Travelers 2004 Annual Report Download - page 189

THE ST. PAUL TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
14. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS, Continued
Obligations and Funded Status
The following tables summarize the funded status, obligations and amounts recognized in the consolidated
balance sheet for the Company’s benefit plans. The Company uses a December 31 measurement date for its
pension and postretirement benefit plans.
(at and for the year ended December 31, in millions)
Pension Plans
Postretirement
Benefit Plans
2004 2003 2004 2003
Change in projected benefit obligation
Benefit obligation at beginning of year ................................. $ 619 $521 $14 $13
SPC acquisition .................................................... 1,110 —300 —
Benefits earned .................................................... 50 28 3—
Interest cost on benefit obligation ...................................... 90 37 14 1
Actuarial loss ..................................................... 16 39 5—
Benefits paid ...................................................... (88) (6) (15) —
Foreign currency exchange rate change ................................. 4———
Benefit obligation at end of year ................................... $1,801 $619 $ 321 $14
Change in plan assets
Fair value of plan assets at beginning of year ............................. $ 602 $431 $— $—
SPC acquisition .................................................... 1,194 —28 —
Actual return on plan assets .......................................... 125 82 ——
Company contributions .............................................. 795 13 —
Benefits paid ...................................................... (88) (6) (15) —
Foreign currency exchange rate change ................................. 4———
Fair value of plan assets at end of year .............................. $1,844 $602 $26 $—
Reconciliation of prepaid (accrued) benefit cost and total amount
recognized
Funded status of plan ............................................... $43$ (17) $(295) $ (14)
Unrecognized:
Prior service benefit ........................................ (32) (37) ——
Net actuarial loss ........................................... 158 156 71
Net amount recognized .......................................... $ 169 $102 $(288) $ (13)
Amounts recognized in the statement of financial position consist of:
Prepaid benefit cost ................................................. $ 239 $120 $— $—
Accrued benefit liability ............................................. (80) (28) (288) (13)
Accumulated other comprehensive income .............................. 10 10 ——
Net amount recognized ......................................... $ 169 $102 $(288) $ (13)
The accumulated benefit obligation for the Company’s defined benefit pension plans was $1.73 billion and
$574 million at December 31, 2004 and 2003, respectively.
For pension plans with an accumulated benefit obligation in excess of plan assets, the aggregate projected
benefit obligation and the aggregate accumulated benefit obligation were $106 million and $102 million,
respectively, at December 31, 2004 and were each $28 million at December 31, 2003. The fair value of plan
assets for the above plans was $23 million and $0 at December 31, 2004 and 2003, respectively.
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