Union Pacific 2005 Annual Report Download - page 64

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the accumulated benefit obligation, as the present value of OPEB liabilities is not affected by salary increases.
Changes in our projected benefit obligation are as follows for the years ended December 31:
Pension OPEB
Millions of Dollars 2005 2004 2005 2004
Projected benefit obligation at beginning of year .................. $2,058 $1,804 $453 $543
Service cost ................................................ 28 30 4 5
Interest cost ............................................... 115 120 25 31
Plan amendments .......................................... - - (42) (52)
Actuarial loss (gain) ......................................... (18) 219 70 (34)
Gross benefits paid .......................................... (118) (115) (34) (40)
Projected benefit obligation at end of year ....................... $2,065 $2,058 $476 $453
Assets – Plan assets are measured at fair value. Changes in the fair value of our plan assets are as follows for the
years ended December 31:
Pension OPEB
Millions of Dollars 2005 2004 2005 2004
Fair value of plan assets at beginning of year ...................... $1,693 $1,520 $ - $ -
Actual return on plan assets ................................... 123 180 - -
Voluntary funded pension plan contributions .................... - 100 - -
Unfunded plan benefit payments .............................. 9 8 34 40
Gross benefits paid .......................................... (118) (115) (34) (40)
Fair value of plan assets at end of year ........................... $1,707 $1,693 $ - $ -
Funded Status – The funded status represents the difference between the PBO and the fair value of the plan assets.
Below is a reconciliation of the funded status of the benefit plans to the net amounts recognized for the years
ended December 31:
Pension OPEB
Millions of Dollars 2005 2004 2005 2004
Funded status at end of year .................................. $(358) $(365) $(476) $(453)
Unrecognized net actuarial loss ................................ 362 373 194 133
Unrecognized prior service cost (credit) ......................... 31 39 (156) (144)
Net amounts recognized at end of year .......................... $ 35 $ 47 $(438) $(464)
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