage is provided through programs administered by insurance companies whose charges are based on benefits paid. Certain labor agreements require the funding of VEBAs, which, depending on funding levels, may be used to reimburse the employer for paid benefits.
USW LABOR AGREEMENTS
On September 30, 2022, a new 47-month labor agreement with the USW was ratified. The contract became effective on October 1, 2022, and covers approximately 2,000 USW-represented employees at our United Taconite, Hibbing Taconite, Tilden and Empire mines. For the affected defined benefit pension plans, we agreed to increase the pre-2023 service multiplier to $115 and the service multiplier applicable to service beginning in 2023 to $126 for retirements after January 1, 2023. For the affected OPEB plans, we introduced a new Medicare Advantage plan to the Medicare-eligible retirees. Effective January 1, 2023, all Medicare-eligible retirees covered under this agreement will switch to this plan. The Medicare Advantage plan will offer similar benefits to the previous healthcare plan but will have significantly lower premiums due to increased government subsidies and our successful use of scale to negotiate better healthcare rates with our vendors.
On October 12, 2022, a new 4-year labor agreement with the USW, covering 12,000 USW-represented employees at 13 operating locations, was ratified. For the affected defined benefit pension plans, we agreed to increase the pre-2023 service multiplier to $115 and the service multiplier applicable to service beginning in 2023 to $126 for retirements after January 1, 2023. For the affected OPEB plans, we implemented a cap on healthcare costs for employees retiring after January 1, 2026. Separate from the labor agreements, we negotiated favorable Medicare Advantage Prescription Drug healthcare rates, which will go into effect January 1, 2023. Additionally, we paused the contribution requirement to the ÐÇ¿Õ´«Ã½ Steel LLC VEBA based on earnings for the remainder of the labor agreement with the USW, which expires in September of 2026.
Additionally, we increased our contribution rate to the Steelworkers Pension Trust by $0.50 to $4.00 per eligible hour with both agreements. The increase was effective November 1, 2022.
These labor agreements triggered interim remeasurements on their ratification dates. All affected plans were remeasured again at DecemberÌý31, 2022.
OBLIGATIONS AND FUNDED STATUS
The following tables and information provide additional disclosures:
(In millions) Pension Benefits OPEB
Change in benefit obligations: 2022 2021 2022 2021
Benefit obligations — beginning of year $ 6,036Ìý $ 6,565Ìý $ 3,254Ìý $ 3,757Ìý
Service cost 45Ìý 56Ìý 35Ìý 51Ìý
Interest cost 144Ìý 103Ìý 72Ìý 74Ìý
Plan amendments 122Ìý —Ìý (163) 8Ìý
Actuarial gain (1,236) (131) (1,781) (456)
Benefits paid (431) (456) (232) (227)
Participant contributions —Ìý —Ìý 47Ìý 47Ìý
Effect of settlement (34) (101) —Ìý —Ìý
Other —Ìý —Ìý 1Ìý —Ìý
Benefit obligations — end of year $ 4,646Ìý $ 6,036Ìý $ 1,233Ìý $ 3,254Ìý
Change in plan assets:
Fair value of plan assets — beginning of year $ 5,606Ìý $ 5,332Ìý $ 812Ìý $ 783Ìý
Actual return on plan assets (809) 668Ìý (97) 29Ìý
Participant contributions —Ìý —Ìý 47Ìý 47Ìý
Employer contributions 6Ìý 163Ìý 198Ìý 180Ìý
Benefits paid (431) (456) (232) (227)
Effect of settlement (34) (101) —Ìý —Ìý
Fair value of plan assets — end of year $ 4,338Ìý $ 5,606Ìý $ 728Ìý $ 812Ìý
Funded status $ (308) $ (430) $ (505) $ (2,442)
Amounts recognized in Statements of Financial Position:
Non-current assets $ 195Ìý $ 153Ìý $ 161Ìý $ 71Ìý
Current liabilities (30) (5) (81) (130)
Non-current liabilities (473) (578) (585) (2,383)
Total amount recognized $ (308) $ (430) $ (505) $ (2,442)
Amounts recognized in accumulated other comprehensive loss (income):
Net actuarial gain $ (361) $ (286) $ (1,996) $ (392)
Prior service cost (credit) 121Ìý 5Ìý (156) 4Ìý
Net amount recognized $ (240) $ (281) $ (2,152) $ (388)
The accumulated benefit obligation for all defined benefit pension plans was $4,628 million and $6,013 million at DecemberÌý31, 2022 and 2021, respectively.
