Bank of America 2005 Annual Report Download - page 174

BANK OF AMERICA CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements—(Continued)
2008, we will operate in a parallel testing environment, where current regulatory capital measures will be utilized
simultaneously with the new rules. However, in 2009 and until at least 2011, the U.S. is expected to impose floors
(limits) on capital reductions when compared to current measures.
Regulatory Capital
December 31
2005 2004
(Restated)
Actual Minimum
Required(1)
Actual Minimum
Required(1) (Dollars in millions) Ratio Amount Ratio Amount
Risk-based capital
Tier 1
Bank of America Corporation ............................. 8.25% $74,375 $36,059 8.20% $65,049 $31,735
Bank of America, N.A. ................................... 8.70 69,547 31,987 8.23 46,546 22,628
Fleet National Bank(2) .................................. —— —10.10 14,741 5,837
Bank of America, N.A. (USA) ............................. 8.66 5,567 2,570 8.54 3,879 1,817
Total
Bank of America Corporation ............................. 11.08 99,901 72,118 11.73 93,034 63,470
Bank of America, N.A. ................................... 10.73 85,773 63,973 10.27 58,079 45,255
Fleet National Bank(2) .................................. —— —13.32 19,430 11,673
Bank of America, N.A. (USA) ............................. 11.46 7,361 5,140 11.93 5,418 3,634
Leverage
Bank of America Corporation ............................. 5.91 74,375 37,732 5.89 65,049 33,141
Bank of America, N.A. ................................... 6.69 69,547 31,192 6.22 46,546 22,444
Fleet National Bank(2) .................................. —— —8.15 14,741 5,427
Bank of America, N.A. (USA) ............................. 9.37 5,567 1,783 9.19 3,879 1,266
(1) Dollar amount required to meet guidelines for adequately capitalized institutions.
(2) On June 13, 2005, Fleet National Bank merged with and into Bank of America, N.A., with Bank of America, N.A. as the surviving
entity.
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 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 allocations on a periodic basis subject to the provisions of the Pension Plan. 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 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.
The Corporation sponsors a number of noncontributory, nonqualified 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.
As a result of the FleetBoston Merger, the Corporation assumed the obligations related to the plans of former
FleetBoston. These plans are substantially similar to the legacy Bank of America plans discussed above, however, the
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