MetLife 2010 Annual Report Download - page 219

ended December 31, 2010. The Subsidiaries made no discretionary contributions to the qualified pension plan during the year ended
December 31, 2009. The Subsidiaries expect to make additional discretionary contributions to the qualified pension plan of $175 million in
2011.
Benefit payments due under the non-qualified pension plans are primarily funded from the Subsidiaries’ general assets as they become
due under the provision of the plans. These payments totaled $70 million and $57 million for the years ended December 31, 2010 and 2009,
respectively. These payments are expected to be at approximately the same level in 2011.
Postretirement benefits, other than those provided under qualified pension plans, are either: (i) not vested under law; (ii) a non-funded
obligation of the Subsidiaries; or (iii) both. Current regulations do not require funding for these benefits. The Subsidiaries use their general
assets, net of participant’s contributions, to pay postretirement medical claims as they come due in lieu of utilizing any plan assets. Total
payments equaled $154 million and $158 million for the years ended December 31, 2010 and 2009, respectively.
The Subsidiaries expect to make contributions of $120 million, net of participant’s contributions, towards benefit obligations (other than
those under qualified pension plans) in 2011. As noted previously, the Subsidiaries no longer expect to receive the RDS under the Medicare
Modernization Act of 2003 to partially offset payment of such benefits. Instead, the gross benefit payments that will be made under the PDP
will already reflect subsidies.
Gross benefit payments for the next ten years, which reflect expected future service where appropriate, are expected to be as follows:
Pension
Benefits
Other
Postretirement
Benefits
(In millions)
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 446 $120
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 454 $121
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 463 $122
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 486 $123
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500 $124
2016-2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,789 $631
Additional Information
As previously discussed, most of the assets of the pension and other postretirement benefit plans are held in group annuity and life
insurance contracts issued by the Subsidiaries. Total revenues from these contracts recognized in the consolidated statements of operations
were $46 million, $45 million and $42 million for the years ended December 31, 2010, 2009 and 2008, respectively, and included policy
charges and net investment income from investments backing the contracts and administrative fees. Total investment income (loss),
including realized and unrealized gains (losses), credited to the account balances was $767 million, $725 million and ($1,090) million for the
years ended December 31, 2010, 2009 and 2008, respectively. The terms of these contracts are consistent in all material respects with
those the Subsidiaries offer to unaffiliated parties that are similarly situated.
Savings and Investment Plans
The Subsidiaries sponsor savings and investment plans for substantially all Company employees under which a portion of employee
contributions are matched. The Subsidiaries contributed $86 million, $93 million and $70 million for the years ended December 31, 2010,
2009 and 2008, respectively.
18. Equity
Preferred Stock
There are 200,000,000 authorized shares of preferred stock, of which 6,857,000 shares were designated for issuance of convertible
preferred stock in connection with the financing of the Acquisition. See “— Convertible Preferred Stock” below.
The Holding Company has outstanding 24 million shares of Floating Rate Non-Cumulative Preferred Stock, Series A (the “Series A
preferred shares”) with a $0.01 par value per share, and a liquidation preference of $25 per share, for aggregate proceeds of $600 million.
The Holding Company has outstanding 60 million shares of 6.50% Non-Cumulative Preferred Stock, Series B (the “Series B preferred
shares”), with a $0.01 par value per share, and a liquidation preference of $25 per share, for aggregate proceeds of $1.5 billion.
The Series A and Series B preferred shares (the “Preferred Shares”) rank senior to the Convertible Preferred Stock and the common stock
with respect to dividends and liquidation rights. Dividends on the Preferred Shares are not cumulative. Holders of the Preferred Shares will be
entitled to receive dividend payments only when, as and if declared by the Holding Company’s Board of Directors or a duly authorized
committee of the Board. If dividends are declared on the Series A preferred shares, they will be payable quarterly, in arrears, at an annual rate
of the greater of: (i) 1.00% above 3-month LIBOR on the related LIBOR determination date; or (ii) 4.00%. Any dividends declared on the
Series B preferred shares will be payable quarterly, in arrears, at an annual fixed rate of 6.50%. Accordingly, in the event that dividends are not
declared on the Preferred Shares for payment on any dividend payment date, then those dividends will cease to accrue and be payable. If a
dividend is not declared before the dividend payment date, the Holding Company has no obligation to pay dividends accrued for that dividend
period whether or not dividends are declared and paid in future periods. No dividends may, however, be paid or declared on the Holding
Company’s common stock — or any other securities ranking junior to the Preferred Shares — unless the full dividends for the latest
completed dividend period on all Preferred Shares, and any parity stock, have been declared and paid or provided for.
The Holding Company is prohibited from declaring dividends on the Preferred Shares if it fails to meet specified capital adequacy, net
income and equity levels. In addition, under Federal Reserve Bank of New York Board policy, the Holding Company may not be able to pay
dividends if it does not earn sufficient operating income.
F-130 MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)