SunTrust 2006 Annual Report Download - page 124
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SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
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 2006 and 2005, respectively.
Supplemental Retirement Plans are not funded through plan assets.
The fair value of plan assets (in thousands) for these plans is $2,216,179 and $1,870,310 at the end of
2006 and 2005, respectively. The expected long-term rate of return on these plan assets was 8.50% in
2006 and 2005. The asset allocation for the SunTrust and NCF Retirement Plans at the end of 2006 and
2005, and the target allocation for 2007, by asset category, are as follows:
Target
Allocation1
Percentage of Plan Assets at
December 312
Asset Category 2007 2006 2005
Equity securities 70-80% 79% 79%
Debt securities 20-25 20 19
Cash equivalents 0-5% 12
Total 100% 100%
1SunTrust Retirement Plan only.
2SunTrust and NCF Retirement Plans.
At December 31, 2006 and 2005, there was no SunTrust common stock held in the SunTrust and NCF
Retirement Plans.
The SunTrust Benefit Plan Committee, which includes several members of senior management,
establishes investment policies and strategies and formally monitors the performance of the funds on a
quarterly basis. The Company’s investment strategy with respect to pension assets is to invest the assets
in accordance with the Employee Retirement Income Security Act 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, manage 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. Rebalancing occurs on a periodic basis to maintain the target allocation, but normal
market activity may result in deviations.
The investment strategy for the Other Postretirement Benefit Plans is maintained separately from the
strategy for the Retirement Plan. The Company’s investment strategy is to create a stream of investment
return sufficient to provide for current and future liabilities at a reasonable level of risk. The expected
long-term rate of return on these assets was 7.5% in 2006 and 8.5% in 2005.
The asset allocation for the Other Postretirement Benefit Plans at the end of 2006 and 2005, and target
allocation for 2007, by asset category, are as follows:
Asset Category
Target
Allocation
2007
Percentage of Plan Assets
at December 31
2006 2005
Equity securities 35-50% 49% 49%
Debt securities 50-65 45 31
Other 620
Total 100% 100%
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