Description of City of Phoenix Labor Units and Associated Groups
Police Supervisory & Supervisory & Middle 4 Field Unit 1 Field Unit 2 Office & Clerical Police Officers Fire Professional Professional Managers Executives Item - Unit Representative: LIUNA, Local 777 AFSCME, Local 2384 AFSCME, Local 2960 PLEA IAFF, Local 493 ASPTEA PPSLA City Manager City Manager
Packet Number of regular, full-time employees 1098 1763 2331 2593 1493 2726 453 293 82 This group is Field employees in the Field Employees in the Office employees in Police Officers Firefighter, Fire Supervisory & Police composed of: City Clerk, Human Aviation, Convention Center, clerical and Engineer, and Professional classes Sergeants and Supplemental Supplemental
- Services, Parks & Finance, Fire, Housing, paraprofessional Fire Captain Citywide Lieutenants Recreation, and Street Information Technology, classes Citywide. 2011 Transportation Library, Neighborhood
21, Departments, and the Services, Police, Street
July Solid Waste Division in Transportation, and Water the Public Works Services Departments. Field
Force Department employees in the Equipment Management, Facilities, and Task Downtown Facilities Management divisions in the
Reform Public Works Department Pension Most Common Solid Waste Equipment Operations & Maintenance Police Secretary III, Classifications found Operator, Technician, Electrician, Utility Communications Administrative Assistant I, in this group: Groundskeeper, Technician, Building Operator, Secretary II, Senior User Technology Gardner, Street Maintenance Worker *U2, Court/Legal Clerk II, Specialist, Caseworker II, Maintenance Worker I, Water Services Technician, Police Assistant, Management Assistant II, Equipment Operators, User Technology Account Clerk III, User Technology Semi-skilled Worker, Specialist*U2, Heavy Support Services Aide, Specialist, Project Building Maintenance Equipment Mechanic, Senior Caseworker I, Fire Manager, Administrative Worker, and Utility Technician, Equipment Emergency Assistant II, Information Groundskeeper Service Worker II, Event Dispatcher, Municipal Technology Services Worker Security Guard Analyst/Programmer
Greater of Greater of 9.6% Or 60% 9.6% Or 60% of the 457 of the 457 Benefit: 401(A) Fringe annual annual Contribution 0.45% 0.70% 0% 0.18% 5.00% 6.00% 0% maximum maximum Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
May 26, 2011
S&P 500® 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS (OPEBs)
The 12.4% global market rebound of 2010 failed to improve S&P 500 pensions, as underfunding slightly improved to a US$ 245 billion Howard Silverblatt shortfall, from a shortfall of US$ 261 billion in 2009. Senior Index Analyst (212) 438-3916 Pension funding rate increased to 83.9% from 81.7%. Email:howard_silverblatt@ Discount rate declined to 5.31% from 5.81%. standardandpoors.com Expected return rate declined to 7.73% from 7.83%.
Dave Guarino Funds transfer equity profits to reallocate asset positions, affirming Communications equity’s allocation at a reduced 51%, and safety concerns. (212) 438-1471 Email: dave_guarino@ Corporate pensions have become an acceptable and manageable standardandpoors.com expense, well within income and assets levels.
OPEB underfunding remains massive, even as underfunding was reduced to US$ 210 billion from US$ 215 billion -- only four companies are fully overfunded.
OPEB remains a target for cuts, concerns and human casualties.
Companies have shifted a considerable amount of the risk associated with pensions to the individual. The result is a legacy program which -- over the next several decades -- will mostly work its way out of the last bastions of the U.S. labor market, and out of existence.
For baby boomers, few options remain for a comfortable retirement -- and there are fewer years for boomers to significantly add income to their retirement resources, outside of staying in the workforce longer.
Overview
S&P Indices 1
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
S&P 500 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS
TABLE OF CONTENTS
Overview 3
Current Pension Status 4
Current OPEB Status 7
2010: Pension Underfunding 10
Moving Forward 11
Appendix (Company and Sector Listings) 17
S&P Indices 2
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
S&P 500 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS
OVERVIEW
For over seventy years, the relationship between employee and employer not only encompassed the exchange of services for compensation, but extended to obligations in the form of pensions and Other Post Employment Benefits (OPEB), specifically medical care. These benefits are staples of the American dream and marketplace with their related expenditures built into the cost of products and services. From a historical perspective, modern pension expansion began during the Second World War when the average life expectancy was 65 years, and most pensions, often referred to as “widows’ funds,” were paid to the surviving spouse. By the time the Employee Retirement Income Security Act (ERISA) was passed in 1974, the average life expectancy of Americans had risen to 72 years, and retirees lived to collect payments directly. Today, the average U.S. life expectancy is 78 years, and early retirement is a common occurrence. However, the official age of retirement has only been scaled forward, based on the date of birth, from 65 years to 67 years. As a result, the medical costs associated with this longevity have skyrocketed, as have the costs of prescription drugs and elder care.
Over the last twenty years, globalization of markets, materials, and services has grown dramatically. As U.S. economic dominance has shifted, and the effects of the last two recessions have become more prevalent worldwide, the ability of U.S. companies to pass along the costs -- which many foreign competitors do not have -- associated with retirement to consumers has significantly diminished to a level that endangers many companies’ competitiveness. Moreover, the current cost of public retirements within the United States has grown to a level which endangers the budgets of some municipalities. The private sector remains in significantly better financial condition to meet these obligations, due mostly to stricter regulations. The bear markets of 2000-2002, and 2007-2008 drastically reduced private funds’ pension fund reserves, while the bull markets of 2003-2007, and 2009 to the present added some of the amounts back, although the funds remain significantly underfunded. The current recovery in S&P 500 earnings -- which are matching pre-recessionary levels and are expected to post a record for 2011 -- combined with the 2010 record level of both cash-flow and free cash-flow, have resulted in a record level of available cash, which by historical comparisons drastically exceeds current needs, at a time when income is still increasing. The result is that even with massive underfunding, S&P 500 pension costs have now become a reasonably-controlled expense to corporations, with costs and outflows fitting well within income and assets levels, as well as, cash-flow. S&P Indices® however, believes that the current state of the regulated pension system includes archaic accounting regulations that distort the financial position of pension funds and their sponsors, in addition to, a pay-as-you-go OPEB system with very little funding or legal guarantees.
The new reality for companies is that pensions have become an acceptable expense, with new social limits to its growth and limited area for its expansion. Companies have successfully shifted a considerable amount of the risk associated with defined programs to set contribution programs,
S&P Indices 3
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
S&P 500 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS transferring the risk from the company to the individual. The result is a legacy program which over the next several decades will mostly work its way out of the last bastions of the U.S. labor market, and out of existence.
For individuals, the personal wealth depletion -- via lower housing prices and current market evaluations, combined with prolonged high unemployment and lower pension and OPEB benefits (as longevity and the cost of staying healthy continue to escalate) -- has left potential retirees with little ability to retire. The current economic reality of strained government programs, the need for additional revenue (taxes), reduced spending (entitlement programs) and higher social costs have heralded a return to the retirement of prior generations: you work for most of your longer life and spend your remaining years in retirement in a reduced lifestyle. The new reality replaces the American dream of a golden retirement for soon- to-be baby boomers, which based on their available resources, leaves few options for a comfortable retirement, and there are fewer years for boomers to significantly add income to their retirement resources – outside of working longer.
CURRENT PENSION STATUS The market and economy slowly recovered from the 2000-2002 bear market and the brief 2001 recession. While corporate earnings posted 18 consecutive quarters of GAAP (Generally Accepted Accounting Principals) growth -- 22 quarters for operating -- and had record profits in aggregate and obtained record-high cash levels, corporate pension plans remained in the red, with corporations making minimal contributions. During the earnings run-up, the market followed by producing a 101% S&P 500 price gain (October 9, 2002 low, through October 9, 2007 high), and slightly surpassed (2.5%) its prior market high set in March 2000. For companies in the S&P 500, as a group, the result is that defined- benefit plans for 2007 returned to their fully-funded status -- last seen in 2001, with US$ 63.4 billion in excess assets over obligations, and a funding level of 104.4% of obligations. The improved funding was the result of increased assets (+2.3%), aided by recognized market gains, decreased liabilities (-4.6%), and a general reduction in the number of covered workers in defined pension funds. Added to the mix was a series of buyout offers within the automotive industry, in exchange for reduced, limited, or forfeited future benefits. The downturn in corporate earnings began in Q3 2007, producing five steep declines in quarterly earnings, before bottoming out in Q4 2008, and posting the first negative earnings in S&P 500 history. The loss was so severe that the S&P 500 actually lost more in Q4 2008 (US$ -202 billion) than it ever made (Q2 2007 US$ +194 billion).
The reality of the market was devastating: a -37% return for 2008 producing a 43% gap between what was expected and what was delivered. Pension assets declined 26.9% to US$ 1.10 trillion from US$ 1.50 trillion as liabilities, aided by a higher discount rate, were reduced by a mere 2.6%, to US$ 1.41 trillion from US$ 1.44 trillion. The net result was that the 2008 S&P 500 dropped to an underfunding
S&P Indices 4
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
S&P 500 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS record level of US$ 308.4 billion, from an overfunding of US$ 63.4 billion, in one year -- a US$ 371 billion turnaround, with the funding status dropping to 0.78 from 1.04. Fiscal 2009 started off poorly within the equity markets, but bottomed out in March 2009, resulting in a 56.8% decline over the 17-month bear market. From their low (March 2009), markets rebounded strongly, turning the early loss into a 26.46% 2009 total return gain for the S&P 500, continuing into 2010 with a 15.06% return, with the current 2011 market reaching the index level, doubling its price from the March 9, 2009 low (676.53) on April 27, 2011 (1355.66). The gains, however, were no match for the massive damage done to pension fund portfolios in 2008, when equity investment levels were much higher. For 2010, pension funds only slightly improved their funding level to 83.9%, from the 81.65% level of 2009 and the 78.10% level in 2008. Aggregate underfunding declined slightly to US$ 245.0 billion from US$ 260.7 billion in 2009 -- and the record US$ 308.4 billion deficit of 2008. At year-end 1999, the balance stood at a US$ 280 billion surplus. The overall pension fund portfolio expected return declined for the tenth year in a row, showing the continued perception that market returns are dwindling. For 2010, the expected return was 7.73%, a 10 bps decline from 7.83% in 2009, and down from the 2000 peak of 9.17% (in 1999 the expected return was 9.13%). Discount rates declined 50 bps to 5.31% from 2009’s 5.81%, and 6.29% in 2008. These changes in the expected returns and discount rate have significantly added to underfunding, with the discount rate having the major potential to reduce calculated obligations and improvement in funding status, if interest rates increase. For 2010, even a 15.0% gain return for the S&P 500 (45.5% over the two year period) was unable to make a serious dent in the underfunding level. The lower impact is partially the result of reduced equity asset reallocation and previous market losses.
S&P 500 2010 PENSION STATUS REPORT: HISTORICAL PENSION DATA
PENSION PENSION S&P 500 PENSION PENSION PENSION PENSION S&P 500 FUNDING FUNDING TOTAL ASSETS OBLIGATIONS DISCOUNT RETURN STATUS STATUS RETURN ($ MIL) ($ MIL) RATE (%) RATE (%) ($ MIL) RATIO (%) 2010 1,273,321 1,518,314 -244,993 0.839 5.31 7.73 15.06 2009 1,160,202 1,420,912 -260,709 0.817 5.81 7.83 26.46 2008 1,100,149 1,408,580 -308,432 0.781 6.29 7.95 -37.00 2007 1,504,516 1,441,135 63,380 1.044 6.13 8.02 5.49 2006 1,470,964 1,511,301 -40,337 0.973 5.75 8.03 15.79 2005 1,318,010 1,458,439 -140,430 0.904 5.11 8.13 4.91 2004 1,265,338 1,429,667 -164,328 0.885 5.80 8.27 10.88 2003 1,113,478 1,278,265 -164,787 0.871 6.09 8.38 28.69 2002 950,963 1,169,472 -218,509 0.813 6.64 8.63 -22.10 2001 1,089,896 1,086,950 2,946 1.003 7.13 9.15 -11.89 2000 1,238,920 1,012,893 226,027 1.223 7.43 9.17 -9.10 1999 1,274,083 994,061 280,022 1.282 7.44 9.13 21.04 1998 1,144,454 1,018,479 125,975 1.124 6.72 9.06 28.58 Source: S&P Indices. Charts are provided for illustrative purposes. .
S&P Indices 5
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
S&P 500 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS
Pension funds have US$ 1.27 trillion in assets, with 84.0% invested in U.S. concerns (down from 86.1% in 2009), and 16.0% (up from 13.9% in 2009) invested abroad -- percentages which have changed little over the past several years. Going forward, there is some evidence to suggest that a shift in employment demographics -- fewer U.S. workers with pensions and more foreign-based ones without them -- could impact pension fund investment percentages. Over the past few years, the pension fund asset allocation matrix has changed significantly. From 2004 through 2007 forward, equity allocations averaged over 60% of invested assets. At year-end 2008, pension funds reallocated their assets out of equities, to 43.7% from 61.3% in 2007, in response to the bear market. In 2009, they added to equities, allocating 50.5%. For 2010, companies kept their equity allocations stable, allocating 51.0% for stocks, and 35.9% for fixed income. Given the 15% equity return, the implied strategy would appear to have been to maintain the same allocations by taking profits from equity. The maintained allocations’ representation is a confirmation of the current balance between perceived safety (fixed income) and acceptable risk (equities), inspired by the bear market and the global financial liquidity crises. Companies are attempting to limit volatility and exposure to sudden losses.
Corporate contributions were again much larger than expected, with US$ 68.4 billion in 2010, compared to the US$ 33.2 billion anticipated for that year. The same scenario occurred in 2009, with US$ 66.1 billion contributed, compared to the expectation of US$ 38.7 billion. The additional contributions were in stark contrast to the prior contributions, which averaged US$ 36.7 billion over the prior nine years. For 2011, companies have increased their anticipated contribution to US$ 41.1 billion -- based on the market’s year-to-date performance, this should be sufficient; however, markets change.
S&P 500 2010 STATUS REPORT: HISTORICAL ASSET ALLOCATIONS
PENSION PENSION PENSION FIXED PENSION PENSION REAL ESTATE GICS SECTOR EQUITY INCOME OTHER ASSET ASSETS ASSET ASSET ASSET ALLOCATION ($ MIL) ALLOCATION ALLOCATION ALLOCATION Consumer 122,594 45.31% 43.03% 0.35% 11.30% Discretionary Consumer Staples 85,848 52.63% 32.72% 1.18% 13.46% Energy 71,351 57.95% 35.70% 2.45% 3.90% Financials 163,498 48.30% 40.19% 1.70% 9.81% Health Care 86,491 56.52% 27.17% 1.29% 15.01% Industrials 331,439 49.44% 38.82% 3.30% 8.43% Information Technology 133,914 47.22% 47.75% 3.51% 1.53% Materials 94,090 46.78% 44.09% 2.78% 6.34% Telecommunication 79,327 57.79% 30.35% 7.86% 3.99% Services Utilities 104,768 50.99% 35.90% 2.49% 10.62% S&P 500 ISSUES $1,273,321 $649,222 $457,135 $31,723 $135,241 Source: S&P Indices. Charts are provided for illustrative purposes.
S&P Indices 6
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
S&P 500 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS
CURRENT OPEB STATUS The state of OPEB remains extremely poor largely due to the lack of uniform information available, and the lack of funding requirements. Therefore, analysis and evaluations have limited use and projections require large disclaimers. While disclosure requirements have improved with balance sheet postings, only limited information on assumptions is available. Since OPEB has no funding requirements, the reporting rules have become a product of “smoothing” and the assumed discounted rates for obligations. As medical and drug costs continue to escalate -- and when combined with higher life expectancies -- the estimated growth rate used in determining the present value of OPEB becomes the major factor in the evaluation.
S&P INDICES PENSION REPORT
OPEB OPEB PENSION OPEB PENSION OPEB & OPEB ASSETS YEAR OBLIGATIONS FUNDING FUNDING FUNDING FUNDING PENSION ($ BILLIONS) ($ BILLIONS) STATUS STATUS STATUS STATUS FUNDING ($ BILLIONS) ($ BILLIONS) RATIO RATIO STATUS ($ BILLIONS) 2010 64.5 274.5 -210.1 -245.0 0.235 0.839 -455.02 2009 61.1 275.7 -214.6 -260.7 0.222 0.817 -475.32 2008 65.7 322.9 -257.2 -308.4 0.203 0.781 -565.66 2007 95.3 364.4 -269.1 63.4 0.261 1.044 -205.76 2006 92.2 385.9 -293.7 -40.3 0.239 0.973 -334.03 2005 91.2 412.1 -320.9 -140.4 0.221 0.904 -461.35 2004 82.3 369.3 -286.9 -164.3 0.223 0.885 -451.26 Source: S&P Indices. Charts are provided for illustrative purposes.
Within the S&P 500, 296 companies -- flat from 2009 and 2008, but down from 310 companies in 2007 -- have offered OPEB accounts, with some of them being closed or restricted to new employees. For 2010, the aggregate underfunding of OPEB obligations was US$ 210.1 billion, and marked only a slight decline from the 2009 underfunding of US$ 214.6 billion. The funding rate improvement was equally as minor, with a 23.5% posted rate, up from 22.2% in 2009. While funding levels have increased, slightly, this is in stark contrast to pensions which have significantly more asset coverage (83.9%), although they are also underfunded. Adding to the large variance in funding levels is the fact that pensions have the backing of the Pension Benefit Guaranty Corporation (“PBGC”), while OPEBs have no such support or fallback position. Combined, pension and OPEB assets set aside for issues in the S&P 500 amounted to US$ 1,337.8 billion, to cover US$ 1,792.8 billion in obligations, with the resulting underfunding being US$ 455.1 billion, or 25.4% of the obligations -- compared to 28.0% in 2009, and 32.7% in 2008.
The majority of companies choose not to set up separate funds for OPEBs, since they are not required to do so. Of the 296 companies with OPEBs, 126 – down from 127 in 2009 -- have separate OPEB funds with assets and obligations of US$ 64.5 billion, and US$ 220.0 billion, respectively, resulting in a 29.3% funding rate. The remaining 170 issues have obligations of US$ 54.5 billion, and no separated asset
S&P Indices 7
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
S&P 500 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS accounts dedicated to pay for them. These companies are fully on a pay-as-you-go basis, and experience the immediate impact of any change in costs. Within the S&P 500, only four issues were overfunded: JPMorgan Chase & Co., LSI Corp., PerkinElmer Inc., and Principal Financial Group -- the same four issues as were overfunded in 2009 and 2008. Of note is JPMorgan Chase, which is the only issue of the four to also be funded for pensions (26 issues are fully funded for pensions), and therefore, the only issue within the S&P 500 to be fully funded for both pensions and OPEB. In 2010, JPMorgan Chase had US$ 14.9 billon in pension and OPEB assets, with US$ 11.9 billions in combined obligations.
