Huntington National Bank 2015 Annual Report Download - page 166

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policies from a variety of carriers on a private exchange. This plan amendment resulted in a measurement of the liability at the
approval date. The result of the measurement was a $5 million reduction of the liability and increase in accumulated other
comprehensive income. It will also result in a reduction of expense over the estimated life of plan participants.
The following table shows the weighted-average assumptions used to determine the benefit obligation at December 31, 2015 and
2014, and the net periodic benefit cost for the years then ended:
Pension
Benefits
Post-Retirement
Benefits
2015 2014 2015 2014
Weighted-average assumptions used to determine benefit obligations
Discount rate 4.54% 4.12% 3.81% 3.72%
Rate of compensation increase N/A N/A N/A N/A
Weighted-average assumptions used to determine net periodic
benefit cost
Discount rate (1)(2)(3) 4.12 4.89 3.73 4.11
Expected return on plan assets 7.00 7.25 N/A N/A
Rate of compensation increase N/A N/A N/A N/A
N/A—Not Applicable
(1) The 2014 post-retirement benefit expense was remeasured as of July 31, 2014. The discount rate was 4.27% from January 1,
2014 to July 31, 2014, and was changed to 3.89% for the period from July 31, 2014 to December 31, 2014.
(2) The 2015 post-retirement benefit expense was remeasured as of September 30, 2015. The discount rate was 3.72% from
January 1, 2015 to September 30, 2015, and was changed to 3.77% for the period from September 30, 2015 to December 31,
2015.
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:
Pension
Benefits
Post-Retirement
Benefits
(dollar amounts in thousands) 2015 2014 2015 2014
Projected benefit obligation at beginning of measurement year $ 799,594 $ 684,999 $ 15,963 $ 25,669
Changes due to:
Service cost 1,830 1,740 — —
Interest cost 31,937 32,398 506 856
Benefits paid (17,246)(16,221)(2,211) (3,401)
Settlements (27,976)(27,045)(6,993)—
Plan amendments — — — (8,782)
Plan curtailments ————
Medicare subsidies — — 117 462
Actuarial assumptions and gains and losses (1) (33,425) 123,723 643 1,159
Total changes (44,880) 114,595 (7,938) (9,706)
Projected benefit obligation at end of measurement year $ 754,714 $ 799,594 $ 8,025 $ 15,963
(1) The 2014 actuarial assumptions include revised mortality tables.
Benefits paid for post-retirement are net of retiree contributions collected by Huntington. The actual contributions received in
2015 and 2014 by Huntington for the retiree medical program were less than $1 million and $3 million, respectively.