COMPONENTS OF NET PERIODIC BENEFIT COST (CREDIT)
Pension Benefits OPEB
(In millions) 2022 2021 2020 2022 2021 2020
Service cost $ 45Ìý $ 56Ìý $ 23Ìý $ 35Ìý $ 51Ìý $ 8Ìý
Interest cost 144Ìý 103Ìý 64Ìý 72Ìý 74Ìý 19Ìý
Expected return on plan assets (355) (359) (140) (37) (40) (20)
Amortization:
Net actuarial loss (gain) 13Ìý 32Ìý 27Ìý (43) 3Ìý 3Ìý
Prior service costs (credits) 5Ìý 1Ìý 1Ìý (3) (2) (2)
Settlements (8) (22) (6) —Ìý —Ìý —Ìý
Net periodic benefit cost (credit) $ (156) $ (189) $ (31) $ 24Ìý $ 86Ìý $ 8Ìý
For 2023, we estimate net periodic benefit cost (credit) as follows:
(In millions)
Defined benefit pension plans $ (29)
OPEB plans (130)
Total $ (159)
COMPONENTS OF OTHER COMPREHENSIVE LOSS (INCOME)
The following includes details on the significant actuarial losses (gains) impacting the benefit obligation and other components of other comprehensive loss (income):
Pension Benefits OPEB
(In millions) 2022 2021 2022 2021
Discount rates $ (1,143) $ (224) $ (441) $ (117)
Demographic updates (102) 76Ìý (7) 3Ìý
Mortality 17Ìý 19Ìý —Ìý 13Ìý
Per capita healthcare costs1
—Ìý —Ìý (1,328) (350)
Other (8) (2) (5) (5)
Actuarial gain on benefit obligation (1,236) (131) (1,781) (456)
Actual returns on assets under (over) expected 1,165Ìý (309) 134Ìý 11Ìý
Amortization of net actuarial gain (loss) (13) (32) 43Ìý (3)
Amortization of prior service credits (costs) (5) (1) 3Ìý 2Ìý
Settlements 8Ìý 22Ìý —Ìý —Ìý
Plan amendments2
122Ìý —Ìý (163) 8Ìý
Total recognized in other comprehensive loss (income) $ 41Ìý $ (451) $ (1,764) $ (438)
1 The gain in per capita healthcare costs in 2022 relating to our OPEB plans is primarily due to the negotiation of favorable Medicare Advantage Prescription Drug healthcare rates, which will go into effect January 1, 2023. Additionally, we expanded the Medicare Advantage program to retirees on some of our other plans which added additional savings. The negotiated rates extend through 2025.
2 The plan amendment loss related to our pension plans is attributable to the increase to the pre-2023 service multiplier to $115 and the service multiplier applicable to service beginning in 2023 to $126 for retirements after January 1, 2023. The plan amendment gain related to our OPEB plans is attributable to the implementation of a cap on healthcare costs for employees retiring after January 1, 2026 on one of our ÐÇ¿Õ´«Ã½ Steel LLC plans as well as the extension of the Medicare Advantage offering to plans that previously didn't have the program.
CONTRIBUTIONS
We make both required and discretionary pension contributions. Required contributions are based on minimum funding requirements pursuant to ERISA regulations. Funded OPEB plans are not subject to minimum regulatory funding requirements, but rather amounts are contributed pursuant to bargaining agreements. Contributions toward unfunded OPEB plans are payments made directly from corporate assets. Company contributions and payments we expect to make in 2023, and made in 2022 and 2021 are as follows:
Pension Benefits1
OPEB
(In millions)
VEBA2
Direct Payments Total
2021 $ 163Ìý $ 67Ìý $ 113Ìý $ 180Ìý
2022 6Ìý 85Ìý 113Ìý 198Ìý
2023 (Expected) 32Ìý —Ìý 73Ìý 73Ìý
1 The 2021 pension contributions include $118Ìýmillion in deferred 2020 pension contributions in connection with the CARES Act that were paid on January 4, 2021.
