Huntington National Bank 2010 Annual Report Download - page 185

even though a portion was offset by the subsidy. For taxable years beginning after December 31, 2012, the
HCER Act repeals the current rule permitting the deduction of the portion of the expense that was offset by
the Part D subsidy. As a result of this provision, the deferred tax asset associated with prescription drug
coverage was reduced by $3.6 million.
18. BENEFIT PLANS
Huntington sponsors the Huntington Bancshares Retirement Plan (the Plan or Retirement Plan), a non-
contributory defined benefit pension plan covering substantially all employees hired or rehired prior to
January 1, 2010. The Plan provides benefits based upon length of service and compensation levels. The
funding policy of Huntington is to contribute an annual amount that is at least equal to the minimum funding
requirements but not more than that deductible under the Internal Revenue Code. There was no minimum
required contribution to the Plan in 2010.
In addition, Huntington has an unfunded defined benefit post-retirement plan that provides certain health
care and life insurance benefits to retired employees who have attained the age of 55 and have at least 10 years
of vesting service under this plan. For any employee retiring on or after January 1, 1993, post-retirement
healthcare benefits are based upon the employee’s number of months of service and are limited to the actual
cost of coverage. Life insurance benefits are a percentage of the employee’s base salary at the time of
retirement, with a maximum of $50,000 of coverage. The employer paid portion of the post-retirement health
and life insurance plan was eliminated for employees retiring on and after March 1, 2010. Eligible employees
retiring on and after March 1, 2010, who elect retiree medical coverage, will pay the full cost of this coverage.
The Company will not provide any employer paid life insurance to employees retiring on and after March 1,
2010. Eligible employees will be able to convert or port their existing life insurance at their own expense
under the same terms that are available to all terminated employees.
Beginning January 1, 2010, there were changes to the way the future early and normal retirement benefit
is calculated under the Retirement Plan for service on and after January 1, 2010. While these changes did not
affect the benefit earned under the Retirement Plan through December 31, 2009, there was a reduction in
future benefits. In addition, employees hired or rehired on and after January 1, 2010 are not eligible to
participate in the Retirement Plan.
On January 1, 2008, Huntington transitioned to fiscal year-end measurement date of plan assets and
benefit obligations. As a result, Huntington recognized a charge to beginning retained earnings of $4.7 million,
representing the net periodic benefit costs for the last three months of 2007, and a charge to the opening
balance of accumulated other comprehensive loss of $3.8 million, representing the change in fair value of plan
assets and benefit obligations for the last three months of 2007 (net of amortization included in net periodic
benefit cost).
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