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SUNTRUST  ANNUAL REPORT92
NET PERIODIC COST
Components of net periodic benefit cost were as follows:
Supplemental Other
Retirement Benefits Retirement Benefits Post Retirement Benefits
(Dollars in thousands)         
Service cost , , , , , , , , ,
Interest cost , , , , , , , , ,
Expected return on plan assets (,) (,) (,) — — — (,) (,) (,)
Amortization of prior service cost () () () , , , — — —
Recognized net actuarial loss , , , , , , , , ,
Amortization of initial transition
obligation — — — — —  , , ,
Other (,) — — , — — , — —
Net periodic benefit cost , , , , , , , , ,
Weighted-average assumptions
used to determine net cost
Discount Rate .% .% .% .% .% .% .% .% .%
Expected return on plan assets . . . N/A N/A N/A . . .
Rate of compensation increase . . . . . . N/A N/A N/A
The weighted average shown for  is the weighted average discount rate of all nonqualified plans as of the beginning of the fiscal year. Interim remeasurements were required during  due to settlements
(i.e., large lump sum payments occurring). The discount rate as of each remeasurement date was selected based on the economic environment as of that date.
EXPECTED CASH FLOWS
Information about the expected cash flows for the pension and other Post Retirement benefit plans follows:
Supplemental Other Post Retirement Value to Company
Retirement Retirement Benefits (excluding of Expected
(Dollars in thousands) Benefits Benefits Medicare Subsidy) Medicare Subsidy
Employer Contributions
 (expected) to plan trusts , — , ()
 (expected) to plan participants — , — —
Expected Benefit Payments
 , , , ()
 , , , ()
 , , , (,)
 , , , (,)
 , , , (,)
 –  , , , (,)
At this time, SunTrust anticipates contributions to the Retirement Plan may be permitted (but not required) during  based on the funded status of the Plan and contribution limitations under the Employee
Retirement Income Security Act of  (ERISA). SunTrust expects to make a contribution up to  million not to exceed IRS Section  limits.
The expected benefit payments for the Supplemental Retirement Plan will be paid directly from SunTrust corporate assets.
The  expected contribution for the Other Post Retirement Benefits Plans represent the expected benefit payments under the medical plans only. Note that expected benefits under Other Post Retirement Benefits
Plans are shown net of participant contributions.
Based on a ten-year capital market projection of the target asset alloca-
tion set forth in the investment policy for the SunTrust and NCF Retirement
Plans, the pre-tax expected rate of return on plan assets was .% in 
and . SunTrust will leave the return on asset assumption at .%
for for the Retirement Plans. SunTrust will lower the return on asset
assumption to .% for for the Other Post Retirement Benefit
Plans.
In addition, SunTrust sets pension asset values equal to their market
value, in contrast to the use of a smoothed asset value that incorporates
gains and losses over a period of years. Utilization of market value of assets
provides a more realistic economic measure of the plan’s funded status and
cost.
Assumed discount rates and expected returns on plan assets affect the
amounts of net periodic pension cost reported. A  basis point decrease
in the discount rate or expected long-term return on plan assets would
increase the Retirement Benefits net periodic benefit cost approximately
 million and  million, respectively.
Assumed health care cost trend rates have a significant effect on the
amounts reported for the health care plan. A one-percentage-point change
in the assumed health care cost trend rates would have had the following
effect in fiscal :
(Dollars in thousands) % Increase % Decrease
Effect on total of service and
interest cost  ()
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued