Travelers 2004 Annual Report Download - page 192

THE ST. PAUL TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
14. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS, Continued
Weighted average target asset allocations at December 31, 2004 by asset category were as follows:
Asset Category
Plan
Assets
Equity securities .................................................... 30–70%
Debt securities ...................................................... 30–70%
Cash .............................................................. 0–10%
Other ............................................................. 0–10%
Equity securities include 797,600 shares of the Company’s common stock with a market value of $30
million at December 31, 2004.
The Company’s other post-retirement benefit plan weighted-average asset allocations at December 31, 2004
by asset category were as follows:
Asset Category 2004
Debt securities ......................................................... 84%
Cash................................................................. 16%
Estimated Future Benefit Payments
Benefits expected to be paid, which reflect estimated future employee service, are estimated to be:
Expected payments by period (in millions) Pension Plans
Postretirement
Benefit Plans
2005 ............................................. $68 $20
2006 ............................................. 77 19
2007 ............................................. 84 20
2008 ............................................. 95 21
2009 ............................................. 103 21
2010 through 2014 .................................. 596 114
401(k) Savings Plan
The Company has a 401(k) savings plan under which substantially all legacy TPC employees and Company
employees hired after April 1, 2004, are eligible to participate. In 2004, the Company matched employee
contributions up to 5% of eligible pay but not more than $2,500 annually. Prior to 2004, the Company matched
employee contributions up to 3% of eligible pay but not more than $1,500 annually. The expense related to this
plan was $34 million, $20 million and $17 million for the years ended December 31, 2004, 2003 and 2002,
respectively.
Savings Plus and Stock Ownership Plans
In connection with the merger, the Company assumed The St. Paul Companies, Inc. Savings Plus Plan
(SPP), a 401(k) savings plan and The St. Paul Companies, Inc. Stock Ownership Plan (SOP). Substantially all
employees who were hired by legacy SPC before April 1, 2004 are eligible to participate in these plans. In 2004
under the SPP, the Company matched 100% of employees’ contributions up to a maximum of 6% of their salary.
The match was in the form of preferred shares, to the extent available in the SOP, or in the Company’s common
shares. Also allocated to participants were preferred shares equal to the value of dividends on previously
allocated shares.
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