Voya 2014 Annual Report Download - page 347

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
The following table summarizes information for pension and other postretirement benefit plans with a projected
benefit obligation and an accumulated benefit obligation in excess of plan assets as of December 31, 2014 and
2013:
Pension Plans
Other
Postretirement Benefits
2014 2013 2014 2013
Projected benefit obligation .................. $2,452.8 $1,995.0 $31.1 $36.7
Accumulated benefit obligation ............... 2,449.0 1,994.8 N/A N/A
Fair value of plan assets ..................... 1,657.7 1,556.8 — —
Components of Periodic Net Benefit Cost
Net periodic pension cost and net periodic other postretirement benefit plan cost consist of the following:
•Service Cost: Service cost represents the increase in the projected benefit obligation as a result of
benefits payable to employees on service rendered during the current year.
•Interest Cost (on the Liability): Interest cost represents the increase in the amount of projected benefit
obligation at the end of each year due to the time value adjustment.
•Expected Return on Plan Assets: Expected return on plan assets represents the anticipated return earned
by the pension fund assets in a given year.
•Net Loss (Gain) Recognition: Actuarial gains and losses occur as a result of differences between actual
and expected experience on pension plan assets or projected benefit obligation during a given period.
The Company immediately recognizes actuarial losses (gains) on the qualified and nonqualified
retirement plans as well as the other postretirement benefit plans.
•Amortization of Prior Service Cost: This cost represents the recognition of increases or decreases in
Pension and other postretirement provisions on the Consolidated Balance Sheets as a result of changes
in plans or initiation of new plans. The increases or decreases in obligation are recognized in AOCI at
the time of the particular amendment. The costs are then amortized to Operating expenses in the
Consolidated Statements of Operations over the expected service years of the covered employees.
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