S&P 500 2010 Pension and OPEB Report
OPEB OPEB OPEB OPEB OPEB Funding ASSETS OBLIGATIONS FUNDING FUNDING ($ MIL) ($ MIL) STATUS STATUS ($ MIL) RATIO (%) Consumer Discretionary 535 13,497 -12,962 3.96 Consumer Staples 4,585 20,779 -16,194 22.06 Energy 1,354 22,513 -21,159 6.01 Financials 7,660 16,867 -9,208 45.41 Health Care 4,796 17,403 -12,607 27.56 Industrials 9,957 56,415 -46,458 17.65 Information Technology 1,239 10,377 -9,138 11.94 Materials 1,961 20,010 -18,048 9.80 Telecommunication Services 15,752 63,492 -47,740 24.81 Utilities 16,626 33,451 -16,825 49.70 TOTAL 64,464 274,804 -210,340 23.46 Source: S&P Indices. Charts are provided for illustrative purposes.
Ironically, the telecommunications services sector, which traditionally has been overfunded in pensions, has experienced so many reductions in its workforce -- driven by permitted early retirements -- that it now finds itself paying for those “humane retirements.” To this end, the telecommunications services sector found itself US$ 47.7 billion short for OPEB (compared to US$ 11.1 billion short for pensions), ranking it as the worst sector in this report. Of continuing interest are AT&T, which has the largest underfunded OPEB at US$ 23.9 billion, and Verizon, which is second, at US$ 22.7 billion underfunded. Combined, these two telecommunications issues account for 22.3% of the total underfunding. General Electric (US$ 10.9 billion underfunded), Boeing (US$ 8.4 billion underfunded) and Exxon Mobil (US$ 6.8 billion underfunded) round out the top five, representing 34.8% of the underfunding; Ford is number six with US$ 6.4 billion underfunded.
Companies have continued to cut back on OPEB, as well as, cap payments, and have introduced multi- tier benefit programs for new employees. OPEB benefits for many currently-retired workers not covered under collective bargaining agreements are coming under additional stress, as alternative public programs have become available. As programs develop, companies are introducing alternative plans,
S&P Indices 8
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
S&P 500 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS which directly or indirectly, will shift more of the financial burden and responsibility to the retiree. Changes for current retirees under collective bargaining agreements may change less, as companies attempt to reduce longer-term costs by reducing benefits to future retires (current employees) through collective bargaining.
The cost of U.S. private, medical retiree benefits, when compared to many non-U.S. competitors, has added significantly to costs of U.S. products, and has left those U.S. products at a competitive disadvantage. U.S. corporations, to some degree, must make up the difference of what foreign entities provide in medical benefits, by substituting higher prices for their products for the sovereigns’ ability to tax. With the U.S. government now taking a more active role, companies will look to shift their expenses. Just as defined pensions shifted to defined contributions and 401K-type savings accounts, the responsibility of providing post-retirement medical care is now shifting from corporate programs to individuals and to U.S. social policy.
On an aggregate basis, the OPEB obligations are manageable. However, the obligations are concentrated in older issues. As with the recent difficulties in the automotive industry, the telecommunications sector now has more extreme metrics for OPEB than other sectors. While the dominant workers representative (Communications Workers of America) has negotiated and worked with corporations to curtail expenses, mounting costs due to higher medical coverall and longevity has escalated comparative values.
S&P 500 2010 Pension and OPEB Report
OPEB FUNDING% DIVIDEND% OPEB FUNDING% LTD+OPEB+ FUNDING OF AS OF GAAP OPEB Funding FUNDING OF PENSION% STATUS REPORTED EARNINGS STATUS MARKET OF MKT RATIO EARNINGS (%) ($MIL) VALUE (%) VALUE (%) (%) (%) Consumer -12,962 3.96 -1.01 -13.55 19.39 26.67 Discretionary Consumer Staples -16,194 22.06 -1.22 -69.27 162.41 51.44 Energy -21,159 6.01 -1.52 -30.10 38.83 17.71 Financials -9,208 45.41 -0.46 -13.39 40.95 129.73 Health Care -12,607 27.56 -0.99 -16.18 37.87 18.72 Industrials -46,458 17.65 -3.70 -60.18 36.41 48.16 Information -9,138 11.94 -0.41 -8.59 21.06 7.57 Technology Materials -18,048 9.80 -4.19 -13.30 6.36 33.91 Telecommunication -47,740 24.81 -13.93 -224.48 87.74 62.11 Services Utilities -16,825 49.70 -4.49 -63.49 65.40 91.26 TOTAL -210,340 23.46 -1.77 -29.92 33.65 46.81 Source: S&P Indices. Charts are provided for illustrative purposes.
S&P Indices 9
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
S&P 500 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS
2010: PENSION UNDERFUNDING IS REDUCED TO MANAGEABLE EXPENSE Even with continued double-digit equity gains, and absent a massive shift back to equities, -- which would bring an equally massive increase in risk -- it will take years to return to the full funding levels of 2007, much less the comfortable levels of 1999. To some extent, the long-term funding rate may depend more on the discount rate used than the actual returns, which control the level of obligations.
While short-term rates are expected to slightly increase, it is generally believed that once the economy is strong enough, longer-term rates will rise. At that point, the higher discount rate will reduce the future liability and improve funding, at least on paper. The side-bar joke is that if rates go up high enough, full pension funding would be accomplished and success declared (with bonus paid). The reality is that you can write as many paper checks as you want, but the bank will only clear the ones for which you have enough cash. At this point the funding requirements of ERISA are playing the safety role, requiring companies to have enough short-term cash and equivalent on hand in their funds to currently cover liabilities, regardless of their longer-term evaluations. S&P 500 companies have more than sufficient cash resources in their own accounts to fully fund pensions.
It should be noted that while plans may be deficient, companies are awash in cash, with Q4 2010 setting a new cash and equivalent record for the S&P Industrials (Old), at US$ 940 billion (up from US$ 831 at year-end 2009), the equivalent of 62 weeks of expected operating income. Initial Q1 2011 reports point to another record being set.
S&P 500 INDUSTRIAL (OLD) CASH AND EQUIVALENT LEVELS
DATE CASH & EQUIVALENT ($ MIL) 12/31/2010 940,149 09/30/2010 902,389 06/30/2010 842,494 03/31/2010 836,771 12/31/2009 831,188 9/30/2009 820,287 6/30/2009 772,687 3/31/2009 664,778 12/31/2008 654,613 9/30/2008 647,813 6/30/2008 648,436 3/31/2008 615,504 12/31/2007 609,664 9/28/2007 622,800 6/30/2007 602,968 3/30/2007 606,571 Source: S&P Indices. Charts are provided for illustrative purposes.
S&P Indices 10
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
S&P 500 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS
Given the current economic environment, our current baseline estimate calls for pensions to improve from their current level of funding, ending 2011 at US$ 201.5 billion underfunded, based on a 1407 S&P 500 close (a 6.9% gain from now, or a 11.9% gain for 2011), with similar gains in foreign markets, and a 60 bps increase in interest rates across utilized maturities. S&P Indices’ optimistic estimate, based on an S&P 500 at 1542 (a 17.1% gain from now, or a 22.6% gain for 2011) calculates out to a pension improvement, but underfunding remaining solidly in the red by US$ 132 billion. The gloomy forecast, based on a market correction (but not turning into a bear market) with a 1168 S&P 500 closing (an 11.3% decline from now, or a 7.1% decline for 2011) and combining with slightly lower interest rates, increases the underfunding to a record US$ 342 billion; US$ 308 billion is the current record, set in 2008.
600,000 1800 Pension Position ($ Millions) Fund Position S&P 500 S&P 500 500,000 1600
400,000 1400
300,000 1200
200,000 1000
100,000
800 0
1 2 3 5 7 8 9 0 3 4 6 8 0 t 9 9 9 9 0 0 0 st t 99 99 99 00 00 01 es e 19 19 19 1994 1 1996 1 19 1 20 2001 2002 2 20 2005 20 2007 2 2009 2 1 1 600 '1 '1 '11 es -100,000 e ic c lin ist se m a B pti simisti O s Pe 400 -200,000
-300,000 200
-400,000 0
Source: S&P Indices. Charts are provided for illustrative purposes.
MOVING FORWARD Current pension underfunding stems from the massive global market meltdown of October 2007 through March 2009. While the market has recovered at almost a record pace -- the actual doubling of the S&P 500 price from the bear market low to the April 29, 2011 doubling was the fastest since March 1937 -- it remains 15.9% off its 2007 level. The devastated portfolios of pension funds, as well as, supplementary savings and retirement accounts for individuals have improved, but are significantly lower than their peaks. Current pension asset levels at year-end 2010 are 15.4% lower than year-end 2007, obligations
S&P Indices 11
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
S&P 500 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS are 5.4% higher, and underfunding is US$ 245 billion compared to US$ 63 billion overfunded in 2007. On a higher level, current pension funding difficulties stem from a combination of low interest rates and specific accounting methodologies designed to smooth out market volatility. The intent of the smoothing is to give companies time to recover from the negative swings of the market. This smoothing design was conceived when cash requirements were less significant than they are today. Currently, several companies have moved away from smoothing, recording a one-time charge to bring their accounting basis in line with the actual portfolio values. We see two specific impacts of this change. Since the action will add more volatility into earnings, we suspect that for those issues we may start seeing earnings before the impact of pensions. Secondly, if interest rates and markets increase, these companies will quickly be able to recognize the values, potentially reducing their required pension contribution.
OPEB underfunding stems from medical advancements that increased longevity and the quality of life. In addition, a lack of requirements or incentives to create or support OPEB funding also had an impact on underfunding. Unfortunately, the accounting rules often conceal the short-term condition of funds for several years, by which time significant damage can be done, leaving the company with limited options.
The gains of the 2002-2007 bull market improved pensions and allowed for minimal corporate contributions. The bear market of October 2007 through March 2009 quickly exposed the extent and size of the liability to current and future retirees. However, the accounting treatment has helped to hide these obligations via smoothing and a lack of full disclosures. The difference -- and at times the conflict -- between accounting and ERISA postings, as well as, that of the actual cash-flow, prevents most investors from properly analyzing the situation. Companies are continuing to limit their exposure to both pensions and OPEB. Some of the changes, such as those in the automotive industry, have been forced upon companies and workers as a result of market conditions. Others are the result of cost containment in reaction to competition that does not have such expenses.
Over the last two years, the U.S. population -- and its representatives -- has debated the role of governments in medical coverage and the government’s social responsibility, both to individuals and to society as a whole. Both agencies and governments have a history of waiting until the last minute to take any type of painful action. To S&P Indices, the current public debate and actions about benefits speak to the seriousness of the situation -- that there’s a need to act sooner than later. We believe that the greatest change (within the scope of this report) is expected to be in competitive OPEB benefits which are currently experiencing double-digit cost growth with shifting contribution levels by companies and retirees. This cost growth represents an area where corporations can best contain their expenses. Unlike pensions, which have required funding and legal standing, most OPEBs are not regulatory in nature. Represented workers negotiate for benefits with companies who view the costs as part of their overall labor contract. Salaried workers, however, have no such contract, and therefore, the company has
S&P Indices 12
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
S&P 500 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS no legal requirement. This situation leaves the benefits to the discretion of the company. This distinction between represented workers and salaried workers with regard to pensions is extremely important. The ability of companies to modify their plans (subject to contractual obligations) speaks directly to the extent of their legal obligation to fulfill them. This distinction has been widely discussed, with one of the main effects being an attempt to measure the extent of a company’s (both as an ongoing concern and under court supervision) OPEB obligation. In general, companies view these benefits as having to be in tandem with those of represented workers, as well as, those being offered by competing peers for the same employees. Currently, the level of benefits is trending downward across sectors lines.
The need to remain competitive within global markets that provide different benefits depending on national boundaries is not new. However, in competitive markets where these benefits represent a significant contribution to product cost, the issue has become one of major contention. During times of stress, the difference can become material to the survival of the company and industry. The automotive industry has long suffered with this variance, and recent events have required both represented and salaried workers to accept lower benefits at a higher cost, and altered the role of government. As a result, companies continue to take the necessary steps to reduce costs in the face of global competition and protect their profit margins from declining in order to stay competitive. Limiting contribution, commonly referred to as capping, continues as corporations implement cost containment programs as well as, tiered benefit levels for newer employees. Companies -- especially those in the telecommunications services sector -- have moved to limit their annual contributions via maximum annual caps. This type of benefit reduction is becoming more commonplace, and while workers and hard- pressed unions are resisting the changes, they are being agreed to in response to the economic reality of globalization and current market conditions. Additionally, these reduced benefits are now deemed acceptable by both workers and society, because workers have more concern for their current jobs and current medical coverage than their eventual retiree benefits. Over several years, this disproportionate contribution rate will shift significant portions of the OPEB responsibility and costs from the company to the individual. Individuals unable to afford the additional expense may choose to drop their coverage, however, under the recently-passed health care bill, coverage would be required (or there would be financial penalties). In many of these cases, the medical needs may be picked up via government programs which already are showing signs of strain.
Reductions have become not only common but expected, with the only question being how much more of a reduction in benefits and/or an increase in cost will be directly placed on individuals. This situation exists for the U.S. at large as well: As Americans live longer, the gap between existing benefits and personal wealth, and the escalating cost of staying healthy over a longer period, will grow. Directly or indirectly, the U.S. Government is the insurer of the last resort, whether it is via the PBGC or
S&P Indices 13
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
S&P 500 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS as the medical provider via social or entitlement programs. The issue is becoming part of the government’s responsibility and it is the government’s obligation to alleviate.
Pensions and OPEB have become a social issue, with the key questions being coverage, expense, and how to pay for it. Medical coverage (doctors, hospitals, and medications) has now emerged as a major issue within the U.S. Government. In general, corporations present the case that traditional U.S. benefits burden them with additional costs that do not exist for many foreign competitors. While short-term solutions are now being discussed, the ability to implement and pay for them will be the true test, especially in an economy which is still recovering, with high unemployment levels and expectations for a slow recovery. This situation may lead to a slower, more limited, step-by-step benefits coverage implementation, with the economy and politics playing significant roles. Unfortunately, the longer the situation goes on, the worse it will become. Eventually, the government, in conjunction with the private sector, will be forced to address the situation and take the necessary painful steps. The concern remains that while both the public and private sectors have now accepted that the situation exists, and are starting to address the issues, neither have shown a tolerance for the pain associated with the type of forward action needed to address the problem. The longer the situation goes unaddressed or short-term band-aids applied, the stronger the measures will have to be to solve the situation. In the end, individuals -- either as taxpayers or consumers -- will need to pay the bill, as well as, live with the reduction in benefits and lifestyle.
S&P DATA AND CLASSIFICATIONS The data used in this report was compiled from S&P Indices, Capital IQ, Compustat and Stock Guide database, and is based on SEC filings. Data for 2010 is preliminary. The constituents used consist of the current S&P 500 membership, and the data represent the latest fiscal values. Data that does not conform, or was deemed incomplete for presentation, was not utilized. Additionally, individual issues that did not have complete data were omitted from the summary data. For this reason, some of the sums or variances of the data do not match the aggregates. This report was prepared by S&P Indices, which is separate from the Standard & Poor’s Credit Market Services Group (Fixed Income) and separate from Standard & Poor's Equity Research Services. This report does not discuss ratings or credit market aspects and does not make any buy/hold/sell recommendations for any securities. For more information, please see the Disclaimer located at the end of this document.
For additional information on the S&P 500, visit: www.marketattributes.standardandpoors.com
S&P Indices 14
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
S&P 500 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS
About S&P Indices S&P Indices, one of the world’s leading index providers, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1.25 trillion is directly indexed to Standard & Poor's family of indices, which includes the S&P 500, the world's most followed stock market index, the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, the S&P Global BMI, an index with approximately 11,000 constituents, the S&P GSCI, the industry's most closely watched commodities index, and the S&P National AMT-Free Municipal Bond Index, the premier investable index for U.S. municipal bonds. For more information, please visit www.standardandpoors.com/indices.
S&P Indices 15
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
S&P 500 2010: PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS
Disclaimers All company level data used throughout this report was derived from data filed with the Securities and Exchange Commission and compiled by Capital IQ, Compustat, S&P Indices and Stock Guide database. Standard & Poor’s Financial Services LLC (S&P) is a subsidiary of The McGraw-Hill Companies. Capital IQ and Compustat are wholly- owned subsidiaries of S&P. For more information on these sources please see the general disclaimer located at the end of this document or see our disclosures which can be found at www.standardandpoors.com/regulatory- affairs/main/en/us/.
This document does not constitute an offer of services in jurisdictions where Standard & Poor’s Financial Services LLC (“S&P”) or its affiliates do not have the necessary licenses. All information provided by S&P is impersonal and not tailored to the needs of any person, entity or group of persons. S&P receives compensation in connection with licensing its indices to third parties. Any returns or performance provided within are for illustrative purposes only and do not demonstrate actual performance. Past performance is not a guarantee of future investment results.
It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. S&P and its affiliates do not sponsor, endorse, sell, promote or manage any investment fund or other vehicle that is offered by third parties and that seeks to provide an investment return based on the returns of any S&P index. There is no assurance that investment products based on the index will accurately track index performance or provide positive investment returns. S&P is not an investment advisor, and S&P and its affiliates make no representation regarding the advisability of investing in any such investment fund or other vehicle. A decision to invest in any such investment fund or other vehicle should not be made in reliance on any of the statements set forth in this document. Prospective investors are advised to make an investment in any such fund or other vehicle only after carefully considering the risks associated with investing in such funds, as detailed in an offering memorandum or similar document that is prepared by or on behalf of the issuer of the investment fund or other vehicle. Inclusion of a security within an index is not a recommendation by S&P to buy, sell, or hold such security, nor is it considered to be investment advice.
The index returns shown do not represent the results of actual trading of investor assets. Standard & Poor’s maintains the indices and calculates the index levels and performance shown or discussed, but does not manage actual assets. Index returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of theses fees and charges would cause actual and back-tested performance to be lower than the performance shown. In a simple example, if an index returned 10% on a US $100,000 investment for a 12-month period (or US$ 10,000) and an actual asset-based fee of 1.5% were imposed at the end of the period on the investment plus accrued interest (or US$ 1,650), the net return would be 8.35% (or US$ 8,350) for the year. Over 3 years, an annual 1.5% fee taken at year end with an assumed 10% return per year would result in a cumulative gross return of 33.10%, a total fee of US$ 5,375, and a cumulative net return of 27.2% (or US$ 27,200).
S&P does not guarantee the accuracy and/or completeness of any S&P index, any data included therein, or any data from which it is based, and Standard & Poor’s shall have no liability for any errors, omissions, or interruptions therein. S&P makes no warranties, express or implied, as to results to be obtained from use of information provided by S&P, and S&P expressly disclaims all warranties of suitability with respect thereto. While S&P has obtained information believed to be reliable, S&P shall not be liable for any claims or losses of any nature in connection with information contained in this document, including but not limited to, lost profits or punitive or consequential damages, even if it is advised of the possibility of same.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of non-public information received during each analytic process. S&P and its affiliates provide a wide range of services to, or relating to, many organizations, including issuers of securities, investment advisers, broker-dealers, investment banks, other financial institutions and financial intermediaries, and accordingly may receive fees or other economic benefits from those organizations, including organizations whose securities or services they may recommend, rate, include in model portfolios, evaluate or otherwise address.
Copyright © 2011 by Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies. All rights reserved. Redistribution, reproduction and/or photocopying in whole or in part is prohibited without written permission.
S&P, S&P INDICES, S&P 500, STANDARD & POOR’S, and Compustat are registered trademarks of Standard & Poor’s Financial Services LLC. Capital IQ is a registered trademark of Capital IQ, Inc.
