Bank of America 2005 Annual Report Download - page 179

BANK OF AMERICA CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements—(Continued)
The Postretirement Health and Life Plans’ asset allocation at December 31, 2005 and 2004 and target allocation for
2006 by asset category are as follows:
2006
Target
Allocation
Percentage of Plan Assets at December 31
Asset Category 2005 2004
Equity securities ............................. 50 – 70% 57% 75%
Debt securities ............................... 30 – 50 41 24
Realestate .................................. 0–5 21
Total ................................... 100% 100%
The Bank of America Postretirement Health and Life Plans had no investment in the common stock of the
Corporation at December 31, 2005 or 2004. The FleetBoston Postretirement Health and Life Plans included common
stock of the Corporation in the amount of $0.3 million (0.27 percent of total plan assets) at December 31, 2005 and $0.3
million (0.20 percent of total plan assets) at December 31, 2004.
Projected Benefit Payments
Benefit payments projected to be made from the Qualified Pension Plans, the Nonqualified Pension Plans and the
Postretirement Health and Life Plans are as follows:
(Dollars in millions)
Qualified
Pension Plans(1)
Nonqualified
Pension Plans(2)
Postretirement
Health and Life Plans
Net
Payments(3)
Medicare
Subsidy
2006 ................................... $ 867 $ 97 $ 98 $ 3
2007 ................................... 899 96 97 4
2008 ................................... 925 109 97 4
2009 ................................... 940 105 97 4
2010 ................................... 945 109 96 4
2011 – 2015 ............................ 4,885 554 447 18
(1) Benefit payments expected to be made from the plans’ assets.
(2) Benefit payments expected to be made from the Corporation’s assets.
(3) Benefit payments (net of retiree contributions) expected to be made from a combination of the plans’ and the Corporation’s assets.
Defined Contribution Plans
The Corporation maintains qualified defined contribution retirement plans and nonqualified defined contribution
retirement plans. As a result of the FleetBoston Merger, beginning on April 1, 2004, the Corporation maintains the
defined contribution plans of former FleetBoston. There are two components of the qualified defined contribution plans,
the Bank of America 401(k) Plan and the FleetBoston Financial Savings Plan (the 401(k) Plans), an employee stock
ownership plan (ESOP) and a profit-sharing plan.
The Corporation contributed approximately $274 million, $267 million and $204 million for 2005, 2004 and 2003, in
cash and stock. Contributions in 2003 were utilized primarily to purchase the Corporation’s common stock under the
terms of the Bank of America 401(k) Plan. At December 31, 2005 and 2004, an aggregate of 106 million shares and
113 million shares of the Corporation’s common stock were held by the 401(k) Plans. During 2004, the Corporation
converted the ESOP Preferred Stock held by the Bank of America 401(k) Plan to common stock so that there were no
outstanding shares of preferred stock at December 31, 2004 in the 401(k) Plans.
Under the terms of the ESOP Preferred Stock provision, payments to the plan for dividends on the ESOP Preferred
Stock were $4 million for 2004 and 2003. Payments to the plan for dividends on the ESOP Common Stock were $207
million, $181 million and $128 million during the same years.
In addition, certain non-U.S. employees within the Corporation are covered under defined contribution pension
plans that are separately administered in accordance with local laws.
Rewarding Success Plan
In 2005, the Corporation introduced a broad-based cash incentive plan for more than 140,000 associates that meet
certain eligibility criteria and are below certain compensation levels. The amount of the cash award is determined based
on the Corporation’s operating net income and common stock price performance for the full year. During 2005, the
Corporation recorded an expense of $145 million for this plan.
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