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N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
69
An initial 12% annual rate of increase in the per capita cost
of covered healthcare benefi ts was assumed for 2005. The
rate was assumed to decrease gradually to an ultimate rate
of 5% by 2010. Assumed healthcare cost trend rates have a
signifi cant effect on the amounts reported for the healthcare
plan. A one-percentage point change in assumed healthcare
cost trend rates would have the following effects:
1-Percentage 1-Percentage
Point
Point
Increase Decrease
Sensitivity to Assumed
Health Care Cost Trend Rate
Effect on total 2004 service cost
and interest cost components $0.2 $(0.2)
Effect on December 31, 2004
accumulated postretirement
benefi t obligation 2.1 (1.8)
On December 8, 2003, President Bush signed into law the
Medicare Prescription Drug, Improvement and Modernization
Act of 2003. As provided for in the Medicare Prescription
Drug, Improvement, and Modernization Act of 2003, the
obligations refl ect that we will recognize the 28% subsidy for
post-65 drug coverage as an offset to healthcare plan costs.
The reduction in obligations due to the subsidy is refl ected
as an unrecognized net gain to the plan. The gain was
refl ected in net periodic benefi t cost for the fi rst time in
2004. For current and future retirees, the 28% subsidy is
expected to reduce our prescription drug plan costs by
$567 per individual in 2006 and this amount is expected to
increase by the valuation trend rates. Our actuaries have
determined that our prescription drug plan provides a ben-
efi t that is at least actuarially equivalent to the Medicare
prescription drug plan. The calculations do not refl ect
the fi nal regulations issued in January 2005.
Equifax estimates that the future benefi ts payable for the
retirement and postretirement plans in place are as follows
at December 31, 2004:
U.S.
Non-U.S. Post-
Defi ned
Defi ned
r
etirement
Benefi t Plans Benefi t Plans Benefi t Plans
Fiscal year ending
December 31
2005 $ 32.4 $ 2.0 $ 3.0
2006 $ 33.7 $ 2.0 $ 3.3
2007 $ 33.6 $ 2.0 $ 3.4
2008 $ 33.9 $ 2.1 $ 3.6
2009 $ 34.1 $ 2.1 $ 3.6
Next fi ve fi scal years to
December 31, 2014 $175.7 $11.0 $15.7
USRIP฀(THE฀“PLAN”)฀INVESTMENT฀AND฀ASSET฀
ALLOCATION฀STRATEGIES
฀
The primary goal of the asset allocation strategy of the
Plan is to produce a total investment return, employing the
lowest possible level of fi nancial risk, which will: (1) satisfy
annual cash benefi ts payments to Plan participants and
(2) maintain and increase the total market value of the
USRIP, after cash benefi ts payments, on a real (infl ation
adjusted) basis.
Maximization of total investment return is not, taken in iso-
lation, a goal of the asset allocation strategy of the USRIP.
Return maximization is pursued subject to the asset alloca-
tion risk control constraints noted previously.
The Plan’s investment managers are required to abide by
the provisions of the Employee Retirement Income Security
Act (“ERISA”). Standards of performance for each man-
ager include an expected return, a measure of volatility,
and a time period of evaluation.