Freddie Mac 2009 Annual Report Download - page 288

Table 16.1 shows the changes in our benefit obligations and fair value of plan assets using December 31, 2009 and
2008 valuation measurement dates for amounts recognized on our consolidated balance sheets at December 31, 2009 and
2008, respectively.
Table 16.1 — Obligation and Funded Status of our Defined Benefit Plans
2009 2008 2009 2008
Pension Benefits
Postretirement
Health Benefits
(in millions)
Change in benefit obligation:
Benefit obligation at January 1, 2009 and October 1, 2007 .................................. $581 $539 $133 $127
Adjustments due to adoption of an amendment to the measurement date provisions in accounting
requirements for defined benefit pension and other post retirement plans:
Service cost and interest cost
(1)
................................................... — 17 — 4
Benefits paid
(1)
.............................................................. — (2) — (1)
Service cost . . . . . ............................................................. 32 35 7 9
Interest cost . . . . . ............................................................. 34 33 8 8
Net actuarial gain . ............................................................. (3) (30) 9 (13)
Benefits paid . . . . ............................................................. (15) (10) (2) (1)
Curtailments . . . . ............................................................. — (1) — —
Benefit obligation at December 31 . ................................................ 629 581 155 133
Change in plan assets:
Fair value of plan assets at January 1, 2009 and October 1, 2007 . . . . .......................... 446 559
Adjustments due to adoption of an amendment to the measurement date provisions in accounting
requirements for defined benefit pension and other post retirement plans:
Benefits paid
(1)
.............................................................. — (2)
Actual return on plan assets . ...................................................... 68 (119)
Employer contributions .......................................................... 80 18
Benefits paid . . . . ............................................................. (15) (10)
Fair value of plan assets at December 31 . . .......................................... 579 446
Funded status at December 31 . ...................................................... $(50) $(135) $(155) $(133)
Amounts recognized on our consolidated balance sheets at December 31:
Other assets . . . . . ............................................................. $ 12 $ — $ — $ —
Other liabilities . . ............................................................. (62) (135) (155) (133)
AOCI, net of taxes related to defined benefit plans:
(2)
Net actuarial loss (gain) . . ...................................................... $123 $174 $ 3 $ (5)
Prior service cost (credit) . ...................................................... 1 1 — (1)
Total AOCI, net of taxes ...................................................... $124 $175 $ 3 $ (6)
(1) Represent changes in our benefit obligations related to service cost and interest cost as well as benefits paid and changes in our plan assets related to
benefits paid from October 1, 2007 to December 31, 2007.
(2) Includes the effect of the establishment of a valuation allowance against our deferred tax assets, net.
The accumulated benefit obligation for all defined benefit pension plans was $507 million and $464 million at
December 31, 2009 and 2008, respectively. The accumulated benefit obligation represents the actuarial present value of
future expected benefits attributed to employee service rendered before the measurement date and based on employee service
and compensation prior to that date.
Table 16.2 provides additional information for our defined benefit pension plans. The aggregate accumulated benefit
obligation and fair value of plan assets are disclosed as of December 31, 2009 and 2008, respectively, with the projected
benefit obligation included for illustrative purposes.
Table 16.2 — Additional Information for Defined Benefit Pension Plans
Pension
Plan SERP Total
Pension
Plan SERP Total
2009 2008
(in millions)
Projected benefit obligation ............................................ $567 $62 $629 $524 $ 57 $581
Fair value of plan assets. . . ............................................ $579 $— $579 $446 $ — $446
Accumulated benefit obligation .......................................... 460 47 507 419 45 464
Fair value of plan assets over (under) accumulated benefit obligation . . ............ $119 $(47) $ 72 $ 27 $(45) $ (18)
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