Assurant 2014 Annual Report Download - page 141

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ASSURANT, INC. – 2014 Form 10-K F-53
21 Retirement and Other Employee Benefi ts
Amounts recognized in accumulated other comprehensive income consist of:
Pension Benefi ts Retirement Health Benefi ts
2014 2013 2012 2014 2013 2012
Net (loss) gain $ (210,859) $ (147,288) $ (282,491) $ (394) $ 11,710 $ 261
Prior service (cost)
credit (3,272) (4,119) (4,975) 5,169 6,102 7,035
$ (214,131) $ (151,407) $ (287,466) $ 4,775 $ 17,812 $ 7,296
Components of net periodic benefi t cost and other amounts recognized in accumulated other comprehensive income for the
years ended December 31 were as follows:
Pension Benefi ts Retirement Health Benefi ts
2014 2013 2012 2014 2013 2012
Net periodic benefi t cost
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
Expected return on plan assets (49,552) (44,222) (40,064) (3,081) (2,998) (2,768)
Amortization of prior service cost 836 856 781 (933) (933) (933)
Amortization of net loss (gain) 11,921 26,816 23,467 (516)——
Curtailment/settlement charge 871 — — — — —
Net periodic benefi t cost $ 44,298 $ 60,273 $ 58,141 $ 1,526 $ 2,405 $ 2,544
Other changes in plan assets and benefi t obligations
recognized in accumulated other comprehensive
income
Net loss (gain) $ 75,909 $ (108,387) $ 19,423 $ 11,588 $ (11,449) $ 3,480
Amortization of prior service cost, and effects of
curtailments/settlements (847) (856) (781) 933 933 933
Amortization of net (loss) gain (12,338) (26,816) (23,467) 516 — —
Total recognized in accumulated other comprehensive
income $ 62,724 $ (136,059) $ (4,825)$ 13,037 $ (10,516) $ 4,413
TOTAL RECOGNIZED IN NET PERIODIC BENEFIT COST
AND OTHER COMPREHENSIVE INCOME LOSS
$ 107,022 $ (75,786) $ 53,316 $ 14,563 $ (8,111) $ 6,957
The Company uses a fi ve-year averaging method to determine
the market-related value of Pension Benefi ts plan assets,
which is used to calculate the expected return of plan assets
component of the Plans’ expense. Under this methodology,
asset gains/losses that result from actual returns which differ
from the Company’s expected long-term rate of return on
assets assumption are recognized in the market-related value
of assets on a level basis over a fi ve year period. The difference
between actual as compared to expected asset returns for
the Plans will be fully refl ected in the market-related value
of plan assets over the next fi ve years using the methodology
described above. Other post-employment benefi t assets under
the Retirement Health Benefi ts are valued at fair value.
The estimated net loss and prior service cost of Pension Benefi ts
that will be amortized from accumulated other comprehensive
income into net periodic benefi t cost over the next fi scal year
are $16,160 and $787, respectively. The prior service credit
of Retirement Health Benefi ts that will be amortized from
accumulated other comprehensive income into net periodic
credit over the next fi scal year is $933. There was no estimated
net gain (loss) of Retirement Health Benefi ts that will be
amortized from accumulated other comprehensive income
into net periodic cost over the next fi scal year.
Determination of the projected benefi t obligation was based on the following weighted-average assumptions for the years
ended December 31:
Qualifi ed Pension Benefi ts Nonqualifi ed Pension Benefi ts Retirement Health Benefi ts
2014 2013 2012 2014 2013 2012 2014 2013 2012
Discount rate 4.09% 4.98% 4.12% 3.77% 4.64% 3.71% 4.07% 4.99% 4.12%