GE 2005 Annual Report Download - page 92

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(92)
PLAN ASSET ALLOCATION
2005 2004
December 31
Target
allocation
Actual
allocation
Actual
allocation
U.S. equity securities 35-55% 51% 53%
Non-U.S. equity securities 15-25 19 18
Debt securities 15-30 20 19
Real estate 1-10 2 1
Other
1-18 8 9
Total
100% 100%
Plan fiduciaries set investment policies and strategies for the trust. Long-term strategic investment objectives include
preserving the funded status of the trust and balancing risk and return. The plan fiduciaries oversee the investment
allocation process, which includes selecting investment managers, setting long-term strategic targets and monitoring
asset allocations. Target allocation ranges are guidelines, not limitations, and occasionally plan fiduciaries will
approve allocations above or below a target range.
Trust assets invested in short-term securities must be invested in securities rated A1/P1 or better, other than
15% of short-term holdings which may be rated A2/P2. GE common stock represented 6.1% and 6.2% of trust assets
at year-end 2005 and 2004, respectively, and is subject to a statutory limit when it reaches 10% of total trust assets.
Our recorded assets and liabilities for retiree benefit plans are as follows:
RETIREE BENEFIT ASSET (LIABILITY)
December 31 (In millions) 2005 2004
Funded status(a) $ (7,465) $ (7,598)
Unrecognized prior service cost 2,409 2,747
Unrecognized net actuarial loss 902 1,004
Net liability recognized $ (4,154) $ (3,847)
Amounts recorded in the Statement
of Financial Position:
Retiree life plans prepaid asset (liability) $(19) $38
Retiree health plans liability (4,135) (3,885)
Net liability recognized $ (4,154) $ (3,847)
(a) Fair value of assets less APBO, as shown in the preceding tables.
Estimated future benefit payments are as follows:
ESTIMATED FUTURE BENEFIT PAYMENTS
(In millions) 2006 2007 2008 2009 2010
2011-
2015
$ 825 $ 875 $ 825 $ 800 $ 750 $ 3,300