SunTrust 2007 Annual Report Download - page 128

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SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
Expected Cash Flows
Information about the expected cash flows for the Retirement Benefits, Supplemental Retirement Benefits, and Other
Postretirement Benefit plans is as follows:
Retirement
Benefits1
Supplemental
Retirement
Benefits2
Other Postretirement
Benefits (excluding
Medicare Subsidy)3
Value to Company
of Expected
Medicare Subsidy
(Dollars in thousands)
Employer Contributions
2008 (expected) to plan trusts $- $- $- ($3,500)
2008 (expected) to plan participants - 14,913 - -
Expected Benefit Payments
2008 72,159 14,913 21,007 (3,500)
2009 76,508 14,872 19,201 (1,195)
2010 80,974 17,141 19,670 (1,232)
2011 84,725 13,267 19,938 (1,252)
2012 88,810 8,855 19,622 (1,264)
2013 – 2017 506,593 49,553 87,674 (6,048)
1At this time, SunTrust anticipates contributions to the Retirement Plan will be permitted (but not required) during 2008 based on the funded status of the
Plan and contribution limitations under the Employee Retirement Income Security Act of 1974 (ERISA).
2The expected benefit payments for the Supplemental Retirement Plan will be paid directly from SunTrust corporate assets.
3The 2008 expected contribution for the Other Postretirement Benefits Plans represents the Medicare Part D subsidy only. Note that expected benefits
under Other Postretirement Benefits Plans are shown net of participant contributions.
Net Periodic Cost
Components of net periodic benefit cost for the twelve months ended December 31 were as follows:
Retirement Benefits Supplemental Retirement Benefits
Other Postretirement
Benefits
(Dollars in thousands) 2007 2006 2005 2007 2006 2005 2007 2006 2005
Service cost $66,314 $72,441 $63,604 $2,008 $2,479 $2,130 $1,241 $3,118 $3,034
Interest cost 105,252 103,510 94,494 6,668 6,679 5,718 11,337 10,913 9,921
Expected return on plan assets (186,357) (165,441) (156,426) ---(8,194) (8,126) (8,880)
Amortization of prior service cost (12,888) (480) (480) 2,730 3,530 2,533 (1,370) --
Recognized net actuarial loss 31,382 49,664 37,129 3,468 5,399 6,229 14,286 9,912 6,833
Amortization of initial transition
obligation --- ---280 2,322 2,322
Other 445 505 (14,600) 1,366 54 10,998 11,5861- 3,032
Net periodic benefit cost $4,148 $60,199 $23,721 $16,240 $18,141 $27,608 $29,166 $18,139 $16,262
Weighted average assumptions
used to determine net cost
Discount rate 5.94%25.68%25.90% 5.84% 5.56% 4.53% 5.75% 5.45% 5.35%
Expected return on plan assets 8.50 8.50 8.50 N/A N/A N/A 5.3035.3036.00
Rate of compensation increase 4.50 4.50 4.00 4.50 4.50 4.00 N/A N/A N/A
1The charge to Other reflects a curtailment charge of $11.6 million to Other Postretirement Benefits.
2The weighted average shown for 2006 and 2007 are the weighted average discount rates of all qualified and nonqualified plans as of the beginning of the fiscal year.
Interim remeasurement was required on September 1, 2006, for the SunTrust Retirement Plan due to the passage of the Pension Protection Act. The discount rate as
of the remeasurement date was selected based on the economic environment as of that date. Interim remeasurement was also required on February 13, 2007 for all
plans due to plan changes adopted at that time.
3The weighted average shown for the other postretirement benefit plan is determined on an after-tax basis.
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