SunTrust 2013 Annual Report Download - page 175

Notes to Consolidated Financial Statements, continued
159
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
2014 (expected) to plan trusts $— $— $—
2014 (expected) to plan participants 7 — (1)
Expected Benefit Payments
2014 171 12 (1)
2015 153 9 —
2016 153 8 —
2017 155 8 —
2018 155 7 —
2019-2023 817 25 —
1 At this time, the Company anticipates contributions to the Retirement Plan will be permitted (but not required) during 2014 based on the funded status and
contribution limitations under the ERISA.
2 The expected benefit payments for the SERP will be paid directly from the Company's corporate assets.
3 Expected benefit payments under Other Postretirement Benefits Plans are shown net of participant contributions.
Net Periodic (Benefit)/Cost
Components of net periodic (benefit)/cost for the year ended December 31 were as follows:
Pension Benefits Other Postretirement Benefits
(Dollars in millions) 2013 2012 2011 2013 2012 2011
Service cost $— $— $ 62 $— $— $—
Interest cost 113 119 128 679
Expected return on plan assets (187) (173)(188)(6) (7)(7)
Amortization of prior service credit ——(16)———
Recognized net actuarial loss 26 25 39 ——1
Curtailment gain ——(88)———
Settlement loss —2—
———
Net periodic (benefit)/cost ($48) ($27)($63)$— $— $3
Weighted average assumptions used to
determine net (benefit)/cost:
Discount rate 4.08% 4.63% 15.59% 23.45% 4.10% 5.10%
Expected return on plan assets 7.00 7.00 7.72 33.25 44.06 44.39 4
Rate of compensation increase 5N/A N/A 4.00 N/A N/A N/A
1 Interim remeasurement was required on September 15, 2012, for the SunTrust SERP to reflect settlement accounting.
2 Interim remeasurement was required on November 14, 2011 due to plan amendments adopted at that time. The discount rate as of the remeasurement date
was selected based on economic conditions on that date.
3As part of the interim remeasurement on November 14, 2011, the expected return on plan assets was reduced from 7.75% to 7.25% for the SunTrust Pension
Plan and the NCF Retirement Plan.
4 The weighted average shown for the Other Postretirement Benefit plan is determined on an after-tax basis.
5 "N/A" - Not applicable