The Hartford 2015 Annual Report Download - page 219

Table of Contents THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
16. Employee Benefit Plans (continued)
F-88
Amounts in accumulated other comprehensive income (loss) on a before tax basis that have not yet been recognized as components of
net periodic benefit cost consist of:
Pension Benefits Other Postretirement Benefits
As of December 31,
2015 2014 2015 2014
Net loss $ (2,553) $ (2,428) $ (123) $ (124)
Prior service credit — — 91 97
Total $ (2,553) $ (2,428) $ (32) $ (27)
The estimated net loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income
(loss) into net periodic benefit cost during 2016 is $55. The estimated prior service cost for the other postretirement benefit plans that
will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost during 2016 is $(7). The estimated
net loss for the other postretirement plans that will be amortized from accumulated other comprehensive income into net periodic benefit
cost during 2016 is $5.
Plan Assets
Investment Strategy and Target Allocation
The overall investment strategy of the Plan is to maximize total investment returns to provide sufficient funding for present and
anticipated future benefit obligations within the constraints of a prudent level of portfolio risk and diversification. With respect to asset
management, the oversight responsibility of the Plan rests with The Hartford’s Pension Fund Trust and Investment Committee composed
of individuals whose responsibilities include establishing overall objectives and the setting of investment policy; selecting appropriate
investment options and ranges; reviewing the asset allocation mix and asset allocation targets on a regular basis; and monitoring
performance to determine whether or not the rate of return objectives are being met and that policy and guidelines are being followed.
The Company believes that the asset allocation decision will be the single most important factor determining the long-term performance
of the Plan.
The Company’s pension plan and other postretirement benefit plans’ target allocation by asset category is presented in the table below.
Target Asset Allocation
Pension Plans Other Postretirement Plans
(minimum) (maximum) (minimum) (maximum)
Equity securities 5% 20% 15% 45%
Fixed income securities 50% 70% 55% 85%
Alternative assets 10% 45% —% —%
Divergent market performance among different asset classes may, from time to time, cause the asset allocation to deviate from the
desired asset allocation ranges. The asset allocation mix is reviewed on a periodic basis. If it is determined that an asset allocation mix
rebalancing is required, future portfolio additions and withdrawals will be used, as necessary, to bring the allocation within tactical
ranges.
The Company’s pension plan and other postretirement benefit plans’ weighted average asset allocation is presented in the table below.
Pension Plans Other Postretirement Plans
Percentage of Assets Percentage of Assets
at Fair Value at Fair Value
As of December 31,
2015 2014 2015 2014
Equity securities 20 % 21 % 25 % 25 %
Fixed income securities 66 % 62 % 75 % 75 %
Alternative assets 14 % 17 % — % — %
Total 100% 100% 100% 100%