Voya 2014 Annual Report Download - page 348

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
The components of net periodic benefit costs recognized in the Consolidated Statements of Operations and other
changes in plan assets and benefit obligations recognized in Other comprehensive income (loss) were as follows
for the years ended December 31, 2014, 2013 and 2012:
Pension Plans Other Postretirement Benefits
2014 2013 2012 2014 2013 2012
Net Periodic (Benefit) Costs Recognized in
Consolidated Statements of Operations:
Service cost ................................. $ 26.8 $ 45.3 $ 40.5 $— $— $—
Interest cost ................................. 96.2 88.3 90.2 1.5 1.7 1.7
Expected return on plan assets ................... (114.3) (101.2) (92.6) — — —
Amortization of prior service cost (credit) .......... (10.4) (10.4) (11.1) (3.4) (3.4) (3.4)
(Gain) loss recognized due to curtailments ......... — — (6.9) — — —
Net (gain) loss recognition ...................... 376.4 (397.9) 170.0 (3.7) (7.2) 1.9
Net periodic (benefit) costs ......................... 374.7 (375.9) 190.1 (5.6) (8.9) 0.2
Other Changes in Plan Assets and Benefit Obligations
Recognized in AOCI:
Amortization of prior service (credit) cost .......... 10.4 10.4 11.1 3.4 3.4 3.4
The effect of any curtailment or settlement ......... — — 6.9 — — —
Total recognized in AOCI .......................... 10.4 10.4 18.0 3.4 3.4 3.4
Total recognized in net periodic (benefit) costs and
AOCI ........................................ $385.1 $(365.5) $208.1 $(2.2) $(5.5) $ 3.6
The estimated prior service cost for the pension plans and other postretirement benefit plans are amortized from
AOCI into net periodic (benefit) cost. Such amounts included in AOCI and expected to be recognized as
components of periodic (benefit) cost in 2015 are as follows:
Pension Plans
Other
Postretirement
Benefits
Amortization of prior service cost
(credit) ......................... $(10.4) $(3.3)
Assumptions
The weighted-average assumptions used in determining benefit obligations were as follows:
Pension Plans
Other
Postretirement Benefits
2014 2013 2014 2013
Discount rate ....................................... 4.36% 4.95% 4.36% 4.95%
Rate of compensation increase ......................... 4.00% 4.00% N/A N/A
In determining the discount rate assumption, the Company utilizes current market information provided by its
plan actuaries including a discounted cash flow analysis of the Company’s pension obligation and general
movements in the current market environment. The discount rate modeling process involves selecting a portfolio
of high quality, noncallable bonds that will match the cash flows of the Retirement Plan.
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