Huntington National Bank 2014 Annual Report Download - page 169

163
Post-
Pension Retirement
(dollar amounts in thousands) Benefits Benefits
2015 $ 48,851 $ 1,419
2016 48,416 1,329
2017 45,378 1,235
2018 43,332 1,154
2019 43,238 1,098
2020 through 2024 209,153 4,997
Although not required, Huntington may choose to make a cash contribution to the Plan up to the maximum deductible limit in the
2014 plan year. Anticipated contributions for 2015 to the post-retirement benefit plan are $1.4 million.
The assumed healthcare cost trend rate has an effect on the amounts reported. A one percentage point increase would increase the
accumulated post-retirement benefit obligation by $7.6 thousand and would increase interest costs by $3.5 thousand. A one percentage
point decrease would decrease the accumulated post-retirement benefit obligation by $7.1 thousand and would decrease interest costs
by $2.9 thousand.
The 2015 and 2014 healthcare cost trend rate was projected to be 7.3% for participants. This rate is assumed to decrease
gradually until it reaches 4.5% in the year 2028 and remain at that level thereafter. Huntington updated the immediate healthcare cost
trend rate assumption based on current market data and Huntington’s claims experience. This trend rate is expected to decline over
time to a trend level consistent with medical inflation and long-term economic assumptions.
Huntington also sponsors other nonqualified retirement plans, the most significant being the SERP and the SRIP. The SERP
provides certain former officers and directors, and the SRIP provides certain current and former officers and directors of Huntington
and its subsidiaries with defined pension benefits in excess of limits imposed by federal tax law. At December 31, 2014 and 2013,
Huntington has an accrued pension liability of $35.0 million and $29.2 million, respectively, associated with these plans. Pension
expense for the plans was $1.0 million, $4.2 million, and $2.5 million in 2014, 2013, and 2012, respectively. During the 2013 third
quarter, the board of directors approved, and management communicated, a curtailment of the Company’s SRIP plan effective
December 31, 2013.
The following table presents the amounts recognized in the Consolidated Balance Sheets at December 31, 2014 and 2013 for all
of Huntington defined benefit plans:
(dollar amounts in thousands) 2014 2013
Accrued expenses and other liabilities $ 198,947 $ 90,842
The following tables present the amounts recognized in OCI as of December 31, 2014, 2013, and 2012, and the changes in
accumulated OCI for the years ended December 31, 2014, 2013, and 2012:
(dollar amounts in thousands) 2014 2013 2012
N
et actuarial loss $ (240,197) $ (166,078) $ (262,187)
Prior service cost 14,517 9,855 25,788
Defined benefit pension plans $ (225,680) $ (156,223) $ (236,399)