Voya 2014 Annual Report Download - page 218

As of December 31, 2014, the sensitivities of the effect of an increase or decrease in the discount rate are as
presented below:
($ in millions)
Increase (Decrease) in
Net Periodic Benefit
Cost-Pension Plans(1)
Increase (Decrease) in
Net Periodic Benefit Cost-Other
Postretirement Benefits(1)
Increase in discount rate by 100 basis
points ......................... $(321.7) $(2.3)
Decrease in discount rate by 100 basis
points ......................... 410.0 2.8
(1) Represents the estimate of actuarial gains (losses) that would be recognized immediately through operating
expenses.
($ in millions)
Increase (Decrease) in
Pension Benefit Obligation
Increase (Decrease) in
Accumulated Postretirement
Benefit Obligation
Increase in discount rate by 100 basis
points ........................ $(321.7) $(2.3)
Decrease in discount rate by 100 basis
points ........................ 410.0 2.8
The expected rate of return considers the asset allocation, historical returns on the types of assets held and
current economic environment. Based on these factors, we expect that the assets will earn an average percentage
per year over the long term. This estimation is based on an active return on a compound basis, with a reduction
for administrative expenses and manager fees paid to non-affiliated companies from the assets. For estimation
purposes, we assume the long-term asset mix will be consistent with the current mix. Changes in the asset mix
could impact the amount of recorded pension income or expense, the funded status of the Retirement Plan and
the need for future cash contributions.
The expected rate of return for 2014 was 7.5%, net of expenses, for the Retirement Plan. The expected rate
of return assumption is only applicable to the Retirement Plan as assets are not held by any of the other pension
and other postretirement plans.
As of December 31, 2014, the effect of an increase or decrease in the actual rate of return on the net periodic
benefit cost is presented in the table below:
($ in millions)
Increase (Decrease) in Net Periodic
Benefit Cost-Pension Plans(1)
Increase in actual rate of return by 100
basis points .................... $(15.2)
Decrease in actual rate of return by 100
basis points .................... 15.2
(1) Represents the estimate of actuarial gains (losses) that would be recognized immediately through operating
expenses.
For more information related to our employee benefit plans, see the Employee Benefit Arrangements Note in
our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K.
Impact of New Accounting Pronouncements
For information regarding the impact of new accounting pronouncements, see the Business, Basis of
Presentation and Significant Accounting Policies Note in our Consolidated Financial Statements in Part II,
Item 8. of this Annual Report on Form 10-K.
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