GE 2014 Annual Report Download - page 200

180 GE 2014 FORM 10-K
FINANCIAL STATEMENTS POSTRETIREMENT BENEFIT PLANS
Plan fiduciaries set investment policies and strategies for the trust and oversee its investment allocation, which includes
selecting investment managers and setting long-term strategic targets. The primary strategic investment objectives are
balancing investment risk and return and monitoring the plan’s liquidity position in order to meet the near-term benefit payment
and other cash needs. Target allocation percentages are established at an asset class level by plan fiduciaries. Target
allocation ranges are guidelines, not limitations, and occasionally plan fiduciaries will approve allocations above or below a
target range.
Short-term securities purchased must generally be rated A-1/P-1 or better, except for 15% of such securities that may be rated
A-2/P-2 and other short-term securities as may be approved by the plan fiduciaries. According to statute, the aggregate
holdings of all qualifying employer securities (e.g., GE common stock) and qualifying employer real property may not exceed
10% of the fair value of trust assets at the time of purchase. GE securities represented 3.9% and 4.0% of trust assets at year-
end 2014 and 2013, respectively.
Retiree life plan assets were $813 million and $903 million at December 31, 2014 and 2013, respectively. Public equity and
debt securities amounting to $615 million and $727 million represented approximately 78% and 77% of total investments at
December 31, 2014 and 2013, respectively. The plans’ investments were classified as 37% Level 1, 41% Level 2 and 22%
Level 3 at December 31, 2014. The plans’ investments were classified as 33% Level 1, 43% Level 2 and 24% Level 3 at
December 31, 2013. The changes in Level 3 investments were insignificant for the years ended December 31, 2014 and 2013.
RETIREE BENEFIT ASSET(LIABILITY)
December 31 (In millions) 2014 2013
Funded status(a) $ (9,890) $ (9,010)
Liability recorded in the Statement of Financial Position
Retiree health plans
Due within one year $ (518) $ (531)
Due after one year (7,927) (7,095)
Retiree life plans (1,445) (1,384)
Net liability recognized $ (9,890) $ (9,010)
Amounts recorded in shareowners' equity (unamortized)
Prior service cost (credit) $ (24) $ 963
Net actuarial gain (71) (1,667)
Total $ (95) $ (704)
(a) Fair value of assets less APBO, as shown in the preceding tables.
In 2015, we estimate that we will amortize $125 million of prior service cost and $5 million of net actuarial loss from
shareowners’ equity into retiree benefit plans cost. Comparable amortized amounts in 2014 were $353 million of prior service
cost and $150 million of net actuarial gain.
ESTIMATED FUTURE BENEFIT PAYMENTS
2020 -
(In millions) 2015 2016 2017 2018 2019 2024
$ 680 $ 665 $ 670 $ 675 $ 685 $ 3,285