Travelers 2005 Annual Report Download - page 203

THE ST. PAUL TRAVELERS COMPANIES, INC.AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
191
14. PENSION PLANS,RETIREMENT BENEFITS AND SAVINGS PLANS
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.
Qualified
Domestic Plan
Non-qualified
and
Foreign Plans Total
(for the year ended December 31, in millions) 2005 2004 2005 2004 2005 2004
Change in projected benefit obligation
Benefit obligation at beginning of year............... $1,605 $ 591 $ 1 66 $28
$1,771 $ 619
SPC acquisition................................... — 956 — 126 — 1,082
Benefits earned ................................... 59 48 2 1 61 49
Interest cost onbenefit obligation................... 94 82 9 7 103 89
Actuarial loss (gain) ............................... 98 7
35 9 133 16
Benefits paid..................................... (106) (79) (12) (9 )(118) (88)
Foreign currency exchange rate change .............. —— (8) 4
(8) 4
Benefits obligation at end of year. ................. $1,750 $1,605 $ 1 92 $166
$1,942 $1,771
Change in plan assets
Fair value of plan assets atbeginning of year.......... $1,730 $ 602 $ 88 $ —
$1,818 $ 602
SPC acquisition................................... — 1,089 — 80
—
1,169
Actual return on plan assets ........................ 82 118 16 6 98 124
Company contributions ............................ 80— 12 7 92 7
Benefits paid..................................... (106) (79) (12) (9 )(118) (88)
Foreign currency exchange rate change .............. —— (9) 4
(9) 4
Fair value of plan assets atend of year............... $1,786 $1,730 $ 95 $88
$1,881 $1,818
Reconciliation of prepaid (accrued) benefit cost and
total amount recognized
Funded status of plan.............................. $ 36 $ 125 $ (97)$ (78)$ (61) $ 47
Unrecognized:
Prior service benefit ............................. (24) (30) (2) (1 )(26) (31)
Net actuarial loss (gain).......................... 289 139 43 18
332 157
Net amount recognized.......................... $ 301 $ 234 $ (56)$ (61)$ 245 $ 173
Amounts recognized in the statement of financial
position consist of:
Prepaid benefit cost ............................... $ 301 $ 234 $ 7 $ 5
$ 308 $ 239
Accrued benefit liability............................ —— (85)(76 )(85) (76)
Accumulated other changes in equity from nonowner
sources—minimum pensionliability ............... —— 22 10
22 10
Total .......................................... $ 301 $ 234 $ (56)$ (61)$ 245 $ 173
(Continued)