Travelers 2014 Annual Report Download - page 237

Table of Contents
THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS (Continued)
The total accumulated benefit obligation for the Company's defined benefit pension plans was $3.51 billion and $3.05 billion at December 31,
2014 and 2013, respectively. The qualified domestic pension plan accounted for $3.29 billion and $2.85 billion of the total accumulated benefit
obligation at December 31, 2014 and 2013, respectively, whereas the nonqualified and foreign plans accounted for $0.22 billion and $0.20 billion of
the total accumulated benefit obligation at December 31, 2014 and 2013, respectively.
For pension plans with an accumulated benefit obligation in excess of plan assets, the aggregate projected benefit obligation was $3.53 billion
and $123 million at December 31, 2014 and 2013, respectively, and the aggregate accumulated benefit obligation was $3.43 billion and $121 million at
December 31, 2014 and 2013, respectively. The fair value of plan assets for the above plans was $3.27 billion and $33 million at December 31, 2014
and 2013, respectively.
The Company has discretion regarding whether to provide additional funding and when to provide such funding to its qualified domestic
pension plan. In 2014, 2013 and 2012, there were no required contributions to the qualified domestic pension plan. In 2014 and 2012, the Company
voluntarily made contributions totaling $200 million and $217 million, respectively, to the qualified domestic pension plan. In 2013, the Company
made no voluntary contributions to the qualified domestic pension plan. The Company has not determined whether or not additional funding will
be made during 2015. There
236
Postretirement
Benefit Plans
(at and for the year ended December 31, in millions)
2014
2013
Change in projected benefit obligation:
Benefit obligation at beginning of year
$
211
$
222
Benefits earned
—
—
Interest cost on benefit obligation
10
9
Actuarial loss (gain)
51
(25
)
Benefits paid
(15
)
(14
)
Foreign currency exchange rate change
(2
)
—
Acquisition
—
19
Benefit obligation at end of year
$
255
$
211
Change in plan assets:
Fair value of plan assets at beginning of year
$
17
$
18
Actual return on plan assets
—
—
Company contributions
14
13
Benefits paid
(15
)
(14
)
Fair value of plan assets at end of year
16
17
Funded status of plan at end of year
$
(239
)
$
(194
)
Amounts recognized in the consolidated balance sheet consist of:
Accrued under - funded benefit plan liability
$
(239
)
$
(194
)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial loss (gain)
$
9
$
(44
)
Prior service benefit
(26
)
(28
)
Total
$
(17
)
$
(72
)