Fannie Mae 2013 Annual Report Download - page 281

FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
F-57
We expect to recognize pre-tax amounts in AOCI of $6 million in net periodic benefit costs associated with our pension plans
and $5 million in net periodic benefit credits associated with our other postretirement plan during 2014. Upon settlement of
the pension plans, which is expected to be completed by December 31, 2015, the ending balance remaining in AOCI will be
recognized in our consolidated statements of operations and comprehensive income (loss).
The following table displays the status of our pension and other postretirement plans as of December 31, 2013 and 2012.
As of December 31,
2013 2012
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 . . . . . . . . . . . . . . . . . $1,724 $ 201 $1,452 $ 183
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 6 37 6
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 8 72 9
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 2 — 2
Net actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 (34) 198 9
Curtailment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (142) — — —
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (39)(8)(35)(8)
Projected benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . 1,648 175 1,724 201
Change in Plan Assets:
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . . . . . 1,227 — 1,042 —
Actual return on plan assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 — 136 —
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 6 84 6
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 2 — 2
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (39)(8)(35)(8)
Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . . . . . . 1,324 — 1,227 —
Funded status at end of year(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(324) $ (175) $ (497) $ (201)
__________
(1) Included in “Other liabilities” in our consolidated balance sheets as of December 31, 2013 and 2012.
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.
As of December 31, 2013, the projected benefit obligation is equal to the accumulated benefit obligation as a result of the
amendment to cease benefit accruals as of June 30, 2013. As of December 31, 2012, the accumulated benefit obligation for
our pension plans was $1.6 billion.
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, 2013 since we
met the minimum funding requirements as prescribed by ERISA. However, we did make a discretionary contribution to our
qualified pension plan of $16 million, $76 million and $124 million during 2013, 2012 and 2011, respectively.
During 2013, we also contributed $9 million to our nonqualified pension plans and $6 million to our other postretirement
benefit plan. During 2014, we anticipate contributing $17 million to our benefit plans, consisting of $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 $115
million and $140 million as of December 31, 2013 and 2012, respectively. There were no plan assets returned to us as of
February 21, 2014 and we do not expect any plan assets to be returned to us during the remainder of 2014.