Voya 2013 Annual Report Download - page 475

recharge expense amount, which is an interest charge on a percentage of our outstanding stock options. This
payment to ING Group was approximately $0.1 million for the year ended December 31, 2013. Such payments
are now made pursuant to the Equity Administration Agreement.
When our employees or retirees receive payments through any of the long-term incentive plans managed by
ING Group, ING Group reimburses the Company for amounts paid to employees. This reimbursement was
approximately $53.4 million for the year ended December 31, 2013. Such payments are now made pursuant to
the Equity Administration Agreement.
Expatriate Relationships
During 2013, there were four employees originally hired by the Company who worked at other affiliates
within ING Group; however, as of December 31, 2013, none of these employees were considered to be
employees of the Company. Two left ING Group entirely while two were hired directly by ING Group affiliates.
During the first three months of 2013, we hosted one employee originally hired elsewhere within ING Group
(who has since become an employee of the Company). Any salary, tax and other expenses related to these
expatriate arrangements were reimbursed to the entity incurring the cost. For the year ended December 31, 2013
we received approximately $1.7 million in reimbursements for such expenses while paying out $2.1 million.
Affiliate Loan Transaction with Named Executive Officer
One of our named executive officers has entered into an unsecured loan arrangement with a banking
subsidiary of ING Group. Such loan was made in the ordinary course of business, was made on substantially the
same terms, including interest rates, as those prevailing at the time for comparable loans made by the banking
subsidiary with persons unrelated to it, and did not involve more than the normal risk of collectability or present
other unfavorable features. We disclaim any participation in the transaction.
Latin America Service Arrangements
Following the divestiture of ING Group’s Latin American businesses in December 2011, the Company
entered into a transition services agreement with a subsidiary of ING Group to provide a variety of services to its
Latin American affiliates, including personnel, legal, compliance, IT, finance, and accounting services. That
transition services agreement, and the services provided thereunder, were terminated as of December 31, 2013.
As part of this agreement, the Company was reimbursed $1.7 million for expenses incurred during the year ended
December 31, 2013. In addition, as a result of a separate understanding between the Company and ING Group,
the Company was also reimbursed an additional $22.0 million for expenses incurred by the Company during
2011 to 2013.
Sourcing/Procurement
We contract directly for most of our strategic sourcing and procurement needs. In several instances, we have
entered into consolidated global agreements with ING Bank as the contracting entity to achieve greater leverage.
In some cases, we pay directly to vendors based on pricing negotiated by ING Group. In other cases, we pay fees
to ING Bank in consideration for our participation in these global arrangements. These global arrangements
cover a variety of sourcing needs, including software licenses, information technology service and support, audit
services and market data services. We reimbursed ING Bank approximately $1.3 million for the year ended
December 31, 2013. In many cases, we have existing relationships with these vendors and have begun to contract
directly with them.
Insurance Coverage
The Company continues to benefit from the Risk Management Program (“RMP”) of ING Group (a self-
insured insurance program) with respect to professional liability and employment practices-related claims for
wrongful acts that occurred prior to May 2, 2013. This coverage will cease as of December 31, 2014. The RMP
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