MetLife 2013 Annual Report Download - page 206

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
18. Employee Benefit Plans (continued)
A rollforward of all pension benefit plan assets measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs
was as follows:
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Pension Benefits
Years Ended December 31,
2013 2012 2011
Derivative
Assets Real Estate Derivative Assets Real Estate Derivative Assets Real Estate
(In millions)
Balance at January 1, ................................................ $13 $7 $13 $ 8 $11 $ 8
Realized gains (losses) ............................................... (2) (1) (1) (1) — —
Unrealized gains (losses) .............................................. 3 1 1 — 2 —
Purchases, sales, issuances, and settlements, net ......................... (12) (5) ————
Balance at December 31, ............................................. $ 2 $2 $13 $ 7 $13 $ 8
Expected Future Contributions and Benefit Payments
It is the Subsidiaries’ practice to make contributions to the U.S. qualified pension plan to comply with minimum funding requirements of ERISA. In
accordance with such practice, no contributions are required for 2014. The Subsidiaries expect to make discretionary contributions to the qualified
pension plan of $230 million in 2014. For information on employer contributions, see “— Obligations and Funded Status.”
Benefit payments due under the U.S. non-qualified pension plans are primarily funded from the Subsidiaries’ general assets as they become due
under the provision of the plans, therefore benefit payments equal employer contributions. The U.S. Subsidiaries expect to make contributions of
$70 million to fund the benefit payments in 2014.
U.S. and non-U.S. postretirement benefits 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. The U.S. Subsidiaries expect to make contributions of $50 million towards benefit
obligations in 2014 to pay postretirement medical claims.
Gross benefit payments for the next 10 years, which reflect expected future service where appropriate, are expected to be as follows:
Pension Benefits
Other
Postretirement
Benefits
U.S.
Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans
(In millions)
2014 ............................................................................... $ 461 $ 35 $ 84 $ 4
2015 ............................................................................... $ 474 $ 38 $ 86 $ 4
2016 ............................................................................... $ 487 $ 42 $ 86 $ 4
2017 ............................................................................... $ 515 $ 42 $ 89 $ 4
2018 ............................................................................... $ 524 $ 45 $ 93 $ 4
2019-2023 .......................................................................... $2,928 $263 $522 $16
Additional Information
As previously discussed, most of the assets of the U.S. 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 $49 million,
$54 million and $47 million for the years ended December 31, 2013, 2012 and 2011, 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 $20 million, $867 million and $885 million for the years ended December 31, 2013, 2012 and
2011, respectively. The terms of these contracts are consistent in all material respects with those the Subsidiaries offer to unaffiliated parties that are
similarly situated.
Defined Contribution Plans
The Subsidiaries sponsor defined contribution plans for substantially all U.S. employees under which a portion of employee contributions are
matched. The Subsidiaries contributed $93 million, $96 million and $95 million for the years ended December 31, 2013, 2012 and 2011, respectively.
198 MetLife, Inc.