KeyBank 2014 Annual Report Download - page 211

VEBA trust to purchase an insurance policy issued by a third-party insurance provider to fully fund the death
benefits under the plan. Death benefits for all grandfathered employees are fully funded, administered, and paid
by the third-party insurance provider, and the insurance company accepted all related funding obligations and
administrative liability. Consequently, we terminated the death benefit plan and the VEBA trust effective
December 31, 2012.
The components of pre-tax AOCI not yet recognized as net postretirement benefit cost are shown below.
December 31,
in millions 2014 2013
Net unrecognized losses (gains) $2$ (12)
Net unrecognized prior service credit (5) (5)
Total unrecognized AOCI $(3)$ (17)
During 2015, we expect to recognize $1 million of pre-tax AOCI resulting from prior service credit as a
reduction of net postretirement benefit cost.
The components of net postretirement benefit cost and the amount recognized in OCI for all funded and
unfunded plans are as follows:
December 31,
in millions 2014 2013 2012
Service cost of benefits earned $1$1$1
Interest cost on APBO 333
Expected return on plan assets (3) (3) (3)
Amortization of prior service credit (1) (1) (1)
Amortization of losses (1) ——
Net postretirement benefit cost $ (1) ——
Other changes in plan assets and benefit obligations recognized in OCI:
Net (gain) loss $13$ (17) $ (3)
Amortization of prior service credit 111
Amortization of losses 1——
Total recognized in comprehensive income $15$ (16) $ (2)
Total recognized in net postretirement benefit cost and comprehensive income $14$ (16) $ (2)
The information related to our postretirement benefit plans presented in the following tables is based on current
actuarial reports using measurement dates of December 31, 2014, and December 31, 2013.
The following table summarizes changes in the APBO.
Year ended December 31,
in millions 2014 2013
APBO at beginning of year $65$74
Service cost 11
Interest cost 33
Plan participants’ contributions 21
Actuarial losses (gains) 15 (6)
Benefit payments (7) (8)
APBO at end of year $79$65
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