AIG 2013 Annual Report Download - page 340

certain investments in hedge funds into Level 3 as a result of limited market activity due to fund-imposed redemption
restrictions. During the year ended December 31, 2012, transfers of assets into Level 3 included certain other fixed
maturity securities. These transfers were due to a decrease in market transparency, downward credit migration and
an overall increase in price disparity.
Funding for the U.S. pension plan ranges from the minimum amount required by ERISA to the maximum amount that
would be deductible for U.S. tax purposes. Contributed amounts in excess of the minimum amounts are deemed
voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible
under the Internal Revenue Code. There are no minimum required cash contributions for the AIG Retirement Plan in
2014. Supplemental Plan, or AIG NQRIP, and postretirement plan payments are deductible when paid.
Our annual pension contribution in 2014 is expected to be approximately $177 million for our U.S. and non-U.S.
plans. Included in this amount is $100 million in contributions to the AIG Retirement Plan. These estimates are
subject to change, since contribution decisions are affected by various factors including our liquidity, market
performance and management’s discretion.
The expected future benefit payments, net of participants’ contributions, with respect to the defined benefit
pension plans and other postretirement benefit plans, are as follows:
2014 $ 311 $ 41 $ 15 $ 1
2015 320 40 16 1
2016 330 40 16 1
2017 348 44 17 2
2018 350 49 18 2
2019 – 2023 1,871 260 99 11
We sponsor several defined contribution plans for U.S. employees that provide for pre-tax salary reduction
contributions by employees. The most significant plan is the AIG Incentive Savings Plan, for which the Company’s
matching contribution is 100 percent of the first six percent of a participant’s contributions, subject to the
IRS-imposed limitations. In 2011, company contributions of up to seven percent of annual salary were made
depending on the employee’s years of service subject to certain compensation limits. Our pre-tax expenses
associated with these plans were $155 million, $133 million and $99 million in 2013, 2012 and 2011 respectively.
Through registered public offerings and AIG repurchase transactions, the Department of the Treasury disposed of all
of its ownership of AIG Common Stock during 2012 and 2011. In the first quarter of 2013, we paid approximately
$25 million to purchase two series of warrants issued in 2008 and 2009 to the Department of the Treasury. For
discussion of the Recapitalization, see Note 24 herein.
A Schedule 13G/A filed February 14, 2014 reports aggregate ownership of 104,002,195 shares, or approximately
6.9 percent (based on the AIG Common Stock outstanding, as adjusted to reflect the warrants owned), of AIG
Common Stock and warrants (79,752,186 shares plus 24,250,009 warrants) as of December 31, 2013, including
securities beneficially owned by The Fairholme Fund and other funds and investment vehicles managed by Fairholme
Capital Management and securities owned by Mr. Bruce Berkowitz personally. A Schedule 13G filed on February 12,
2014 reports aggregate ownership of 84,112,893 shares, or approximately 5.7 percent (based on the AIG Common
Stock outstanding) of AIG Common Stock as of December 31, 2013, by various subsidiaries of Blackrock, Inc. The
calculation of ownership interest for purposes of the AIG Tax Asset Protection Plan and Article 13 of our Restated
Certificate of Incorporation is different than beneficial ownership for Schedule 13G.
Expected Cash Flows
Defined Contribution Plans
22. OWNERSHIP
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AIG 2013 Form 10-K322
ITEM 8 / NOTE 21. EMPLOYEE BENEFITS
Pension Postretirement
U.S. Non-U.S. U.S. Non-U.S.
(in millions) Plans Plans Plans Plans
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