Travelers 2010 Annual Report Download - page 235

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
13. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS (Continued)
addition, the Company sponsors a nonqualified defined benefit pension plan which covers certain
highly-compensated employees and also sponsors a postretirement health and life insurance benefit
plan for employees satisfying certain age and service requirements and for certain retirees.
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.
Qualified Nonqualified
Domestic Pension and Foreign
Plan Pension Plans Total
(at and for the year ended December 31, in millions) 2010 2009 2010 2009 2010 2009
Change in projected benefit obligation:
Benefit obligation at beginning of year ........... $2,214 $1,907 $173 $137 $2,387 $2,044
Benefits earned ........................... 91 76 5496 80
Interest cost on benefit obligation .............. 119 116 99128 125
Actuarial loss ............................. 82 212 132 83 244
Benefits paid ............................. (107) (97) (13) (16) (120) (113)
Foreign currency exchange rate change .......... ——(2) 7(2) 7
Benefit obligation at end of year ............. $2,399 $2,214 $173 $173 $2,572 $2,387
Change in plan assets:
Fair value of plan assets at beginning of year ...... $2,180 $1,758 $78 $60 $2,258 $1,818
Actual return on plan assets .................. 234 259 714 241 273
Company contributions ...................... 35 260 13 13 48 273
Benefits paid ............................. (107) (97) (13) (16) (120) (113)
Foreign currency exchange rate change .......... ——(2) 7(2) 7
Fair value of plan assets at end of year .......... 2,342 2,180 83 78 2,425 2,258
Funded status of plan at end of year ............ $ (57) $ (34) $ (90) $ (95) $ (147) $ (129)
Amounts recognized in the statement of financial
position consist of:
Accrued under-funded benefit plan liabilities .... $ (57) $ (34) $ (90) $ (95) $ (147) $ (129)
Amounts recognized in accumulated other changes
in equity from nonowner sources consist of:
Prior service benefit ........................ $—$(2)$— $(1) $—$(3)
Net actuarial loss .......................... 915 943 49 54 964 997
Total ................................. $ 915 $ 941 $49 $53 $ 964 $ 994
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