Bank of America 2001 Annual Report Download - page 110

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BANK OF AMERICA 2001 ANNUAL REPORT
108
The following table summarizes the balances, changes in fair value of plan assets and benefit obligations, and the weighted average assumptions
as of and for the years ended December 31, 2001 and 2000. Prepaid and accrued benefit costs are reflected in other assets and other liabilities,
respectively, in the Consolidated Balance Sheet. For the Pension Plan, the asset valuation method recognizes 60 percent of the market gains or losses
in the first year, with the remaining 40 percent spread equally over the next four years. For both the Pension Plan and the Postretirement Health and
Life Plans, the expected return on plan assets will be decreased to 9.50% for 2002.
Qualified Nonqualified Postretirement
Pension Plan Pension Plans Health and Life Plans
(Dollars in millions)
2001 2000 2001 2000 2001 2000
Change in fair value of plan assets
(Primarily listed stocks, fixed income and real estate)
Fair value at January 1 $8,652 $8,063 $– $– $ 208 $ 202
Actual return on plan assets (154) (135) ––(14) 6
Company contributions 500 –98 49 69 63
Plan participant contributions ––––41 35
Acquisition/transfer 16 1,334 ––––
Benefits paid (750) (610) (98) (49) (110) (98)
Fair value at December 31 $8,264 $8,652 $– $– $194 $ 208
Change in benefit obligation
Benefit obligation at January 1 $8,011 $6,252 $ 534 $ 535 $840 $836
Service cost 202 153 22 10 11 11
Interest cost 560 519 40 39 64 58
Plan participant contributions ––––41 35
Plan amendments –325 212 29 6
Actuarial loss (gain) (434) 16 9(13) 69 (17)
Acquisition/transfer 17 1,392 20 –––
Effect of curtailments –(36) –––9
Benefits paid (750) (610) (98) (49) (110) (98)
Benefit obligation at December 31 $7,606 $8,011 $ 529 $ 534 $ 944 $840
Funded status
Overfunded (unfunded) status at December 31 $658 $ 641 $(529) $(534) $(750) $(632)
Unrecognized net actuarial loss (gain) 954 358 86 69 45 (39)
Unrecognized transition obligation (asset) –(2) 12355 387
Unrecognized prior service cost 468 521 61 70 44 19
Prepaid (accrued) benefit cost $2,080 $1,518 $(381) $(393) $(306) $(265)
Weighted average assumptions at December 31
Discount rate 7.25% 7.25% 7.25% 7.25% 7.25% 7.25%
Expected return on plan assets 10.00 10.00 n/a n/a 10.00 10.00
Rate of compensation increase 4.00 4.00 4.00 4.00 n/a n/a
Amounts recognized in the consolidated balance sheet at December 31, 2001 and 2000 are as follows:
Qualified Nonqualified Postretirement
Pension Plan Pension Plans Health and Life Plans
(Dollars in millions)
2001 2000 2001 2000 2001 2000
Prepaid benefit cost $2,080 $1,518 $– $– $– $–
Accrued benefit cost ––(381) (393) (306) (265)
Additional minimum liability ––(78) (86) ––
Intangible asset ––63 56 ––
Accumulated other comprehensive income ––15 30 ––
Net amount recognized at end of year $2,080 $1,518 $(381) $(393) $(306) $(265)