Regions Bank 2009 Annual Report Download - page 170

as deductibles and co-payments. Retiree health care benefits, as well as similar benefits for active employees, are
provided through a self-insured program in which Company and retiree costs are based on the amount of benefits
paid. The Company’s policy is to fund the Company’s share of the cost of health care benefits in amounts
determined at the discretion of management.
As a result of the merger with AmSouth, Regions assumed the obligations related to AmSouth’s employee
benefit plans. One of these assumed plans is a defined-benefit pension plan (the “AmSouth pension plan”)
covering substantially all regular full-time employees and part-time employees who regularly work 1,000 hours
or more each year and were employed at AmSouth at or before the merger. Subsequent to the merger, the
AmSouth pension plan was closed to new participants. Regions also assumed AmSouth’s non-qualified
supplemental executive retirement plan, which provides additional benefits to certain senior executives and is the
Company’s current active non-qualified plan (the “SERP”). Effective September 30, 2007, the Regions pension
plan and AmSouth pension plan were merged into one plan (the “pension plan”). The benefit structures of each
former plan remain intact. All defined-benefit plans are referred to as “the plans” throughout the remainder of
this footnote.
Regions also assumed postretirement medical plans from AmSouth. These plans provide postretirement
medical benefits to all former AmSouth employees who retire between the ages of 55 and 65 with five or more
calendar years of service and provide certain retired and grandfathered retired participants with postretirement
benefits past age 65. Postretirement life insurance is also provided to a grandfathered group of employees and
retirees.
Actuarially determined pension expense is charged to current operations using the projected unit credit
method. Expense associated with the SERP and postretirement benefit plans is charged to current operations
based on actuarial calculations.
Regions transitioned from a September 30 measurement date to a December 31 measurement date during
2008. The effect of this transition was not material to the consolidated financial statements.
Effective April 16, 2009, future benefit accruals under the pension plan and the SERP were suspended for
all participants. Even during the suspension, participants continued to earn service towards vesting and eligibility
for early retirement benefits. Effective January 1, 2010, these benefit accruals were reinstated for pension plan
and SERP participants.
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