Voya 2013 Annual Report Download - page 199

($ in millions)
Increase (Decrease) in
Pension Benefit Obligation
Increase (Decrease) in
Accumulated Postretirement
Benefit Obligation
Increase in discount rate by 100 basis
points ........................ $(263.6) $(2.2)
Decrease in discount rate by 100 basis
points ........................ 304.2 2.5
The expected rate of return considers the asset allocation, historical returns on the types of assets held and
current economic environment. Based on these factors, we expect that the assets will earn an average percentage
per year over the long term. This estimation is based on an active return on a compound basis, with a reduction
for administrative expenses and manager fees paid to non-affiliated companies from the assets. For estimation
purposes, we assume the long-term asset mix will be consistent with the current mix. Changes on the asset mix
could impact the amount of recorded pension income or expense, the funded status of the Retirement Plan and
the need for future cash contributions.
The expected rate of return for 2013 was 7.5% (net of expenses) for the Retirement Plan. The expected rate
of return assumption is only applicable to this plan as assets are not held by any of the other pension and other
postretirement plans.
As of December 31, 2013, the effect of an increase or decrease in the actual rate of return on the net periodic
benefit cost is presented in the table below:
($ in millions)
Increase (Decrease) in Net Periodic
Benefit Cost-Pension Plans(1)
Increase in actual rate of return by 100
basis points .................... $(13.5)
Decrease in actual rate of return by 100
basis points .................... 13.5
(1) Represents the estimate of actuarial gains (losses) which would be recognized immediately through
operating expenses.
For more information related to our employee benefit plans, see “Item 8. Note 13. Employee Benefit
Arrangements.”
Impact of New Accounting Pronouncements
For information regarding the impact of new accounting pronouncements, see “Item 8. Note 1. Business,
Basis of Presentation and Significant Accounting Policies.”
INVESTMENTS
Investments for our general account are managed by our wholly owned asset manager, ING Investment
Management LLC, pursuant to investment advisory agreements with affiliates. In addition, our internal treasury
group manages our holding company liquidity investments, primarily money market funds.
Investment Strategy
Our investment strategy seeks to achieve sustainable risk-adjusted returns by focusing on principal
preservation, disciplined matching of asset characteristics with liability requirements and the diversification of
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