Sun Life 2010 Annual Report Download - page 124

Download and view the complete annual report

Please find page 124 of the 2010 Sun Life 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.

Page out of 162

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162

United States Financial Industry Regulatory Authority, and state attorneys general in the United States, from time to time, make
inquiries and require the production of information or conduct examinations or investigations concerning compliance by SLF Inc. and its
subsidiaries with insurance, securities and other laws. Management does not believe that the conclusion of any current legal or
regulatory matters, either individually or in the aggregate, will have a material adverse effect on our financial condition or results of
operations.
22. Pension plans and other post-retirement benefits
We sponsor non-contributory defined benefit pension plans for eligible qualifying employees. The defined benefit pension plans offer
benefits based on length of service and final average earnings and certain plans offer some indexation of benefits. The specific
features of these plans vary in accordance with the employee group and countries in which employees are located. In addition, we
maintain supplementary non-contributory pension arrangements for eligible employees, primarily for benefits which do not qualify for
funding under the various registered pension plans.
We also established defined contribution pension plans for eligible qualifying employees. Our contributions to these defined
contribution pension plans are subject to certain vesting requirements. Generally, our contributions are a set percentage of employees’
annual income and matched against employee contributions.
On January 1, 2009, the Canadian Staff defined benefit plan was closed to new employees, and was replaced with a defined
contribution plan for employees hired on or after January 1, 2009. Canadian employees hired before then continue to participate in the
previous plan, which includes both defined benefit and defined contribution components. As a result, only defined contribution plans
are open to new hires worldwide (except for one small defined benefit plan in the Philippines).
In addition to our pension plans, in some countries we provide certain post-retirement medical, dental and life insurance benefits to
eligible qualifying employees and to their dependants upon meeting certain requirements. Eligible retirees may be required to pay a
portion of the premiums for these benefits and, in general, deductible amounts and co-insurance percentages apply to benefit
payments. These post-retirement benefits are not pre-funded.
The following tables set forth the status of the defined benefit pension and other post-retirement benefit plans.
Pension Post-Retirement
2010 2009 2010 2009
Change in projected benefit obligation:
Projected benefit obligation, January 1 $ 2,284 $ 2,186 $ 266 $ 233
Service cost 34 35 54
Interest cost 130 132 15 15
Actuarial losses (gains) 37 181 –34
Benefits paid (146) (169) (11) (11)
Curtailments, settlements and plan amendments –––(1)
Effect of changes in currency exchange rates (65) (81) (3) (8)
Projected benefit obligation, December 31(1) $ 2,274 $ 2,284 $ 272 $ 266
Accumulated benefit obligation, December 31(2) $ 2,160 $ 2,154
Change in plan assets:
Fair value of plan assets, January 1 $ 2,047 $ 1,995 $–$–
Net actual return on plan assets 197 252 ––
Employer contributions 54 36 11 11
Benefits paid (146) (169) (11) (11)
Effect of changes in currency exchange rates (60) (67) ––
Fair value of plan assets, December 31 $ 2,092 $ 2,047 $–$–
Net funded status, December 31 $ (182) $ (237) $ (272) $ (266)
Unamortized net actuarial loss (gain) 391 456 19 20
Unamortized past service cost 79(5) (14)
Unamortized transition asset (15) (33) (1) (3)
Accrued benefit asset (liability), December 31 $ 201 $ 195 $ (259) $ (263)
Balance sheet classification of accrued benefit asset (liability), December 31:
Other assets $ 408 $ 405 $–$–
Other liabilities $ 207 $ 210 $ 259 $ 263
Pension plans with projected benefit obligations in excess of plan assets:
Projected benefit obligations $ 1,793 $ 1,503
Plan assets $ 1,599 $ 1,251
120 Sun Life Financial Inc. Annual Report 2010 Notes to the Consolidated Financial Statements