S&P Indices 16
APPENDIX S&P 500 2010 Pension and OPEB Report, 2009 for Comparisons (by Company) - Not Historical Index Makeup (Values in US$ millions, unless otherwise noted.)
2010 2009 4 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees
Item Assets Assets
- OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's ($) ($) Status ($) Status ($) Consumer Discretionary -40,114 -42,535 -27,152 -30,032 -12,962 -12,503 122,594 149,746 111,039 141,071 535 13,497 520 13,023 5,488.05 5,960.47 Consumer Staples -35,509 -38,434 -19,315 -21,034 -16,194 -17,400 85,848 105,163 82,328 103,362 4,585 20,779 3,883 21,282 4,701.84 4,867.25 Packet Energy -46,442 -44,993 -25,283 -25,180 -21,159 -19,813 71,351 96,635 63,239 88,420 1,354 22,513 1,040 20,853 686.25 608.38 Financials -19,710 -23,997 -10,503 -13,628 -9,208 -10,370 163,498 174,001 148,131 161,759 7,660 16,867 6,880 17,250 2,578.50 2,518.14 Health Care -30,502 -35,219 -17,895 -21,871 -12,607 -13,348 86,491 104,386 77,013 98,884 4,796 17,403 4,360 17,709 1,357.72 1,437.23 Industrials -113,842 -117,657 -67,384 -71,083 -46,458 -46,574 331,439 398,822 308,892 379,975 9,957 56,415 9,599 56,173 3,485.57 3,640.42 Information Technology -28,645 -30,177 -19,507 -20,743 -9,138 -9,434 133,914 153,421 128,764 149,507 1,239 10,377 1,180 10,614 2,227.19 2,248.29 Materials -41,995 -43,775 -23,946 -25,835 -18,048 -17,940 94,090 118,036 84,995 110,830 1,961 20,010 2,030 19,970 660.01 666.61 Telecommunication Services -58,889 -58,476 -11,149 -8,724 -47,740 -49,753 79,327 90,477 80,077 88,801 15,752 63,492 14,669 64,422 551.50 583.66 Supplemental Supplemental Utilities -39,684 -41,954 -22,859 -24,995 -16,825 -16,959 104,768 127,627 91,580 116,575 16,626 33,451 16,498 33,457 386.36 388.53 S&P 500 -455,332 -477,218 -244,993 -263,125 -210,340 -214,093 1,273,321 1,518,314 1,176,059 1,439,184 64,464 274,804 60,659 274,752 22,122.98 22,918.95 2011
21, A Agilent Technologies Health Care -420 611 -181 -201 -239 -239 2,136 2,317 1,957 2,158 263 502 251 490 18.50 16.80 AA Alcoa Inc Materials -5,736 6,605 -2,892 -3,109 -2,844 -2,927 9,451 12,343 8,529 11,638 58 2,902 111 3,038 59.00 59.00
July AAPL Apple Inc Information Technology 49.40 36.80 ABC AmerisourceBergen Corp Health Care -42 74 -30 -48 -13 -12 113 143 81 129 0 13 0 12 10.00 10.30 ABT Abbott Laboratories Health Care -2,432 4,126 -1,155 -1,040 -1,277 -1,364 7,451 8,606 5,812 6,852 396 1,673 341 1,705 90.00 73.00
Force ACE ACE Limited Financials -93 -103 394 487 368 471 16.00 15.00 ADBE Adobe Systems Information Technology 0 0 0 0 0 0 9.12 8.66 ADI Analog Devices Information Technology -39 79 -39 -29 0 0 176 215 136 165 0 0 0 0 8.50 8.30 Task ADM Archer-Daniels-Midland Consumer Staples -802 1,096 -578 -585 -224 -256 1,721 2,299 1,427 2,012 0 224 0 256 29.30 28.20 ADP Automatic Data Proc Information Technology -106 -108 982 1,088 787 895 47.00 45.00 ADSK Autodesk, Inc Information Technology -18 -13 29 47 24 36 6.80 6.80
Reform AEE Ameren Corp Utilities -1,052 -317 -729 -760 -323 -910 2,722 3,451 2,495 3,255 797 1,120 2,393 3,303 9.47 9.78 AEP Amer Electric Pwr Utilities -1,613 2,221 -949 -1,298 -664 -633 3,858 4,807 3,403 4,701 1,461 2,125 1,308 1,941 18.71 21.67 AES AES Corp Utilities -1,465 -1,280 5,172 6,637 4,437 5,717 29.00 27.00 AET Aetna Inc Health Care -844 1,692 -577 -951 -267 -263 5,244 5,821 4,395 5,346 67 333 68 331 34.00 35.00
Pension AFL AFLAC Inc Financials -155 -133 356 511 283 416 7.92 8.06 AGN Allergan, Inc Health Care -205 272 -147 -95 -58 -42 627 774 560 655 0 58 0 42 9.20 8.30 AIG Amer Intl Group Financials -1,825 2,092 -1,480 -1,888 -345 -380 4,379 5,859 4,112 6,000 0 345 0 380 63.00 96.00 AIV Apartment Investment & Mg Financials 3.10 3.50 AIZ Assurant Inc Financials -273 349 -215 -197 -58 -47 534 749 461 658 40 97 37 84 14.00 15.00 AKAM Akamai Technologies Information Technology 2.20 1.75 AKS AK Steel Holding Materials -1,852 1,954 -1,056 -1,125 -795 -876 2,473 3,529 2,370 3,495 0 795 1 877 6.60 6.50 ALL Allstate Corp Financials -1,504 2,046 -876 -1,106 -628 -666 4,669 5,545 4,127 5,233 0 628 0 666 35.70 36.80 ALTR Altera Corp Information Technology 0 0 0 0 0 0 2.67 2.55 AMAT Applied Materials Information Technology -147 -170 162 309 110 279 13.05 12.62 AMD Advanced Micro Dev Information Technology 11.10 13.40 AMGN Amgen Inc Health Care 17.40 17.20 AMP Ameriprise Financial Financials -163 234 -142 -165 -21 -22 327 469 256 421 0 21 0 22 10.47 9.79 AMT Amer Tower'A' Telecommunication Services 1.73 1.42 AMZN Amazon.com Inc Consumer Discretionary 33.70 24.30 AN AutoNation Inc Consumer Discretionary 19.00 18.00 ANF Abercrombie & Fitch Co'A' Consumer Discretionary 85.00 80.00 AON Aon Corp Financials -1,753 2,394 -1,656 -1,733 -97 -44 5,532 7,188 4,906 6,639 22 119 7 51 59.00 36.20 APA Apache Corp Energy -30 47 -1 -17 -29 -18 135 136 118 135 0 29 0 18 4.45 3.45 APC Anadarko Petroleum Energy -1,094 1,219 -778 -651 -316 -316 1,104 1,882 979 1,630 0 316 0 316 4.40 4.30 APD Air Products & Chem Materials -1,163 1,624 -1,042 -1,135 -121 -116 2,712 3,754 2,251 3,386 0 121 0 116 18.30 18.90 APH Amphenol Corp'A' Information Technology -180 208 -161 -162 -19 -15 297 457 268 430 0 19 0 15 39.10 32.20 APOL Apollo Group'A' Consumer Discretionary 57.41 52.39 ARG Airgas Inc Materials 14.00 ATI Allegheny Technologies Materials -543 613 -56 -57 -487 -492 2,237 2,294 2,164 2,221 13 500 17 509 9.20 8.50 AVB AvalonBay Communities Financials 1.99 1.88 AVP Avon Products Consumer Staples -520 523 -431 -453 -89 -95 992 1,423 993 1,447 44 133 40 135 42.00 41.00 AVY Avery Dennison Corp Industrials -322 418 -283 -290 -39 -37 967 1,250 870 1,159 0 39 0 37 32.10 31.30 AXP Amer Express Financials -702 765 -383 -406 -319 -324 2,052 2,435 1,989 2,395 0 319 0 324 61.00 58.30 AZO AutoZone Inc Consumer Discretionary -94 -70 117 212 115 186 63.00 60.00 BA Boeing Co Industrials -18,302 21,753 -9,854 -6,356 -8,448 -7,487 49,252 59,106 45,810 52,166 98 8,546 89 7,576 160.50 157.10 BAC Bank of America Financials -427 1,857 1,169 890 -1,596 -1,507 19,809 18,640 18,374 17,484 108 1,704 113 1,620 288.00 284.00 BAX Baxter Intl Health Care -1,491 2,148 -959 -1,143 -532 -506 3,479 4,438 2,822 3,965 0 532 0 506 48.00 49.70 BBBY Bed Bath & Beyond Consumer Discretionary 0 0 0 41.00 BBT BB&T Corp Financials 541 -241 606 661 -65 -39 2,484 1,878 2,184 1,523 0 65 0 39 31.40 32.40 2010 2009 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees Assets Assets OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's ($) ($) Status ($) Status ($) BBY Best Buy Consumer Discretionary 0 0 0 180.00 BCR Bard (C.R.) Health Care -105 147 -95 -110 -9 -10 282 377 239 349 0 9 0 10 11.70 11.00 4 BDX Becton, Dickinson Health Care -758 962 -497 -426 -260 -250 1,414 1,911 1,209 1,635 0 260 0 250 28.80 29.12 BEN Franklin Resources Financials -7 11 1 0 -7 -6 43 42 39 39 0 7 0 6 7.93 7.75
Item BF.B Brown-Forman'B' Consumer Staples -226 -58 351 577 0 58 3.90 - BHI Baker Hughes Inc Energy -313 609 -147 -108 -166 -157 890 1,037 594 702 0 166 0 157 53.10 34.40 BIG Big Lots Consumer Discretionary -3 -3 60 63 57 60 35.60 35.60 BIIB Biogen Idec Health Care 0 0 8 6 0 0 0 0 4.85 4.75
Packet BK Bank of New York Mellon Financials 310 63 474 481 -164 -179 4,239 3,765 3,871 3,390 71 235 66 245 48.00 42.20 BLK BlackRock Inc Financials 9.13 8.63 BLL Ball Corp Materials -726 864 -541 -603 -185 -192 1,123 1,664 984 1,588 0 185 0 192 14.00 14.50 BMC BMC Software Information Technology 0 0 0 6.10 BMS Bemis Co Materials -161 205 -153 -137 -8 -10 529 682 485 621 0 8 0 10 19.80 20.40 BMY Bristol-Myers Squibb Health Care -1,212 1,912 -938 -1,283 -274 -301 5,766 6,704 5,103 6,386 315 589 278 579 27.00 28.00 BRCM Broadcom Corp'A' Information Technology 8.95
Supplemental Supplemental BRK.B Berkshire Hathaway'B' Financials -2,352 -2,210 8,246 10,598 5,926 8,136 260.52 222.00 BSX Boston Scientific Health Care 25.00 26.00 BTU Peabody Energy Energy -1,141 1,283 -109 -215 -1,031 -982 772 881 630 845 0 1,031 0 982 7.20 7.30 2011 BXP Boston Properties Financials 0.68 0.70
21, C Citigroup Inc Financials -1,516 3,886 -213 -1,052 -1,303 -1,146 17,706 17,919 15,526 16,578 1,271 2,574 1,081 2,227 260.00 269.00 CA CA Inc Information Technology 13.80 CAG ConAgra Foods Consumer Staples -470 -321 2,145 2,614 4 325 24.40 July CAH Cardinal Health Health Care 31.20 46.50 CAM Cameron Intl Energy -37 56 -21 -32 -16 -18 261 282 242 275 0 16 0 18 19.50 18.10
Force CAT Caterpillar Inc Industrials -7,439 9,186 -3,251 -3,780 -4,188 -3,474 13,640 16,891 11,826 15,606 996 5,184 1,063 4,537 104.49 93.81 CB Chubb Corp Financials -519 898 -192 -342 -327 -288 1,922 2,114 1,558 1,900 65 392 50 338 10.10 10.20 CBG CB Richard Ellis Grp'A' Financials -40 -65 257 297 240 305 31.00 29.00
Task CBS CBS Corp 'B' Consumer Discretionary -2,101 2,278 -1,321 -1,414 -780 -824 3,660 4,982 3,483 4,897 5 785 5 829 25.38 25.58 CCE Coca-Cola Enterprises Consumer Staples 15 -759 -324 1,001 986 2,964 3,723 0 324 13.50 70.00 CCL Carnival Corp Consumer Discretionary 89.20 84.80 CEG Constellation Energy Grou Utilities -553 903 -218 -412 -335 -322 1,408 1,626 1,058 1,470 0 335 0 322 7.60 7.20 Reform CELG Celgene Corp Health Care 4.18 2.81 CEPH Cephalon Inc Health Care -21 84 104 3.73 3.03 CERN Cerner Corp Health Care 8.20 7.60 CF CF Industries Hldgs Materials -169 532 -85 -43 -84 -42 596 681 234 276 0 84 0 42 2.50 1.60 Pension CFN CareFusion Corp Health Care 15.00 15.00 CHK Chesapeake Energy Energy 10.00 8.20 CHRW C.H. Robinson Worldwide Industrials 7.63 7.35 CI CIGNA Corp Health Care -1,949 2,261 -1,528 -1,513 -421 -395 3,163 4,691 2,850 4,363 23 444 24 419 30.60 29.30 CINF Cincinnati Financial Financials -62 -77 183 245 144 221 4.06 4.17 CL Colgate-Palmolive Consumer Staples -1,607 1,721 -877 -708 -730 -575 1,811 2,688 1,701 2,409 32 762 28 603 39.20 38.10 CLF Cliffs Natural Resources Materials -554 842 -288 -267 -266 -196 734 1,022 483 751 174 440 137 333 6.57 5.40 CLX Clorox Co Consumer Staples -303 363 -225 -193 -78 -70 335 560 275 468 0 78 0 70 8.30 8.30 CMA Comerica Inc Financials -131 257 -122 -31 -9 -11 1,464 1,586 1,338 1,369 73 82 73 84 9.00 9.33 CMCSA Comcast Cl'A' Consumer Discretionary -438 445 -14 -8 -424 -360 183 197 176 184 0 424 0 360 102.00 107.00 CME CME Group Inc Financials 3 0 121 118 108 108 9 2.57 2.26 CMI Cummins Inc Industrials -619 1,007 -129 -522 -490 -504 2,994 3,123 2,606 3,128 0 490 0 504 39.20 34.90 CMS CMS Energy Utilities -1,136 1,635 -613 -816 -523 -641 1,401 2,014 1,007 1,823 887 1,410 782 1,423 7.82 8.04 CNP CenterPoint Energy Utilities -784 851 -468 -434 -316 -304 1,501 1,969 1,432 1,866 144 460 146 450 8.84 8.81 CNX CONSOL Energy Energy -3,605 3,681 -163 -192 -3,442 -3,039 538 701 462 654 0 3,442 0 3,039 8.63 8.01 COF Capital One Financial Financials -30 39 28 22 -58 -60 221 193 213 190 8 66 7 67 27.83 30.90 COG Cabot Oil & Gas Energy -36 43 -4 -22 -32 -34 60 64 53 75 0 32 0 34 0.41 0.57 COH Coach Inc Consumer Discretionary -6 5 11 13.00 12.00 COL Rockwell Collins Industrials -1,441 1,681 -1,185 -1,040 -256 -230 2,169 3,354 1,928 2,968 9 265 10 240 20.00 19.30 COP ConocoPhillips Energy -3,136 4,182 -2,274 -2,718 -862 -839 6,471 8,745 5,425 8,143 0 862 0 839 29.70 30.00 COST Costco Wholesale Consumer Staples 147.00 142.00 COV Covidien Plc Health Care -411 425 -286 -251 -125 -135 706 992 692 943 0 125 0 135 41.50 41.80 CPB Campbell Soup Consumer Staples -870 1,222 -508 -662 -362 -340 1,767 2,275 1,415 2,077 0 362 0 340 18.40 18.70 CPWR Compuware Corp Information Technology 4.34 CRM salesforce.com inc Information Technology 5.31 3.97 CSC Computer Sciences Information Technology -1,218 -187 3,818 5,036 69 256 94.00 CSCO Cisco Systems Information Technology 70.70 65.55 CSX CSX Corp Industrials -1,019 1,089 -636 -614 -383 -406 1,851 2,487 1,781 2,395 0 383 0 406 30.00 30.09 CTAS Cintas Corp Industrials 30.00 CTL CenturyLink Inc Telecommunication Services -1,306 1,815 -802 -962 -504 -525 3,732 4,534 3,220 4,182 54 558 57 582 20.30 20.20 CTSH Cognizant Tech Solutions' Information Technology 104.00 78.40 CTXS Citrix Systems Information Technology 5.64 4.82 CVC Cablevision Sys'A' Consumer Discretionary -81 -147 -6 228 309 244 391 0 6 18.14 20.47 CVH Coventry Health Care Health Care 0 0 0 0 0 0 14.00 14.40 2010 2009 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees Assets Assets OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's ($) ($) Status ($) Status ($) CVS CVS Caremark Corp Consumer Staples -250 304 -233 -240 -17 -17 426 659 372 612 0 17 0 17 280.00 295.00 CVX Chevron Corp Energy -6,864 8,407 -3,259 -3,840 -3,605 -3,065 12,082 15,341 10,539 14,379 0 3,605 0 3,065 62.00 64.00 4 D Dominion Resources Utilities -60 1,053 616 100 -676 -637 5,106 4,490 4,226 4,126 1,031 1,707 918 1,555 15.80 17.90 DD duPont(E.I.)deNemours Materials -9,510 10,770 -5,521 -5,627 -3,989 -4,132 18,403 23,924 17,143 22,770 0 3,989 0 4,132 60.00 58.00
Item DE Deere & Co Industrials -5,523 6,597 -693 -1,307 -4,830 -4,652 9,504 10,197 8,401 9,708 1,637 6,467 1,666 6,318 55.65 51.26 - DELL Dell Inc Information Technology 103.30 96.00 DF Dean Foods Consumer Staples -93 102 -76 -71 -18 -19 232 308 223 295 0 18 0 19 25.78 27.16 DFS Discover Financial Svcs Financials -77 93 -55 -54 -22 -24 321 376 306 359 0 22 0 24 10.30 10.50
Packet DGX Quest Diagnostics Health Care 42.00 43.00 DHI D.R.Horton Consumer Discretionary 3.21 2.93 DHR Danaher Corp Industrials -711 900 -588 -664 -124 -105 1,480 2,068 1,291 1,955 0 124 0 105 48.20 46.60 DIS Disney (Walt) Co Consumer Discretionary -3,369 4,234 -2,400 -2,159 -969 -930 5,684 8,084 4,833 6,992 311 1,280 297 1,227 149.00 144.00 DISCA Discovery Communications' Consumer Discretionary 4.20 4.40 DNB Dun & Bradstreet Industrials -460 524 -431 -451 -29 -55 1,278 1,709 1,214 1,665 0 29 0 55 5.20 5.00 DNR Denbury Resources Energy 1.20 0.83
Supplemental Supplemental DO Diamond Offshore Drilling Energy 5.30 5.50 DOV Dover Corp Industrials -191 255 -176 -201 -15 -15 532 708 468 669 0 15 0 15 32.00 29.30 DOW Dow Chemical Materials -7,164 8,297 -5,307 -5,325 -1,857 -1,712 15,851 21,158 14,589 19,914 238 2,095 367 2,079 49.51 52.20 2011 DPS Dr. Pepper Snapple Group Consumer Staples -15 26 -11 -30 -4 -19 234 245 223 253 5 9 5 24 19.00 19.00
