Bank of America 2002 Annual Report Download - page 102

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100 BANK OF AMERICA 2002
NOTE 16 Employee Benefit Plans
Pension and Postretirement Plans
The Corporation sponsors noncontributory trusteed qualified pension
plans that cover substantially all officers and employees. The plans
provide defined benefits based on an employee’s compensation, age
and years of service. The Bank of America Pension Plan (the Pension
Plan) provides participants with compensation credits, based on age
and years of service. The Pension Plan allows participants to select from
various earnings measures, which are based on the returns of certain
funds managed by subsidiaries of the Corporation or common stock of
the Corporation. The participant-selected earnings measures determine
the earnings rate on the individual participant account balances in the
Pension Plan. Participants may elect to modify earnings measure alloca-
tions on a daily basis. The benefits become vested upon
completion of
five years of service. It is the policy of the Corporation to
fund not less
than the minimum funding amount required by ERISA. The Corporation
made a voluntary contribution to the Pension Plan of $700 million and
$500 million in 2002 and 2001, respectively.
The Pension Plan has a balance guarantee feature, applied at the
time a benefit payment is made from the plan, that protects participant
balances transferred and certain compensation credits from future
market downturns. The Corporation is responsible for funding any
shortfall on the guarantee feature.
In 2002, a one-time curtailment charge resulted from freezing
benefits for supplemental executive retirement agreements. In 2000, a
curtailment resulted from employee terminations in connection with
the Corporation’s reduction in number of associates.
The Corporation sponsors a number of noncontributory, non-
qualified pension plans. These plans, which are unfunded, provide
defined pension benefits to certain employees.
In addition to retirement pension benefits, full-time, salaried
employees and certain part-time employees may become eligible to
continue participation as retirees in health care and/or life insurance
plans sponsored by the Corporation. Based on the other provisions of
the individual plans, certain retirees may also have the cost of these
benefits partially paid by the Corporation.
The following table presents the regulatory risk-based capital ratios, actual capital amounts and minimum required capital amounts for the
Corporation, Bank of America, N.A. and Bank of America, N.A. (USA) at December 31, 2002 and 2001:
2002 2001
Actual Minimum Actual Minimum
nnnnnnnnnnnnnnnnnnnnnnnnnnnnnn■■■■■■■■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■
(Dollars in millions
)Ratio Amount Required
(1)
Ratio Amount Required
(1)
Tier 1 Capital
Bank of America Corporation 8.22% $ 43,012 $ 20,930 8.30% $ 41,972 $ 20,243
Bank of America, N.A. 8.61 40,072 18,622 9.25 42,161 18,225
Bank of America, N.A. (USA) 8.95 2,346 1,049 7.66 1,688 882
Total Capital
Bank of America Corporation 12.43 65,064 41,860 12.67 64,118 40,487
Bank of America, N.A. 11.40 53,091 37,244 12.55 57,192 36,450
Bank of America, N.A. (USA) 11.97 3,137 2,098 10.98 2,420 1,763
Leverage
Bank of America Corporation 6.29 43,012 27,335 6.56 41,972 25,604
Bank of America, N.A. 7.02 40,072 22,846 7.59 42,161 22,233
Bank of America, N.A. (USA) 9.58 2,346 980 8.35 1,688 809
(1) Dollar amount required to meet the Agencies’ guidelines for adequately capitalized institutions.