MetLife 2009 Annual Report Download - page 188

The Company has also guaranteed minimum investment returns on certain international retirement funds in accordance with local laws.
Since these guarantees are not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to
determine the maximum potential amount that could become due under these guarantees in the future.
During the year ended December 31, 2009, the Company reduced $1 million of previously recorded liabilities related to certain investment
transactions. The Company’s recorded liabilities were $5 million and $6 million at December 31, 2009 and 2008, respectively, for
indemnities, guarantees and commitments.
17. Employee Benefit Plans
Pension and Other Postretirement Benefit Plans
The Subsidiaries sponsor and/or administer various qualified and non-qualified defined benefit pension plans and other postretirement
employee benefit plans covering employees and sales representatives who meet specified eligibility requirements. Pension benefits are
provided utilizing either a traditional formula or cash balance formula. The traditional formula provides benefits based upon years of credited
service and final average earnings. The cash balance formula utilizes hypothetical or notional accounts which credit participants with benefits
equal to a percentage of eligible pay, as well as earnings credits, determined annually based upon the average annual rate of interest on
30-year U.S. Treasury securities, for each account balance. At December 31, 2009, the majority of active participants are accruing benefits
under the cash balance formula; however, approximately 92% of the Subsidiaries’ obligations result from benefits calculated with the
traditional formula. The non-qualified pension plans provide supplemental benefits in excess of limits applicable to a qualified plan.
The Subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for retired
employees. Employees of the Subsidiaries who were hired prior to 2003 (or, in certain cases, rehired during or after 2003) and meet age and
service criteria while working for one of the Subsidiaries may become eligible for these other postretirement benefits, at various levels, in
accordance with the applicable plans. Virtually all retirees, or their beneficiaries, contribute a portion of the total cost of postretirement
medical benefits. Employees hired after 2003 are not eligible for any employer subsidy for postretirement medical benefits.
A December 31 measurement date is used for all of the Subsidiaries’ defined benefit pension and other postretirement benefit plans.
F-104 MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)