MetLife 2004 Annual Report Download - page 87

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METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Assumed health care cost trend rates may have a significant effect on the amounts reported for health care plans. A one-percentage point change in
assumed health care cost trend rates would have the following effects:
One Percent One Percent
Increase Decrease
(Dollars in millions)
Effect on total of service and interest cost components ************************************************ $ 10 $ (9)
Effect of accumulated postretirement benefit obligation************************************************* $104 $(100)
Plan Assets
The weighted average allocation of pension plan and other benefit plan assets is as follows:
December 31,
Pension
Benefits Other Benefits
2004 2003 2004 2003
Asset Category
Equity securities************************************************************************** 50% 48% 41% 38%
Fixed maturities ************************************************************************** 36% 39% 57% 61%
Other (Real Estate and Alternative Investments)************************************************ 14% 13% 2% 1%
Total ********************************************************************************* 100% 100% 100% 100%
The weighted average target allocation of pension plan and other benefit plan assets for 2005 is as follows:
Pension Other
Benefits Benefits
Asset Category
Equity securities ********************************************************************************** 30%-65% 25%-45%
Fixed maturities *********************************************************************************** 20%-70% 45%-70%
Other (Real Estate and Alternative Investments)********************************************************* 0%-25% 0%-10%
Target allocations of assets are determined with the objective of maximizing returns and minimizing volatility of net assets through adequate asset
diversification. Adjustments are made to target allocations based on an assessment of the impact of economic factors and market conditions.
Cash Flows
The Company expects to contribute $32 million to its pension plans and $93 million to its other benefit plans during 2005.
Gross benefit payments for the next ten years, which reflect expected future service as appropriate, are expected to be as follows:
Pension Other
Benefits Benefits
(Dollars in millions)
2005 ********************************************************************************************** $ 302 $122
2006 ********************************************************************************************** $ 314 $126
2007 ********************************************************************************************** $ 321 $131
2008 ********************************************************************************************** $ 334 $135
2009 ********************************************************************************************** $ 344 $139
2010-2014 ***************************************************************************************** $1,900 $748
Gross subsidy payments expected to be received for the next ten years under the Medicare Prescription Drug, Improvement and Modernization Act
of 2003 are as follows:
Other Benefits
(Dollars in
millions)
2005***************************************************************************************************** $—
2006***************************************************************************************************** $10
2007***************************************************************************************************** $10
2008***************************************************************************************************** $11
2009***************************************************************************************************** $11
2010-2014 *********************************************************************************************** $69
Savings and Investment Plans
The Company sponsors savings and investment plans for substantially all employees under which the Company matches a portion of employee
contributions. The Company contributed $64 million, $59 million and $58 million for the years ended December 31, 2004, 2003 and 2002, respectively.
12. Equity
Preferred Stock
On September 29, 1999, the Holding Company adopted a stockholder rights plan (the ‘‘rights plan’’) under which each outstanding share of
common stock issued between April 4, 2000 and the distribution date (as defined in the rights plan) will be coupled with a stockholder right. Each right
will entitle the holder to purchase one one-hundredth of a share of Series A Junior Participating Preferred Stock. Each one one-hundredth of a share of
MetLife, Inc.
F-44