Aetna 2006 Annual Report Download - page 71

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The difference between the fair value of plan assets and the benefit obligation at the latest measurement date is
referred to as the plan’ s funded status. The funded statuses of our pension and OPEB plans at the measurement
date for 2006 and 2005 were as follows:
(Millions) 2006 2005 2006 2005
Benefit obligation (5,121.5)$ (5,044.4)$ (393.2)$ (476.4)$
Fair value of plan assets 5,336.4 4,821.7 70.8 70.9
Funded status 214.9$ (222.7)$ (322.4)$ (405.5)$
Pension Plans OPEB Plans
Effective December 31, 2006, we adopted the provisions of FAS 158 (refer to Note 2 beginning on page 48 for
additional information). FAS 158 requires the recognition of an asset or liability for each of our pension and OPEB
plans equal to the plan’ s funded status. The difference between each plan’ s funded status and its existing balance
sheet position is recognized net of tax as a component of accumulated other comprehensive income. Prior to the
adoption of FAS 158, the Consolidated Balance Sheets reflected assets and liabilities for each of our plans
calculated in accordance with the provisions of FAS 87 and FAS 106, “Employers’ Accounting for Postretirement
Benefits Other Than Pensions” (“FAS 106”). In accordance with FAS 87 and 106, unrecognized net actuarial gains
or losses and prior service costs were not reflected on the Consolidated Balance Sheets until they were recognized
as a component of net periodic benefit cost in accordance with those standards. Included in the table below is a
reconciliation of the funded status of our pension and OPEB plans to the net amounts recognized as assets or
liabilities on the Consolidated Balance Sheets at December 31, 2006 and 2005.
(Millions) 2006 2005 2006 2005
Funded status at September 30 214.9$ (222.7)$ (322.4)$ (405.5)$
Unrecognized net actuarial losses 1,012.1 1,228.2 116.7 157.6
Unrecognized prior service cost 22.1 27.7 (56.5) (32.0)
Contributions made in the fourth quarter 5.3 5.8 10.8 13.4
Amount recognized in accumulated other
comprehensive income (loss)
(1)
(1,034.2) (99.5) (60.2) -
Net amount of assets and liabilities recognized at
December 31 220.2$ 939.5$ (311.6)$ (266.5)$
Pension Plans OPEB Plans
(1) The amount recognized in accumulated comprehensive income (loss) is a pretax amount that reflects the cumulative charge to
record the minimum pension liability in accordance with FAS 87 prior to the adoption of FAS 158 of $90.7 million in 2006 and
$99.5 million in 2005, as well as a $943.5 million and $60.2 million adjustment to reflect the funded status of the pension and
OPEB plans, respectively, in accordance with FAS 158 in 2006.
The assets and liabilities recognized on the Consolidated Balance Sheets at December 31, 2006 and 2005 for our
pension and OPEB plans were comprised of the following:
(Millions) 2006 2005 2006 2005
Prepaid pension asset
(1)
478.5$ 1,199.6$ -$ -$
Accrued benefit liabilities
(2)
(258.3) (260.1) (311.6) (266.5)
Net amount of assets and liabilities recognized at
December 31 220.2$ 939.5$ (311.6)$ (266.5)$
Pension Plans OPEB Plans
(1) Included in other long-term assets on our Consolidated Balance Sheets.
(2) Includes $21.5 million and $32.3 million for the pension and OPEB plans, respectively, that are reflected in other current liabilities and
$236.8 million and $279.3 million for the pension and OPEB plans, respectively, that are reflected in long-term liabilities on our
Consolidated Balance Sheet at December 31, 2006. All amounts in 2005 were reflected in other long-term liabilities on our Consolidated
Balance Sheet.
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