Travelers 2005 Annual Report Download - page 207

THE ST. PAUL TRAVELERS COMPANIES, INC.AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
195
14. PENSION PLANS,RETIREMENT BENEFITS AND SAVINGS PLANS
equity and fixed-income investments. Equity investments are diversified across U.S. and non-U.S. stocks.
Other assets such as partnerships and real estate are used to enhance long-term returns while improving
portfolio diversification. Investment risk is measured and monitored on an ongoing basis through daily and
monthly investment portfolio review, annual liabilitymeasurements, and periodic asset/liability studies.
Weighted average target asset allocations at December 31, 2005 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 $36
million at December 31, 2005.
The Company’s other post-retirement benefit plan weighted-average asset allocations at
December 31, 2005 and 2004 by asset category were as follows:
Asset Category 2005 2004
Debt securities...................................... 75% 84 %
Cash ............................................... 25% 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
Prescription
Drug
Subsidy
2006 .............................. $ 90 $ 19 $ 3
2007 .............................. 95 20 3
2008 .............................. 10120 3
2009 .............................. 10621 3
2010 .............................. 10922 4
2011 through 2015 .................. 616116 20
Savings Plan
The Company, in September 2005, merged the Travelers 401(k) Savings Plan, the St. Paul
Companies, Inc. Savings Plus Plan (SPP), and The St. Paul Companies, Inc. Stock Ownership Plan (SOP)
into one new plan, the St. Paul Travelers 401(k) Savings Plan (the Savings Plan). Substantially all Company
employees are eligible to participate in the Savings Plan. In 2005, the Company matched employee
contributions up to 5% of eligible pay, with a maximum annual match of $5,000 which becomes 100%
vested after three years of service. The match is primarily in the form of the Company’s common stock
which can be reinvested at any time into any other investment option. The expense related to this plan was
$63million for the year ended December 31, 2005.
(Continued)