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138 UNUM • 2014 ANNUAL REPORT
Notes To Consolidated Financial Statements
Amendments to OPEB Plan
We discontinued offering retiree life insurance to future retirees effective December 31, 2012 but continue to provide this benefit
to employees who retired prior to that date. As a result of this plan amendment, we recognized a curtailment gain of $4.2 million and a
prior service credit of $5.0 million in accumulated other comprehensive income during 2012.
Amortization Period of Actuarial Gain or Loss
Because all participants in the U.S. and U.K. pension plans are considered inactive as a result of the 2013 plan amendments,
we are required to amortize the net actuarial loss for these plans over the average remaining life expectancy of the plan participants.
As of December 31, 2014, the estimate of the average remaining life expectancy of plan participants was approximately 35 years
for U.S. participants and 34 years for U.K. participants.
The following tables provide the changes in the benefit obligation and fair value of plan assets and statements of the funded status
of the plans.
Pension Benefits
U.S. Plans U.K. Plan OPEB
(in millions of dollars) 2014 2013 2014 2013 2014 2013
Change in Benefit Obligation
Benefit Obligation at Beginning of Year $1,718.7 $1,967.9 $208.7 $197.4 $165.3 $198.8
Service Cost 3.7 59.4 2.3 4.3 0.3 0.7
Interest Cost 89.9 86.3 9.1 8.6 7.9 8.0
Plan Participant Contributions — — — — 4.1 3.9
Actuarial (Gain) Loss 343.5 (225.9) 25.2 2.6 12.9 (30.2)
Benefits and Expenses Paid (48.7) (42.2) (4.3) (4.1) (16.6) (15.9)
Curtailment — (126.8) — (3.7) — —
Settlements (214.5) — — — — —
Change in Foreign Exchange Rates — — (14.1) 3.6 — —
Benefit Obligation at End of Year $1,892.6 $1,718.7 $226.9 $208.7 $173.9 $165.3
Accumulated Benefit Obligation
at December 31 $1,892.6 $1,718.7 $215.3 $197.7 N/A N/A
Change in Fair Value of Plan Assets
Fair Value of Plan Assets
at Beginning of Year $1,590.7 $1,353.6 $225.7 $205.6 $ 11.4 $ 11.5
Actual Return on Plan Assets 140.9 224.6 37.8 15.6 0.4 0.2
Employer Contributions 5.3 54.7 2.3 4.0 12.0 11.7
Plan Participant Contributions — — — — 4.1 3.9
Benefits and Expenses Paid (48.7) (42.2) (4.3) (4.1) (16.6) (15.9)
Settlements (214.5) — — — — —
Change in Foreign Exchange Rates — — (15.2) 4.6 — —
Fair Value of Plan Assets at End of Year $1,473.7 $1,590.7 $246.3 $225.7 $ 11.3 $ 11.4
Underfunded (Overfunded) Status $ 418.9 $ 128.0 $ (19.4) $ (17.0) $162.6 $153.9