Travelers 2003 Annual Report Download - page 140

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138
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
12. PENSION PLANS AND RETIREMENT BENEFITS, Continued
Obligations and Funded Status
The following tables summarize the funded status, obligations and amounts recognized in the consolidated
balance sheet for TPC’s plans. Travelers uses a December 31 measurement date for its pension and
postretirement benefit plans.
(1) August 20, 2002 is the beginning of the year for 2002 as TPC-sponsored plans began on that date.
Pension Plans
Postretirement
Benefit Plans
(at and for the year ended December 31, in millions) 2003 2002 2003 2002
Change in benefit obligation
Benefit obligation at beginning of year (1) $ 521.0 $ 488.0 $ 13.0 $ 12.3
Benefits earned 27.6 10.3 .2 .1
Interest cost on benefit obligation 36.9 12.5 .9 .3
Actuarial loss 39.4 10.6 (.2) .3
Benefits paid (6.3) (.4) - -
Benefit obligation at end of year $ 618.6
$ 521.0
$ 13.9
$ 13.0
Change in plan assets
Fair value of plan assets at beginning of year (1) $ 430.8 $ 429.3 $ - $ -
Actual return on plan assets 82.7 1.7 - -
Travelers contributions 94.7 .2 - -
Benefits paid (6.3) (.4) - -
Fair value of plan assets at end of yea
r
$ 601.9
$ 430.8
$ -
$ -
Reconciliation of prepaid (accrued) benefit cost
and total amount recognized
Funded status of plan $ (16.7)
$ (90.2) $ (13.9) $ (13.0)
Unrecognized:
Prior service cost (37.1) (42.9) (.1) (.2)
Net actuarial loss 156.3 165.9 1.1 1.3
Net amount recognized $ 102.5
$ 32.8
$ (12.9)
$ (11.9)
Amounts recognized in the statement of
financial position consist of:
Prepaid benefit cost $ 120.3
$ 49.0
$ -
$ -
Accrued benefit liability
(27.5)
(121.2) (12.9) (11.9)
Accumulated other comprehensive income 9.7 105.0 - -
Net amount recognized $ 102.5
$ 32.8
$ (12.9)
$ (11.9)