Ameriprise 2008 Annual Report Download - page 149

Other Postretirement Benefits
The Company sponsors defined benefit postretirement plans that provide health care and life insurance to retired U.S.
employees. Net periodic postretirement benefit costs were $1 million in 2008 and $2 million in 2007 and 2006.
The following table provides a reconciliation of the changes in the defined postretirement benefit plan obligation:
2008 2007
(in millions)
Benefit obligation, beginning of period $ 25 $ 30
Effect of eliminating early measurement date (1) —
Interest cost 12
Benefits paid (6) (7)
Participant contributions 5 6
Plan amendments 2 —
Actuarial (gain) loss 2 (6)
Benefit obligation, end of period $ 28 $ 25
The recognized liabilities for the Company’s defined postretirement benefit plans are unfunded. At December 31, 2008 and
2007, the recognized liabilities were $28 million and $24 million, respectively. At December 31, 2008 and 2007, the funded
status of the Company’s postretirement benefit plans was equal to the net amount recognized in the Consolidated Balance
Sheets.
The amounts recognized in accumulated other comprehensive income (net of tax) that arose as of December 31, 2008 but
were not recognized as components of net periodic benefit cost included an unrecognized actuarial gain of $3 million and an
unrecognized prior service cost of nil. The estimated amount that will be amortized from accumulated other comprehensive
income (net of tax) into net periodic benefit cost in 2009 is approximately nil.
The weighted average assumptions used to determine benefit obligations for other postretirement benefits were as follows:
2008 2007
Discount rates 6.25% 6.20%
Healthcare cost increase rates:
Following year 8.50 9.00
Decreasing to the year 2016 5.00 5.00
A one percentage-point change in the assumed healthcare cost trend rates would not have a material effect on the
Company’s postretirement benefit obligation or net periodic postretirement benefit costs.
The defined postretirement benefit plans expect to make benefit payments to retirees as follows:
(in millions)
2009 $ 3
2010 3
2011 3
2012 3
2013 3
2014-2018 13
The Company expects to contribute $3 million to its defined benefit postretirement plans in 2009.
Defined Contribution Plan
In addition to the plans described previously, certain Company employees participate in the Ameriprise Financial 401(k) Plan
(the ‘‘401(k) Plan’’). The 401(k) Plan allows qualified employees to make contributions through payroll deductions up to IRS
limits and invest their contributions in one or more of the 401(k) Plan investment options, which include the Ameriprise
Financial Stock Fund. The Company matches 100% of the first 3% of base salary an employee contributes on a pre-tax basis
each pay period. The Company may also make annual discretionary variable match contributions, which replaced the
discretionary profit sharing contributions effective January 1, 2007. The final profit sharing contribution was made in March
126