Travelers 2007 Annual Report Download - page 227

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
12. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS (Continued)
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.
Nonqualified
Qualified and
Domestic Plan Foreign Plans Total
(for the year ended December 31, in millions) 2007 2006 2007 2006 2007 2006
Change in projected benefit obligation
Benefit obligation at beginning of year ........... $1,752 $1,750 $192 $192 $1,944 $1,942
Benefits earned ............................ 67 62 2269 64
Interest cost on benefit obligation ............... 101 98 10 10 111 108
Actuarial loss (gain) ......................... 34 (32) (1) (2) 33 (34)
Benefits paid .............................. (105) (126) (16) (21) (121) (147)
Divestiture ............................... (8) —(9) —(17) —
Foreign currency exchange rate change ........... ——411 411
Benefit obligation at end of year .............. 1,841 1,752 182 192 2,023 1,944
Change in plan assets
Fair value of plan assets at beginning of year ....... 1,884 1,786 103 95 1,987 1,881
Actual return on plan assets ................... 99 224 76106 230
Company contributions ...................... ——11 12 11 12
Benefits paid .............................. (105) (126) (16) (21) (121) (147)
Asset transfer—divestiture .................... (8) —(4) —(12) —
Foreign currency exchange rate change ........... ——411 411
Fair value of plan assets at end of year ........... 1,870 1,884 105 103 1,975 1,987
Funded status of plan at end of year ............ $29$ 132 $(77) $(89) $ (48) $43
Amounts recognized in the statement of financial
position consist of:
Accrued over-funded benefit plan assets .......... $29$ 132 $9 $3 $38$ 135
Accrued under-funded benefit plan liabilities ....... ——(86) (92) (86) (92)
Total .................................. $29$ 132 $(77) $(89) $ (48) $43
Amounts recognized in the accumulated other changes
in equity from nonowner sources consist of:
Prior service benefit ......................... $ (13) $ (19) $ (1) $(1) $ (14) $ (20)
Net actuarial loss ........................... 245 168 35 40 280 208
Total .................................. $ 232 $ 149 $34 $39 $ 266 $ 188
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