21, DRI Darden Restaurants Consumer Discretionary -46 -39 155 200 0 39 174.08 DTE DTE Energy Utilities -2,148 2,677 -872 -887 -1,276 -1,287 2,913 3,785 2,549 3,436 1,029 2,305 864 2,151 9.80 10.24 DTV DIRECTV Consumer Discretionary -113 168 -92 -124 -21 -21 429 521 374 498 0 21 0 21 25.10 23.30 July DUK Duke Energy Utilities -768 1,358 -231 -644 -537 -559 4,797 5,028 4,224 4,868 186 723 169 728 18.44 18.68 DV DeVry Inc Consumer Discretionary 12.12 10.20
Force DVA DaVita Inc Health Care 36.50 34.00 DVN Devon Energy Energy -535 635 -492 -448 -43 -64 632 1,124 532 980 0 43 0 64 5.00 5.40 EBAY eBay Inc Information Technology 17.70 16.40
Task ECL Ecolab Inc Materials -567 683 -427 -458 -140 -142 1,307 1,734 1,198 1,656 20 159 13 155 26.49 25.93 ED Consolidated Edison Utilities -3,286 4,206 -2,586 -2,531 -700 -831 7,721 10,307 6,877 9,408 942 1,642 866 1,697 15.18 15.54 EFX Equifax Inc Industrials -123 189 -108 -119 -15 -16 570 678 505 624 19 34 17 34 6.50 6.60 EIX Edison Intl Utilities -1,664 2,189 -845 -831 -819 -651 3,235 4,080 2,857 3,688 1,606 2,425 1,459 2,110 20.12 19.24 Reform EL Lauder (Estee) Co Consumer Staples -267 419 -128 -163 -139 -123 831 959 686 849 6 145 0 123 31.20 31.30 EMC EMC Corp Information Technology -48 -33 380 427 354 386 48.50 43.20 EMN Eastman Chemical Materials -1,218 1,310 -443 -421 -775 -726 1,178 1,621 1,087 1,508 52 827 51 777 10.00 10.00 EMR Emerson Electric Industrials -607 -610 3,920 4,527 3,456 4,066 417 499 127.70 129.00 Pension EOG EOG Resources Energy 2.29 2.10 EP El Paso Corp Energy -564 655 -170 -154 -394 -399 2,048 2,218 1,979 2,133 265 659 243 642 4.94 4.99 EQR Equity Residential Financials 4.00 4.10 EQT EQT Corp Energy -48 47 -13 -15 -35 -37 48 61 49 64 0 35 0 37 1.82 1.80 ERTS Electronic Arts Information Technology 7.80 ESRX Express Scripts Health Care 13.17 14.27 ETFC E Trade Financial Financials 2.96 3.08 ETN Eaton Corp Industrials -2,235 2,702 -1,409 -1,568 -826 -830 2,509 3,918 2,042 3,610 0 826 0 830 70.00 70.00 ETR Entergy Corp Utilities -2,067 2,718 -1,085 -1,230 -982 -918 3,216 4,301 2,607 3,838 404 1,386 362 1,280 14.96 15.18 EW Edwards Lifesciences Health Care -33 -26 45 79 34 60 7.00 6.40 EXC Exelon Corp Utilities -5,884 7,083 -3,665 -3,643 -2,219 -2,182 8,859 12,524 7,839 11,482 1,655 3,874 1,476 3,658 19.21 19.33 EXPD Expeditors Intl,Wash Industrials 12.88 12.01 EXPE Expedia Inc Consumer Discretionary 8.90 7.96 F Ford Motor Consumer Discretionary -17,880 20,434 -11,457 -11,962 -6,423 -6,053 58,575 70,032 56,021 67,983 0 6,423 0 6,053 164.00 198.00 FAST Fastenal Co Industrials 13.29 12.05 FCX Freep't McMoRan Copper&Go Materials -812 878 -572 -465 -240 -265 1,232 1,804 1,166 1,631 0 240 0 265 29.88 28.57 FDO Family Dollar Stores Consumer Discretionary 50.00 47.00 FDX FedEx Corp Industrials -1,189 -565 13,295 14,484 0 565 141.00 FE FirstEnergy Corp Utilities -1,677 1,853 -1,314 -993 -363 -356 4,544 5,858 4,399 5,392 498 861 467 823 13.33 13.38 FFIV F5 Networks Information Technology 2.01 1.65 FHN First Horizon Natl Financials -65 119 -40 -37 -25 -26 550 590 496 533 16 41 16 42 5.44 5.73 FII Federated Investors 'B' Financials 1.33 1.37 FIS Fidelity Natl Info Svcs Information Technology -32 31 0 32 33.00 31.00 FISV Fiserv Inc Information Technology 19.00 20.00 FITB Fifth Third Bancorp Financials -30 -35 197 227 182 217 21.61 21.00 FLIR FLIR Systems Information Technology -21 -22 0 21 0 22 3.22 2.08 FLR Fluor Corp Industrials -13 120 5 -7 -18 -20 1,299 1,294 1,192 1,199 0 18 0 20 39.23 36.15 FLS Flowserve Corp Industrials -185 238 -146 -180 -39 -40 480 626 427 607 0 39 0 40 15.00 15.00 FMC FMC Corp Materials -315 454 -270 -332 -45 -42 906 1,176 767 1,099 0 45 0 42 4.90 4.80 FO Fortune Brands Consumer Discretionary -324 492 -196 -290 -128 -129 989 1,185 822 1,112 0 128 0 129 24.60 24.25 FRX Forest Labs Health Care 5.20 FSLR First Solar Information Technology 6.10 4.70 FTI FMC Technologies Energy -182 264 -173 -134 -9 -8 702 875 620 754 0 9 0 8 11.50 10.40 FTR Frontier Communications Telecommunication Services -827 1,507 -354 -282 -472 -181 1,290 1,645 609 891 6 479 8 189 14.80 5.40 2010 2009 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees Assets Assets OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's ($) ($) Status ($) Status ($) GAS NICOR Inc Utilities -170 196 73 58 -243 -211 390 317 364 306 0 243 0 211 3.80 3.90 GCI Gannett Co Consumer Discretionary -820 1,033 -629 -713 -191 -208 2,589 3,218 2,376 3,088 0 191 0 208 32.60 35.00 4 GD Genl Dynamics Industrials -3,744 4,332 -2,988 -2,454 -756 -609 6,250 9,238 5,673 8,127 389 1,145 378 987 90.00 91.70 GE Genl Electric Industrials -20,187 23,762 -9,302 -8,698 -10,885 -11,637 52,604 61,906 49,016 57,714 1,125 12,010 1,138 12,775 287.00 304.00
Item GILD Gilead Sciences Health Care 4.00 3.85 - GIS Genl Mills Consumer Staples -500 -776 3,530 4,030 284 1,061 33.00 GLW Corning Inc Information Technology -1,294 1,714 -318 -521 -976 -928 2,690 3,008 2,270 2,791 0 976 0 928 26.20 23.50 GME GameStop Corp'A' Consumer Discretionary 68.00 59.00
Packet GNW Genworth Financial'A' Financials 6.50 6.00 GOOG Google Inc'A' Information Technology 24.40 19.84 GPC Genuine Parts Consumer Discretionary -262 485 -249 -286 -12 -14 1,440 1,689 1,216 1,502 0 12 0 14 29.50 29.00 GPS Gap Inc Consumer Discretionary 134.00 135.00 GR Goodrich Corp Industrials -897 1,489 -571 -919 -327 -332 3,376 3,947 2,784 3,703 0 327 0 332 25.60 24.00 GS Goldman Sachs Group Financials -285 -484 1,133 1,418 0 484 35.70 32.50 GT Goodyear Tire & Rub Consumer Discretionary -3,146 3,592 -2,549 -2,715 -597 -551 5,788 8,337 5,343 8,058 7 604 6 557 72.00 69.00
Supplemental Supplemental GWW Grainger (W.W.) Industrials -161 -148 97 258 74 222 18.50 18.00 HAL Halliburton Co Energy -250 -221 773 1,023 722 943 58.00 51.00 HAR Harman Intl Consumer Discretionary -144 -129 0 144 0 129 9.82 9.48 2011 HAS Hasbro Inc Consumer Discretionary -98 118 -63 -56 -34 -31 270 334 250 306 0 34 0 31 5.80 5.80
21, HBAN Huntington Bancshares Financials -134 158 -99 -51 -34 -33 478 578 454 505 0 34 0 33 11.34 10.27 HCBK Hudson City Bancorp Financials -52 61 -4 2 -48 -34 152 156 144 142 0 48 0 34 1.56 1.55 HCN Health Care REIT Financials -4 -3 0403 0.26 0.22 July HCP HCP Inc Financials 0.15 0.14 HD Home Depot Consumer Discretionary 321.00 317.00
Force HES Hess Corp Energy -431 724 -324 -475 -107 -84 1,365 1,689 1,072 1,547 0 107 0 84 13.80 13.30 HIG Hartford Finl Svcs Gp Financials -1,091 1,502 -873 -757 -218 -226 3,922 4,795 3,526 4,283 190 408 175 401 26.80 28.00 HNZ Heinz (H.J.) Consumer Staples 284 -235 2,870 2,586 0 235 29.60
Task HOG Harley-Davidson Consumer Discretionary -542 633 -285 -259 -257 -268 1,105 1,390 1,026 1,285 121 378 109 377 6.90 7.90 HON Honeywell Intl Industrials -4,917 7,272 -3,243 -4,121 -1,674 -1,791 16,120 19,363 13,765 17,886 0 1,674 0 1,791 130.00 122.00 HOT Starwood Hotels&Res World Consumer Discretionary -45 62 -26 -36 -19 -18 176 202 159 195 1 20 1 19 145.00 145.00 HP Helmerich & Payne Energy -41 -33 61 102 57 90 6.40 5.38 Reform HPQ Hewlett-Packard Information Technology -5,275 7,788 -4,804 -4,482 -471 -640 22,187 26,991 19,696 24,178 374 845 352 992 324.60 304.00 HRB H & R Block Consumer Discretionary 110.40 HRL Hormel Foods Consumer Staples -423 536 -76 -96 -347 -346 802 879 690 786 0 347 0 346 19.30 18.60 HRS Harris Corp Information Technology 15.80 15.40 Pension HSP Hospira Inc Health Care -89 207 -36 -117 -54 -58 458 494 340 457 0 54 0 58 14.00 13.50 HST Host Hotels & Resorts Financials 0.20 0.19 HSY Hershey Co Consumer Staples -356 414 -49 -15 -306 -325 1,000 1,050 942 958 0 306 0 325 13.50 13.70 HUM Humana Inc Health Care 0 0 0 0 0 0 35.20 28.10 IBM Intl Bus. Machines Information Technology -13,736 18,161 -7,896 -8,088 -5,840 -5,730 85,981 93,877 81,574 89,662 155 5,995 137 5,867 426.75 399.41 ICE IntercontinentalExchange Financials 0.93 0.83 IFF Intl Flavors/Fragr Materials -47 -63 1,019 1,066 965 1,028 109 111 5.51 5.40 IGT Intl Game Technology Consumer Discretionary 4.90 5.10 INTC Intel Corp Information Technology -669 974 -430 -257 -239 -198 1,211 1,641 963 1,220 59 298 2 200 82.50 79.80 INTU Intuit Inc Information Technology 0 0 0 0 0 0 7.70 7.80 IP Intl Paper Materials -1,929 3,489 -1,480 -2,760 -449 -491 8,344 9,824 6,784 9,544 0 449 0 491 59.50 56.10 IPG Interpublic Grp Cos Consumer Discretionary -206 223 -155 -212 -52 -55 407 562 391 604 0 52 0 55 41.00 40.00 IR Ingersoll-Rand Plc Industrials -1,434 1,987 -551 -903 -883 -979 3,249 3,800 2,696 3,599 0 883 0 979 59.00 57.00 IRM Iron Mountain Industrials 19.40 20.10 ISRG Intuitive Surgical Health Care 1.66 1.26 ITT ITT Corp Industrials -1,785 2,127 -1,338 -1,392 -447 -454 4,622 5,960 4,308 5,700 275 722 247 701 40.00 40.20 ITW Illinois Tool Works Industrials -356 -434 -274 1,932 2,288 1,760 2,194 294 260 534 61.00 59.00 IVZ INVESCO Ltd Financials -94 118 -50 -67 -44 -41 286 336 263 330 8 52 7 49 5.62 4.89 JBL Jabil Circuit Information Technology -48 -48 86 134 81 130 69.00 61.00 JCI Johnson Controls Consumer Discretionary -1,011 1,751 -755 -1,086 -256 -275 3,687 4,442 2,947 4,033 0 256 0 275 137.00 130.00 JCP Penney (J.C.) Consumer Discretionary 526 411 541 -269 -15 -18 5,251 4,710 4,314 4,583 0 15 0 18 156.00 154.00 JDSU JDS Uniphase Corp Information Technology -81 81 -81 -78 -1 -1 19 100 19 97 0 1 0 1 4.70 4.00 JEC Jacobs Engr Group Industrials -398 -312 770 1,167 680 991 52.20 53.20 JNJ Johnson & Johnson Health Care -5,118 7,626 -1,560 -2,526 -3,558 -3,574 13,433 14,993 10,923 13,449 14 3,572 16 3,590 114.00 115.50 JNPR Juniper Networks Information Technology 8.77 7.23 JNS Janus Capital Group Financials 1.12 1.13 JOYG Joy Global Industrials -461 615 -431 -579 -30 -31 1,135 1,567 982 1,562 5 34 3 34 11.90 11.30 JPM JPMorgan Chase & Co Financials 2,956 -2,019 2,555 2,137 401 244 13,475 10,920 12,650 10,513 1,381 980 1,269 1,025 239.83 222.32 JWN Nordstrom, Inc Consumer Discretionary -122 -102 0 122 0 102 54.00 53.00 K Kellogg Co Consumer Staples -179 1,148 37 -282 -216 -490 3,967 3,930 3,334 3,616 1,008 1,224 672 1,162 30.65 30.95 KEY KeyCorp Financials -350 428 -336 -363 -14 -14 914 1,250 839 1,202 61 75 58 72 15.61 16.70 KFT Kraft Foods'A' Consumer Staples -5,608 9,968 -2,345 -1,703 -3,263 -3,032 13,253 15,598 8,893 10,596 0 3,263 0 3,032 127.00 97.00 KIM Kimco Realty Financials 0.69 0.64 KLAC KLA-Tencor Corp Information Technology -38 -25 9 46 8 33 5.00 4.90 2010 2009 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees Assets Assets OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's ($) ($) Status ($) Status ($) KMB Kimberly-Clark Consumer Staples -1,854 2,210 -1,058 -1,247 -796 -795 4,600 5,658 4,244 5,491 0 796 0 795 57.00 56.00 KMX CarMax Inc Consumer Discretionary -39 78 116 13.44 4 KO Coca-Cola Co Consumer Staples -2,497 4,976 -1,795 -964 -702 -310 5,497 7,292 3,032 3,996 187 889 173 483 139.60 92.80 KR Kroger Co Consumer Staples -973 1,349 -643 -797 -330 -312 2,472 3,115 2,096 2,893 0 330 0 312 338.00 334.00
Item KSS Kohl's Corp Consumer Discretionary 136.00 133.00 - L Loews Corp Financials -764 929 -678 -726 -86 -148 2,468 3,146 2,303 3,029 73 159 73 221 18.40 18.50 LEG Leggett & Platt Consumer Discretionary -53 -37 210 264 197 235 19.00 18.50 LEN Lennar Corp'A' Consumer Discretionary 4.09 3.84
Packet LH Laboratory Corp Amer Hldg Health Care -126 131 -84 -69 -42 -40 264 348 259 328 0 42 0 40 31.00 28.00 LIFE Life Technologies Health Care -140 192 -106 -137 -34 -37 759 865 707 844 6 40 6 42 11.00 9.00 LLL L-3 Communications Hldgs Industrials -944 1,231 -780 -660 -164 -155 1,585 2,365 1,304 1,964 39 203 33 188 63.00 67.00 LLTC Linear Technology Corp Information Technology 4.19 3.82 LLY Lilly (Eli) Health Care -1,893 3,014 -1,132 -1,545 -761 -852 6,983 8,115 6,009 7,554 1,328 2,089 1,181 2,033 38.35 40.36 LM Legg Mason Inc Financials 3.55 LMT Lockheed Martin Industrials -11,641 15,035 -10,428 -10,663 -1,213 -1,308 25,345 35,773 22,154 32,817 1,833 3,046 1,630 2,938 132.00 140.00
Supplemental Supplemental LNC Lincoln Natl Corp Financials -250 336 -132 -190 -118 -117 1,232 1,364 1,149 1,339 37 155 34 151 8.27 8.21 LO Lorillard Inc Consumer Staples -231 299 -34 -41 -197 -206 989 1,023 921 962 0 197 0 206 2.70 2.70 LOW Lowe's Cos Consumer Discretionary 234.00 239.00 2011 LSI LSI Corp Information Technology -440 494 -462 -455 22 21 869 1,331 819 1,274 67 44 62 41 5.72 5.40
21, LTD Limited Brands Consumer Discretionary 96.50 92.10 LUK Leucadia National Financials -63 -68 145 208 168 236 1 2.41 3.34 LUV Southwest Airlines Industrials -91 -86 0 91 0 86 34.90 34.73 July LXK Lexmark Intl'A' Information Technology -206 216 -163 -165 -43 -45 616 779 606 771 0 43 0 45 13.20 11.90 M Macy's Inc Consumer Discretionary -1,186 2,125 -908 -1,694 -278 -278 2,804 3,712 1,865 3,559 0 278 0 278 166.00 161.00
Force MA MasterCard Inc'A' Information Technology -64 86 -4 -21 -60 -60 236 240 214 235 0 60 0 60 5.60 5.10 MAR Marriott Intl'A' Consumer Discretionary 129.00 137.00 MAS Masco Corp Industrials -535 570 -522 -484 -13 -13 509 1,031 474 958 0 13 0 13 32.50 35.40
