Unum 2011 Annual Report Download - page 150

Notes To Consolidated Financial Statements
Unum 2011 Annual Report
148
Benefit Payments
The following table provides expected benefit payments, which reflect expected future service, as appropriate.
Pension Benefits OPEB
(in millions of dollars) U.S. Plans Non U.S. Plans Gross Subsidy Payments Net
Year
2012 $ 33.3 $ 4.6 $16.0 $ 1.6 $14.4
2013 37.2 5.1 16.4 1.8 14.6
2014 41.8 5.3 16.6 1.9 14.7
2015 46.4 5.8 16.7 2.1 14.6
2016 52.5 5.9 16.6 2.2 14.4
2017–2021 366.7 37.1 79.1 12.7 66.4
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 made voluntary contributions to our U.S. qualified defined benefit pension plan of $67.0 million and
$100.0 million during the first and fourth quarters of 2010, respectively. The fourth quarter of 2010 contribution was made in lieu of our
planned 2011 contribution, and we made no additional contributions to our U.S. qualified defined benefit plan during 2011. We expect to
make a voluntary contribution of approximately $53.0 million to our U.S. qualified defined benefit plan during 2012. 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 that we contribute to the plan at the rate
of at least 24.8 percent of pensionable salaries for active members of the plan, plus 0.4 percent of pensionable salaries for all employees
(including active members of the plan) who are entitled to lump sum death in service benefits under the plan, sufficient to meet the
minimum funding requirement under U.K. legislation. We made contributions of $4.7 million and $5.0 million in 2011 and 2010,
respectively, or approximately £2.9 million and £3.2 million. We expect to make contributions of approximately £2.9 million during 2012.
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.
Note 9. Stockholders’ Equity and Earnings Per Common Share
Common Stock
In May 2010, our board of directors authorized the repurchase of up to $500.0 million of Unum Group’s common stock. The share
repurchase program had an expiration date of May 2011. For the year ended December 31, 2010, we repurchased 16.4 million shares at a
cost of $356.0 million, including commissions of $0.3 million, under this share repurchase program.
In February 2011, our board of directors authorized the repurchase of up to $1.0 billion of Unum Group’s common stock, in addition to
the amount remaining to be repurchased under the $500.0 million authorization. The $1.0 billion share repurchase program has an
expiration date of August 2012.