Frontier Communications 2008 Annual Report Download - page 90

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The plan’s weighted average asset allocations at December 31, 2008 and 2007 by asset category are as
follows:
2008 2007
Asset category:
Equity securities . ....................................................... 42% 51%
Debt securities . . . ....................................................... 48% 38%
Alternative investments .................................................. 9% 9%
Cash and other. . . ....................................................... 1% 2%
Total............................................................... 100% 100%
The plan’s expected benefit payments over the next 10 years are as follows:
($ in thousands)
Year Amount
2009........ $ 60,601
2010........ 61,944
2011........ 63,272
2012........ 66,642
2013........ 67,678
2014–2018 . . 343,791
Total $663,928
We expect that no contribution will be made by us to the pension plan in 2009.
The accumulated benefit obligation for the plan was $818.9 million and $805.0 million at December 31,
2008 and 2007, respectively.
Assumptions used in the computation of annual pension costs and valuation of the year-end obligations
were as follows:
2008 2007 2006
Discount rate—used at year end to value obligation . . . .................. 6.50% 6.50% 6.00%
Discount rate—used to compute annual cost. . ........................... 6.50% 6.00% 5.625%
Expected long-term rate of return on plan assets......................... 8.25% 8.25% 8.25%
Rate of increase in compensation levels ................................. 3.00% 3.50% 4.00%
F-39
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements