Unum 2010 Annual Report Download - page 142

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140
Unum
2010
Benefit Payments
The following table provides expected benet payments, which reect expected future service, as appropriate.
Pension Benefits OPEB
(in millions of dollars) U.S. Plans Non U.S. Plans Gross Subsidy Payments Net
Year
2011 $ 27.9 $ 4.0 $15.5 $ 1.4 $14.1
2012 31.0 4.3 15.9 1.6 14.3
2013 34.9 4.8 16.3 1.7 14.6
2014 39.6 5.1 16.6 1.9 14.7
2015 44.5 5.6 16.7 2.0 14.7
2016 –2020 323.3 34.4 80.7 12.0 68.7
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 ERISA 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 2010 and 2009; however, we elected to make voluntary
contributions of $167.0 million and $70.0 million, respectively. We do not anticipate making any additional contributions to our U.S. plans
during 2011. The funding policy for our U.S. non-qualified defined benefit pension plan is to contribute the amount of the benefit payments
made during the year. Our expected return on plan assets and discount rate will not affect the cash contributions we are required to make
to our U.S. pension and OPEB plans because we have met all minimum funding requirements required under ERISA.
We contribute to our U.K. plan in accordance with a schedule of contributions which requires us to contribute to the plan at the rate of
at least 15.0 percent of employee salaries sufficient to meet the minimum funding requirement under U.K. legislation. We made
contributions of $5.0 million and $5.5 million in 2010 and 2009, respectively, or approximately £3.2 million and £3.5 million. We expect to
make contributions of £3.2 million during 2011.
Our OPEB 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 OPEB plan.
Notes To Consolidated Financial Statements