Travelers 2012 Annual Report Download - page 240

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS (Continued)
covers certain highly-compensated employees, pension plans for employees of its foreign subsidiaries,
and 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) 2012 2011 2012 2011 2012 2011
Change in projected benefit obligation:
Benefit obligation at beginning of year .......... $2,706 $2,399 $ 183 $173 $2,889 $2,572
Benefits earned ........................... 107 93 65113 98
Interest cost on benefit obligation ............. 129 125 910 138 135
Actuarial loss ............................ 225 207 17 7242 214
Benefits paid ............................. (112) (118) (13) (12) (125) (130)
Foreign currency exchange rate change .......... ——4—4—
Benefit obligation at end of year ............. $3,055 $2,706 $ 206 $183 $3,261 $2,889
Change in plan assets:
Fair value of plan assets at beginning of year ..... $2,414 $2,342 $86 $83 $2,500 $2,425
Actual return on plan assets .................. 242 510 3252 8
Company contributions ..................... 217 185 11 12 228 197
Benefits paid ............................. (112) (118) (13) (12) (125) (130)
Foreign currency exchange rate change .......... ——4—4—
Fair value of plan assets at end of year .......... 2,761 2,414 98 86 2,859 2,500
Funded status of plan at end of year ........... $ (294) $ (292) $(108) $(97) $ (402) $ (389)
Amounts recognized in the statement of financial
position consist of:
Accrued under-funded benefit plan liabilities .... $ (294) $ (292) $(108) $(97) $ (402) $ (389)
Amounts recognized in accumulated other
comprehensive income consist of:
Prior service benefit ........................ $—$—$— $— $—$—
Net actuarial loss ......................... 1,300 1,220 63 55 1,363 1,275
Total ................................. $1,300 $1,220 $63 $55 $1,363 $1,275
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