SunTrust 2008 Annual Report Download - page 144
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SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
The change in benefit obligations for the years ended December 31 was as follows:
Pension Benefits
Other Postretirement
Benefits
(Dollars in thousands) 2008 2007 2008 2007
Benefit obligation, beginning of year $1,841,153 $1,934,967 $200,723 $209,617
Service cost 77,872 68,322 618 1,241
Interest cost 117,090 111,920 11,811 11,337
Plan participants’ contributions --21,632 20,487
Amendments -(105,987) -(6,930)
Actuarial (gain)/loss (7,646) (48,140) 1,360 (6,297)
Benefits paid (106,217) (119,929) (34,902) (32,032)
Less federal Medicare drug subsidy --3,500 3,300
Benefit obligation, end of year $1,922,252 $1,841,153 $204,742 $200,723
The accumulated benefit obligation for the Retirement Benefits at December 31, 2008 and 2007 was $1.7 billion and $1.6
billion, respectively. For the Supplemental Retirement Benefits, the accumulated benefit obligation at December 31, 2008
and 2007 was $104.6 million and $107.2 million, respectively.
Pension Benefits
Other Post-
retirement Benefits
(Weighted average assumptions used to
determine benefit obligations, end of year) 2008 2007 2008 2007
Discount rate 6.14 % 6.28 % 5.95 % 5.95 %
Rate of compensation increase 4.00/4.50 14.50 N/A N/A
1At year-end 2008, all salaries were expected to increase by 2.00% for 2009 (0% for nonqualified plans for 2009), 3.00% for 2010, and total salaries were assumed to increase
at 4.50% while base salaries were assumed to increase at 4.00% for 2011 and beyond.
The change in plan assets for the years ended December 31 was as follows:
Pension Benefits
Other Postretirement
Benefits
(Dollars in thousands) 2008 2007 2008 2007
Fair value of plan assets, beginning of year $2,287,322 $2,216,179 $162,881 $162,973
Actual return on plan assets (617,770) 180,467 (32,965) 10,873
Employer contributions 356,014 10,605 30,521 580
Plan participants’ contributions --21,632 20,487
Benefits paid (106,217) (119,929) (34,902) (32,032)
Fair value of plan assets, end of year $1,919,349 $2,287,322 $147,167 $162,881
Employer contributions and benefits paid in the above table include only those amounts contributed to pay participants’ plan
benefits or added to plan assets in 2008 and 2007, respectively. Supplemental Retirement Plans are not funded through plan
assets.
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