Huntington National Bank 2010 Annual Report Download - page 186

The following table shows the weighted-average assumptions used to determine the benefit obligation at
December 31, 2010 and 2009, and the net periodic benefit cost for the years then ended:
2010 2009 2010 2009
Pension
Benefits
Post-Retirement
Benefits
Weighted-average assumptions used to determine benefit
obligations
Discount rate...................................... 5.35% 5.88% 5.00% 5.54%
Rate of compensation increase . ........................ 4.50 4.50 N/A N/A
Weighted-average assumptions used to determine net periodic
benefit cost
Discount rate:
2010 .......................................... 5.88% N/A% 5.54% N/A%
January 1, 2009 through October 31, 2009 .............. N/A 6.17 N/A 6.17
November 1, 2009 through December 31, 2009 .......... N/A 5.83 N/A 5.46
Expected return on plan assets . ........................ 8.00 8.00 N/A N/A
Rate of compensation increase . ........................ 4.50 4.00 N/A N/A
N/A, Not Applicable
The expected long-term rate of return on plan assets is an assumption reflecting the average rate of
earnings expected on the funds invested or to be invested to provide for the benefits included in the projected
benefit obligation. The expected long-term rate of return is established at the beginning of the plan year based
upon historical returns and projected returns on the underlying mix of invested assets.
The following table reconciles the beginning and ending balances of the benefit obligation of the Plan
and the post-retirement benefit plan with the amounts recognized in the consolidated balance sheets at
December 31:
2010 2009 2010 2009
Pension Benefits
Post-Retirement
Benefits
(Dollar amounts in thousands)
Projected benefit obligation at beginning of
measurement year ....................... $504,859 $469,696 $33,173 $ 60,433
Changes due to:
Service cost ............................. 20,205 23,692 —1,550
Interest cost ............................. 28,869 28,036 1,731 3,274
Benefits paid ............................ (11,367) (9,233) (5,103) (5,285)
Settlements ............................. (20,582) (12,071) ——
Effect of plan combinations ................. 896 24,411 ——
Plan amendments ......................... —(45,413) —— (25,947)
Plan curtailments ......................... ———(527)
Medicare subsidies........................ ——753 550
Actuarial assumptions and gains and losses...... 54,890 25,741 3,687 (875)
Total changes ............................. 72,911 35,163 1,068 (27,260)
Projected benefit obligation at end of
measurement year ....................... $577,770 $504,859 $34,241 $ 33,173
Benefits paid are net of retiree contributions collected by Huntington. The actual contributions received in
2010 by Huntington for the retiree medical program were $3.1 million.
172