2 Pursuant to the applicable bargaining agreements, benefits can be paid from certain VEBAs that are at least 70% funded (all VEBAs were over 70% funded at December 31, 2022). Certain agreements with plans holding VEBA assets have capped healthcare costs. For the ÐÇ¿Õ´«Ã½ Steel LLC VEBA, we are required to make contributions based on earnings, and we may withdraw money from the VEBA plan to the extent funds are available for costs in excess of the cap. VEBA withdrawals are represented net of direct payments. There will be no further contributions to the ÐÇ¿Õ´«Ã½ Steel LLC VEBA based on earnings for the remainder of labor agreement with the USW which expires September of 2026.
ESTIMATED FUTURE BENEFIT PAYMENTS
(In millions) Pension Benefits
OPEB1
2023 $ 502Ìý $ 115Ìý
2024 450Ìý 110Ìý
2025 428Ìý 103Ìý
2026 421Ìý 99Ìý
2027 410Ìý 96Ìý
2028-2032 1,826Ìý 451Ìý
1 OPEB benefit payments are displayed net of participant contributions.
ASSUMPTIONS
The discount rates used to measure plan liabilities as of the December 31 measurement date are determined individually for each plan. The discount rates are determined by matching the projected cash flows used to determine the plan liabilities to a projected yield curve of high-quality corporate bonds available at the measurement date. Discount rates for expense are calculated using the granular approach for each plan.
Depending on the plan, we use either company-specific base mortality tables or tables issued by the Society of Actuaries. For tables issued by the Society of Actuaries, we use Pri-2012 mortality tables with adjustments for blue collar, white collar or no collar depending on the plan. Mortality is projected for all plans using Scale MP-2021 with generational projection for both years.
The following represents weighted-average assumptions used to determine benefit obligations:
PensionÌýBenefits OPEB
December 31, December 31,
2022 2021 2022 2021
Discount rate 5.47 % 2.75 % 5.52 % 3.01 %
Interest crediting rate 5.39 5.35 N/A N/A
Compensation rate increase 3.00 2.52 3.00 3.00
The following represents weighted-average assumptions used to determine net benefit cost:
Pension Benefits OPEB
December 31, December 31,
2022 2021 2020 2022 2021 2020
Obligation discount rate 3.21Ìý % 2.32Ìý % 3.02Ìý % 3.33Ìý % 2.46Ìý % 3.28Ìý %
Service cost discount rate 3.49Ìý 2.78Ìý 3.34Ìý 3.91Ìý 3.28Ìý 3.35Ìý
Interest cost discount rate 2.75Ìý 1.64Ìý 2.53Ìý 3.01Ìý 2.04Ìý 2.51Ìý
Interest crediting rate 5.39Ìý 5.35Ìý 5.50Ìý N/A N/A N/A
Expected return on plan assets 6.87Ìý 6.84Ìý 7.69Ìý 4.86Ìý 5.20Ìý 6.82Ìý
Compensation rate increase 2.74Ìý 2.54Ìý 2.56Ìý 3.00Ìý 3.00Ìý 3.00Ìý
The following represents assumed weighted-average health care cost trend rates:
December 31,
2022 2021
Health care cost trend rate assumed for next year1
5.44Ìý % 2.36Ìý %
Ultimate health care cost trend rate 4.50Ìý % 4.50Ìý %
Year that the ultimate rate is reached 2030 2031
1 The health care trend rate for the next year is weighted for all of our OPEB plans and factors in our Medicare Advantage Prescription Drug pricing arrangements.
PLAN ASSETS
Our investment objectives with respect to our pension and OPEB assets are to maximize investment returns within reasonable and prudent levels of risk and maintain sufficient liquidity to meet benefit obligations over the life of each plan. The asset allocations are tailored to each individual plan and are determined by analyzing each plan's duration of benefit obligations, funded status and risk profile. Our investment strategy utilizes a broad mix of equity, fixed income and alternative investments to generate returns and manage risk. Equity investments are diversified across large-cap, mid-cap and small-cap companies located in the U.S. and worldwide, with a bias towards U.S. companies. Fixed income investments primarily include corporate bonds and government debt securities, which are generally customized based on a plan's obligation duration. To enhance our diversification, we also invest in hedge funds, private equity, structured credit, real estate and absolute return fixed income.
