SunTrust 2004 Annual Report Download - page 95

Download and view the complete annual report

Please find page 95 of the 2004 SunTrust 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 116

  • 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
SUNTRUST 2004 ANNUAL REPORT 93
The change in plan assets for the years ended December 31 was as follows:
Other
Retirement Benefits Post Retirement Benefits
(Dollars in thousands) 2004 2003 2004 2003
Fair value of plan assets, beginning of year $1,551,232 $1,025,873 $148,229 $140,669
Actual return on plan assets 188,790 307,349 7,283 17,740
NCF acquisition 165,625 ———
Employer contributions 30,000 300,000 14,438 4,971
Plan participants’ contributions ——14,122 9,192
Benefits paid (56,876) (81,990) (29,507) (24,343)
Fair value of plan assets, end of year $1,878,771 $1,551,232 $154,565 $148,229
Target Percentage of Plan
Allocation Assets at December 31
Asset Category 20051200412003
Equity securities 58%–88% 78% 74%
Debt securities 20–25 18 23
Real estate —1—
Cash equivalents 0–5 3 3
Total 100% 100%
1The target allocation is for the SunTrust plan only and the percentage of plan assets include both SunTrust and NCF plan assets.
Employer contributions and benefits paid in the above table include
only those amounts contributed directly to pay participants’ plan
benefits or added to plan assets in 2004 and 2003, respectively.
Note that the other Supplemental Retirement Plans are not funded
through plan assets.
The asset allocation for SunTrust’s Retirement Plan at the end of
2004 and 2003, and the target allocation for 2005, by asset cate-
gory, follows.The expected long-term rate of return on these plan
assets was 8.50% in 2004 and 8.75% in 2003.
Equity securities include SunTrust common stock in the amounts of
$17.3 million, or 0.9% of total plan assets and $4.2 million, 0.3% of
total plan assets at the end of 2004 and 2003, respectively.
The SunTrust benefit plan committee establishes investment poli-
cies and strategies and regularly monitors the performance of the
funds.The Company’s investment strategy with respect to pension
assets is to invest the assets in accordance with ERISA and fiduciary
standards. The long-term primary objectives for the Retirement
Plan are to 1) provide for a reasonable amount of long-term growth
of capital, without undue exposure to risk; and protect the assets
from erosion of purchasing power, and 2) provide investment
results that meet or exceed the Retirement Plan’s actuarially
assumed long-term rate of return.
The NCF benefit plan committee established the target allocation
for the NCF Retirement Plan for 2004.The SunTrust benefits plan
committee will establish a target allocation for the NCF plan assets
of $176 million consistent with that of the SunTrust Retirement
Plan.
The asset allocation for the other post retirement benefit plans at
the end of 2004 and 2003, and target allocation for 2005, by asset
category, are as follows:
Target Percentage of Plan
Allocation Assets at December 31
Asset Category 20053200432003
Equity securities135–50% 45% 50%
Debt securities 50–65 42 49
Other2—13 1
Total 100% 100%
1Equity securities do not include SunTrust common stock for the Post Retirement Welfare Plans.
2A contribution was made on December 31, 2004 and invested in a short-term investment.
3The target allocation is for the SunTrust plan only and the percentage of plan assets include both SunTrust and NCF plan assets.
The Company’s investment strategy with respect to other Post Retirement Benefits is to create a stream of investment return sufficient to
provide for current and future liabilities at a reasonable level of risk.