AIG 2008 Annual Report Download - page 315

and hedge funds asset classes. The related party group annuity is with US Life, an AIG affiliate, and totaled
approximately $36 million and $38 million at December 31, 2008 and 2007, respectively. There were no shares of
AIG common stock included in the U.S. pension plan assets at December 31, 2008 or 2007.
The asset allocation percentage by major asset class for AIG’s plans and the target allocation follow:
Target
2009
Actual
2008
Actual
2007
Target
2009
Actual
2008
Actual
2007
Non-U.S. Plans-Allocation U.S. Plans-Allocation
At December 31,
Asset class:
Equity securities . . . ........................... 41% 39% 50% 45% 31% 56%
Debt securities ................................ 30 32 28 30 46 30
Real Estate .................................. 7 65———
Cash ....................................... 2 31— 52
Other....................................... 20 20 16 25 18 12
Total ....................................... 100% 100% 100% 100% 100% 100%
Expected Cash Flows
Funding for the U.S. pension plan ranges from the minimum amount required by ERISA to the maximum
amount that would be deductible for U.S. tax purposes. This range is generally not determined until the fourth
quarter. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the
maximum amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code.
Supplemental and excess plans’ payments and postretirement plan payments are deductible when paid.
During 2008 AIG contributed $174 million to its U.S. and non-U.S. pension plans. The annual pension
contribution in 2009 is expected to be approximately $600 million for U.S. and non-U.S. plans. These estimates are
subject to change, since contribution decisions are affected by various factors including AIG’s liquidity, asset
dispositions, market performance and management’s discretion.
As of January 1, 2009, AIG anticipates that the U.S. pension plan’s funded status based on the Pension
Protection Act of 2006 target liability will exceed 94 percent. As a result, AIG does not anticipate any benefit
restrictions or shortfall amortization relevant to the current period.
The expected future benefit payments, net of participants’ contributions, with respect to the defined
benefit pension plans and other postretirement benefit plans, are as follows:
Non-U.S.
Plans
U.S.
Plans
Non-U.S.
Plans
U.S.
Plans
Pension Postretirement
(In millions)
2009 .......................................... $108 $ 129 $ 1 $ 21
2010 .......................................... 104 139 1 19
2011 .......................................... 109 150 1 20
2012 .......................................... 112 164 1 21
2013 .......................................... 125 178 2 22
2014-2018 ...................................... 650 1,111 11 125
Defined Contribution Plans
In addition to several small defined contribution plans, AIG sponsors a voluntary savings plan for U.S.
employees which provides for salary reduction contributions by employees and matching U.S. contributions by
AIG 2008 Form 10-K 309
American International Group, Inc., and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)