Goldman Sachs 2009 Annual Report Download - page 142
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The weighted average assumptions used to develop the actuarial present value of the projected bene t obligation and net periodic
pension cost are set forth below. These assumptions represent a weighted average of the assumptions used for the U.S. and
non-U.S. plans and are based on the economic environment of each applicable country.
Year Ended One Month Ended
December November November December
2009 2008 2007 2008
De ned bene t pension plans
U.S. pension – projected bene t obligation
Discount rate 5.75% 6.75% 6.00% 5.25%
Rate of increase in future compensation levels N/A N/A N/A N/A
U.S. pension – net periodic bene t cost
Discount rate 5.25 6.00 5.50 6.75
Rate of increase in future compensation levels N/A N/A N/A N/A
Expected long-term rate of return on plan assets 7.00 7.50 7.50 7.00
Non-U.S. pension – projected bene t obligation
Discount rate 5.60 6.79 5.91 6.35
Rate of increase in future compensation levels 3.99 3.85 5.38 3.85
Non-U.S. pension – net periodic bene t cost
Discount rate 6.35 5.91 4.85 6.79
Rate of increase in future compensation levels 3.85 5.38 4.98 3.85
Expected long-term rate of return on plan assets 7.05 5.89 6.84 5.73
Postretirement plans – bene t obligation
Discount rate 5.75% 6.75% 6.00% 5.25%
Rate of increase in future compensation levels 5.00 5.00 5.00 5.00
Postretirement plans – net periodic bene t cost
Discount rate 5.25% 6.00% 5.50% 6.75%
Rate of increase in future compensation levels 5.00 5.00 5.00 5.00
Generally, the rm determined the discount rates for its de ned bene t plans by referencing indices for long-term, high-quality
bonds and ensuring that the discount rate does not exceed the yield reported for those indices after adjustment for the duration of
the plans’ liabilities.
The rm’s approach in determining the long-term rate of return for plan assets is based upon historical nancial market
relationships that have existed over time with the presumption that this trend will generally remain constant in the future.
For measurement purposes, an annual growth rate in theper capita cost of covered healthcare bene ts of 8.51% was assumed
for the year ending December 2010. The rate was assumed to decrease ratably to 5.00% for the year ending December 2017 and
remain at that level thereafter.
The assumed cost of healthcare has an effect on the amounts reported for the rm’s postretirement plans. A 1% change in the
assumed healthcare cost trend rate would have the following effects:
1% Increase 1% Decrease
December November December November
(inmillions) 2009 2008 2009 2008
Service plus interest costs $ 10 $ 11 $ (8) $ (9)
Obligation 101 90 (78) (70)
Goldman Sachs 2009 Annual Report
140
Notes to Consolidated Financial Statements