Travelers 2006 Annual Report Download - page 225

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
213
12. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS (Continued)
Qualified
Domestic Plan
Non-qualified
and
Foreign Plans Total
(for the yearended December 31, in millions)2006 2005 2006 2005 2006 2005
Change in projected benefit obligation
Benefit obligation atbeginning of year............. $1,750 $ 1 ,605 $ 1 92 $ 1 66 $ 1 ,942 $1,771
Benefits earned. ................................ 62 59 2 2 64 61
Interest cost on benefit obligation. ................ 98 94 10 9 108 103
Actuarial loss (gain). ............................ (32) 98 (2) 35 (34 )133
Benefits paid ................................... (126) (106)(21) (12)(147)(118)
Foreign currency exchange rate change............—— 11 (8 )11 (8)
Benefits obligation at end of year ............... $1,752 $ 1 ,750 $ 1 92 $ 1 92 $ 1 ,944 $1,942
Change in plan assets
Fair value of plan assets at beginning of year ....... $1,786 $ 1 ,730 $ 95 $ 88
$ 1 ,881 $1,818
Actual return on plan assets...................... 224 82 6 16
230 98
Company contributions.......................... —80 12 12
12
92
Benefits paid ................................... (126) (106)(21) (12)(147)(118)
Foreign currency exchangerate change............—— 11 (9 )11 (9)
Fair value ofplan assets atend of year............. $1,884 $ 1 ,786 $ 1 03 $ 95
$ 1 ,987 $1,881
Reconciliation ofprepaid (accrued) benefit cost and
total amount recognized
Funded status of plan at end of year............... $ 132 $ 36 $ (89)$ (97 )$ 43
$ (61)
Unrecognized:
Prior service benefit. ......................... . n/a (24) n/a (2 )n/a (26)
Net actuarial loss............................. n/a 289 n/a 43 n/a 332
Net amount recognized........................ $ n/a $ 301 $ n/a $ (56 ) $ n/a $ 245
Amounts recognized in the statement of financial
position consistof:
Prepaid benefit cost ............................. $ n/a $ 301 $ n/a $ 7 $ n/a $ 308
Accrued benefit liability ......................... n/a —
n/a (85 )n/a (85)
Accumulated other changes in equity from nonowner
sources—minimum pension liability ............. n/a —
n/a 22 n/a
22
Accrued over-funded benefit plan assets........... 132 n/a 3
n/a 135 n/a
Accrued under-funded benefit plan liabilities.......— n/a (92) n/a (92 )n/a
Total ........................................ $ 132 $ 301 $ (89)$ (56 )$ 43
$ 245
Amounts recognized in the accumulated other
changes in equity from nonowner sources:
Prior service benefit............................. $(19) $ n/a $ (1) $ n/a $ (20 )$ n/a
Net actuarial loss (gain)......................... 168 n/a 40 n/a 208 n/a
Total ........................................ $ 149 $ n/a $ 39 $ n/a $ 188 $ n/a
N/A—Not applicable.