Travelers 2015 Annual Report Download - page 234

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS (Continued)
Postretirement
Benefit Plans
(at and for the year ended December 31, in millions) 2015 2014
Change in projected benefit obligation:
Benefit obligation at beginning of year .................................... $ 255 $ 211
Benefits earned .................................................... ——
Interest cost on benefit obligation ....................................... 10 10
Actuarial loss (gain) ................................................. (3) 51
Benefits paid ...................................................... (13) (15)
Plan amendments ................................................... (11) —
Foreign currency exchange rate change ................................... (5) (2)
Benefit obligation at end of year ...................................... $ 233 $ 255
Change in plan assets:
Fair value of plan assets at beginning of year ............................... $16 $17
Actual return on plan assets ........................................... ——
Company contributions ............................................... 12 14
Benefits paid ...................................................... (13) (15)
Fair value of plan assets at end of year .................................. 15 16
Funded status of plan at end of year ................................... $(218) $(239)
Amounts recognized in the consolidated balance sheet consist of:
Accrued under-funded benefit plan liability ............................... $(218) $(239)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial loss .................................................. $4$9
Prior service benefit ................................................ (35) (26)
Total ........................................................... $ (31) $ (17)
The total accumulated benefit obligation for the Company’s defined benefit pension plans was
$3.37 billion and $3.51 billion at December 31, 2015 and 2014, respectively. The qualified domestic
pension plan accounted for $3.15 billion and $3.29 billion of the total accumulated benefit obligation at
December 31, 2015 and 2014, respectively, whereas the nonqualified and foreign plans accounted for
$0.22 billion of the total accumulated benefit obligation at both December 31, 2015 and 2014.
For pension plans with an accumulated benefit obligation in excess of plan assets, the aggregate
projected benefit obligation was $3.47 billion and $3.53 billion at December 31, 2015 and 2014,
respectively, and the aggregate accumulated benefit obligation was $3.36 billion and $3.43 billion at
December 31, 2015 and 2014, respectively. The fair value of plan assets for the above plans was
$3.23 billion and $3.27 billion at December 31, 2015 and 2014, respectively.
The Company has discretion regarding whether to provide additional funding and when to provide
such funding to its qualified domestic pension plan. In 2015, 2014 and 2013, there were no required
contributions to the qualified domestic pension plan. In 2015 and 2014, the Company voluntarily made
contributions totaling $100 million and $200 million, respectively, to the qualified domestic pension
plan. In 2013, the Company made no voluntary contributions to the qualified domestic pension plan.
There is no required contribution to the qualified domestic pension plan during 2016, and the
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