Unum 2007 Annual Report Download - page 124
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Notes to Consolidated Financial Statements
122 Unum 2007 Annual Report
Benefit Payments
The following table provides expected benefit payments, which reflect expected future service, as appropriate.
Pension Benefits Postretirement
(in millions of dollars) U.S. Plans Non U.S. Plans Benefits
2008 $ 17.0 $ 4.2 $ 14.4
2009 18.6 4.6 15.4
2010 20.9 5.2 16.1
2011 23.2 5.8 16.6
2012 26.8 6.4 16.7
2013–2017 207.7 36.6 82.3
Funding Policy
The funding policy for our U.S. qualified defined benefit plan is to contribute annually an amount at least equal to the minimum annual
contribution required under the Employee Retirement Income Security Act and other applicable laws, but generally not greater than the
maximum amount that can be deducted for federal income tax purposes. We had no regulatory contribution requirements for 2007 and
2006; however, we elected to make voluntary contributions of $110.0 million and $92.0 million, respectively. We expect to make a voluntary
contribution of approximately $55.0 million to our U.S. qualified defined benefit pension plan in 2008, based on current pension funding
law. The funding policy for the U.S. non-qualified defined benefit pension plan and postretirement plan is to contribute the amount of
the benefit payments made during the year. We are required to contribute to our U.K. plan at the rate of at least 18.20 percent of eligible
salaries sufficient to meet the minimum funding requirement under U.K. legislation. We made contributions of $10.5 million and $53.3 million
in 2007 and 2006, respectively. We expect to make contributions of £5.4 million during 2008.
Our postretirement benefits plan represents a non-vested, non-guaranteed obligation, and current regulations do not require specific
funding levels for these benefits, which are comprised of retiree life, medical, and dental benefits. It is our practice to use general assets
to pay medical and dental claims as they come due in lieu of utilizing plan assets for the medical and dental benefit portions of our
postretirement benefits plan.
Note 11. Stockholders’ Equity and Earnings Per Common Share
Common Stock
In October 2007, our board of directors authorized the repurchase of up to $700.0 million of Unum Group’s common stock. At
December 31, 2007, no common stock has been repurchased under this program. See Note 17 for further discussion.
We settled the purchase contract element of the 2004 and 2003 units in May 2007 and 2006 by issuing 17.7 million and 43.3 million
shares of common stock, respectively. See Note 9 for further discussion.
Preferred Stock
Unum Group has 25,000,000 shares of preferred stock authorized with a par value of $0.10 per share. No preferred stock has been
issued to date.