Aetna 2009 Annual Report Download - page 74

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The difference between the fair value of plan assets and the plan’ s benefit obligation is referred to as the plan’ s funded
status. This funded status is an accounting-based calculation and is not indicative of our mandatory funding
requirements, which are described on page 69. The funded status of our pension and OPEB plans at the measurement
date for 2009 and 2008 were as follows:
(Millions) 2009 2008 2009 2008
Benefit obligation (5,346.1)$ (4,742.8)$ (330.5)$ (329.6)$
Fair value of plan assets 4,394.9 3,877.2 67.9 67.3
Funded status (951.2)$ (865.6)$ (262.6)$ (262.3)$
Pension Plans OPEB Plans
A reconciliation of the funded status at the measurement date for 2009 and 2008 of our pension and OPEB plans to the
net amounts recognized as assets or liabilities on our balance sheets at December 31, 2009 and 2008 were as follows:
(Millions) 2009 2008 2009 2008
Funded status (951.2)$ (865.6)$ (262.6)$ (262.3)$
Unrecognized prior service credit (16.3) (18.4) (44.4) (48.1)
Unrecognized net actuarial losses 2,404.2 2,509.2 93.9 85.5
Amount recognized in accumulated other comprehensive loss (2,387.9) (2,490.8) (49.5) (37.4)
Net amount of liabilities recognized at December 31 (951.2)$ (865.6)$ (262.6)$ (262.3)$
Pension Plans OPEB Plans
The liabilities recognized on our balance sheets at December 31, 2009 and 2008 for our pension and OPEB plans were
comprised of the following:
(Millions) 2009 2008 2009 2008
Accrued benefit liabilities reflected in other current liabilities (71.5)$ (71.4)$ (28.7)$ (31.1)$
Accrued benefit liabilities reflected in other long-term liabilities (879.7) (794.2) (233.9) (231.2)
Net amount of liabilities recognized at December 31 (951.2)$ (865.6)$ (262.6)$ (262.3)$
Pension Plans OPEB Plans
At December 31, 2009, we had approximately $2.4 billion and $94 million of net actuarial losses for our pension and
OPEB plans, respectively, and approximately $16 million and $44 million of prior service credits for our pension and
OPEB plans, respectively, that have not been recognized as components of net periodic benefit costs. We expect to
recognize approximately $201 million and $5 million in amortization of net actuarial losses for our pension and OPEB
plans, respectively, and approximately $2 million and $4 million in accretion of prior service credits for our pension and
OPEB plans, respectively, in 2010.
Components of the net periodic benefit cost (income) in 2009, 2008 and 2007 for the pension and OPEB plans were as
follows:
(Millions) 2009 2008 2007 2009 2008 2007
Service cost 48.3$ 45.3$ 44.4$ .2$ .3$ .3$
Interest cost 316.5 312.2 299.1 21.7 20.0 21.7
Expected return on plan assets (319.0) (484.5) (465.5) (3.6) (3.8) (3.8)
(Accretion) amortization of prior service cost (2.2) (2.1) 4.8 (3.7) (3.7) (3.7)
Recognized net actuarial loss 216.5 6.3 27.6 3.4 2.6 5.3
Net periodic benefit cost (income) 260.1$ (122.8)$ (89.6)$ 18.0$ 15.4$ 19.8$
Pension Plans OPEB Plans
The increase in pension benefit cost between 2008 and 2009 is primarily attributable to the approximately $1.9 billion
decline in the plan assets’ fair value during 2008. This decline was due to the deteriorating economic conditions
experienced during the latter half of 2008.
Annual Report – Page 68