PNC Bank 2010 Annual Report Download - page 158
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Please find page 158 of the 2010 PNC Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Pension contributions are based on an actuarially determined
amount necessary to fund total benefits payable to plan
participants.
We also maintain nonqualified supplemental retirement plans
for certain employees and provide certain health care and life
insurance benefits for qualifying retired employees
(postretirement benefits) through various plans. The
nonqualified pension and postretirement benefit plans are
unfunded.
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:
Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets
Qualified
Pension
Nonqualified
Pension
Postretirement
Benefits
December 31 (Measurement Date) – in millions 2010 2009 2010 2009 2010 2009
Accumulated benefit obligation at end of year $3,619 $3,533 $ 286 $ 274
Projected benefit obligation at beginning of year $3,611 $3,617 $ 282 $ 263 $ 374 $ 359
National City acquisition (164) (7)
Service cost 102 90 3254
Interest cost 203 206 14 15 20 21
Amendments (43) 2
Actuarial losses and changes in assumptions 92 83 11 24 20 21
Participant contributions 14 14
Federal Medicare subsidy on benefits paid 22
Benefits paid (205) (178) (20) (24) (42) (40)
Projected benefit obligation at end of year $3,803 $3,611 $ 290 $ 282 $ 393 $ 374
Fair value of plan assets at beginning of year $3,721 $3,292
Actual return on plan assets 475 607
Employer contribution $20 $24 $26 $24
Participant contributions 14 14
Federal Medicare subsidy on benefits paid 22
Benefits paid (205) (178) (20) (24) (42) (40)
Fair value of plan assets at end of year $3,991 $3,721
Funded status $ 188 $ 110 $(290) $(282) $(393) $(374)
Net amount recognized on the balance sheet $ 188 $ 110 $(290) $(282) $(393) $(374)
Amounts recognized in accumulated other comprehensive income consist of:
Prior service cost (credit) $ (46) $ (54) $2$2$ (14) $ (17)
Net actuarial loss 526 658 61 53 55 35
Amount recognized in AOCI $ 480 $ 604 $63 $55 $41 $18
At December 31, 2010, 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 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, National
Association, (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, 2010 and 2009 do include common
stock of PNC.
During 2009, the assets related to the pension plan
investments of the former National City qualified pension plan
were held in trust. The trustee was PNC Bank, N.A. During
2010, all remaining assets were transferred to the Trust and
the former National City trust was dissolved.
The Pension Plan Administrative Committee (the Committee)
adopted the current Pension Plan Investment Policy
150