Task MAT Mattel, Inc Consumer Discretionary -264 284 -229 -216 -35 -46 317 546 297 513 0 35 0 46 31.00 27.00 MCD McDonald's Corp Consumer Discretionary 400.00 385.00 MCHP Microchip Technology Information Technology 0 0 0 5.42 MCK McKesson Corp Health Care -202 -154 391 593 0 154 32.50 Reform MCO Moody's Corp Financials -138 150 -122 -105 -16 -13 120 243 108 213 0 16 0 13 4.50 4.00 MDT Medtronic, Inc Health Care -299 -112 1,524 1,823 158 270 43.00 MEE Massey Energy Energy -94 -66 268 362 237 303 186 162 7.36 5.85 MET MetLife Inc Financials -1,876 2,673 -1,231 -879 -645 -726 6,488 7,719 5,770 6,649 1,200 1,845 1,121 1,847 66.00 54.00 Pension MHP McGraw-Hill Companies Consumer Discretionary -371 660 -227 -292 -144 -157 1,567 1,794 1,277 1,569 0 144 0 157 20.76 21.08 MHS Medco Health Solutions Health Care -83 125 -64 -67 -19 -16 189 254 148 215 0 19 0 16 24.63 22.85 MI Marshall & Ilsley Financials -25 -28 40 65 36 64 9.14 9.41 MJN Mead Johnson Nutrition Consumer Staples -67 128 -43 -100 -24 -21 269 312 209 310 0 24 0 21 6.50 5.60 MKC McCormick & Co Consumer Staples -259 328 -157 -168 -102 -102 583 739 514 682 0 102 0 102 7.50 7.50 MMC Marsh & McLennan Financials -921 1,964 -658 -841 -263 -233 10,185 10,843 9,142 9,983 0 263 0 233 51.00 52.00 MMI Motorola Mobility Holding Information Technology 19.00 20.00 MMM 3M Co Industrials -1,980 3,594 -1,301 -1,686 -679 -504 15,930 17,231 14,390 16,076 1,149 1,828 1,075 1,579 80.06 74.84 MO Altria Group Consumer Staples -3,769 4,117 -1,221 -1,205 -2,548 -2,464 5,218 6,439 4,870 6,075 0 2,548 0 2,464 10.00 10.00 MOLX Molex Inc Information Technology -136 149 -90 -76 -45 -37 109 199 95 171 0 45 0 37 35.52 25.24 MON Monsanto Co Materials -643 -535 1,626 2,269 1,516 2,051 264 248 27.60 27.00 MRK Merck & Co Health Care -2,333 4,366 -1,273 -2,349 -1,060 -1,092 12,705 13,978 10,835 13,183 1,685 2,745 1,523 2,614 94.00 100.00 MRO Marathon Oil Energy -2,228 2,444 -1,449 -1,413 -779 -685 2,187 3,636 1,971 3,384 0 779 0 685 29.68 28.86 MS Morgan Stanley Financials -466 702 -311 -224 -155 -203 2,642 2,953 2,406 2,630 0 155 0 203 62.54 61.39 MSFT Microsoft Corp Information Technology 89.00 93.00 MSI Motorola Solutions Information Technology -2,409 2,889 -2,132 -2,387 -277 -287 5,546 7,678 5,062 7,449 170 447 174 461 51.00 53.00 MTB M&T Bank Financials -171 243 -110 -90 -62 -57 838 948 767 857 0 62 0 57 13.37 14.23 MU Micron Technology Information Technology 25.90 18.20 MUR Murphy Oil Energy -282 322 -159 -146 -123 -102 416 575 376 521 0 123 0 102 8.99 8.37 MWV MeadWestvaco Corp Materials 809 -515 913 806 -104 -107 3,756 2,843 3,462 2,656 0 104 0 107 17.50 20.00 MWW Monster Worldwide Information Technology 5.85 5.70 MYL Mylan Inc Health Care 13.00 15.50 NBL Noble Energy Energy -80 114 -56 -56 -24 -23 206 262 172 228 0 24 0 23 1.77 1.63 NBR Nabors Indus Energy -5 -5 15 21 14 19 20.52 15.24 NDAQ Nasdaq OMX Group Financials -63 68 -51 -49 -12 -9 62 113 57 106 0 12 0 9 2.40 2.22 NE Noble Corp Energy 14 17 14 15 0 0 273 259 242 228 0 0 0 0 5.90 5.70 NEE NextEra Energy Utilities 854 -649 1,239 1,162 -385 -398 3,233 1,994 3,028 1,866 32 417 32 430 14.69 15.07 NEM Newmont Mining Materials -217 404 -122 -208 -95 -95 559 681 372 580 0 95 0 95 15.50 14.50 NFLX NetFlix Inc Consumer Discretionary 4.33 4.08 NFX Newfield Exploration Energy 0 0 0 0 0 0 8 6 1.35 1.15 NI NiSource Inc Utilities -1,008 1,266 -578 -675 -429 -445 1,900 2,478 1,682 2,356 327 756 287 731 7.60 7.62 NKE NIKE, Inc'B' Consumer Discretionary 34.40 NOC Northrop Grumman Industrials -3,882 6,264 -1,998 -2,750 -1,884 -1,937 23,265 25,263 20,973 23,723 933 2,817 843 2,780 117.10 120.70 NOV Natl Oilwell Varco Energy -102 112 -69 -69 -33 -39 203 272 193 262 0 33 0 39 41.03 36.80 2010 2009 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees Assets Assets OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's ($) ($) Status ($) Status ($) NOVL Novell Inc Information Technology -18 -13 0 18 0 13 3.40 3.60 NRG NRG Energy Utilities -107 -94 297 404 263 357 4.96 4.61 4 NSC Norfolk Southern Industrials -961 1,192 -57 -154 -904 -883 1,756 1,813 1,542 1,696 178 1,082 161 1,044 28.56 28.59 NSM Natl Semiconductor Information Technology -67 217 284 5.80
Item NTAP NetApp Inc Information Technology 8.33 - NTRS Northern Trust Financials 87 82 138 73 -51 -50 1,104 966 936 862 0 51 0 50 12.80 12.40 NU Northeast Utilities Utilities -1,055 1,281 -843 -821 -211 -235 1,978 2,821 1,790 2,610 279 490 240 476 6.17 6.08 NUE Nucor Corp Materials 20.50 20.40
Packet NVDA NVIDIA Corp Information Technology 6.03 5.71 NVLS Novellus Systems Information Technology -8 -5 9 17 16 21 3 3 2.70 2.54 NWL Newell Rubbermaid Consumer Discretionary -391 -423 1,061 1,452 988 1,411 167 168 19.40 19.50 NWSA News Corp 'A' Consumer Discretionary -892 1,278 -582 -483 -310 -276 2,404 2,986 2,018 2,501 0 310 0 276 51.00 55.00 NYX NYSE Euronext Financials -265 -253 771 1,036 760 1,013 208 220 2.97 3.37 OI Owens-Illinois Materials -810 1,000 -530 -518 -280 -289 3,474 4,004 3,284 3,802 0 280 0 289 24.00 22.00 OKE ONEOK Inc Utilities -372 553 -194 -248 -178 -175 904 1,098 749 997 118 295 92 268 4.84 4.76
Supplemental Supplemental OMC Omnicom Group Consumer Discretionary -181 182 -76 -69 -105 -88 54 130 52 121 0 105 0 88 65.50 63.00 ORCL Oracle Corp Information Technology 105.00 ORLY O'Reilly Automotive Consumer Discretionary 46.86 44.82 2011 OXY Occidental Petroleum Energy -1,119 1,131 -129 -101 -990 -889 495 624 482 583 1 991 2 891 11.00 10.10
21, PAYX Paychex Inc Information Technology 12.20 PBCT People's United Financial Financials -37 81 -26 -9 -11 -11 318 344 274 283 0 11 0 11 5.20 4.53 PBI Pitney Bowes Industrials -618 690 -338 -343 -280 -254 1,836 2,174 1,764 2,107 0 280 0 254 30.70 33.00 July PCAR PACCAR Inc Industrials -46 215 -40 -49 -6 -7 1,445 1,486 1,276 1,325 0 6 0 7 17.70 15.20 PCG PG&E Corp Utilities -2,239 3,327 -1,821 -1,436 -418 -342 10,250 12,071 9,330 10,766 1,337 1,755 1,169 1,511 19.42 19.43
Force PCL Plum Creek Timber Financials -29 -34 106 135 96 130 1.20 1.25 PCLN priceline.com Inc Consumer Discretionary 3.40 2.01 PCP Precision Castparts Industrials -17 -130 1,473 1,490 0 130 17.95
Task PCS MetroPCS Communic Telecommunication Services 3.60 3.60 PDCO Patterson Cos Health Care 6.89 PEG Public Svc Enterprises Utilities -1,765 2,441 -798 -1,103 -967 -1,095 3,555 4,353 2,914 4,017 195 1,162 160 1,255 9.97 10.35 PEP PepsiCo Inc Consumer Staples -2,807 6,769 -1,227 -1,334 -1,580 -1,346 10,766 11,993 6,981 8,315 190 1,770 13 1,359 294.00 203.00 Reform PFE Pfizer, Inc Health Care -9,446 10,294 -6,278 -6,507 -3,168 -3,363 17,305 23,583 16,501 23,008 414 3,582 370 3,733 110.60 116.50 PFG Principal Financial Grp Financials -207 425 -516 -547 309 61 1,418 1,934 1,250 1,797 472 163 422 360 13.63 14.49 PG Procter & Gamble Consumer Staples -6,618 7,319 -4,683 -3,706 -1,935 -1,534 6,562 11,245 6,310 10,016 2,843 4,778 2,394 3,928 127.00 135.00 PGN Progress Energy Utilities -1,418 1,614 -718 -749 -700 -488 1,891 2,609 1,673 2,422 33 733 55 543 11.00 11.00 Pension PGR Progressive Corp,Ohio Financials 24.64 24.66 PH Parker-Hannifin Industrials -1,481 1,693 -1,411 -1,145 -70 -64 2,020 3,431 1,807 2,952 0 70 0 64 54.79 51.64 PHM PulteGroup Inc Consumer Discretionary 4.36 5.70 PKI PerkinElmer Inc Health Care -169 214 -176 -229 8 6 299 476 256 484 11 3 10 4 6.20 8.20 PLD ProLogis Financials 1.10 1.14 PLL Pall Corp Industrials -248 -236 356 604 307 543 10.40 10.20 PM Philip Morris Intl Consumer Staples -432 869 -379 -440 -53 -805 4,874 5,253 4,437 4,877 0 53 0 805 78.30 77.30 PNC PNC Financial Services Gr Financials -495 765 -102 -172 -393 -374 3,991 4,093 3,721 3,893 0 393 0 374 50.77 55.82 PNW Pinnacle West Capital Utilities -830 1,221 -569 -612 -260 -210 1,776 2,345 1,462 2,074 567 828 490 701 6.74 7.20 POM Pepco Holdings Utilities -767 932 -338 -296 -429 -409 1,632 1,970 1,500 1,796 275 704 242 651 5.01 5.11 PPG PPG Indus Materials -2,060 2,593 -825 -951 -1,235 -1,089 4,127 4,952 3,594 4,545 0 1,235 0 1,089 38.30 39.90 PPL PPL Corp Utilities -1,812 3,111 -1,505 -1,290 -307 -197 5,343 6,848 4,103 5,393 360 667 301 498 13.81 10.49 PRU Prudential Financial Financials 701 217 1,335 736 -634 -612 10,533 9,198 9,591 8,855 1,495 2,129 1,519 2,131 41.04 41.94 PSA Public Storage Financials 4.90 4.90 PWR Quanta Services Industrials 13.75 14.67 PX Praxair Inc Materials -672 900 -447 -522 -225 -263 1,651 2,098 1,423 1,945 0 225 0 263 26.26 26.16 PXD Pioneer Natural Resources Energy -7 -9 0 7 0 9 2.25 1.89 QCOM QUALCOMM Inc Information Technology 17.50 16.10 QEP QEP Resources Energy -52 -47 -5 31 78 0 5 0.82 0.91 R Ryder System Industrials -363 509 -315 -321 -47 -49 1,429 1,744 1,283 1,604 0 47 0 49 25.90 22.90 RAI Reynolds American Consumer Staples -1,761 2,641 -595 -1,216 -1,166 -1,081 4,934 5,529 4,054 5,270 270 1,436 270 1,351 5.75 6.55 RDC Rowan Cos Energy -242 327 -159 -195 -83 -81 422 581 337 532 0 83 0 81 5.22 4.85 RF Regions Financial Financials -243 500 -216 -334 -27 -34 1,509 1,725 1,252 1,586 4 31 4 38 27.83 28.51 RHI Robert Half Intl Industrials 186.40 166.90 RHT Red Hat Inc Information Technology 3.20 RL Polo Ralph Lauren'A' Consumer Discretionary 19.00 ROK Rockwell Automation Industrials -902 1,181 -693 -599 -209 -219 2,487 3,180 2,208 2,807 0 209 0 219 19.00 19.00 ROP Roper Indus Industrials 8.05 7.65 ROST Ross Stores Consumer Discretionary 49.50 45.60 RRC Range Resources Energy 0.71 0.79 RRD Donnelley(R.R.)& Sons Industrials -852 1,236 -554 -514 -298 -331 3,030 3,583 2,654 3,168 192 490 183 514 58.70 56.80 RSG Republic Services Industrials -15 45 -13 -31 -2 -2 364 376 333 365 0 2 0 2 30.00 31.00 RSH RadioShack Corp Consumer Discretionary -21 -24 0 21 0 24 36.40 36.70 RTN Raytheon Co Industrials -4,394 6,680 -4,039 -4,602 -355 -439 15,099 19,138 12,839 17,441 433 788 407 846 72.40 75.10 2010 2009 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees Assets Assets OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's ($) ($) Status ($) Status ($) S Sprint Nextel Corp Telecommunication Services 40.00 40.00 SAI SAIC Inc Information Technology -20 -42 111 131 94 136 43.40 46.20 4 SBUX Starbucks Corp Consumer Discretionary 137.00 142.00 SCG SCANA Corp Utilities -208 266 5 -31 -214 -210 817 812 759 789 0 214 0 210 5.88 5.83
Item SCHW Schwab(Charles)Corp Financials 12.80 12.40 - SE Spectra Energy Energy -594 788 -332 -356 -262 -247 1,201 1,533 1,010 1,366 78 340 75 322 5.50 5.40 SEE Sealed Air Materials -82 -103 259 341 242 345 16.10 16.20 SHLD Sears Holdings Consumer Discretionary -2,181 2,667 -1,682 -1,847 -499 -454 5,342 7,024 4,844 6,691 90 589 102 556 312.00 322.00
Packet SHW Sherwin-Williams Materials -91 159 224 218 -316 -301 700 476 633 414 0 316 0 301 32.23 29.22 SIAL Sigma-Aldrich Materials -113 145 -64 -51 -49 -46 335 399 303 354 0 49 0 46 7.89 7.74 SJM Smucker (J.M.) Consumer Staples -83 -46 367 451 0 46 4.85 SLB Schlumberger Ltd Energy -1,219 2,620 -458 -727 -761 -933 6,399 6,857 5,230 5,957 290 1,051 58 991 108.00 77.00 SLE Sara Lee Corp Consumer Staples -727 1,172 -530 -466 -197 -164 4,197 4,727 3,752 4,218 0 197 0 164 33.40 41.00 SLM SLM Corp Financials -4 197 201 7.60 8.00 SNA Snap-On Inc Industrials -312 390 -244 -253 -67 -69 793 1,037 716 969 14 81 13 81 11.30 11.00
Supplemental Supplemental SNDK SanDisk Corp Information Technology 3.47 3.27 SNI Scripps Networks Interact Consumer Discretionary -55 -43 41 96 34 77 2.00 1.80 SO Southern Co Utilities -1,339 2,605 -389 -1,131 -950 -1,016 6,834 7,223 5,627 6,758 802 1,752 743 1,759 25.94 26.11 2011 SPG Simon Property Group Financials 0 0 0 0 0 0 5.90 5.20
21, SPLS Staples Inc Consumer Discretionary 121 147 85 -25 1,091 945 1,021 936 0 25 89.02 91.10 SRCL Stericycle Inc Industrials 9.72 8.20 SRE Sempra Energy Utilities -1,163 1,475 -770 -953 -393 -327 2,354 3,124 2,130 3,083 746 1,139 658 985 13.50 13.84 July STI SunTrust Banks Financials 237 -45 261 326 -24 -18 2,522 2,261 2,334 2,008 165 189 161 179 29.06 28.00 STJ St. Jude Medical Health Care 15.00 14.00
Force STT State Street Corp Financials -300 356 -186 -162 -114 -112 884 1,070 828 990 0 114 0 112 28.67 27.31 STZ Constellation Brands'A' Consumer Staples -115 283 398 6.00 SUN Sunoco Inc Energy -536 740 -150 -419 -386 -405 1,008 1,158 804 1,223 0 386 0 405 10.20 11.20
Task SVU Supervalu Inc Consumer Staples -763 -131 1,557 2,320 0 131 160.00 SWK Stanley Black & Decker Consumer Discretionary -713 2,145 -626 -113 -87 -23 1,751 2,378 320 433 0 87 0 23 36.70 16.70 SWN Southwestern Energy Energy -16 26 -11 -10 -5 -3 57 68 47 57 0 5 0 3 2.09 1.70 SWY Safeway Inc Consumer Staples -738 818 -605 -523 -133 -122 1,652 2,257 1,572 2,096 0 133 0 122 180.00 186.00 Reform SYK Stryker Corp Health Care -108 -85 200 308 177 262 20.04 18.58 SYMC Symantec Corp Information Technology 17.40 SYY Sysco Corp Consumer Staples -554 977 -545 -308 -8 -7 1,667 2,212 1,244 1,552 0 8 0 7 46.00 47.00 T AT&T Inc Telecommunication Services -30,187 32,169 -6,296 -3,977 -23,891 -24,712 47,621 53,917 46,873 50,850 12,747 36,638 11,513 36,225 266.59 282.72 Pension TAP Molson Coors Brewing'B' Consumer Staples -394 732 -250 -626 -144 -160 3,121 3,371 2,783 3,409 0 144 0 160 14.66 14.54 TDC Teradata Corp Information Technology -92 106 -52 -51 -40 -38 59 111 45 96 0 40 0 38 7.40 6.60 TE TECO Energy Utilities -353 443 -131 -199 -222 -208 480 610 389 588 0 222 0 208 4.23 4.07 TEG Integrys Energy Group Utilities -610 793 -337 -404 -272 -245 1,081 1,419 934 1,337 266 539 231 476 4.61 5.03 TER Teradyne Inc Information Technology -56 111 -43 -94 -13 -19 295 338 240 334 0 13 0 19 3.00 2.90 TGT Target Corp Consumer Discretionary -135 493 -41 -103 -94 -87 2,515 2,556 2,157 2,260 0 94 0 87 355.00 351.00 THC Tenet Healthcare Health Care -268 -249 0 268 0 249 0 0 56.61 57.61 TIE Titanium Metals Materials -106 133 -85 -121 -20 -21 221 307 194 315 0 20 0 21 2.39 2.21 TIF Tiffany & Co Consumer Discretionary -219 281 -170 -181 -49 -42 263 433 202 382 0 49 0 42 9.20 8.40 TJX TJX Companies Consumer Discretionary -54 209 -52 -124 -2 -2 664 716 508 632 0 2 0 2 166.00 154.00 TLAB Tellabs, Inc Information Technology 0 -1 10 10 10 10 3.41 3.30 TMK Torchmark Corp Financials -66 91 -49 -30 -17 -16 237 286 212 242 0 17 0 16 3.29 3.51 TMO Thermo Fisher Scientific Health Care -232 283 -197 -181 -35 -32 873 1,070 822 1,004 0 35 0 32 37.20 35.40 TROW T.Rowe Price Group Financials 5.05 4.80 TRV Travelers Cos Financials -381 548 -147 -129 -234 -244 2,425 2,572 2,258 2,387 20 254 20 264 32.00 32.00 TSN Tyson Foods'A' Consumer Staples -110 116 -65 -59 -45 -46 74 139 68 127 0 45 0 46 115.00 117.00 TSO Tesoro Corp Energy -366 398 -270 -249 -96 -356 294 564 262 511 0 96 0 356 5.30 5.50 TSS Total System Svcs Information Technology 7.79 7.62 TWC Time Warner Cable Consumer Discretionary 79 43 1,882 1,803 1,595 1,552 47.50 47.00 TWX Time Warner Consumer Discretionary -478 646 -320 -450 -158 -156 3,130 3,450 2,962 3,412 0 158 0 156 31.00 31.00 TXN Texas Instruments Information Technology -498 665 -429 -274 -69 -98 2,668 3,097 2,531 2,805 404 473 374 472 28.41 26.58 TXT Textron, Inc Industrials -1,932 2,708 -1,318 -1,443 -614 -646 4,559 5,877 3,783 5,226 0 614 0 646 32.00 32.00 TYC Tyco Intl Industrials -703 811 -631 -622 -72 -70 1,689 2,320 1,581 2,203 0 72 0 70 108.00 106.00 UNH UnitedHealth Group Health Care 87.00 80.00 UNM Unum Group Financials -323 630 -150 -248 -173 -179 1,356 1,506 1,049 1,297 12 185 12 191 9.50 9.70 UNP Union Pacific Industrials -673 1,033 -355 -404 -318 -314 2,404 2,759 2,044 2,448 0 318 0 314 42.88 43.53 UPS United Parcel'B' Industrials -4,733 9,489 -1,369 -2,506 -3,364 -3,038 20,653 22,022 15,832 18,338 233 3,597 298 3,336 400.60 408.00 URBN Urban Outfitters Consumer Discretionary 16.00 14.00 USB U.S. Bancorp Financials -674 877 -624 -407 -50 -42 2,305 2,929 2,089 2,496 131 181 144 186 60.58 58.23 UTX United Technologies Industrials -2,883 5,889 -2,061 -2,894 -822 -865 22,384 24,445 19,377 22,271 10 832 11 876 208.20 206.70 V Visa Inc'A' Information Technology -11 74 23 -36 -34 -43 766 743 703 739 0 34 0 43 6.80 5.70 VAR Varian Medical Systems Health Care -34 47 -28 -21 -6 -6 113 141 100 121 0 6 0 6 5.30 5.10 VFC VF Corp Consumer Discretionary -207 -251 1,212 1,419 1,034 1,285 47.00 45.70 VIA.B Viacom Inc'B' Consumer Discretionary -356 406 -343 -245 -13 -12 464 807 414 659 0 13 0 12 10.90 11.20 2010 2009 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees Assets Assets OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's ($) ($) Status ($) Status ($) VLO Valero Energy Energy -690 801 -264 -203 -426 -466 1,362 1,626 1,251 1,454 0 426 0 466 20.31 20.92 VMC Vulcan Materials Materials -265 401 -131 -216 -134 -118 630 761 494 710 0 134 0 118 7.99 8.48 4 VNO Vornado Realty Trust Financials 0 0 0 0 0 0 4.78 4.60 VRSN VeriSign Inc Information Technology 1.05 2.33
