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Employee Benefit Plans
 6 Months Ended
Jun. 30, 2012
Employee Benefit Plans  
Employee Benefit Plans

16.       Employee Benefit Plans.

 

The Company sponsors various pension plans for the majority of its U.S. and non-U.S. employees. The Company provides certain other postretirement benefits, primarily health care and life insurance, to eligible U.S. employees. The Company also provides certain postemployment benefits to certain former employees or inactive employees prior to retirement.

 

Effective January 1, 2011, the Morgan Stanley Employees Retirement Plan (the “Pension Plan”) for U.S. participants ceased accruals of benefits under the Pension Plan.

 

The components of the Company's net periodic benefit expense for its pension and postretirement plans were as follows:

 

   Three Months Ended Six Months Ended
   June 30, June 30,
   2012 2011 2012 2011
          
   (dollars in millions)
Service cost, benefits earned during the period $ 7$ 8$ 15$ 16
Interest cost on projected benefit obligation   41  41  82  83
Expected return on plan assets   (27)  (33)  (55)  (66)
Net amortization of prior service costs   (4)  (4)  (7)  (8)
Net amortization of actuarial loss   7  5  14  10
 Net periodic benefit expense $ 24$ 17$ 49$ 35