FairPoint Communications 2011 Annual Report Download - page 106
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Table of Contents
During the three months ended March 31, 2010, $33.3 million was transferred from Verizon’s qualified pension plans’ trusts to the Company’s pension
plan trust. As of December 31, 2009, a disputed amount was pending final validation by a third-party actuary of the census information and related actuarial
calculations in accordance with relevant statutory and regulatory guidelines and the Employee Matters Agreement, dated January 15, 2007 between Verizon
and the Company (the “Employee Matters Agreement”). The disputed amount was not included in the Company’s pension plan assets at December 31, 2009.
By letter dated July 29, 2010, the third-party actuary appointed to perform the review and validation determined that an additional $2.5 million, adjusted for
gains or losses since the date of the original transfer, should be transferred from Verizon’s qualified pension plans’ trusts to the Company’s pension plan trust
for represented employees. This transfer was received in the amount of $2.4 million on September 1, 2010, at which time the Company’s net pension
obligation was decreased by this amount.
The plans’ portfolio strategy emphasizes a long-term equity orientation, global diversification and financial and operating risk controls. The plans’
diversification seeks to minimize the concentration of risk. Assets are allocated according to long-term risk and return estimates. Both active and passive
management approaches are used depending on perceived market efficiencies and various other factors.
The fair values for the pension plans by asset category at December 31, 2011 are as follows:
Cash and cash equivalents $11,002 $11,002 $ — $ —
Equity securities 61,922 44,746 17,176 —
Fixed income securities 65,009 31,347 33,662 —
Hedge funds 22,360 — — 22,360
Total $160,293 $87,095 $ 50,838 $22,360
The fair values for the pension plans by asset category at January 24, 2011 were as follows:
Cash and cash equivalents $4,814 $4,814 $ — $ —
Equity securities 87,031 55,980 31,051 —
Fixed income securities 63,603 21,881 41,722 —
Hedge funds 22,107 — — 22,107
Total $177,555 $82,675 $72,773 $22,107
The fair values for the pension plans by asset category at December 31, 2010 were as follows:
Cash and cash equivalents $5,111 $5,111 $ — $ —
Equity securities 85,886 85,886 — —
Fixed income securities 63,546 21,823 41,723 —
Hedge funds 21,931 — — 21,931
Total $176,474 112,820 41,723 21,931
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