PNC Bank 2009 Annual Report Download - page 141

We use a measurement date of December 31 for plan assets and benefit obligations. A reconciliation of the changes in the
projected benefit obligation for qualified pension, nonqualified pension and postretirement benefit plans as well as the change in
plan assets for the qualified pension plan follows:
Qualified
Pension
Nonqualified
Pension
Postretirement
Benefits
December 31 (Measurement Date) – in millions 2009 2008 2009 2008 2009 2008
Accumulated benefit obligation at end of year $3,533 $3,493 $ 274 $ 253
Projected benefit obligation at beginning of year $3,617 $1,507 $ 263 $ 113 $ 359 $ 243
National City acquisition (164) 2,109 145 (7) 105
Other acquisitions 53
Service cost 90 44 2243
Interest cost 206 86 15 621 15
Amendments (43) (17) 2
Actuarial losses (gains) and changes in assumptions 83 (18) 24 221 (17)
FASB ASC 715-60 adoption 29
Participant contributions 14 9
Federal Medicare subsidy on benefits paid 22
Benefits paid (178) (94) (24) (10) (40) (33)
Projected benefit obligation at end of year $3,611 $3,617 $ 282 $ 263 $ 374 $ 359
Fair value of plan assets at beginning of year $3,292 $2,019
National City acquisition 2,032
Actual return on plan assets 607 (665)
Employer contribution $24 $10 $24 $22
Participant contributions 14 9
Federal Medicare subsidy on benefits paid 22
Benefits paid (178) (94) (24) (10) (40) (33)
Fair value of plan assets at end of year $3,721 $3,292
Funded status $ 110 $ (325) $(282) $(263) $(374) $(359)
Net amount recognized on the balance sheet $ 110 $ (325) $(282) $(263) $(374) $(359)
Amounts recognized in accumulated other comprehensive income consist of:
Prior service cost (credit) $ (54) $ (12) $ 2 $ (17) $ (22)
Net actuarial loss 658 1,004 53 $30 35 14
Amount recognized in AOCI $ 604 $ 992 $55 $30 $18 $ (8)
At December 31, 2009, the fair value of the qualified pension
plan assets was greater than both the accumulated benefit
obligation and the projected benefit obligation. The
nonqualified pension plan, which contains several individual
plans that are accounted for together, is unfunded.
Contributions from us and, in the case of postretirement
benefit plans, participant contributions cover all benefits paid
under the nonqualified pension plan and postretirement benefit
plans. The postretirement plan provides benefits to certain
retirees that are at least actuarially equivalent to those
provided by Medicare Part D and accordingly, we receive a
federal subsidy as shown in the table.
PNC P
ENSION P LAN A SSETS
Assets related to our qualified pension plan (the Plan) are held
in trust (the Trust). The trustee is PNC Bank, N.A. The Trust
is exempt from tax pursuant to section 501(a) of the Internal
Revenue Code (the Code). The Plan is qualified under section
401(a) of the Code. Plan assets consist primarily of listed
domestic and international equity securities and US
government, agency, and corporate debt securities and real
estate investments. Plan assets as of December 31, 2009 do
include common stock of PNC.
Assets related to the pension plan investments of the former
National City qualified pension plan are held in trust. The
trustee is PNC Bank, N.A. The Trust is exempt from tax
pursuant to section 501(a) of the Code as of December 31,
2009. The plan is qualified under section 401(a) of the Code.
During 2009, the majority of plan assets were transferred to
the PNC Trust. At December 31, 2009, plan assets consist
primarily of cash equivalents, listed domestic and
international equity securities and US government, agency,
and corporate debt securities. Plan assets do include common
stock of PNC as discussed below.
The Pension Plan Administrative Committee (the Committee)
adopted the current Pension Plan Investment Policy
Statement, including the updated target allocations and
allowable ranges shown below, on August 13, 2008.
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