TCF Bank 2005 Annual Report Download - page 81

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612005 Form 10-K
Postretirement Plan TCF provides health care benefits for
eligible retired employees (the “Postretirement Plan”). Effective
January 1, 2000, TCF modified the Postretirement Plan for employ-
ees not yet eligible for benefits under the Postretirement Plan by
eliminating the Company subsidy. The plan provisions for full-time
and retired employees then eligible for these benefits were not
changed. The Postretirement Plan is not funded.
The following table sets forth the status of the Pension Plan and the Postretirement Plan at the dates indicated:
Pension Plan Postretirement Plan
Year Ended December 31, Year Ended December 31,
(In thousands) 2005 2004 2005 2004
Benefit obligation:
Accrued participant balance – vested $56,436 $47,646 N.A. N.A.
Accrued participant balance – unvested 3,038 5,217 N.A. N.A.
Subtotal 59,474 52,863 N.A. N.A.
Present value of future service and benefits 2,602 2,351 N.A. N.A.
Total projected benefit obligation $62,076 $55,214 N.A. N.A.
Accumulated benefit obligation $55,611 $48,296 N.A. N.A.
Change in benefit obligation:
Benefit obligation at beginning of year $55,214 $50,830 $ 9,675 $12,386
Service cost – benefits earned during the year 5,303 4,632 35 53
Interest cost on projected benefit obligation 3,428 3,164 552 672
Plan amendments – (451) (207) (629)
Actuarial loss (gain) 1,678 258 (249) (1,793)
Benefits paid (3,547) (3,219) (1,150) (1,014)
Projected benefit obligation at end of year 62,076 55,214 8,656 9,675
Change in fair value of plan assets:
Fair value of plan assets at beginning of year 58,561 53,855 ––
Actual return on plan assets 6,936 5,350 ––
Benefits paid (3,547) (3,219) (1,150) (1,014)
TCF contributions – 2,575 1,150 1,014
Fair value of plan assets at end of year 61,950 58,561 ––
Funded status of plans:
Funded status at end of year (126) 3,347 (8,656) (9,675)
Unamortized transition obligation – – 706 1,044
Unamortized prior service cost (421) (670) ––
Unrecognized net loss 23,626 24,207 2,344 2,732
Prepaid (accrued) benefit cost at end of year $23,079 $26,884 $(5,606) $(5,899)
N.A. Not Applicable.
The measurement date used for determining the Pension Plan and the Postretirement Plan projected and accumulated benefit obliga-
tions above and the date used to value plan assets disclosed above was September 30, 2005 and 2004. The discount rate and rate of
increase in future compensation used to measure the benefit obligation were as follows:
Pension Plan Postretirement Plan
Assumptions used to At December 31, At December 31,
determine benefit obligations 2005 2004 2003 2005 2004 2003
Discount rate 5.25% 6.0% 6.0% 5.25% 6.0% 6.0%
Rate of compensation increase 4.0 4.0 4.5 N.A. N.A. N.A.
N.A. Not Applicable.