Frontier Communications 2009 Annual Report Download - page 95

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The plan’s weighted average asset allocations at December 31, 2009 and 2008 by asset category are as
follows:
2009 2008
Asset category:
Equity securities . ....................................................... 38% 42%
Debt securities . . . ....................................................... 51% 48%
Alternative investments .................................................. 10% 9%
Cash and other. . . ....................................................... 1% 1%
Total............................................................... 100% 100%
The plan’s expected benefit payments over the next 10 years are as follows:
($ in thousands)
Year Amount
2010........ $ 60,820
2011........ 62,558
2012........ 64,929
2013........ 66,619
2014........ 67,179
2015–2019 . . 344,565
Total . . . .... $666,670
No contributions were made to the plan during 2007, 2008 and 2009. We expect that we will make a $10.0
million cash contribution to our pension plan in 2010.
The accumulated benefit obligation for the plan was $876.5 million and $818.9 million at December 31,
2009 and 2008, respectively.
Assumptions used in the computation of annual pension costs and valuation of the year-end obligations
were as follows:
2009 2008 2007
Discount rate—used at year end to value obligation....................... 5.75% 6.50% 6.50%
Discount rate—used to compute annual cost .............................. 6.50% 6.50% 6.00%
Expected long-term rate of return on plan assets . ......................... 8.00% 8.25% 8.25%
Rate of increase in compensation levels .................................. 3.00% 3.00% 3.50%
F-33
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements