MetLife 2006 Annual Report Download - page 147

investment income, including realized and unrealized gains and losses, credited to the account balances were $818 million, $460 million
and $519 million for the years ended December 31, 2006, 2005 and 2004, respectively. The terms of these contracts are consistent in all
material respects with those the Subsidiaries offer to unaffiliated parties that are similarly situated.
The weighted-average allocations of pension plan and other postretirement benefit plan assets were as follows:
2006 2005 2006 2005
Pension
Benefits
Other
Postretire-
ment Benefits
December 31,
Asset Category
Equitysecurities..................................................... 42% 47% 37% 42%
Fixedmaturitysecurities................................................ 42% 37% 57% 53%
Other(RealEstateandAlternativeInvestments)................................. 16% 16% 6% 5%
Total.......................................................... 100% 100% 100% 100%
The weighted-average target allocations of pension plan and other postretirement benefit plan assets for 2007 are as follows:
Pension Other
Asset Category
Equitysecurities......................................................... 30%-65% 30%-45%
Fixedmaturitysecurities.................................................... 20%-70% 45%-70%
Other(RealEstateandAlternativeInvestments)..................................... 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
It is the Subsidiaries’ practice to make contributions to the qualified pension plans to comply with minimum funding requirements of the
Employee Retirement Income Security Act of 1974, as amended, and/or to maintain a fully funded ABO. In accordance with such practice,
no contributions were required for the years ended December 31, 2006 or 2005. No contributions will be required for 2007. The
Subsidiaries elected to make discretionary contributions to the qualified pension plans of $350 million during the year ended December 31,
2006. No contributions were made during the year ended December 31, 2005. The Subsidiaries expect to make additional discretionary
contributions of $150 million in 2007.
Benefit payments due under the non-qualified pension plans are funded from the Subsidiaries’ general assets as they become due
under the provision of the plans. These payments totaled $38 million and $35 million for the years ended December 31, 2006 and 2005,
respectively. These payments are expected to be at approximately the same level in 2007.
Other postretirement benefits represent a non-vested, non-guaranteed obligation of the Subsidiaries and current regulations do not
require specific funding levels for these benefits. While the Subsidiaries have partially funded such plans in advance, it has been the
Subsidiaries’ practice to use their general assets to pay claims as they come due in lieu of utilizing plan assets. These payments totaled
$152 million and $160 million for the years ended December 31, 2006 and 2005, respectively.
The Subsidiaries’ expect to make contributions of $132 million, based upon expected gross benefit payments, towards the other
postretirement plan obligations in 2007. As noted previously, the Subsidiaries expect to receive subsidies under the Prescription Drug Act
to partially offset such payments.
Gross benefit payments for the next ten years, which reflect expected future service where appropriate, and gross subsidies to be
received under the Prescription Drug Act are expected to be as follows:
Pension
Benefits Gross Prescription Drug Subsidies Net
Other Postretirement Benefits
(In millions)
2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 337 $132 $(14) $118
2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 349 $137 $(14) $123
2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 367 $142 $(15) $127
2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 372 $148 $(16) $132
2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 385 $154 $(16) $138
2012-2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,141 $837 $(98) $739
Savings and Investment Plans
The Subsidiaries sponsor savings and investment plans for substantially all employees under which a portion of employee contributions
are matched. The Subsidiaries contributed $82 million, $78 million and $67 million for the years ended December 31, 2006, 2005 and
2004, respectively.
F-64 MetLife, Inc.
METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)