Fannie Mae 2012 Annual Report Download - page 294

FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
F-60
The following table displays the status of our pension and other postretirement plans as of December 31, 2012 and 2011.
As of December 31,
2012 2011
Other Post- Other Post-
Pension Retirement Pension Retirement
Plans Plan Plans Plan
(Dollars in millions)
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year . . . . . . . . . . . . . . . . . $1,452 $ 183 $1,257 $ 180
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 6 39 6
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 9 72 9
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 2 — 2
Net actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 9 131 (1)
Curtailment gain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (14)(5)
Benefits paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (35)(8)(33)(8)
Projected benefit obligation at end of year. . . . . . . . . . . . . . . . . . . . . . . 1,724 201 1,452 183
Change in Plan Assets:
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . . . . . 1,042 — 942 —
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 — 2 —
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 6 131 6
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 2 — 2
Benefits paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (35)(8)(33)(8)
Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . . . . . . 1,227 — 1,042 —
Funded status at end of year(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(497) $ (201) $ (410) $ (183)
__________
(1) Included in other liabilities of our consolidated balance sheets as of December 31, 2012 and 2011.
Actuarial gains or losses reflect annual changes in the amount of either the benefit obligation or the fair value of plan assets
that result from the difference between actual experience and projected amounts or from changes in assumptions.
The accumulated benefit obligation for our pension plans was $1.6 billion and $1.3 billion as of December 31, 2012 and
2011, respectively.
Contributions to the qualified pension plan increase the plan assets while contributions to the unfunded plans are made to
fund current period benefit payments or to fulfill annual funding requirements. We were not required to make minimum
contributions to our qualified pension plan for each of the years in the three-year period ended December 31, 2012 since we
met the minimum funding requirements as prescribed by ERISA. However, we did make a discretionary contribution to our
qualified pension plan of $76 million, $124 million and $42 million during 2012, 2011 and 2010, respectively.
During 2012, we contributed $76 million to our qualified pension plan, $8 million to our nonqualified pension plans and $6
million to our other postretirement benefit plan. During 2013, we anticipate contributing $48 million to our benefit plans,
consisting of $31 million to our qualified pension plan, $9 million to our nonqualified pension plans and $8 million to our
other postretirement plan.
The fair value of plan assets of our funded qualified pension plan was less than our accumulated benefit obligation by $140
million and $100 million as of December 31, 2012 and 2011, respectively. There were no plan assets returned to us as of
April 2, 2013 and we do not expect any plan assets to be returned to us during the remainder of 2013.