AIG 2014 Annual Report Download - page 331

ITEM 8 / NOTE 22. EMPLOYEE BENEFITS
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Transfers of Level 3 Assets
We record transfers of assets into or out of Level 3 at their fair values as of the end of each reporting period, consistent with
the date of the determination of fair value. During the year ended December 31, 2014, we transferred certain investments in
hedge funds into Level 3 as a result of limited market activity due to fund-imposed redemption restrictions.
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. 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. There are no minimum required cash contributions in 2015 for the AIG Retirement Plan. SERP, AIG NQRIP, and
postretirement plan payments are deductible when paid to participants.
Our annual pension contribution in 2015 is expected to be approximately $173 million for our U.S. and non-U.S. plans,
including a $100 million contribution to the AIG Retirement Plan. These estimates are subject to change, since contribution
decisions are affected by various factors including our liquidity, market performance and management’s discretion.
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:
Pension Postretirement
U.S. Non-U.S. U.S. Non-U.S.
(in millions) Plans Plans Plans Plans
2015 $353 $39 $ 15 $ 1
2016 363 35 15 1
2017 391 39 16 1
2018 395 40 17 2
2019 402 47 18 2
2020-2024 2,036 236 96 11
Defined Contribution Plans
We sponsor several defined contribution plans for U.S. employees that provide for pre-tax salary reduction contributions by
employees. The most significant plan is the AIG Incentive Savings Plan, for which the Company’s matching contribution is 100
percent of the first six percent of a participant’s contributions, subject to the IRS-imposed limitations. Our pre-tax expenses
associated with these plans were $156 million, $155 million and $133 million in 2014, 2013 and 2012 respectively.
23. OWNERSHIP
A Schedule 13G/A filed February 17, 2015 reports aggregate ownership of 75,755,659 shares, or approximately 5.3 percent
(based on the AIG Common Stock outstanding, as adjusted to reflect the warrants owned), of AIG Common Stock and
warrants (51,283,896 shares plus 24,471,763 warrants) as of December 31, 2014, including securities beneficially owned, in
the aggregate, by Bruce R. Berkowitz and various investment vehicles managed by Fairholme Capital Management, L.L.C.
A Schedule 13G/A filed on February 9, 2015 reports aggregate ownership of 87,211,630 shares, or approximately 6.2 percent
(based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2014, by various subsidiaries of
Blackrock, Inc.
A Schedule 13G filed on February 11, 2015 reports aggregate ownership of 71,820,823 shares, or approximately 5.1 percent
(based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2014, by The Vanguard Group, Inc.
and various subsidiaries thereof.