We review investment performance, asset allocations and policy compliance on a quarterly basis. In the fourth quarter of 2022, we increased our fixed income allocation for one of our more mature pension plans, which totaled $1.2Ìýbillion on DecemberÌý31, 2022. We also transitioned $2.9Ìýbillion of pension and OPEB assets to be managed by an external investment advisor in a delegated manner. Due to the timing of this transition, the 2023 target allocation will not match our actual DecemberÌý31, 2022 asset mix, as the investment strategy will require us to start reallocating assets in the first quarter of 2023. The anticipated changes in our asset allocation will be reflected in our 2023 expected return on assets.
The expected return on plan assets are calculated on a plan-by-plan basis and take into account each plan's strategic asset allocation. The calculation of rates by asset class are based primarily on our future expected returns and take into consideration the duration of the cash flows, active management and fees.
Assets for OPEB plans include VEBA trusts pursuant to bargaining agreements that are available to fund retired employees’ life insurance obligations and medical benefits. The following table reflects the actual asset allocations for pension and VEBA assets as of DecemberÌý31, 2022 and 2021, as well as the 2023 weighted average target asset allocations:
Pension Assets VEBA Assets
Asset Category 2023
Target
Allocation		 Actual Asset Allocation at DecemberÌý31, 2023
Target
Allocation		 Actual Asset Allocation at DecemberÌý31,
2022 2021 2022 2021
Equity securities 33.3Ìý % 36.1Ìý % 47.6Ìý % 21.9Ìý % 22.0Ìý % 22.5Ìý %
Fixed income 41.6Ìý 40.9Ìý 34.6Ìý 73.7Ìý 67.4Ìý 66.4Ìý
Hedge funds 9.2Ìý 2.7Ìý 2.2Ìý 2.2Ìý 1.9Ìý 1.8Ìý
Private equity 3.3Ìý 3.3Ìý 2.7Ìý —Ìý —Ìý —Ìý
Structured credit 2.6Ìý 6.9Ìý 5.6Ìý 1.1Ìý 1.2Ìý 1.2Ìý
Real estate 10.0Ìý 8.2Ìý 5.6Ìý 1.1Ìý 1.7Ìý 2.1Ìý
Absolute return fixed income —Ìý 1.9Ìý 1.7Ìý —Ìý 5.8Ìý 6.0Ìý
Total 100.0Ìý % 100.0Ìý % 100.0Ìý % 100.0Ìý % 100.0Ìý % 100.0Ìý %
FAIR VALUE MEASUREMENTS
Investments classified as Level 1 primarily include equity investments and fixed income mutual funds that are based on observable quoted market prices on an active exchange. Fixed income investments classified as Level 2 include U.S. Treasury STRIPS which are priced daily through a bond pricing vendor as well as corporate bonds, mortgage-backed securities and non-US bonds which have valuations based on their bid-ask spreads or quoted prices of securities with similar characteristics.
Hedge funds, private equity, structured credit and real estate investments are classified as Level 3 due to the absence of quoted market prices and inherent lack of liquidity. These investments are generally valued at estimated fair value based on financial inputs from our investment advisors, investment managers or third party appraisers.
Investment commitments are made in private equity funds and capital calls are made over the life of the funds to fund the commitments. As of DecemberÌý31, 2022, remaining commitments for our private equity investments total $117 million for our pension and OPEB plans. Committed amounts are funded from plan assets when capital calls are made.
As a practical expedient, in accordance with ASC 820-10, certain investments that are measured at fair value using the NAV per share have not been classified in the fair value hierarchy below. NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by its number of shares outstanding.
