Sallie Mae 2007 Annual Report Download - page 192

18. Benefit Plans (Continued)
2007 2006
December 31,
Amounts expected to be reflected in net periodic pension cost during the
next fiscal year:
Prior service cost ........................................... $ — (37)
Accumulated gain .......................................... 1,450 757
Accumulated other comprehensive income ........................ $ 1,450 $ 720
Additional year-end information for plans with accumulated benefit
obligations in excess of plan assets:
Projected benefit obligation ................................... $ 27,275 $ 26,757
Accumulated benefit obligation ................................ 26,592 24,819
Fair value of plan assets...................................... — —
During the year ended December 31, 2007, the Company recorded net settlement losses, including a
portion related to employees who were involuntarily terminated in the fourth quarter, associated with lump-
sum distributions from the supplemental pension plan. These amounts were recorded in accordance with
SFAS No. 88, “Employers’ Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and
for Termination Benefits,” which requires that settlement losses be recorded once prescribed payment
thresholds have been reached.
The accumulated benefit obligations of the qualified and nonqualified defined benefit plans were
$221 million and $218 million at December 31, 2007 and 2006, respectively. There are no plan assets in the
nonqualified plans due to the nature of the plans; the corporate assets used to pay these benefits are included
above in employer contributions.
Components of Net Periodic Pension Cost
Net periodic pension cost included the following components:
2007 2006 2005
Years Ended December 31,
Service cost — benefits earned during the period ............ $ 7,100 $ 8,291 $ 9,893
Interest cost on project benefit obligations ................. 12,337 11,445 11,208
Expected return on plan assets .......................... (17,975) (16,277) (16,434)
Curtailment gain .................................... — — —
Settlement loss...................................... 1,265 — —
Special termination benefits ............................ 912 — —
Net amortization and deferral ........................... (719) 494 (168)
Net periodic pension cost .............................. $ 2,920 $ 3,953 $ 4,499
F-71
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share amounts, unless otherwise stated)