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ASSURANT, INC. – 2015 Form 10-KF-56
21 Retirement and Other Employee Benets
Determination of the net periodic benet cost was based on the following weighted-average assumptions for the years
ended December 31:
Qualied Pension Benets Nonqualied Pension Benets Retirement Health Benets
2015 2014 2013 2015 2014 2013 2015 2014 2013
Discount rate 4�09% 4�98% 4�12% 3�77% 4�64% 3�71% 4�07% 4�99% 4�12%
Expected long-term return on plan
assets 6�75% 6�75% 6�75% — — — 6�75% 6�75% 6�75%
* Assumed rates of compensation increases are also used to determine net periodic benefit cost. Assumed rates varied by age and ranged from 3.25%
to 9.30% for the Pension Benefits for the years ended December 31, 2015, 2014 and 2013.
The selection of our discount rate assumption reects the
rate at which the Plans’ obligations could be effectively settled
at December 31, 2015, 2014 and 2013. The methodology for
selecting the discount rate was to match each Plan’s cash ows
to that of a yield curve that provides the equivalent yields on
zero-coupon corporate bonds for each maturity� The yield curve
utilized in the cash ow analysis was comprised of 281 bonds
rated AA by either Moody’s or Standard & Poor’s with maturities
between zero and thirty years� The discount rate for each Plan
is the single rate that produces the same present value of cash
ows. As of December 31, 2015, we have chosen to implement
a split rate approach for purposes of determining the benet
obligations and service cost as well as a spot rate approach for
the calculation of interest on these items in the determination
of the net periodic benet cost. This change is a renement
in the methodology used to determine these amounts in the
accounting for dened benet retirement plans under U.S. GAAP.
Due to the new spot rate approach, the rates shown above as
of December 31, 2015 are the single equivalent rates for the
projected benet obligations based on the December 31, 2015
yield curve spot rates�
To develop the expected long-term rate of return on assets
assumption, the Company considered the current level of
expected returns on risk free investments (primarily government
bonds), the historical level of the risk premium associated with
the other asset classes in which the portfolio is invested and
the expectations for future returns of each asset class� The
expected long-term rate of return on plan assets reects the
average rate of earnings expected on the funds invested or to
be invested� The expected return for each asset class was then
weighted based on the targeted asset allocation to develop the
expected long-term rate of return on asset assumptions for the
portfolio. The Company believes the current assumption reects
the projected return on the invested assets, given the current
market conditions and the modied portfolio structure. Actual
return on plan assets was (0�6)% and 13�0% for the years ended
December 31, 2015 and 2014, respectively.
The assumed health care cost trend rates used in measuring the accumulated postretirement benet obligation and net
periodic benet cost were as follows:
Retirement Health Benets
2015 2014 2013
Health care cost trend rate assumed for next year:
Pre-65 Non-reimbursement Plan 9�3%8�1% 8�7%
Post-65 Non-reimbursement Plan (Medical) 5�7% 8�0% 8�5%
Post-65 Non-reimbursement Plan (Rx) 10�2% 8�0% 8�5%
Pre-65 Reimbursement Plan 8�1% 8�1% 8�7%
Post-65 Reimbursement Plan 8�1% 8�1% 8�7%
Rate to which the cost trend rate is assumed to decline
(the ultimate trend rate) 4�5% 4�5% 4�5%
Year that the rate reaches the ultimate trend rate
Pre-65 Non-reimbursement Plan 2030 2028 2028
Post-65 Non-reimbursement Plan (Medical & Rx) 2030 2028 2028
Pre-65 Reimbursement Plan 2030 2028 2028
Post-65 Reimbursement Plan 2030 2028 2028
Assumed health care cost trend rates have a signicant effect on the amounts reported for the health care plans. A one-
percentage point change in assumed health care cost trend rates would have the following effects:
Retirement Health Benets
2015
2014
2013
One percentage point increase in health care cost trend rate
Effect on total of service and interest cost components $ 38 $ 39 $ 43
Effect on postretirement benet obligation 622 646 601
One percentage point decrease in health care cost trend rate
Effect on total of service and interest cost components $ (59) $ (60) $ (66)
Effect on postretirement benet obligation (908) (933) (884)