Aetna 2013 Annual Report Download - page 121

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Annual Report- Page 115
The following table shows the changes in the benefit obligations during 2013 and 2012 for our pension and OPEB
plans.
Pension Plans OPEB Plans
(Millions) 2013 2012 2013 2012
Benefit obligation, beginning of year $ 6,665.8 $ 6,130.3 $ 292.4 $ 312.7
Service cost ——.1 .1
Interest cost 271.5 298.4 11.1 14.4
Actuarial (gain) loss (653.7) 550.2 (22.5) (11.4)
Benefits paid (318.3) (313.1) (20.2) (23.4)
Benefit obligation, end of year $ 5,965.3 $ 6,665.8 $ 260.9 $ 292.4
The Aetna Pension Plan comprises approximately 96% of the pension plans' total benefit obligation at December 31,
2013. The discount rates used to determine the benefit obligation of our pension and OPEB plans were calculated
using a yield curve as of our annual measurement date. The yield curve consisted of a series of individual discount
rates, with each discount rate corresponding to a single point in time, based on high-quality bonds. Projected benefit
payments are discounted to the measurement date using the corresponding rate from the yield curve. The weighted
average discount rate for our pension plans was 4.96% and 4.17% for 2013 and 2012, respectively. The discount rate
for our OPEB plans was 4.73% and 3.94% for 2013 and 2012, respectively. The discount rates differ for our pension
and OPEB plans due to the duration of the projected benefit payments for each plan.
The following table reconciles the beginning and ending balances of the fair value of plan assets during 2013 and
2012 for the pension and OPEB plans:
Pension Plans OPEB Plans
(Millions) 2013 2012 2013 2012
Fair value of plan assets, beginning of year $ 5,805.0 $ 5,296.8 $ 62.1 $ 64.2
Actual return on plan assets 589.0 736.8 2.9 2.1
Employer contributions 82.1 84.5 16.3 19.2
Benefits paid (318.3) (313.1) (20.2) (23.4)
Fair value of plan assets, end of year $ 6,157.8 $ 5,805.0 $ 61.1 $ 62.1
The difference between the fair value of plan assets and the plan's benefit obligation is referred to as the plan's
funded status. This funded status is an accounting-based calculation and is not indicative of our mandatory funding
requirements, which are described on page 117.
The funded status of our pension and OPEB plans at the measurement date for 2013 and 2012 were as follows:
Pension Plans OPEB Plans
(Millions) 2013 2012 2013 2012
Benefit obligation $ (5,965.3) $ (6,665.8) $ (260.9) $ (292.4)
Fair value of plan assets 6,157.8 5,805.0 61.1 62.1
Funded status $ 192.5 $ (860.8) $ (199.8) $ (230.3)