US Bank 2015 Annual Report Download - page 122

In addition to the funded qualified pension plan, the
Company maintains a non-qualified plan that is unfunded and
provides benefits to certain employees. The assumptions
used in computing the accumulated benefit obligation, the
projected benefit obligation and net pension expense are
substantially consistent with those assumptions used for the
funded qualified plan. In 2016, the Company expects to
contribute $22 million to its non-qualified pension plan which
equals the 2016 expected benefit payments.
Postretirement Welfare Plan In addition to providing
pension benefits, the Company provides health care and
death benefits to certain former employees who retired prior
to January 1, 2014. Employees retiring after December 31,
2013, are not eligible for retiree health care benefits. The
Company expects to contribute $7 million to its
postretirement welfare plan in 2016.
The following table summarizes the changes in benefit obligations and plan assets for the years ended December 31, and the
funded status and amounts recognized in the Consolidated Balance Sheet at December 31 for the retirement plans:
Pension Plan
Postretirement
Welfare Plan
(Dollars in Millions) 2015 2014 2015 2014
Change In Projected Benefit Obligation
Benefit obligation at beginning of measurement period ............................. $4,612 $ 3,895 $104 $100
Service cost ................................................................ 188 152 – –
Interest cost ................................................................ 195 197 3 3
Participants’ contributions .................................................... – – 10 11
Actuarial loss (gain) .......................................................... (176) 781 (5) 13
Lump sum settlements(a) ...................................................... (37) (286) – –
Benefit payments ........................................................... (132) (127) (21) (25)
Federal subsidy on benefits paid ............................................... – – 2 2
Benefit obligation at end of measurement period(b) ................................. $4,650 $ 4,612 $ 93 $104
Change In Fair Value Of Plan Assets
Fair value at beginning of measurement period .................................... $3,187 $ 2,831 $ 85 $ 92
Actual return on plan assets ................................................... (99) 269 – –
Employer contributions ....................................................... 436 500 8 7
Participants’ contributions .................................................... – – 10 11
Lump sum settlements(a) ...................................................... (37) (286) – –
Benefit payments ........................................................... (132) (127) (21) (25)
Fair value at end of measurement period ......................................... $3,355 $ 3,187 $ 82 $ 85
Funded (Unfunded) Status ................................................ $(1,295) $(1,425) $ (11) $ (19)
Components Of The Consolidated Balance Sheet
Current benefit liability ........................................................ $ (21) $ (21) $ – $ –
Noncurrent benefit liability ..................................................... (1,274) (1,404) (11) (19)
Recognized amount ......................................................... $(1,295) $(1,425) $ (11) $ (19)
Accumulated Other Comprehensive Income (Loss), Pretax
Net actuarial gain (loss) ....................................................... $(1,806) $(1,894) $ 55 $ 55
Net prior service credit (cost) .................................................. 7 11 28 31
Recognized amount ......................................................... $(1,799) $(1,883) $ 83 $ 86
(a) 2014 includes $242 million of payments as a result of a bulk lump sum offering to certain deferred vested participants.
(b) At December 31, 2015 and 2014, the accumulated benefit obligation for all pension plans was $4.3 billion.
The following table provides information for pension plans with benefit obligations in excess of plan assets at December 31:
(Dollars in Millions) 2015 2014
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets
Projected benefit obligation ..................................................................... $4,650 $4,612
Fair value of plan assets ........................................................................ 3,355 3,187
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets
Projected benefit obligation ..................................................................... $4,650 $4,612
Accumulated benefit obligation .................................................................. 4,310 4,250
Fair value of plan assets ........................................................................ 3,355 3,187
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