Aetna 2014 Annual Report Download - page 115

Annual Report- Page 109
Financial liabilities, including derivative liabilities, subject to offsetting and enforceable master netting
arrangements as of December 31, 2014 and December 31, 2013 were as follows:
Gross Amounts of
Recognized Liabilities (1)
Gross Amounts Not Offset
In the Balance Sheets
Financial
Instruments Cash Collateral Paid(Millions) Net Amount
December 31, 2014
Derivatives $ 53.4 $ .9 $ (49.0) $ 5.3
Securities lending 826.9 (826.9) — —
Repurchase agreements 201.7 — — 201.7
Total $ 1,082.0 $ (826.0) $ (49.0) $ 207.0
December 31, 2013
Derivatives $ 1.9 $ — $ (.7) $ 1.2
Securities lending 792.6 (792.6) — —
Total $ 794.5 $ (792.6) $ (.7) $ 1.2
(1) There were no amounts offset in our balance sheets at December 31, 2014 or December 31, 2013.
11. Pension and Other Postretirement Plans
Defined Benefit Retirement Plans
We sponsor various defined benefit plans, including two pension plans, and other postretirement employee benefit
(“OPEB”) plans that provide certain health care and life insurance benefits for retired employees, including those of
our former parent company.
During 2014 we did not make any contribution to the Aetna Pension Plan. During both 2013 and 2012 we made
voluntary cash contributions of $60 million to the Aetna Pension Plan. Effective December 31, 2010, our employees
no longer earn future pension service credits in the Aetna Pension Plan (i.e., the Plan was “frozen” effective
December 31, 2010), although the Aetna Pension Plan will continue to operate and account balances will continue to
earn annual interest credits.
In July 2014, we enhanced the Aetna Pension Plan. Effective December 1, 2014, we permitted certain current and
future former employees with deferred vested Aetna Pension Plan balances to elect to receive a 100% lump-sum
distribution. This election is a permanent addition to the Aetna Pension Plan. In addition, in July 2014, we announced
a limited-time offer permitting certain former employees with deferred vested Aetna Pension Plan balances to elect a
100% lump-sum distribution. These distributions in 2014 were funded from existing Aetna Pension Plan assets and
exceeded the total 2014 service and interest cost. As a result, we performed a remeasurement of the Aetna Pension
Plan, and we recorded a pretax non-cash settlement charge of approximately $112 million in 2014 in general and
administrative expenses.
We also sponsor a non-qualified supplemental pension plan (the “Non-qualified Pension Plan”) that, prior to January
1, 2007, had been used to provide benefits for wages above the Internal Revenue Code wage limits applicable to tax
qualified pension plans (such as the Aetna Pension Plan). Effective January 1, 2007, no new benefits accrue under
the Non-qualified Pension Plan, but interest will continue to be credited on outstanding supplemental cash balance
accounts; and the plan may continue to be used to credit special pension arrangements.
In addition, we currently provide certain medical and life insurance benefits for retired employees, including those of
our former parent company. We provide subsidized health care benefits to certain eligible employees who terminated
employment prior to December 31, 2006. There is a cap on our portion of the cost of providing medical and dental
benefits to our retirees. All current and future retirees and employees who terminate employment at age 45 or later
with at least five years of service are eligible to participate in our group health plans at their own cost.