The fair value of our pension assets by asset category is as follows:
(In millions) Quoted Prices in Active Markets for Identical Assets (Level 1) SignificantÌý Other Observable Inputs
(Level 2)		 Significant
Unobservable
Inputs
(Level 3)		 Investments Measured at Net Asset Value Total
Asset Category 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Equity securities:
U.S. equities $ 564Ìý $ 1,157Ìý $ —Ìý $ —Ìý $ —Ìý $ —Ìý $ 569Ìý $ 775Ìý $ 1,133Ìý $ 1,932Ìý
Global equities 328Ìý 617Ìý —Ìý —Ìý —Ìý —Ìý 106Ìý 117Ìý 434Ìý 734Ìý
Fixed income:
U.S. government securities1
87Ìý 140Ìý 380Ìý 310Ìý —Ìý —Ìý 63Ìý 50Ìý 530Ìý 500Ìý
U.S. corporate bonds 574Ìý 502Ìý 266Ìý 371Ìý —Ìý —Ìý 373Ìý 503Ìý 1,213Ìý 1,376Ìý
Non U.S. and other bonds —Ìý —Ìý 32Ìý 66Ìý —Ìý —Ìý —Ìý —Ìý 32Ìý 66Ìý
Hedge funds —Ìý —Ìý —Ìý —Ìý 115Ìý 125Ìý —Ìý —Ìý 115Ìý 125Ìý
Private equity —Ìý —Ìý —Ìý —Ìý 143Ìý 151Ìý —Ìý —Ìý 143Ìý 151Ìý
Structured credit —Ìý —Ìý —Ìý —Ìý 298Ìý 315Ìý —Ìý —Ìý 298Ìý 315Ìý
Real estate —Ìý —Ìý —Ìý —Ìý 356Ìý 313Ìý —Ìý —Ìý 356Ìý 313Ìý
Absolute return fixed income —Ìý —Ìý —Ìý —Ìý —Ìý —Ìý 84Ìý 94Ìý 84Ìý 94Ìý
Total $ 1,553Ìý $ 2,416Ìý $ 678Ìý $ 747Ìý $ 912Ìý $ 904Ìý $ 1,195Ìý $ 1,539Ìý $ 4,338Ìý $ 5,606Ìý
1 Includes cash equivalents.
The fair value of our VEBA assets by asset category is as follows:
(In millions) QuotedÌýPricesÌý inÌýActive Markets for Identical Assets
(Level 1)		 SignificantÌý Other Observable Inputs
(Level 2)		 Significant
Unobservable
Inputs
(Level 3)		 Investments Measured at Net Asset Value Total
Asset Category 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Equity securities:
U.S. equities $ 24Ìý $ 26Ìý $ —Ìý $ —Ìý $ —Ìý $ —Ìý $ 89Ìý $ 103Ìý $ 113Ìý $ 129Ìý
Global equities 5Ìý 6Ìý —Ìý —Ìý —Ìý —Ìý 42Ìý 48Ìý 47Ìý 54Ìý
Fixed income:
U.S. government securities1
149Ìý 111Ìý 79Ìý 80Ìý —Ìý —Ìý —Ìý —Ìý 228Ìý 191Ìý
U.S. corporate bonds 146Ìý 219Ìý 117Ìý 129Ìý —Ìý —Ìý —Ìý —Ìý 263Ìý 348Ìý
Hedge funds —Ìý —Ìý —Ìý —Ìý 14Ìý 15Ìý —Ìý —Ìý 14Ìý 15Ìý
Private equity —Ìý —Ìý —Ìý —Ìý —Ìý —Ìý —Ìý —Ìý —Ìý —Ìý
Structured credit —Ìý —Ìý —Ìý —Ìý 9Ìý 10Ìý —Ìý —Ìý 9Ìý 10Ìý
Real estate —Ìý —Ìý —Ìý —Ìý 12Ìý 17Ìý —Ìý —Ìý 12Ìý 17Ìý
Absolute return fixed income —Ìý —Ìý —Ìý —Ìý —Ìý —Ìý 42Ìý 48Ìý 42Ìý 48Ìý
Total $ 324Ìý $ 362Ìý $ 196Ìý $ 209Ìý $ 35Ìý $ 42Ìý $ 173Ìý $ 199Ìý $ 728Ìý $ 812Ìý