Item VTR Ventas Inc Financials 0.26 0.06 - VZ Verizon Communications Telecommunication Services -26,176 23,252 -3,403 -3,226 -22,773 -24,246 25,814 29,217 28,592 31,818 2,945 25,718 3,091 27,337 194.40 222.93 WAG Walgreen Co Consumer Staples -441 -328 0 441 0 328 244.00 238.00 WAT Waters Corp Health Care -47 59 -43 -41 -4 -4 105 148 94 135 4 8 3 7 5.38 5.22
Packet WDC Western Digital Information Technology 62.50 45.99 WEC Wisconsin Energy Corp Utilities -315 363 -163 -135 -152 -172 1,060 1,223 1,026 1,161 217 368 203 375 4.60 4.69 WFC Wells Fargo Financials -2,092 2,940 -1,391 -1,607 -701 -1,025 9,639 11,030 9,112 10,719 697 1,398 376 1,401 272.20 267.30 WFMI Whole Foods Market Consumer Staples 0 0 0 0 0 0 58.30 52.50 WFR MEMC Electronic Materials Information Technology -44 59 -21 -14 -23 -25 192 213 177 192 0 23 0 25 6.48 5.14 WHR Whirlpool Corp Consumer Discretionary -2,205 2,213 -1,534 -1,568 -671 -761 2,460 3,994 2,452 4,020 0 671 0 761 70.76 66.88 WIN Windstream Corp Telecommunication Services -394 480 -294 -277 -100 -89 870 1,164 784 1,061 0 100 0 89 10.09 7.39
Supplemental Supplemental WLP WellPoint Inc Health Care -361 538 27 -48 -388 -487 1,743 1,715 1,704 1,752 271 659 132 620 37.50 40.50 WM Waste Management Industrials 42.80 43.40 WMB Williams Cos Energy -423 548 -296 -258 -127 -111 971 1,267 860 1,118 162 289 148 259 5.02 4.80 2011 WMT Wal-Mart Stores Consumer Staples 2,100.00 2,100.00
21, WPI Watson Pharmaceuticals Health Care 0 0 0 0 0 0 6.03 5.83 WPO Washington Post'B' Consumer Discretionary 391 -179 459 336 -69 -79 1,652 1,193 1,441 1,105 0 69 0 79 20.00 21.50 WU Western Union Information Technology -113 -124 290 403 276 400 7.00 6.80 July WY Weyerhaeuser Co Financials -990 1,604 -494 -600 -496 -591 4,773 5,267 4,159 4,759 0 496 0 591 14.25 14.89 WYN Wyndham Worldwide Consumer Discretionary 26.40 24.60
Force WYNN Wynn Resorts Consumer Discretionary 16.41 18.90 X U.S. Steel Materials -4,908 5,357 -1,975 -1,708 -2,933 -2,891 8,655 10,630 8,280 9,988 1,407 4,340 1,333 4,224 42.00 43.00 XEL Xcel Energy Utilities -852 991 -490 -380 -363 -344 2,541 3,030 2,449 2,830 432 795 385 729 11.29 11.35
Task XL XL Group Plc'A' Financials -33 -27 33 66 30 57 3.58 3.57 XLNX Xilinx Inc Information Technology 2.95 XOM Exxon Mobil Energy -19,902 21,868 -13,129 -11,647 -6,773 -6,234 27,600 40,729 25,678 37,325 558 7,331 514 6,748 83.60 80.70 XRAY DENTSPLY Intl Health Care -124 134 -112 -103 -12 -12 100 212 89 192 0 12 0 12 9.70 9.30 Reform XRX Xerox Corp Information Technology -2,797 3,176 -1,791 -1,633 -1,006 -1,102 7,940 9,731 7,561 9,194 0 1,006 0 1,102 136.50 53.60 YHOO Yahoo Inc Information Technology 13.60 13.90 YUM Yum Brands Consumer Discretionary -224 -204 1,071 1,295 976 1,180 78 73 378.00 350.00 ZION Zions Bancorp Financials -17 79 -16 -61 -1 -1 161 177 99 160 0 1 0 1 10.52 10.53 Pension ZMH Zimmer Holdings Health Care -3 -4 451 454 381 385 8.80 8.20 S&P 500 2010 Pension and OPEB Report, 2009 for Comparisons (by Sector) - Not Historical Index Makeup
2010 2009
4 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees Assets Assets Item OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's - ($) ($) Status ($) Status ($) Consumer Discretionary -40,114 -42,535 -27,152 -30,032 -12,962 -12,503 122,594 149,746 111,039 141,071 535 13,497 520 13,023 5,488.05 5,960.47 Consumer Staples -35,509 -38,434 -19,315 -21,034 -16,194 -17,400 85,848 105,163 82,328 103,362 4,585 20,779 3,883 21,282 4,701.84 4,867.25
Packet Energy -46,442 -44,993 -25,283 -25,180 -21,159 -19,813 71,351 96,635 63,239 88,420 1,354 22,513 1,040 20,853 686.25 608.38 Financials -19,710 -23,997 -10,503 -13,628 -9,208 -10,370 163,498 174,001 148,131 161,759 7,660 16,867 6,880 17,250 2,578.50 2,518.14 Health Care -30,502 -35,219 -17,895 -21,871 -12,607 -13,348 86,491 104,386 77,013 98,884 4,796 17,403 4,360 17,709 1,357.72 1,437.23 Industrials -113,842 -117,657 -67,384 -71,083 -46,458 -46,574 331,439 398,822 308,892 379,975 9,957 56,415 9,599 56,173 3,485.57 3,640.42 Information Technology -28,645 -30,177 -19,507 -20,743 -9,138 -9,434 133,914 153,421 128,764 149,507 1,239 10,377 1,180 10,614 2,227.19 2,248.29 Materials -41,995 -43,775 -23,946 -25,835 -18,048 -17,940 94,090 118,036 84,995 110,830 1,961 20,010 2,030 19,970 660.01 666.61 Telecommunication Services -58,889 -58,476 -11,149 -8,724 -47,740 -49,753 79,327 90,477 80,077 88,801 15,752 63,492 14,669 64,422 551.50 583.66 Supplemental Supplemental Utilities -39,684 -41,954 -22,859 -24,995 -16,825 -16,959 104,768 127,627 91,580 116,575 16,626 33,451 16,498 33,457 386.36 388.53 S&P 500 -455,332 -477,218 -244,993 -263,125 -210,340 -214,093 1,273,321 1,518,314 1,176,059 1,439,184 64,464 274,804 60,659 274,752 22,122.98 22,918.95 2011 Consumer Discretionary -40,114 -42,535 -27,152 -30,032 -12,962 -12,503 122,594 149,746 111,039 141,071 535 13,497 520 13,023 5,488.05 5,960.47
21, AMZN Amazon.com Inc Consumer Discretionary 33.70 24.30 AN AutoNation Inc Consumer Discretionary 19.00 18.00
July ANF Abercrombie & Fitch Co'A' Consumer Discretionary 85.00 80.00 APOL Apollo Group'A' Consumer Discretionary 57.41 52.39 AZO AutoZone Inc Consumer Discretionary -94 -70 117 212 115 186 63.00 60.00
Force BBBY Bed Bath & Beyond Consumer Discretionary 0 0 0 41.00 BBY Best Buy Consumer Discretionary 0 0 0 180.00 BIG Big Lots Consumer Discretionary -3 -3 60 63 57 60 35.60 35.60 Task CBS CBS Corp 'B' Consumer Discretionary -2,101 2,278 -1,321 -1,414 -780 -824 3,660 4,982 3,483 4,897 5 785 5 829 25.38 25.58 CCL Carnival Corp Consumer Discretionary 89.20 84.80 CMCSA Comcast Cl'A' Consumer Discretionary -438 445 -14 -8 -424 -360 183 197 176 184 0 424 0 360 102.00 107.00 COH Coach Inc Consumer Discretionary -6 5 11 13.00 12.00 Reform CVC Cablevision Sys'A' Consumer Discretionary -81 -147 -6 228 309 244 391 0 6 18.14 20.47 DHI D.R.Horton Consumer Discretionary 3.21 2.93 DIS Disney (Walt) Co Consumer Discretionary -3,369 4,234 -2,400 -2,159 -969 -930 5,684 8,084 4,833 6,992 311 1,280 297 1,227 149.00 144.00 DISCA Discovery Communications' Consumer Discretionary 4.20 4.40 Pension DRI Darden Restaurants Consumer Discretionary -46 -39 155 200 0 39 174.08 DTV DIRECTV Consumer Discretionary -113 168 -92 -124 -21 -21 429 521 374 498 0 21 0 21 25.10 23.30 DV DeVry Inc Consumer Discretionary 12.12 10.20 EXPE Expedia Inc Consumer Discretionary 8.90 7.96 F Ford Motor Consumer Discretionary -17,880 20,434 -11,457 -11,962 -6,423 -6,053 58,575 70,032 56,021 67,983 0 6,423 0 6,053 164.00 198.00 FDO Family Dollar Stores Consumer Discretionary 50.00 47.00 FO Fortune Brands Consumer Discretionary -324 492 -196 -290 -128 -129 989 1,185 822 1,112 0 128 0 129 24.60 24.25 GCI Gannett Co Consumer Discretionary -820 1,033 -629 -713 -191 -208 2,589 3,218 2,376 3,088 0 191 0 208 32.60 35.00 GME GameStop Corp'A' Consumer Discretionary 68.00 59.00 GPC Genuine Parts Consumer Discretionary -262 485 -249 -286 -12 -14 1,440 1,689 1,216 1,502 0 12 0 14 29.50 29.00 GPS Gap Inc Consumer Discretionary 134.00 135.00 GT Goodyear Tire & Rub Consumer Discretionary -3,146 3,592 -2,549 -2,715 -597 -551 5,788 8,337 5,343 8,058 7 604 6 557 72.00 69.00 HAR Harman Intl Consumer Discretionary -144 -129 0 144 0 129 9.82 9.48 HAS Hasbro Inc Consumer Discretionary -98 118 -63 -56 -34 -31 270 334 250 306 0 34 0 31 5.80 5.80 HD Home Depot Consumer Discretionary 321.00 317.00 HOG Harley-Davidson Consumer Discretionary -542 633 -285 -259 -257 -268 1,105 1,390 1,026 1,285 121 378 109 377 6.90 7.90 HOT Starwood Hotels&Res World Consumer Discretionary -45 62 -26 -36 -19 -18 176 202 159 195 1 20 1 19 145.00 145.00 HRB H & R Block Consumer Discretionary 110.40 IGT Intl Game Technology Consumer Discretionary 4.90 5.10 IPG Interpublic Grp Cos Consumer Discretionary -206 223 -155 -212 -52 -55 407 562 391 604 0 52 0 55 41.00 40.00 JCI Johnson Controls Consumer Discretionary -1,011 1,751 -755 -1,086 -256 -275 3,687 4,442 2,947 4,033 0 256 0 275 137.00 130.00 JCP Penney (J.C.) Consumer Discretionary 526 411 541 -269 -15 -18 5,251 4,710 4,314 4,583 0 15 0 18 156.00 154.00 JWN Nordstrom, Inc Consumer Discretionary -122 -102 0 122 0 102 54.00 53.00 KMX CarMax Inc Consumer Discretionary -39 78 116 13.44 KSS Kohl's Corp Consumer Discretionary 136.00 133.00 LEG Leggett & Platt Consumer Discretionary -53 -37 210 264 197 235 19.00 18.50 LEN Lennar Corp'A' Consumer Discretionary 4.09 3.84 LOW Lowe's Cos Consumer Discretionary 234.00 239.00 LTD Limited Brands Consumer Discretionary 96.50 92.10 M Macy's Inc Consumer Discretionary -1,186 2,125 -908 -1,694 -278 -278 2,804 3,712 1,865 3,559 0 278 0 278 166.00 161.00 MAR Marriott Intl'A' Consumer Discretionary 129.00 137.00 MAT Mattel, Inc Consumer Discretionary -264 284 -229 -216 -35 -46 317 546 297 513 0 35 0 46 31.00 27.00 MCD McDonald's Corp Consumer Discretionary 400.00 385.00 MHP McGraw-Hill Companies Consumer Discretionary -371 660 -227 -292 -144 -157 1,567 1,794 1,277 1,569 0 144 0 157 20.76 21.08 2010 2009 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees Assets Assets OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's ($) ($) Status ($) Status ($) NFLX NetFlix Inc Consumer Discretionary 4.33 4.08 4 NKE NIKE, Inc'B' Consumer Discretionary 34.40 NWL Newell Rubbermaid Consumer Discretionary -391 -423 1,061 1,452 988 1,411 167 168 19.40 19.50
Item NWSA News Corp 'A' Consumer Discretionary -892 1,278 -582 -483 -310 -276 2,404 2,986 2,018 2,501 0 310 0 276 51.00 55.00 - OMC Omnicom Group Consumer Discretionary -181 182 -76 -69 -105 -88 54 130 52 121 0 105 0 88 65.50 63.00 ORLY O'Reilly Automotive Consumer Discretionary 46.86 44.82 PCLN priceline.com Inc Consumer Discretionary 3.40 2.01
Packet PHM PulteGroup Inc Consumer Discretionary 4.36 5.70 RL Polo Ralph Lauren'A' Consumer Discretionary 19.00 ROST Ross Stores Consumer Discretionary 49.50 45.60 RSH RadioShack Corp Consumer Discretionary -21 -24 0 21 0 24 36.40 36.70 SBUX Starbucks Corp Consumer Discretionary 137.00 142.00 SHLD Sears Holdings Consumer Discretionary -2,181 2,667 -1,682 -1,847 -499 -454 5,342 7,024 4,844 6,691 90 589 102 556 312.00 322.00 SNI Scripps Networks Interact Consumer Discretionary -55 -43 41 96 34 77 2.00 1.80
Supplemental Supplemental SPLS Staples Inc Consumer Discretionary 121 147 85 -25 1,091 945 1,021 936 0 25 89.02 91.10 SWK Stanley Black & Decker Consumer Discretionary -713 2,145 -626 -113 -87 -23 1,751 2,378 320 433 0 87 0 23 36.70 16.70 TGT Target Corp Consumer Discretionary -135 493 -41 -103 -94 -87 2,515 2,556 2,157 2,260 0 94 0 87 355.00 351.00 2011 TIF Tiffany & Co Consumer Discretionary -219 281 -170 -181 -49 -42 263 433 202 382 0 49 0 42 9.20 8.40
21, TJX TJX Companies Consumer Discretionary -54 209 -52 -124 -2 -2 664 716 508 632 0 2 0 2 166.00 154.00 TWC Time Warner Cable Consumer Discretionary 79 43 1,882 1,803 1,595 1,552 47.50 47.00 TWX Time Warner Consumer Discretionary -478 646 -320 -450 -158 -156 3,130 3,450 2,962 3,412 0 158 0 156 31.00 31.00 July URBN Urban Outfitters Consumer Discretionary 16.00 14.00 VFC VF Corp Consumer Discretionary -207 -251 1,212 1,419 1,034 1,285 47.00 45.70
Force VIA.B Viacom Inc'B' Consumer Discretionary -356 406 -343 -245 -13 -12 464 807 414 659 0 13 0 12 10.90 11.20 WHR Whirlpool Corp Consumer Discretionary -2,205 2,213 -1,534 -1,568 -671 -761 2,460 3,994 2,452 4,020 0 671 0 761 70.76 66.88 WPO Washington Post'B' Consumer Discretionary 391 -179 459 336 -69 -79 1,652 1,193 1,441 1,105 0 69 0 79 20.00 21.50
Task WYN Wyndham Worldwide Consumer Discretionary 26.40 24.60 WYNN Wynn Resorts Consumer Discretionary 16.41 18.90 YUM Yum Brands Consumer Discretionary -224 -204 1,071 1,295 976 1,180 78 73 378.00 350.00
