Morgan Stanley 2015 Annual Report Download - page 242

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
There were no transfers between levels during 2015 and 2014.
Changes in Level 3 Pension Assets.
2015 2014
(dollars in millions)
Balance at beginning of period ............................................................. $ 36 $ 38
Actual return on plan assets related to assets held at end of period ............................. (4) (5)
Actual return on plan assets related to assets sold during the year .............................. — —
Purchases, sales, other settlements and issuances, net ....................................... 3 3
Net transfer in and/or (out) of Level 3 ................................................... — —
Balance at end of period .................................................................. $ 35 $ 36
Cash Flows.
The Company’s policy is to fund at least the amounts sufficient to meet minimum funding requirements under applicable
employee benefit and tax laws. At December 31, 2015, the Company expected to contribute approximately $50 million to its
pension and postretirement benefit plans in 2016 based upon the plans’ current funded status and expected asset return
assumptions for 2016.
Expected Future Benefit Payments.
At December 31, 2015
Pension Plans
Other Postretirement
Plans
(dollars in millions)
2016 ............................................................ $153 $ 5
2017 ............................................................ 139 6
2018 ............................................................ 136 6
2019 ............................................................ 141 6
2020 ............................................................ 150 7
2021-2025 ....................................................... 858 32
Morgan Stanley 401(k) Plan.
U.S. employees meeting certain eligibility requirements may participate in the Morgan Stanley 401(k) Plan. Eligible U.S.
employees receive discretionary 401(k) matching cash contributions as determined annually by the Company. For 2015 and
2014, the Company made a $1 for $1 Company match up to 4% of eligible pay, up to the Internal Revenue Service (“IRS”)
limit. Matching contributions for 2015 and 2014 were invested according to participants’ investment direction. Eligible U.S.
employees with eligible pay less than or equal to $100,000 also received a fixed contribution under the 401(k) Plan that
equaled 2% of eligible pay. Transition contributions are allocated to certain eligible employees. The Company match, fixed
contribution and transition contribution are included in the Company’s 401(k) expense. The pre-tax 401(k) expense for 2015,
2014 and 2013 was $255 million, $256 million and $242 million, respectively.
Defined Contribution Pension Plans.
The Company maintains separate defined contribution pension plans that cover substantially all employees of certain non-
U.S. subsidiaries. Under such plans, benefits are determined based on a fixed rate of base salary with certain vesting
requirements. In 2015, 2014 and 2013, the Company’s expense related to these plans was $111 million, $117 million and
$111 million, respectively.
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