Travelers 2005 Annual Report Download - page 204

THE ST. PAUL TRAVELERS COMPANIES, INC.AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
192
14. PENSION PLANS,RETIREMENT BENEFITS AND SAVINGS PLANS
Postretirement
Benefit Plans
(at and for the year ended December 31, in millions) 2005 2004
Change in projected benefit obligation
Benefit obligation at beginning of year........................................... $ 312 $ 14
SPC acquisition............................................................... — 292
Benefits earned ............................................................... 4 2
Interest cost onbenefit obligation............................................... 19 14
Actuarial loss (gain) ........................................................... (35) 4
Benefits paid................................................................. (19) (14)
Foreign currency exchange rate change .......................................... 1 —
Benefit obligation at end ofyear.............................................. $ 282 $ 312
Change in plan assets
Fair value of plan assets atbeginning of year...................................... $ 26 $ —
SPC acquisition............................................................... — 28
Actual return on plan assets .................................................... 1 —
Company contributions ........................................................ 17 12
Benefits paid................................................................. (19) (14)
Foreign currency exchange rate change .......................................... — —
Fair value of plan assets atend of year......................................... $ 25 $ 26
Reconciliation of prepaid (accrued) benefit cost and total amount recognized
Funded status of plan.......................................................... $ ( 257) $ (286)
Unrecognized:
Prior service benefit ....................................................... — —
Net actuarial loss (gain).................................................... (28) 6
Net amount recognized...................................................... $ ( 285) $ (280)
Amounts recognized in the statement of financial position consist of:
Prepaid benefit cost ........................................................... $ — $ —
Accrued benefit liability........................................................ (285) (280)
Accumulated other changes in equity from nonownersources—minimum pension
liability.................................................................... — —
Net amount recognized ...................................................... $ ( 285) $ (280)
The total accumulated benefit obligation for the Company’s defined benefit pension plans was $1.88
billion and $1.70 billion at December 31, 2005 and 2004, respectively. The Qualified Domestic Plan
accounted for $1.69 billion and $1.54 billion of the total accumulated benefit obligation at December 31,
2005 and 2004, respectively, whereas the Non-Qualified and Foreign Plans accounted for $0.19 billion
and $0.16billion of the total accumulated benefit obligation at December 31, 2005 and 2004, 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 $186 million and $185
million, respectively, at December 31, 2005 and $102 million and $99 million at December 31, 2004,
(Continued)