Reform Consumer Staples -35,509 -38,434 -19,315 -21,034 -16,194 -17,400 85,848 105,163 82,328 103,362 4,585 20,779 3,883 21,282 4,701.84 4,867.25 ADM Archer-Daniels-Midland Consumer Staples -802 1,096 -578 -585 -224 -256 1,721 2,299 1,427 2,012 0 224 0 256 29.30 28.20 AVP Avon Products Consumer Staples -520 523 -431 -453 -89 -95 992 1,423 993 1,447 44 133 40 135 42.00 41.00 BF.B Brown-Forman'B' Consumer Staples -226 -58 351 577 0 58 3.90 Pension CAG ConAgra Foods Consumer Staples -470 -321 2,145 2,614 4 325 24.40 CCE Coca-Cola Enterprises Consumer Staples 15 -759 -324 1,001 986 2,964 3,723 0 324 13.50 70.00 CL Colgate-Palmolive Consumer Staples -1,607 1,721 -877 -708 -730 -575 1,811 2,688 1,701 2,409 32 762 28 603 39.20 38.10 CLX Clorox Co Consumer Staples -303 363 -225 -193 -78 -70 335 560 275 468 0 78 0 70 8.30 8.30 COST Costco Wholesale Consumer Staples 147.00 142.00 CPB Campbell Soup Consumer Staples -870 1,222 -508 -662 -362 -340 1,767 2,275 1,415 2,077 0 362 0 340 18.40 18.70 CVS CVS Caremark Corp Consumer Staples -250 304 -233 -240 -17 -17 426 659 372 612 0 17 0 17 280.00 295.00 DF Dean Foods Consumer Staples -93 102 -76 -71 -18 -19 232 308 223 295 0 18 0 19 25.78 27.16 DPS Dr. Pepper Snapple Group Consumer Staples -15 26 -11 -30 -4 -19 234 245 223 253 5 9 5 24 19.00 19.00 EL Lauder (Estee) Co Consumer Staples -267 419 -128 -163 -139 -123 831 959 686 849 6 145 0 123 31.20 31.30 GIS Genl Mills Consumer Staples -500 -776 3,530 4,030 284 1,061 33.00 HNZ Heinz (H.J.) Consumer Staples 284 -235 2,870 2,586 0 235 29.60 HRL Hormel Foods Consumer Staples -423 536 -76 -96 -347 -346 802 879 690 786 0 347 0 346 19.30 18.60 HSY Hershey Co Consumer Staples -356 414 -49 -15 -306 -325 1,000 1,050 942 958 0 306 0 325 13.50 13.70 K Kellogg Co Consumer Staples -179 1,148 37 -282 -216 -490 3,967 3,930 3,334 3,616 1,008 1,224 672 1,162 30.65 30.95 KFT Kraft Foods'A' Consumer Staples -5,608 9,968 -2,345 -1,703 -3,263 -3,032 13,253 15,598 8,893 10,596 0 3,263 0 3,032 127.00 97.00 KMB Kimberly-Clark Consumer Staples -1,854 2,210 -1,058 -1,247 -796 -795 4,600 5,658 4,244 5,491 0 796 0 795 57.00 56.00 KO Coca-Cola Co Consumer Staples -2,497 4,976 -1,795 -964 -702 -310 5,497 7,292 3,032 3,996 187 889 173 483 139.60 92.80 KR Kroger Co Consumer Staples -973 1,349 -643 -797 -330 -312 2,472 3,115 2,096 2,893 0 330 0 312 338.00 334.00 LO Lorillard Inc Consumer Staples -231 299 -34 -41 -197 -206 989 1,023 921 962 0 197 0 206 2.70 2.70 MJN Mead Johnson Nutrition Consumer Staples -67 128 -43 -100 -24 -21 269 312 209 310 0 24 0 21 6.50 5.60 MKC McCormick & Co Consumer Staples -259 328 -157 -168 -102 -102 583 739 514 682 0 102 0 102 7.50 7.50 MO Altria Group Consumer Staples -3,769 4,117 -1,221 -1,205 -2,548 -2,464 5,218 6,439 4,870 6,075 0 2,548 0 2,464 10.00 10.00 PEP PepsiCo Inc Consumer Staples -2,807 6,769 -1,227 -1,334 -1,580 -1,346 10,766 11,993 6,981 8,315 190 1,770 13 1,359 294.00 203.00 PG Procter & Gamble Consumer Staples -6,618 7,319 -4,683 -3,706 -1,935 -1,534 6,562 11,245 6,310 10,016 2,843 4,778 2,394 3,928 127.00 135.00 PM Philip Morris Intl Consumer Staples -432 869 -379 -440 -53 -805 4,874 5,253 4,437 4,877 0 53 0 805 78.30 77.30 RAI Reynolds American Consumer Staples -1,761 2,641 -595 -1,216 -1,166 -1,081 4,934 5,529 4,054 5,270 270 1,436 270 1,351 5.75 6.55 SJM Smucker (J.M.) Consumer Staples -83 -46 367 451 0 46 4.85 SLE Sara Lee Corp Consumer Staples -727 1,172 -530 -466 -197 -164 4,197 4,727 3,752 4,218 0 197 0 164 33.40 41.00 STZ Constellation Brands'A' Consumer Staples -115 283 398 6.00 SVU Supervalu Inc Consumer Staples -763 -131 1,557 2,320 0 131 160.00 SWY Safeway Inc Consumer Staples -738 818 -605 -523 -133 -122 1,652 2,257 1,572 2,096 0 133 0 122 180.00 186.00 SYY Sysco Corp Consumer Staples -554 977 -545 -308 -8 -7 1,667 2,212 1,244 1,552 0 8 0 7 46.00 47.00 TAP Molson Coors Brewing'B' Consumer Staples -394 732 -250 -626 -144 -160 3,121 3,371 2,783 3,409 0 144 0 160 14.66 14.54 2010 2009 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees Assets Assets OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's ($) ($) Status ($) Status ($) TSN Tyson Foods'A' Consumer Staples -110 116 -65 -59 -45 -46 74 139 68 127 0 45 0 46 115.00 117.00 4 WAG Walgreen Co Consumer Staples -441 -328 0 441 0 328 244.00 238.00 WFMI Whole Foods Market Consumer Staples 0 0 0 0 0 0 58.30 52.50
Item WMT Wal-Mart Stores Consumer Staples 2,100.00 2,100.00 -
Energy -46,442 -44,993 -25,283 -25,180 -21,159 -19,813 71,351 96,635 63,239 88,420 1,354 22,513 1,040 20,853 686.25 608.38 APA Apache Corp Energy -30 47 -1 -17 -29 -18 135 136 118 135 0 29 0 18 4.45 3.45
Packet APC Anadarko Petroleum Energy -1,094 1,219 -778 -651 -316 -316 1,104 1,882 979 1,630 0 316 0 316 4.40 4.30 BHI Baker Hughes Inc Energy -313 609 -147 -108 -166 -157 890 1,037 594 702 0 166 0 157 53.10 34.40 BTU Peabody Energy Energy -1,141 1,283 -109 -215 -1,031 -982 772 881 630 845 0 1,031 0 982 7.20 7.30 CAM Cameron Intl Energy -37 56 -21 -32 -16 -18 261 282 242 275 0 16 0 18 19.50 18.10 CHK Chesapeake Energy Energy 10.00 8.20 CNX CONSOL Energy Energy -3,605 3,681 -163 -192 -3,442 -3,039 538 701 462 654 0 3,442 0 3,039 8.63 8.01 COG Cabot Oil & Gas Energy -36 43 -4 -22 -32 -34 60 64 53 75 0 32 0 34 0.41 0.57
Supplemental Supplemental COP ConocoPhillips Energy -3,136 4,182 -2,274 -2,718 -862 -839 6,471 8,745 5,425 8,143 0 862 0 839 29.70 30.00 CVX Chevron Corp Energy -6,864 8,407 -3,259 -3,840 -3,605 -3,065 12,082 15,341 10,539 14,379 0 3,605 0 3,065 62.00 64.00 DNR Denbury Resources Energy 1.20 0.83 2011 DO Diamond Offshore Drilling Energy 5.30 5.50
21, DVN Devon Energy Energy -535 635 -492 -448 -43 -64 632 1,124 532 980 0 43 0 64 5.00 5.40 EOG EOG Resources Energy 2.29 2.10 EP El Paso Corp Energy -564 655 -170 -154 -394 -399 2,048 2,218 1,979 2,133 265 659 243 642 4.94 4.99 July EQT EQT Corp Energy -48 47 -13 -15 -35 -37 48 61 49 64 0 35 0 37 1.82 1.80 FTI FMC Technologies Energy -182 264 -173 -134 -9 -8 702 875 620 754 0 9 0 8 11.50 10.40
Force HAL Halliburton Co Energy -250 -221 773 1,023 722 943 58.00 51.00 HES Hess Corp Energy -431 724 -324 -475 -107 -84 1,365 1,689 1,072 1,547 0 107 0 84 13.80 13.30 HP Helmerich & Payne Energy -41 -33 61 102 57 90 6.40 5.38
Task MEE Massey Energy Energy -94 -66 268 362 237 303 186 162 7.36 5.85 MRO Marathon Oil Energy -2,228 2,444 -1,449 -1,413 -779 -685 2,187 3,636 1,971 3,384 0 779 0 685 29.68 28.86 MUR Murphy Oil Energy -282 322 -159 -146 -123 -102 416 575 376 521 0 123 0 102 8.99 8.37 NBL Noble Energy Energy -80 114 -56 -56 -24 -23 206 262 172 228 0 24 0 23 1.77 1.63 Reform NBR Nabors Indus Energy -5 -5 15 21 14 19 20.52 15.24 NE Noble Corp Energy 14 17 14 15 0 0 273 259 242 228 0 0 0 0 5.90 5.70 NFX Newfield Exploration Energy 0 0 0 0 0 0 8 6 1.35 1.15 NOV Natl Oilwell Varco Energy -102 112 -69 -69 -33 -39 203 272 193 262 0 33 0 39 41.03 36.80 Pension OXY Occidental Petroleum Energy -1,119 1,131 -129 -101 -990 -889 495 624 482 583 1 991 2 891 11.00 10.10 PXD Pioneer Natural Resources Energy -7 -9 0 7 0 9 2.25 1.89 QEP QEP Resources Energy -52 -47 -5 31 78 0 5 0.82 0.91 RDC Rowan Cos Energy -242 327 -159 -195 -83 -81 422 581 337 532 0 83 0 81 5.22 4.85 RRC Range Resources Energy 0.71 0.79 SE Spectra Energy Energy -594 788 -332 -356 -262 -247 1,201 1,533 1,010 1,366 78 340 75 322 5.50 5.40 SLB Schlumberger Ltd Energy -1,219 2,620 -458 -727 -761 -933 6,399 6,857 5,230 5,957 290 1,051 58 991 108.00 77.00 SUN Sunoco Inc Energy -536 740 -150 -419 -386 -405 1,008 1,158 804 1,223 0 386 0 405 10.20 11.20 SWN Southwestern Energy Energy -16 26 -11 -10 -5 -3 57 68 47 57 0 5 0 3 2.09 1.70 TSO Tesoro Corp Energy -366 398 -270 -249 -96 -356 294 564 262 511 0 96 0 356 5.30 5.50 VLO Valero Energy Energy -690 801 -264 -203 -426 -466 1,362 1,626 1,251 1,454 0 426 0 466 20.31 20.92 WMB Williams Cos Energy -423 548 -296 -258 -127 -111 971 1,267 860 1,118 162 289 148 259 5.02 4.80 XOM Exxon Mobil Energy -19,902 21,868 -13,129 -11,647 -6,773 -6,234 27,600 40,729 25,678 37,325 558 7,331 514 6,748 83.60 80.70
Financials -19,710 -23,997 -10,503 -13,628 -9,208 -10,370 163,498 174,001 148,131 161,759 7,660 16,867 6,880 17,250 2,578.50 2,518.14 ACE ACE Limited Financials -93 -103 394 487 368 471 16.00 15.00 AFL AFLAC Inc Financials -155 -133 356 511 283 416 7.92 8.06 AIG Amer Intl Group Financials -1,825 2,092 -1,480 -1,888 -345 -380 4,379 5,859 4,112 6,000 0 345 0 380 63.00 96.00 AIV Apartment Investment & Mg Financials 3.10 3.50 AIZ Assurant Inc Financials -273 349 -215 -197 -58 -47 534 749 461 658 40 97 37 84 14.00 15.00 ALL Allstate Corp Financials -1,504 2,046 -876 -1,106 -628 -666 4,669 5,545 4,127 5,233 0 628 0 666 35.70 36.80 AMP Ameriprise Financial Financials -163 234 -142 -165 -21 -22 327 469 256 421 0 21 0 22 10.47 9.79 AON Aon Corp Financials -1,753 2,394 -1,656 -1,733 -97 -44 5,532 7,188 4,906 6,639 22 119 7 51 59.00 36.20 AVB AvalonBay Communities Financials 1.99 1.88 AXP Amer Express Financials -702 765 -383 -406 -319 -324 2,052 2,435 1,989 2,395 0 319 0 324 61.00 58.30 BAC Bank of America Financials -427 1,857 1,169 890 -1,596 -1,507 19,809 18,640 18,374 17,484 108 1,704 113 1,620 288.00 284.00 BBT BB&T Corp Financials 541 -241 606 661 -65 -39 2,484 1,878 2,184 1,523 0 65 0 39 31.40 32.40 BEN Franklin Resources Financials -7 11 1 0 -7 -6 43 42 39 39 0 7 0 6 7.93 7.75 BK Bank of New York Mellon Financials 310 63 474 481 -164 -179 4,239 3,765 3,871 3,390 71 235 66 245 48.00 42.20 BLK BlackRock Inc Financials 9.13 8.63 BRK.B Berkshire Hathaway'B' Financials -2,352 -2,210 8,246 10,598 5,926 8,136 260.52 222.00 BXP Boston Properties Financials 0.68 0.70 C Citigroup Inc Financials -1,516 3,886 -213 -1,052 -1,303 -1,146 17,706 17,919 15,526 16,578 1,271 2,574 1,081 2,227 260.00 269.00 CB Chubb Corp Financials -519 898 -192 -342 -327 -288 1,922 2,114 1,558 1,900 65 392 50 338 10.10 10.20 2010 2009 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees Assets Assets OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's ($) ($) Status ($) Status ($) CBG CB Richard Ellis Grp'A' Financials -40 -65 257 297 240 305 31.00 29.00 4 CINF Cincinnati Financial Financials -62 -77 183 245 144 221 4.06 4.17 CMA Comerica Inc Financials -131 257 -122 -31 -9 -11 1,464 1,586 1,338 1,369 73 82 73 84 9.00 9.33
Item CME CME Group Inc Financials 3 0 121 118 108 108 9 2.57 2.26 - COF Capital One Financial Financials -30 39 28 22 -58 -60 221 193 213 190 8 66 7 67 27.83 30.90 DFS Discover Financial Svcs Financials -77 93 -55 -54 -22 -24 321 376 306 359 0 22 0 24 10.30 10.50 EQR Equity Residential Financials 4.00 4.10
Packet ETFC E Trade Financial Financials 2.96 3.08 FHN First Horizon Natl Financials -65 119 -40 -37 -25 -26 550 590 496 533 16 41 16 42 5.44 5.73 FII Federated Investors 'B' Financials 1.33 1.37 FITB Fifth Third Bancorp Financials -30 -35 197 227 182 217 21.61 21.00 GNW Genworth Financial'A' Financials 6.50 6.00 GS Goldman Sachs Group Financials -285 -484 1,133 1,418 0 484 35.70 32.50 HBAN Huntington Bancshares Financials -134 158 -99 -51 -34 -33 478 578 454 505 0 34 0 33 11.34 10.27
Supplemental Supplemental HCBK Hudson City Bancorp Financials -52 61 -4 2 -48 -34 152 156 144 142 0 48 0 34 1.56 1.55 HCN Health Care REIT Financials -4 -3 0 4 0 3 0.26 0.22 HCP HCP Inc Financials 0.15 0.14 2011 HIG Hartford Finl Svcs Gp Financials -1,091 1,502 -873 -757 -218 -226 3,922 4,795 3,526 4,283 190 408 175 401 26.80 28.00
21, HST Host Hotels & Resorts Financials 0.20 0.19 ICE IntercontinentalExchange Financials 0.93 0.83 IVZ INVESCO Ltd Financials -94 118 -50 -67 -44 -41 286 336 263 330 8 52 7 49 5.62 4.89 July JNS Janus Capital Group Financials 1.12 1.13 JPM JPMorgan Chase & Co Financials 2,956 -2,019 2,555 2,137 401 244 13,475 10,920 12,650 10,513 1,381 980 1,269 1,025 239.83 222.32
Force KEY KeyCorp Financials -350 428 -336 -363 -14 -14 914 1,250 839 1,202 61 75 58 72 15.61 16.70 KIM Kimco Realty Financials 0.69 0.64 L Loews Corp Financials -764 929 -678 -726 -86 -148 2,468 3,146 2,303 3,029 73 159 73 221 18.40 18.50
Task LM Legg Mason Inc Financials 3.55 LNC Lincoln Natl Corp Financials -250 336 -132 -190 -118 -117 1,232 1,364 1,149 1,339 37 155 34 151 8.27 8.21 LUK Leucadia National Financials -63 -68 145 208 168 236 1 2.41 3.34 MCO Moody's Corp Financials -138 150 -122 -105 -16 -13 120 243 108 213 0 16 0 13 4.50 4.00 Reform MET MetLife Inc Financials -1,876 2,673 -1,231 -879 -645 -726 6,488 7,719 5,770 6,649 1,200 1,845 1,121 1,847 66.00 54.00 MI Marshall & Ilsley Financials -25 -28 40 65 36 64 9.14 9.41 MMC Marsh & McLennan Financials -921 1,964 -658 -841 -263 -233 10,185 10,843 9,142 9,983 0 263 0 233 51.00 52.00 MS Morgan Stanley Financials -466 702 -311 -224 -155 -203 2,642 2,953 2,406 2,630 0 155 0 203 62.54 61.39 Pension MTB M&T Bank Financials -171 243 -110 -90 -62 -57 838 948 767 857 0 62 0 57 13.37 14.23 NDAQ Nasdaq OMX Group Financials -63 68 -51 -49 -12 -9 62 113 57 106 0 12 0 9 2.40 2.22 NTRS Northern Trust Financials 87 82 138 73 -51 -50 1,104 966 936 862 0 51 0 50 12.80 12.40 NYX NYSE Euronext Financials -265 -253 771 1,036 760 1,013 208 220 2.97 3.37 PBCT People's United Financial Financials -37 81 -26 -9 -11 -11 318 344 274 283 0 11 0 11 5.20 4.53 PCL Plum Creek Timber Financials -29 -34 106 135 96 130 1.20 1.25 PFG Principal Financial Grp Financials -207 425 -516 -547 309 61 1,418 1,934 1,250 1,797 472 163 422 360 13.63 14.49 PGR Progressive Corp,Ohio Financials 24.64 24.66 PLD ProLogis Financials 1.10 1.14 PNC PNC Financial Services Gr Financials -495 765 -102 -172 -393 -374 3,991 4,093 3,721 3,893 0 393 0 374 50.77 55.82 PRU Prudential Financial Financials 701 217 1,335 736 -634 -612 10,533 9,198 9,591 8,855 1,495 2,129 1,519 2,131 41.04 41.94 PSA Public Storage Financials 4.90 4.90 RF Regions Financial Financials -243 500 -216 -334 -27 -34 1,509 1,725 1,252 1,586 4 31 4 38 27.83 28.51 SCHW Schwab(Charles)Corp Financials 12.80 12.40 SLM SLM Corp Financials -4 197 201 7.60 8.00 SPG Simon Property Group Financials 0 0 0 0 0 0 5.90 5.20 STI SunTrust Banks Financials 237 -45 261 326 -24 -18 2,522 2,261 2,334 2,008 165 189 161 179 29.06 28.00 STT State Street Corp Financials -300 356 -186 -162 -114 -112 884 1,070 828 990 0 114 0 112 28.67 27.31 TMK Torchmark Corp Financials -66 91 -49 -30 -17 -16 237 286 212 242 0 17 0 16 3.29 3.51 TROW T.Rowe Price Group Financials 5.05 4.80 TRV Travelers Cos Financials -381 548 -147 -129 -234 -244 2,425 2,572 2,258 2,387 20 254 20 264 32.00 32.00 UNM Unum Group Financials -323 630 -150 -248 -173 -179 1,356 1,506 1,049 1,297 12 185 12 191 9.50 9.70 USB U.S. Bancorp Financials -674 877 -624 -407 -50 -42 2,305 2,929 2,089 2,496 131 181 144 186 60.58 58.23 VNO Vornado Realty Trust Financials 0 0 0 0 0 0 4.78 4.60 VTR Ventas Inc Financials 0.26 0.06 WFC Wells Fargo Financials -2,092 2,940 -1,391 -1,607 -701 -1,025 9,639 11,030 9,112 10,719 697 1,398 376 1,401 272.20 267.30 WY Weyerhaeuser Co Financials -990 1,604 -494 -600 -496 -591 4,773 5,267 4,159 4,759 0 496 0 591 14.25 14.89 XL XL Group Plc'A' Financials -33 -27 33 66 30 57 3.58 3.57 ZION Zions Bancorp Financials -17 79 -16 -61 -1 -1 161 177 99 160 0 1 0 1 10.52 10.53
