The primary U.S. defined contribution plan (the U.S. DC plan) comprises the majority of the expense for the Company's defined contribution plans. For the U.S. DC plan, the contribution rate is set annually. Total contributions for this plan approximated 14% of total participants' annual wages and salaries in 2022, 2021 and 2020. We maintain The Procter & Gamble Profit Sharing Trust (Trust) and Employee Stock Ownership Plan (ESOP) to provide a portion of the funding for the U.S. DC plan and other retiree benefits (described below). Operating details of the ESOP are provided at the end of this Note. The fair value of the ESOP Series A shares allocated to participants reduces our cash contribution required to fund the U.S. DC plan. Defined Benefit Retirement Plans and Other Retiree Benefits We offer defined benefit retirement pension plans to certain employees. These benefits relate primarily to plans outside the U.S. and, to a lesser extent, plans assumed in previous acquisitions covering U.S. employees. We also provide certain other retiree benefits, prima rily health care benefits for the majority of our U.S. employees who become eligible for these benefits when they meet minimum age and service requirements. The plans require cost sharing with retirees and pay a stated percentage of expenses, reduced by d eductibles and other coverages. These benefits are funded by ESOP Series B shares and certain other assets contributed by the Company. Obligation and Funded Status . The following provides a reconciliation of benefit obligations, plan assets and funded status of these defined benefit plans: Pension Benefits (1) Other Retiree Benefits (2) Years ended June 30 2022 2021 2022 2021 CHANGE IN BENEFIT OBLIGATION Benefit obligation at beginning of year (3) $ 18,469 $ 17,761 $ 4,206 $ 4,770 Service cost 253 275 86 94 Interest cost 253 240 99 114 Participants' contributions 14 13 67 76 Amendments (5) 5 34 (586) — Net actuarial loss/(gain) (4,067) (466) (586) (678) Special termination benefits 4 17 1 2 Currency translation and other (1,720) 1,220 51 64 Benefit payments (603) (625) (268) (236) BENEFIT OBLIGATION AT END OF YEAR (3) $ 12,608 $ 18,469 $ 3,070 $ 4,206 CHANGE IN PLAN ASSETS Fair value of plan assets at beginning of year $ 13,041 $ 11,484 $ 6,444 $ 5,618 Actual return on plan assets (1,233) 1,058 526 879 Employer contributions 222 202 37 34 Participants' contributions 14 13 67 76 Currency translation and other (1,268) 909 1 2 ESOP debt impacts (4) — — 82 71 Benefit payments (603) (625) (268) (236) FAIR VALUE OF PLAN ASSETS AT END OF YEAR $ 10,173 $ 13,041 $ 6,889 $ 6,444 FUNDED STATUS $ (2,435) $ (5,428) $ 3,819 $ 2,238 (1) Primarily non - U.S. - based defined benefit ret irement plans. (2) Primarily U.S. - based other postretirement benefit plans. (3) For the pension benefit plans, the benefit obligation is the projected benefit obligation. For other retiree benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. (4) Represents the net impact of ESOP debt service requirements, which is netted against plan assets for other retiree benefits. (5) Primarily relates to adjustments in the self - insured U.S. retiree health care program to utilize fully - insured Medicare Advantage Programs beginning in January 2022. The actuarial gain for pension plans in 2022 was primarily related to increases in discount rates. The actuarial gain for ot her retiree benefits in 2022 was primarily related to increas es in discount rates, partially offset by unfavorable medical claim experience. The actuarial gain for pension plans in 2021 was primarily related to increases in discount rates, partially off set by unfavorable actuarial assumptions, including inflation a ssumptions. The actuarial gain for other retiree benefits in 2021 was primarily related to favorable medical cost trends. 52 The Procter & Gamble Company Amounts in millions of dollars except per share amounts or as otherwise specified.