Travelers 2011 Annual Report Download - page 238

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
13. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS (Continued)
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 and Foreign
Pension Plan Pension Plans Total
(at and for the year ended December 31, in millions) 2011 2010 2011 2010 2011 2010
Change in projected benefit obligation:
Benefit obligation at beginning of year ........... $2,399 $2,214 $173 $173 $2,572 $2,387
Benefits earned ........................... 93 91 5598 96
Interest cost on benefit obligation .............. 125 119 10 9135 128
Actuarial loss ............................. 207 82 71214 83
Benefits paid ............................. (118) (107) (12) (13) (130) (120)
Foreign currency exchange rate change .......... ———(2) —(2)
Benefit obligation at end of year ............. $2,706 $2,399 $183 $173 $2,889 $2,572
Change in plan assets:
Fair value of plan assets at beginning of year ...... $2,342 $2,180 $83 $78 $2,425 $2,258
Actual return on plan assets .................. 5234 378241
Company contributions ...................... 185 35 12 13 197 48
Benefits paid ............................. (118) (107) (12) (13) (130) (120)
Foreign currency exchange rate change .......... ———(2) —(2)
Fair value of plan assets at end of year .......... 2,414 2,342 86 83 2,500 2,425
Funded status of plan at end of year ............ $ (292) $ (57) $(97) $(90) $ (389) $ (147)
Amounts recognized in the statement of financial
position consist of:
Accrued under-funded benefit plan liabilities ...... $ (292) $ (57) $ (97) $(90) $ (389) $ (147)
Amounts recognized in accumulated other changes
in equity from nonowner sources consist of:
Prior service benefit ........................ $—$—$— $— $—$—
Net actuarial loss .......................... 1,220 915 55 49 1,275 964
Total ................................. $1,220 $ 915 $55 $49 $1,275 $ 964
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