Voya 2014 Annual Report Download - page 345

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
13. Employee Benefit Arrangements
Pension, Other Postretirement Benefit Plans and Other Benefit Plans
Voya Financial, Inc.’s subsidiaries maintain both qualified and non-qualified defined benefit pension plans (the
“Plans”). These plans generally cover all employees and certain sales representatives who meet specified
eligibility requirements. Pension benefits are based on a formula using compensation and length of service of
employees at retirement. Annual contributions are paid to the Plans at a rate necessary to adequately fund the
accrued liabilities of the Plans calculated in accordance with legal requirements. The Plans comply with
applicable regulations concerning investments and funding levels.
Effective September 8, 2014, a plan amendment was approved changing the Plan’s name from the ING U.S.
Retirement Plan to the Voya Retirement Plan (the “Retirement Plan”). The Retirement Plan is a tax qualified
defined benefit plan, the benefits of which are guaranteed (within certain specified legal limits) by the Pension
Benefit Guaranty Corporation (“PBGC”). Beginning January 1, 2012, the Retirement Plan adopted a cash
balance pension formula instead of a final average pay (“FAP”) formula, allowing all eligible employees to
participate in the Retirement Plan. Participants will earn an annual credit equal to 4% of eligible compensation.
Interest is credited monthly based on a 30-year U.S. Treasury securities bond rate published by the Internal
Revenue Service in the preceding August of each year. The accrued vested cash pension balance benefit is
portable; participants can take it if they leave the Company. For participants in the Retirement Plan as of
December 31, 2011, there was a two-year transition period from the Retirement Plan’s current FAP formula to
the cash balance pension formula which ended December 31, 2013.
In addition to providing qualified retirement benefit plans, the Company provides certain supplemental
retirement benefits to eligible employees, non-qualified pension plans for insurance sales representatives who
have entered into a career agent agreement and certain other individuals. These plans are non-qualified defined
benefit plans, which means all benefits are payable from the general assets of the sponsoring company.
The Company also offers deferred compensation plans for eligible employees, including eligible career agents
and certain other individuals who meet the eligibility criteria. The Company’s deferred compensation
commitment for employees is recorded on the Consolidated Balance Sheets in Other liabilities and totaled $272.3
and $271.6 as of December 31, 2014 and 2013, respectively.
Voya Financial, Inc.’s subsidiaries also provide other postretirement and post-employment benefits to certain
employees. These are primarily postretirement healthcare and life insurance benefits to retired employees and
other eligible dependents and post-employment/pre-retirement plans provided to employees and former
employees.
On June 14, 2012, the Company announced an agreement with Cognizant Technology Solutions U.S.
Corporation (“Cognizant”) under which Cognizant provides business processing and operations services related
to the Company. Under the terms of the seven-year agreement, Cognizant made offers of employment to more
than 1,000 employees of the Company in Minot, North Dakota and Des Moines, Iowa. Based on an actuarial
estimate using the Retirement Plan assets and obligations, the Company recognized a remeasurement loss of
$115.2 resulting from the revaluation of the Retirement Plan’s assets and obligations, partially offset by a $6.9
curtailment gain. The net loss before income taxes was $108.3 and was recognized on the date the employees
transitioned to Cognizant, which was on August 16, 2012.
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