Ameriprise 2013 Annual Report Download - page 180

employees’ years of service. Employees eligible for the plan at the time of the change will continue to receive the same
percentage they were receiving 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 are fully
vested after three years of service or upon retirement at or after age 65, disability or death while employed. 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,
2013 2012 2011
(in millions)
Service cost $46 $41 $38
Interest cost 23 24 23
Expected return on plan assets (33) (30) (26)
Amortization of prior service costs (1) (1) (1)
Amortization of net loss 11 7 1
Other 244
Net periodic benefit cost $ 48 $ 45 $ 39
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.
The following tables provide a reconciliation of the changes in the benefit obligation and fair value of assets for the pension
plans:
2013 2012
(in millions)
Benefit obligation, January 1 $ 643 $ 546
Service cost 46 41
Interest cost 23 24
Benefits paid (7) (7)
Actuarial (gain) loss (8) 51
Settlements (23) (15)
Foreign currency rate changes 23
Benefit obligation, December 31 $ 676 $ 643
2013 2012
(in millions)
Fair value of plan assets, January 1 $ 437 $ 362
Actual return on plan assets 85 49
Employer contributions 50 45
Benefits paid (7) (7)
Settlements (23) (15)
Foreign currency rate changes 23
Fair value of plan assets, December 31 $ 544 $ 437
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