SunTrust 2008 Annual Report Download - page 146
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SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
At December 31, 2008, the total outstanding unrecognized net loss to be recognized in future years for all retirement and
postretirement benefits was $1.3 billion, compared to $468 million as of December 31, 2007. The key sources of the
cumulative net losses are attributable to (1) lower discount rates for the past several years, (2) compensation increases have
exceeded expectations, and (3) lower return on assets in 2008. As discussed previously, SunTrust reviews its assumptions
annually to ensure they represent best estimates for the future and will, therefore, minimize future gains and losses.
As of December 31, amounts recognized in accumulated other comprehensive income are as follows:
Pension Benefits
Other Postretirement
Benefits
(Dollars in thousands) 2008 2007 2008 2007
Net actuarial loss $1,170,780 $400,690 $97,526 $67,558
Prior service credit (67,483) (78,649) (1,938) (3,496)
Total Accumulated Other
Comprehensive Income, pre-tax $1,103,297 $322,041 $95,588 $64,062
Pension plans with a projected benefit obligation, in excess of plan assets at December 31 were as follows:
(Dollars in thousands) 2008 2007
Projected benefit obligation $109,751 $114,587
Accumulated benefit obligation 104,594 107,161
Expected Cash Flows
Information about the expected cash flows for the Pension Benefit and Other Postretirement Benefit plans is as follows:
(Dollars in thousands) Pension Benefits1,2
Other Postretirement
Benefits (excluding
Medicare Subsidy)3
Value to Company of
Expected Medicare
Subsidy
Employer Contributions
2009 (expected) to plan trusts $- $- ($3,500)
2009 (expected) to plan participants 26,076 - -
Expected Benefit Payments
2009 112,892 22,817 (3,500)
2010 104,529 21,165 (1,226)
2011 113,205 21,579 (1,253)
2012 117,038 21,410 (1,270)
2013 127,924 21,089 (1,270)
2014 – 2018 768,640 93,475 (6,017)
1At this time, SunTrust anticipates contributions to the Retirement Plan will be permitted (but not required) during 2009 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 2009 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.
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