Ameriprise 2011 Annual Report Download - page 173

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 nil, nil and $2 million in 2011, 2010 and 2009, respectively.
The following table provides a reconciliation of the changes in the defined postretirement benefit plan obligation:
2011 2010
(in millions)
Benefit obligation, January 1 $ 21 $ 22
Interest cost 11
Benefits paid (5) (5)
Participant contributions 44
Actuarial gain (2) (1)
Benefit obligation, December 31 $ 19 $ 21
The recognized liabilities for the Company’s defined postretirement benefit plans are unfunded. At December 31, 2011
and 2010, the recognized liabilities were $19 million and $21 million, respectively, which was equal to the funded status
of the Company’s postretirement benefit plans.
The amounts recognized in accumulated other comprehensive income (loss), net of tax, as of December 31, 2011 but not
recognized as components of net periodic benefit cost included an unrecognized actuarial gain of $7 million and an
unrecognized prior service cost of nil. The estimated amount that will be amortized from accumulated other comprehensive
income (loss), net of tax, into net periodic benefit cost in 2012 is approximately $1 million.
The weighted average assumptions used to determine benefit obligations for other postretirement benefits were as follows:
2011 2010
Discount rates 4.15% 4.90%
Healthcare cost increase rates:
Following year 7.00 7.50
Decreasing to the year 2016 5.00 5.00
Discount rates are based on yields available on high-quality corporate bonds that would generate cash flows necessary to
pay the benefits when due.
A one percentage-point change in the assumed healthcare cost trend rates would not have a material effect on the
postretirement benefit obligation or net periodic postretirement benefit costs.
The Company’s defined benefit postretirement plans expect to make benefit payments to retirees as follows:
(in millions)
2012 $2
2013 2
2014 2
2015 1
2016 1
2017-2021 7
The Company expects to contribute $2 million to its defined benefit postretirement plans in 2012.
The following is a summary of unrealized losses included in other comprehensive income related to the Company’s defined
benefit plans:
2011 2010 2009
(in millions)
Net unrealized defined benefit losses at January 1 $(24) $(20) $(39)
Net gains (losses) (77) (4) 15
Prior service cost (credit) (2) (2) 14
Income tax benefit (provision) 28 2 (10)
Net unrealized defined benefit losses at December 31 $(75) $(24) $(20)
158