Travelers 2008 Annual Report Download - page 240

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
13. 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 Foreign
Domestic Plan Plans Total
(for the year ended December 31, in millions) 2008 2007 2008 2007 2008 2007
Change in projected benefit obligation
Benefit obligation at beginning of year ........... $1,841 $1,752 $182 $192 $2,023 $1,944
Benefits earned ........................... 74 67 3277 69
Interest cost on benefit obligation .............. 107 101 10 10 117 111
Actuarial loss (gain) ........................ (8) 34 (18) (1) (26) 33
Benefits paid ............................. (107) (105) (13) (16) (120) (121)
Divestiture ............................... —(8) —(9) —(17)
Foreign currency exchange rate change .......... ——(27) 4(27) 4
Benefit obligation at end of year ............. $1,907 $1,841 $137 $182 $2,044 $2,023
Change in plan assets
Fair value of plan assets at beginning of year ...... $1,870 $1,884 $105 $103 $1,975 $1,987
Actual return on plan assets .................. (455) 99 (18) 7(473) 106
Company contributions ...................... 450 —10 11 460 11
Benefits paid ............................. (107) (105) (13) (16) (120) (121)
Asset transfer—divestiture .................... —(8) —(4) —(12)
Foreign currency exchange rate change .......... ——(24) 4(24) 4
Fair value of plan assets at end of year .......... 1,758 1,870 60 105 1,818 1,975
Funded status of plan at end of year ............ $ (149) $29$ (77) $(77) $ (226) $ (48)
Amounts recognized in the statement of financial
position consist of:
Accrued over-funded benefit plan assets .......... $—$29$2 $9 $2$38
Accrued under-funded benefit plan liabilities ...... (149) —(79) (86) (228) (86)
Total .................................. $ (149) $29$(77) $ (77) $ (226) $ (48)
Amounts recognized in accumulated other changes
in equity from nonowner sources consist of:
Prior service benefit ........................ $ (8) $ (13) $ (1) $(1) $ (9) $ (14)
Net actuarial loss .......................... 838 245 34 35 872 280
Total .................................. $ 830 $ 232 $33 $34 $ 863 $ 266
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