Huntington National Bank 2011 Annual Report Download - page 191

In addition, Huntington has an unfunded defined benefit post-retirement plan that provides certain
healthcare 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. Huntington 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.
The following table shows the weighted-average assumptions used to determine the benefit obligation at
December 31, 2011 and 2010, and the net periodic benefit cost for the years then ended:
Pension Benefits
Post-Retirement
Benefits
2011 2010 2011 2010
Weighted-average assumptions used to determine benefit
obligations
Discount rate .......................................... 4.57% 5.35% 4.34% 5.00%
Rate of compensation increase ............................ 4.50 4.50 N/A N/A
Weighted-average assumptions used to determine net periodic
benefit cost
Discount rate .......................................... 5.35 5.88 5.00 5.54
Expected return on plan assets ............................ 8.00 8.00 N/A N/A
Rate of compensation increase ............................ 4.50 4.50 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.
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