SunTrust 2010 Annual Report Download - page 164

SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
Expected Cash Flows
Information about the expected cash flows for the Pension Benefit and Other Postretirement Benefit plans is as follows:
(Dollars in millions)
Pension
Benefits1,2
Other Postretirement
Benefits (excluding
Medicare Subsidy)3
Value to Company
of Expected
Medicare Subsidy
Employer Contributions
2011 (expected) to plan trusts $- $- $-
2011 (expected) to plan participants 22 1 (3)
Expected Benefit Payments
2011 171 16 (3)
2012 163 16 (1)
2013 169 16 (1)
2014 174 16 (1)
2015 176 16 (1)
2016-2020 940 68 (3)
1At this time, SunTrust anticipates contributions to the Retirement Plan will be permitted (but not required) during 2011 based on the funded status of the Plan and
contribution limitations under the ERISA.
2The expected benefit payments for the SERP will be paid directly from SunTrust corporate assets.
3The 2011 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 years ended December 31, were as follows:
Pension Benefits Other Postretirement Benefits
(Dollars in millions) 2010 2009 2008 2010 2009 2008
Service cost $69 $64 $78 $- $- $1
Interest cost 129 120 117 10 12 12
Expected return on plan assets (183) (149) (186) (7) (7) (8)
Amortization of prior service cost (11) (11) (11) (1) (2) (2)
Recognized net actuarial loss 62 112 22 119 12
Other -54 ---
Net periodic benefit cost $66 $141 $24 $3 $22 $15
Weighted average assumptions used to determine net cost
Discount rate16.32 % 6.58 %26.28 %15.70 % 5.95 % 5.95 %
Expected return on plan assets 8.00 8.00 8.25 4.39 35.30 35.30 3
Rate of compensation increase 4.00 4.00/4.50 4.00/4.50 N/A N/A N/A
1The weighted average shown for 2008 is the weighted average discount rates for the Pension Benefits as of the beginning of the fiscal year.
2Interim remeasurement was required on April 30, 2009 for the SunTrust Pension Plan due to plan changes adopted at that time. The discount rate as of the remeasurement date was selected
based on the economic environment on those dates.
3The weighted average shown for the Other Postretirement Benefit plan is determined on an after-tax basis.
Other changes in plan assets and benefit obligations recognized in OCI during 2010 are as follows:
(Dollars in millions)
Pension
Benefits
Other
Postretirement
Benefits
Current year actuarial gain $117 $1
Amortization of actuarial loss (62) (1)
Amortization of current year prior service credit (59) -
Amortization of prior service credit 11 -
Total recognized in other comprehensive income, pre-tax $7 $-
Total recognized in net periodic benefit cost and other comprehensive income,
pre-tax
$73 $3
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