Ameriprise 2011 Annual Report Download - page 169

The items comprising other comprehensive income are presented net of the following income tax provision (benefit)
amounts:
Years Ended December 31,
2011 2010 2009
(in millions)
Net unrealized securities gains $ 77 $ 167 $ 753
Net unrealized derivatives gains (15) 8 6
Defined benefit plans (28) (2) 10
Foreign currency translation adjustment (1) (6) 15
Net income tax provision $ 33 $ 167 $ 784
21. Retirement Plans and Profit Sharing Arrangements
Defined Benefit Plans
Pension Plans
The Company’s U.S. non-advisor employees are generally eligible for the Ameriprise Financial Retirement Plan (the
‘‘Retirement Plan’’), a noncontributory defined benefit plan which is a qualified plan under the Employee Retirement
Income Security Act of 1974, as amended (‘‘ERISA’’). Funding of costs for the Retirement Plan complies with the
applicable minimum funding requirements specified by ERISA and is held in a trust. The Retirement Plan is a cash balance
plan by which the employees’ accrued benefits are based on notional account balances, which are maintained for each
individual. Each pay period these balances are credited with an amount equal to a percentage of eligible compensation as
defined by the Retirement Plan (which includes, but is not limited to, base pay, performance based incentive pay,
commissions, shift differential and overtime). Prior to March 1, 2010, the percentage ranged from 2.5% to 10% based on
employees’ age plus years of service. Effective March 1, 2010, the percentage ranged from 2.5% to 5% based on
employees’ years of service. Employees eligible for the plan at the time of the change remain under the previous schedule
until the new schedule becomes more favorable. Employees’ balances are also credited with a fixed rate of interest that is
updated each January 1 and is based on the average of the daily five-year U.S. Treasury Note yields for the previous
October 1 through November 30, with a minimum crediting rate of 5%. Employees have the option to receive annuity
payments or a lump sum payout at vested termination, retirement, death or disability. The Retirement Plan’s year-end is
September 30.
In addition, the Company sponsors the Ameriprise Financial Supplemental Retirement Plan (the ‘‘SRP’’), an unfunded
non-qualified deferred compensation plan subject to Section 409A of the Internal Revenue Code. This plan is for certain
highly compensated employees to replace the benefit that cannot be provided by the Retirement Plan due to IRS limits.
The SRP generally parallels the Retirement Plan but offers different payment options.
Most employees outside the United States are covered by local retirement plans, some of which are funded, while other
employees receive payments at the time of retirement or termination under applicable labor laws or agreements.
The components of the net periodic benefit cost for all pension plans were as follows:
Years Ended December 31,
2011 2010 2009
(in millions)
Service cost $ 38 $ 33 $ 32
Interest cost 23 23 25
Expected return on plan assets (26) (23) (22)
Amortization of prior service costs (1) (2) (1)
Amortization of net (gain)/loss 1 — —
Other 433
Net periodic benefit cost $ 39 $ 34 $ 37
The prior service costs are amortized on a straight-line basis over the average remaining service period of active
participants. Actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation or the market-
related value of assets are amortized on a straight-line basis over the expected average remaining service period of active
participants.
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