Travelers 2006 Annual Report Download - page 230

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
218
12. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS (Continued)
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
2007 ...................................... $ 100$ 20 $ 2
2008 ...................................... 106213
2009 ...................................... 110223
2010 ...................................... 113223
2011 ...................................... 118223
2012 through 2016 .......................... 646114 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 Travelers 401(k) Savings Plan (the Savings Plan). Substantially all Company
employees are eligible to participate in the Savings Plan. In 2006 and2005, 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 Company match contributed to accounts through 2006 was
primarily in the form of the Company’s common stock. Beginning with the 2006 match that was
contributed in 2007, the Company matching contribution is made in cash and invested according to the
employee’s current investment elections. The Company matching contribution can be reinvested at any
time into any other investment option. The expense related to this plan was $69 million and $63 million for
the years ended December 31, 2006 and 2005, respectively.
Legacy TPC 401(k) Savings Plan
Prior to the September 2005 plan merger, the Company had a 401(k) savings plan under which
substantially all legacy TPC employees andCompany employees hired after April 1, 2004, were 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 for the year ended
December 31, 2004.
Legacy SPC 401(k) Savings Plus and Stock Ownership Plans
Prior to the September 2005 plan merger and in connection with the merger with SPC, the Company
assumed The St. Paul Companies, Inc. Savings Plus Plan (SPP), a 401(k) savingsplan and The St. Paul
Companies, Inc. Stock Ownership Plan (SOP). Substantially all employees who were hired by legacy SPC
before April 1, 2004 were 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.