1 Includes cash equivalents.
The following represents the fair value measurements of changes in plan assets using significant unobservable inputs (Level 3):
Pension Assets VEBA Assets
(In millions) 2022 2021 2022 2021
Beginning balance — January 1 $ 904Ìý $ 670Ìý $ 42Ìý $ 38Ìý
Actual return on plan assets:
Relating to assets still held at the reporting date (6) 124Ìý 1Ìý 6Ìý
Relating to assets sold during the period 15Ìý 8Ìý 1Ìý —Ìý
Purchases 28Ìý 142Ìý —Ìý —Ìý
Sales (29) (40) (9) (2)
Acquired through business combinations —Ìý —Ìý —Ìý —Ìý
Ending balance — December 31 $ 912Ìý $ 904Ìý $ 35Ìý $ 42Ìý
DEFINED CONTRIBUTION PLANS
Most employees are eligible to participate in various defined contribution plans. Certain of these plans have features with matching contributions or other Company contributions based on our financial results. Company contributions to these plans are expensed as incurred. Total expense from these plans was $52 million, $55 million and $22 million in 2022, 2021 and 2020, respectively.
MULTlEMPLOYER PLANS
We contribute to multiemployer pension plans according to collective bargaining agreements that cover certain union-represented employees. The risks of participating in these multiemployer plans are different from the risks of participating in single-employer pension plans in the following respects:
•Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.
•If a participating employer stops contributing to a multiemployer plan, the unfunded obligations of the plan may be borne by the remaining participating employers.
•If the multiemployer plan becomes significantly underfunded or is unable to pay its benefits, we may be required to contribute additional amounts in excess of the rate required by the collective bargaining agreements.
•If we choose to stop participating in a multiemployer plan, we may be required to pay that plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
Information with respect to multiemployer plans in which we participate follows:
Pension Fund EIN/Pension Plan Number
Pension Protection Act Zone Status1
FIP/RP Status Pending/Implemented2
Contributions
Surcharge Imposed3
Expiration Date of Collective Bargaining Agreement4
2022 2021 2022 2021 2020
Steelworkers Pension Trust
23-6648508/499
 Green Green No $ 93Ìý $ 88Ìý $ 14Ìý No 4/1/2025 to 9/1/2026
IAM National Pension Fund’s National Pension Plan
51-6031295/002
 Red Red Yes 22Ìý 16Ìý 16Ìý Yes 5/15/2023 to 6/15/2025
Other Plans5
—Ìý —Ìý —Ìý
Total $ 115Ìý $ 104Ìý $ 30Ìý
1 The most recent Pension Protection Act zone status available in 2022 and 2021 is for each plan's year-end at December 31, 2021 and 2020. The plan's actuary certifies the zone status. Generally, plans in the red zone are less than 65% funded, plans in the yellow zone are between 65% and 80% funded, and plans in the green zone are at least 80% funded. The IAM National Pension Fund's National Pension Plan voluntarily elected to place itself in the "Red Zone" in April 2019 and has implemented a rehabilitation plan to address its underfunded status. Additional contributions will be required as part of the rehabilitation plan until the plan exits the "Red Zone".
2 The "FIP/RP Status Pending/Implemented" column indicates plans for which a financial improvement plan or a rehabilitation plan is either pending or has been implemented, as defined by ERISA.
3 The surcharge represents an additional required contribution due as a result of the critical funding status of the plan.
4 We are a party to six collective bargaining agreements that require contributions to the Steelworkers Pension Trust and three collective bargaining agreements that require contributions to the IAM National Pension Fund's National Pension Plan.
5 Plans that are not individually significant to our Company are presented in aggregate.
With the ratification of our USW labor agreements in 2022, we increased our contribution rate to the Steelworkers Pension Trust by $0.50 to $4.00 per eligible hour. The increase was effective November 1, 2022.
We are one of the largest contributors to the Steelworkers Pension Trust. Our contributions exceeded 5% of total combined contributions in 2022 and 2021. As of January 1, 2022 (the last date for which we have information), the Steelworkers Pension Trust had a total actuarial liability of $6,170 million and assets with a market value of $6,871 million, for a funded ratio of about 111%.