Travelers 2013 Annual Report Download - page 244

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 Pension and Foreign
Plan Pension Plans Total
(at and for the year ended December 31, in millions) 2013 2012 2013 2012 2013 2012
Change in projected benefit obligation:
Benefit obligation at beginning of year .......... $3,055 $2,706 $206 $ 183 $3,261 $2,889
Benefits earned ........................... 112 107 66118 113
Interest cost on benefit obligation ............. 124 129 89132 138
Actuarial loss (gain) ....................... (243) 225 (19) 17 (262) 242
Benefits paid ............................. (140) (112) (9) (13) (149) (125)
Foreign currency exchange rate change .......... ——2424
Acquisition .............................. ——15 —15 —
Benefit obligation at end of year ............. $2,908 $3,055 $209 $ 206 $3,117 $3,261
Change in plan assets:
Fair value of plan assets at beginning of year ..... $2,761 $2,414 $98 $86 $2,859 $2,500
Actual return on plan assets .................. 453 242 12 10 465 252
Company contributions ..................... —217 611 6228
Benefits paid ............................. (140) (112) (9) (13) (149) (125)
Foreign currency exchange rate change .......... ——2424
Acquisition .............................. ——20 —20 —
Fair value of plan assets at end of year .......... 3,074 2,761 129 98 3,203 2,859
Funded status of plan at end of year ........... $ 166 $ (294) $(80) $(108) $86$ (402)
Amounts recognized in the statement of financial
position consist of:
Accrued over-funded benefit plan assets ....... $ 176 $—$10 $— $ 186 $—
Accrued under-funded benefit plan liabilities .... (10) (294) (90) (108) (100) (402)
Total ................................. $ 166 $ (294) $ (80) $(108) $86$ (402)
Amounts recognized in accumulated other
comprehensive income consist of:
Net actuarial loss .......................... $ 704 $1,300 $34 $63 $ 738 $1,363
Prior service benefit ........................ ——————
Total ................................. $ 704 $1,300 $34 $63 $ 738 $1,363
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