Navy Federal Credit Union 2015 Annual Report Download - page 60

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Financial Section 41
2015—SHARED SUCCESS
Retiree Medical Plan
Navy Federal provides, to employees hired prior to January 1, 2009, post-retirement benefits
to oset the cost of medical insurance premiums or out-of-pocket medical expenses. The plan
provides a lump sum, notionally credited, to a health reimbursement account equal to $75 or
$100 (depending on the retiree’s age on September 1, 2008), multiplied by the number of years
of continuous service the retiree provided Navy Federal, multiplied by a lump sum factor.
Medical cost trends have a negligible impact on the determination of the retiree medical
benefit obligation.
The following table sets forth the reconciliation of the changes in the projected benefit obligation
for the pension and retiree medical plans as well as the plan assets for the pension plan:
Pension Retiree Medical
(dollars in thousands) 2015 2014 2015 2014
Accumulated benefit obligation at year end $ 926,048 $ 971,305 $ — $ —
Projected Benefit obligation at beginning of year $ 1,076,088 $ 856,149 $ 54,522 $ 44,559
Employer service cost 32,593 26,540 2,002 1,623
Interest cost 45,802 43,977 2,276 2,318
Actuarial loss/(gain) (86,720) 161,212 (4,784) 8,387
Plan participants’ contributions — — 1,147 1,251
Benefits paid (37,143) (33,274) (4,690) (3,616)
Administrative expenses paid (1,435) (1,272) — —
Plan changes — 22,756 — —
Projected benefit obligation at year end $ 1,029,185 $ 1,076,088 $ 50,473 $ 54,522
Fair value of plan assets at beginning of year $ 1,217,582 $ 1,141,342 $ — $ —
Actual return on plan assets (23,058) 85,786 — —
Employer contributions 25,000 25,000 3,543 2,365
Plan participants’ contributions — — 1,147 1,251
Benefits paid (37,143) (33,274) (4,690) (3,616)
Administrative expenses paid (1,435) (1,272) — —
Fair value of plan assets at year end $ 1,180,946 $ 1,217,582 $ — $ —
Over/(Under) Funded status $ 151,761 $ 141,494 $ (50,473) $ (54,522)
Amount recognized on the Consolidated
Statements of Financial Condition:
Other Assets $ 151,761 $ 141,494 — —
Other Liabilities — — $ 50,473 $ 54,522