Regions Bank 2010 Annual Report Download - page 178

employees. For employees retiring before normal retirement age, the Company currently pays a portion of the
costs of certain health care benefits until the retired employee becomes eligible for Medicare. Certain retirees,
participating in plans of acquired entities, are offered a Medicare supplemental benefit. The plan is contributory
and contains other cost-sharing features such 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. 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.
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 toward vesting and eligibility
for early retirement benefits. Effective January 1, 2010, these benefit accruals were reinstated for pension plan
and SERP participants.
The following table sets forth the plans’ change in benefit obligation, plan assets and the funded status of
the pension and other postretirement benefits plans, using a December 31 measurement date, and amounts
recognized in the consolidated balance sheets at December 31:
Pension
Other
Postretirement
Benefits
2010 2009 2010 2009
(In millions)
Change in benefit obligation
Projected benefit obligation, beginning of period ..................... $1,586 $1,475 $ 38 $ 36
Service cost .................................................. 36 3 — —
Interest cost .................................................. 93 90 1 2
Actuarial losses (gains) ......................................... 119 108 (5) 3
Benefit payments .............................................. (74) (74) (3) (3)
Settlement payments ........................................... (35) (16) — —
Projected benefit obligation, end of period .......................... $1,725 $1,586 $ 31 $ 38
Change in plan assets
Fair value of plan assets, beginning of period ........................ $1,252 $1,067 $4$4
Actual return on plan assets ..................................... 128 157 — —
Company contributions ......................................... 238 109 3 3
Benefit payments .............................................. (74) (74) (3) (3)
Settlement payments ........................................... (32) (3) — —
Administrative expenses ........................................ (3) (4) — —
Fair value of plan assets, end of period ............................. $1,509 $1,252 $4$4
Funded status and prepaid (accrued) benefit cost at measurement date .... $ (216) $ (334) $ (27) $ (34)
Amount recognized in the
Consolidated Balance Sheets:
Other liabilities ............................................... $ (216) $ (334) $ (27) $ (34)
Amounts recognized in
Accumulated Other Comprehensive (Income) Loss:
Net actuarial loss (gain) ........................................ $ 533 $ 483 $ (6) $ (2)
Prior service cost (credit) ....................................... 6 7 (7) (8)
$ 539 $ 490 $ (13) $ (10)
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