Assurant 2014 Annual Report Download - page 140

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ASSURANT, INC. – 2014 Form 10-KF-52
21 Retirement and Other Employee Benefi ts
Summarized information on the Company’s Pension Benefi ts and Retirement Health Benefi ts plans (together the “Plans”) for
the years ended December 31 is as follows:
Pension Benefi ts Retirement Health Benefi ts
2014 2013 2012 2014 2013 2012
Change in projected benefi t obligation
Projected benefi t obligation at beginning of
year $ (905,943) $ (956,172) $ (855,638) $ (79,046) $ (86,237) $ (75,702)
Service cost (36,609) (38,580) (35,609) (2,188) (2,863) (2,762)
Interest cost (43,613) (38,243) (38,348) (3,868) (3,473) (3,483)
Actuarial (loss) gain, including curtailments
and settlements (127,940) 89,029 (60,106) (13,910) 11,213 (6,288)
Benefi ts paid 50,063 38,023 33,529 2,706 2,314 1,998
Projected benefi t obligation at end of year $ (1,064,042) $ (905,943) $ (956,172) $ (96,306) $ (79,046) $ (86,237)
Change in plan assets
Fair value of plan assets at beginning of year $ 786,750 $ 704,976 $ 601,662 $ 46,971 $ 45,651 $ 42,073
Actual return on plan assets 102,628 64,641 81,896 5,403 3,234 5,576
Employer contributions 41,384 56,217 56,096 400 400 —
Benefi ts paid (including administrative
expenses) (51,551) (39,084) (34,678) (2,706) (2,314) (1,998)
Fair value of plan assets at end of year $ 879,211 $ 786,750 $ 704,976 $ 50,068 $ 46,971 $ 45,651
Funded status at end of year $ (184,831) $ (119,193) $ (251,196) $ (46,238) $ (32,075) $ (40,586)
In accordance with the guidance on retirement benefi ts, the Company aggregates the results of the qualifi ed and non-
qualifi ed plans as “Pension Benefi ts” and is required to disclose the aggregate projected benefi t obligation, accumulated
benefi t obligation and fair value of plan assets, if the obligations within those plans exceed plan assets.
For the years ended December 31, 2014, 2013 and 2012, the projected benefi t obligations, the accumulated benefi t obligations
of Pension Benefi ts, and fair value of plan assets are as follows:
Qualifi ed Pension Benefi ts Non-Qualifi ed Pension Benefi ts Total Pension Benefi ts
2014 2013 2012 2014 2013 2012 2014 2013 2012
Fair value of
plan assets $ 879,211 $ 786,750 $ 704,976 $ — $ — $ — $ 879,211 $ 786,750 $ 704,976
Projected benefi t
obligation (908,167) (768,672) (812,642) (155,875) (137,271) (143,530) (1,064,042) (905,943) (956,172)
Funded status at
end of year $ (28,956) $ 18,078 $(107,666) $(155,875) $(137,271) $(143,530) $ (184,831) $ (119,193) $ (251,196)
Accumulated
benefi t obligation $ 761,802 $ 645,431 $ 673,427 $ 133,185 $ 115,286 $ 122,573 $ 894,987 $ 760,717 $ 796,000
The Pension Protection Act of 2006 (“PPA”) requires certain
qualifi ed plans, like the Assurant Pension Plan, to meet
specifi ed funding thresholds. If these funding thresholds are
not met, there are negative consequences to the plan and
participants. If the funded percentage falls below 80%, full
payment of lump sum benefi ts as well as implementation of
amendments improving benefi ts are restricted.
As of January 1, 2014, the Assurant Pension Plan funded
percentage was 135% on a PPA calculated basis (based on an
actuarial average value of assets compared to the funding
target). Therefore, benefi t and payment restrictions did not
occur during 2014. The 2014 funded measure will also be
used to determine restrictions, if any, that can occur during
the fi rst nine months of 2015. Due to the funding status of
the Assurant Pension Plan in 2014, no restrictions will exist
before October 2015 (the time that the January 1, 2015
actuarial valuation needs to be completed). Also, based
on the estimated funded status as of January 1, 2015, the
Company does not anticipate any restrictions on benefi ts for
the remainder of 2015.
Amounts recognized in the consolidated balance sheets consist of:
Pension Benefi ts Retirement Health Benefi ts
2014
2013
2012
2014
2013
2012
Assets $ — $ 18,078 $ — $ — $ — $ —
Liabilities $ (184,831) $ (137,271) $ (251,196) $ (46,238) $ (32,075) $ (40,586)