Health Care -30,502 -35,219 -17,895 -21,871 -12,607 -13,348 86,491 104,386 77,013 98,884 4,796 17,403 4,360 17,709 1,357.72 1,437.23 A Agilent Technologies Health Care -420 611 -181 -201 -239 -239 2,136 2,317 1,957 2,158 263 502 251 490 18.50 16.80 ABC AmerisourceBergen Corp Health Care -42 74 -30 -48 -13 -12 113 143 81 129 0 13 0 12 10.00 10.30 ABT Abbott Laboratories Health Care -2,432 4,126 -1,155 -1,040 -1,277 -1,364 7,451 8,606 5,812 6,852 396 1,673 341 1,705 90.00 73.00 2010 2009 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees Assets Assets OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's ($) ($) Status ($) Status ($) AET Aetna Inc Health Care -844 1,692 -577 -951 -267 -263 5,244 5,821 4,395 5,346 67 333 68 331 34.00 35.00 4 AGN Allergan, Inc Health Care -205 272 -147 -95 -58 -42 627 774 560 655 0 58 0 42 9.20 8.30 AMGN Amgen Inc Health Care 17.40 17.20
Item BAX Baxter Intl Health Care -1,491 2,148 -959 -1,143 -532 -506 3,479 4,438 2,822 3,965 0 532 0 506 48.00 49.70 - BCR Bard (C.R.) Health Care -105 147 -95 -110 -9 -10 282 377 239 349 0 9 0 10 11.70 11.00 BDX Becton, Dickinson Health Care -758 962 -497 -426 -260 -250 1,414 1,911 1,209 1,635 0 260 0 250 28.80 29.12 BIIB Biogen Idec Health Care 0 0 8 6 0 0 0 0 4.85 4.75
Packet BMY Bristol-Myers Squibb Health Care -1,212 1,912 -938 -1,283 -274 -301 5,766 6,704 5,103 6,386 315 589 278 579 27.00 28.00 BSX Boston Scientific Health Care 25.00 26.00 CAH Cardinal Health Health Care 31.20 46.50 CELG Celgene Corp Health Care 4.18 2.81 CEPH Cephalon Inc Health Care -21 84 104 3.73 3.03 CERN Cerner Corp Health Care 8.20 7.60 CFN CareFusion Corp Health Care 15.00 15.00
Supplemental Supplemental CI CIGNA Corp Health Care -1,949 2,261 -1,528 -1,513 -421 -395 3,163 4,691 2,850 4,363 23 444 24 419 30.60 29.30 COV Covidien Plc Health Care -411 425 -286 -251 -125 -135 706 992 692 943 0 125 0 135 41.50 41.80 CVH Coventry Health Care Health Care 0 0 0 0 0 0 14.00 14.40 2011 DGX Quest Diagnostics Health Care 42.00 43.00
21, DVA DaVita Inc Health Care 36.50 34.00 ESRX Express Scripts Health Care 13.17 14.27 EW Edwards Lifesciences Health Care -33 -26 45 79 34 60 7.00 6.40 July FRX Forest Labs Health Care 5.20 GILD Gilead Sciences Health Care 4.00 3.85
Force HSP Hospira Inc Health Care -89 207 -36 -117 -54 -58 458 494 340 457 0 54 0 58 14.00 13.50 HUM Humana Inc Health Care 0 0 0 0 0 0 35.20 28.10 ISRG Intuitive Surgical Health Care 1.66 1.26
Task JNJ Johnson & Johnson Health Care -5,118 7,626 -1,560 -2,526 -3,558 -3,574 13,433 14,993 10,923 13,449 14 3,572 16 3,590 114.00 115.50 LH Laboratory Corp Amer Hldg Health Care -126 131 -84 -69 -42 -40 264 348 259 328 0 42 0 40 31.00 28.00 LIFE Life Technologies Health Care -140 192 -106 -137 -34 -37 759 865 707 844 6 40 6 42 11.00 9.00 LLY Lilly (Eli) Health Care -1,893 3,014 -1,132 -1,545 -761 -852 6,983 8,115 6,009 7,554 1,328 2,089 1,181 2,033 38.35 40.36 Reform MCK McKesson Corp Health Care -202 -154 391 593 0 154 32.50 MDT Medtronic, Inc Health Care -299 -112 1,524 1,823 158 270 43.00 MHS Medco Health Solutions Health Care -83 125 -64 -67 -19 -16 189 254 148 215 0 19 0 16 24.63 22.85 MRK Merck & Co Health Care -2,333 4,366 -1,273 -2,349 -1,060 -1,092 12,705 13,978 10,835 13,183 1,685 2,745 1,523 2,614 94.00 100.00 Pension MYL Mylan Inc Health Care 13.00 15.50 PDCO Patterson Cos Health Care 6.89 PFE Pfizer, Inc Health Care -9,446 10,294 -6,278 -6,507 -3,168 -3,363 17,305 23,583 16,501 23,008 414 3,582 370 3,733 110.60 116.50 PKI PerkinElmer Inc Health Care -169 214 -176 -229 8 6 299 476 256 484 11 3 10 4 6.20 8.20 STJ St. Jude Medical Health Care 15.00 14.00 SYK Stryker Corp Health Care -108 -85 200 308 177 262 20.04 18.58 THC Tenet Healthcare Health Care -268 -249 0 268 0 249 0 0 56.61 57.61 TMO Thermo Fisher Scientific Health Care -232 283 -197 -181 -35 -32 873 1,070 822 1,004 0 35 0 32 37.20 35.40 UNH UnitedHealth Group Health Care 87.00 80.00 VAR Varian Medical Systems Health Care -34 47 -28 -21 -6 -6 113 141 100 121 0 6 0 6 5.30 5.10 WAT Waters Corp Health Care -47 59 -43 -41 -4 -4 105 148 94 135 4 8 3 7 5.38 5.22 WLP WellPoint Inc Health Care -361 538 27 -48 -388 -487 1,743 1,715 1,704 1,752 271 659 132 620 37.50 40.50 WPI Watson Pharmaceuticals Health Care 0 0 0 0 0 0 6.03 5.83 XRAY DENTSPLY Intl Health Care -124 134 -112 -103 -12 -12 100 212 89 192 0 12 0 12 9.70 9.30 ZMH Zimmer Holdings Health Care -3 -4 451 454 381 385 8.80 8.20
Industrials -113,842 -117,657 -67,384 -71,083 -46,458 -46,574 331,439 398,822 308,892 379,975 9,957 56,415 9,599 56,173 3,485.57 3,640.42 AVY Avery Dennison Corp Industrials -322 418 -283 -290 -39 -37 967 1,250 870 1,159 0 39 0 37 32.10 31.30 BA Boeing Co Industrials -18,302 21,753 -9,854 -6,356 -8,448 -7,487 49,252 59,106 45,810 52,166 98 8,546 89 7,576 160.50 157.10 CAT Caterpillar Inc Industrials -7,439 9,186 -3,251 -3,780 -4,188 -3,474 13,640 16,891 11,826 15,606 996 5,184 1,063 4,537 104.49 93.81 CHRW C.H. Robinson Worldwide Industrials 7.63 7.35 CMI Cummins Inc Industrials -619 1,007 -129 -522 -490 -504 2,994 3,123 2,606 3,128 0 490 0 504 39.20 34.90 COL Rockwell Collins Industrials -1,441 1,681 -1,185 -1,040 -256 -230 2,169 3,354 1,928 2,968 9 265 10 240 20.00 19.30 CSX CSX Corp Industrials -1,019 1,089 -636 -614 -383 -406 1,851 2,487 1,781 2,395 0 383 0 406 30.00 30.09 CTAS Cintas Corp Industrials 30.00 DE Deere & Co Industrials -5,523 6,597 -693 -1,307 -4,830 -4,652 9,504 10,197 8,401 9,708 1,637 6,467 1,666 6,318 55.65 51.26 DHR Danaher Corp Industrials -711 900 -588 -664 -124 -105 1,480 2,068 1,291 1,955 0 124 0 105 48.20 46.60 DNB Dun & Bradstreet Industrials -460 524 -431 -451 -29 -55 1,278 1,709 1,214 1,665 0 29 0 55 5.20 5.00 DOV Dover Corp Industrials -191 255 -176 -201 -15 -15 532 708 468 669 0 15 0 15 32.00 29.30 EFX Equifax Inc Industrials -123 189 -108 -119 -15 -16 570 678 505 624 19 34 17 34 6.50 6.60 EMR Emerson Electric Industrials -607 -610 3,920 4,527 3,456 4,066 417 499 127.70 129.00 ETN Eaton Corp Industrials -2,235 2,702 -1,409 -1,568 -826 -830 2,509 3,918 2,042 3,610 0 826 0 830 70.00 70.00 EXPD Expeditors Intl,Wash Industrials 12.88 12.01 FAST Fastenal Co Industrials 13.29 12.05 2010 2009 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees Assets Assets OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's ($) ($) Status ($) Status ($) FDX FedEx Corp Industrials -1,189 -565 13,295 14,484 0 565 141.00 4 FLR Fluor Corp Industrials -13 120 5 -7 -18 -20 1,299 1,294 1,192 1,199 0 18 0 20 39.23 36.15 FLS Flowserve Corp Industrials -185 238 -146 -180 -39 -40 480 626 427 607 0 39 0 40 15.00 15.00
Item GD Genl Dynamics Industrials -3,744 4,332 -2,988 -2,454 -756 -609 6,250 9,238 5,673 8,127 389 1,145 378 987 90.00 91.70 - GE Genl Electric Industrials -20,187 23,762 -9,302 -8,698 -10,885 -11,637 52,604 61,906 49,016 57,714 1,125 12,010 1,138 12,775 287.00 304.00 GR Goodrich Corp Industrials -897 1,489 -571 -919 -327 -332 3,376 3,947 2,784 3,703 0 327 0 332 25.60 24.00 GWW Grainger (W.W.) Industrials -161 -148 97 258 74 222 18.50 18.00
Packet HON Honeywell Intl Industrials -4,917 7,272 -3,243 -4,121 -1,674 -1,791 16,120 19,363 13,765 17,886 0 1,674 0 1,791 130.00 122.00 IR Ingersoll-Rand Plc Industrials -1,434 1,987 -551 -903 -883 -979 3,249 3,800 2,696 3,599 0 883 0 979 59.00 57.00 IRM Iron Mountain Industrials 19.40 20.10 ITT ITT Corp Industrials -1,785 2,127 -1,338 -1,392 -447 -454 4,622 5,960 4,308 5,700 275 722 247 701 40.00 40.20 ITW Illinois Tool Works Industrials -356 -434 -274 1,932 2,288 1,760 2,194 294 260 534 61.00 59.00 JEC Jacobs Engr Group Industrials -398 -312 770 1,167 680 991 52.20 53.20 JOYG Joy Global Industrials -461 615 -431 -579 -30 -31 1,135 1,567 982 1,562 5 34 3 34 11.90 11.30
Supplemental Supplemental LLL L-3 Communications Hldgs Industrials -944 1,231 -780 -660 -164 -155 1,585 2,365 1,304 1,964 39 203 33 188 63.00 67.00 LMT Lockheed Martin Industrials -11,641 15,035 -10,428 -10,663 -1,213 -1,308 25,345 35,773 22,154 32,817 1,833 3,046 1,630 2,938 132.00 140.00 LUV Southwest Airlines Industrials -91 -86 0 91 0 86 34.90 34.73 2011 MAS Masco Corp Industrials -535 570 -522 -484 -13 -13 509 1,031 474 958 0 13 0 13 32.50 35.40
21, MMM 3M Co Industrials -1,980 3,594 -1,301 -1,686 -679 -504 15,930 17,231 14,390 16,076 1,149 1,828 1,075 1,579 80.06 74.84 NOC Northrop Grumman Industrials -3,882 6,264 -1,998 -2,750 -1,884 -1,937 23,265 25,263 20,973 23,723 933 2,817 843 2,780 117.10 120.70 NSC Norfolk Southern Industrials -961 1,192 -57 -154 -904 -883 1,756 1,813 1,542 1,696 178 1,082 161 1,044 28.56 28.59 July PBI Pitney Bowes Industrials -618 690 -338 -343 -280 -254 1,836 2,174 1,764 2,107 0 280 0 254 30.70 33.00 PCAR PACCAR Inc Industrials -46 215 -40 -49 -6 -7 1,445 1,486 1,276 1,325 0 6 0 7 17.70 15.20
Force PCP Precision Castparts Industrials -17 -130 1,473 1,490 0 130 17.95 PH Parker-Hannifin Industrials -1,481 1,693 -1,411 -1,145 -70 -64 2,020 3,431 1,807 2,952 0 70 0 64 54.79 51.64 PLL Pall Corp Industrials -248 -236 356 604 307 543 10.40 10.20
Task PWR Quanta Services Industrials 13.75 14.67 R Ryder System Industrials -363 509 -315 -321 -47 -49 1,429 1,744 1,283 1,604 0 47 0 49 25.90 22.90 RHI Robert Half Intl Industrials 186.40 166.90 ROK Rockwell Automation Industrials -902 1,181 -693 -599 -209 -219 2,487 3,180 2,208 2,807 0 209 0 219 19.00 19.00 Reform ROP Roper Indus Industrials 8.05 7.65 RRD Donnelley(R.R.)& Sons Industrials -852 1,236 -554 -514 -298 -331 3,030 3,583 2,654 3,168 192 490 183 514 58.70 56.80 RSG Republic Services Industrials -15 45 -13 -31 -2 -2 364 376 333 365 0 2 0 2 30.00 31.00 RTN Raytheon Co Industrials -4,394 6,680 -4,039 -4,602 -355 -439 15,099 19,138 12,839 17,441 433 788 407 846 72.40 75.10 Pension SNA Snap-On Inc Industrials -312 390 -244 -253 -67 -69 793 1,037 716 969 14 81 13 81 11.30 11.00 SRCL Stericycle Inc Industrials 9.72 8.20 TXT Textron, Inc Industrials -1,932 2,708 -1,318 -1,443 -614 -646 4,559 5,877 3,783 5,226 0 614 0 646 32.00 32.00 TYC Tyco Intl Industrials -703 811 -631 -622 -72 -70 1,689 2,320 1,581 2,203 0 72 0 70 108.00 106.00 UNP Union Pacific Industrials -673 1,033 -355 -404 -318 -314 2,404 2,759 2,044 2,448 0 318 0 314 42.88 43.53 UPS United Parcel'B' Industrials -4,733 9,489 -1,369 -2,506 -3,364 -3,038 20,653 22,022 15,832 18,338 233 3,597 298 3,336 400.60 408.00 UTX United Technologies Industrials -2,883 5,889 -2,061 -2,894 -822 -865 22,384 24,445 19,377 22,271 10 832 11 876 208.20 206.70 WM Waste Management Industrials 42.80 43.40
Information Technology -28,645 -30,177 -19,507 -20,743 -9,138 -9,434 133,914 153,421 128,764 149,507 1,239 10,377 1,180 10,614 2,227.19 2,248.29 AAPL Apple Inc Information Technology 49.40 36.80 ADBE Adobe Systems Information Technology 0 0 0 0 0 0 9.12 8.66 ADI Analog Devices Information Technology -39 79 -39 -29 0 0 176 215 136 165 0 0 0 0 8.50 8.30 ADP Automatic Data Proc Information Technology -106 -108 982 1,088 787 895 47.00 45.00 ADSK Autodesk, Inc Information Technology -18 -13 29 47 24 36 6.80 6.80 AKAM Akamai Technologies Information Technology 2.20 1.75 ALTR Altera Corp Information Technology 0 0 0 0 0 0 2.67 2.55 AMAT Applied Materials Information Technology -147 -170 162 309 110 279 13.05 12.62 AMD Advanced Micro Dev Information Technology 11.10 13.40 APH Amphenol Corp'A' Information Technology -180 208 -161 -162 -19 -15 297 457 268 430 0 19 0 15 39.10 32.20 BMC BMC Software Information Technology 0 0 0 6.10 BRCM Broadcom Corp'A' Information Technology 8.95 CA CA Inc Information Technology 13.80 CPWR Compuware Corp Information Technology 4.34 CRM salesforce.com inc Information Technology 5.31 3.97 CSC Computer Sciences Information Technology -1,218 -187 3,818 5,036 69 256 94.00 CSCO Cisco Systems Information Technology 70.70 65.55 CTSH Cognizant Tech Solutions' Information Technology 104.00 78.40 CTXS Citrix Systems Information Technology 5.64 4.82 DELL Dell Inc Information Technology 103.30 96.00 EBAY eBay Inc Information Technology 17.70 16.40 EMC EMC Corp Information Technology -48 -33 380 427 354 386 48.50 43.20 ERTS Electronic Arts Information Technology 7.80 FFIV F5 Networks Information Technology 2.01 1.65 2010 2009 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees Assets Assets OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's ($) ($) Status ($) Status ($) FIS Fidelity Natl Info Svcs Information Technology -32 31 0 32 33.00 31.00 4 FISV Fiserv Inc Information Technology 19.00 20.00 FLIR FLIR Systems Information Technology -21 -22 0 21 0 22 3.22 2.08
Item FSLR First Solar Information Technology 6.10 4.70 - GLW Corning Inc Information Technology -1,294 1,714 -318 -521 -976 -928 2,690 3,008 2,270 2,791 0 976 0 928 26.20 23.50 GOOG Google Inc'A' Information Technology 24.40 19.84 HPQ Hewlett-Packard Information Technology -5,275 7,788 -4,804 -4,482 -471 -640 22,187 26,991 19,696 24,178 374 845 352 992 324.60 304.00
Packet HRS Harris Corp Information Technology 15.80 15.40 IBM Intl Bus. Machines Information Technology -13,736 18,161 -7,896 -8,088 -5,840 -5,730 85,981 93,877 81,574 89,662 155 5,995 137 5,867 426.75 399.41 INTC Intel Corp Information Technology -669 974 -430 -257 -239 -198 1,211 1,641 963 1,220 59 298 2 200 82.50 79.80 INTU Intuit Inc Information Technology 0 0 0 0 0 0 7.70 7.80 JBL Jabil Circuit Information Technology -48 -48 86 134 81 130 69.00 61.00 JDSU JDS Uniphase Corp Information Technology -81 81 -81 -78 -1 -1 19 100 19 97 0 1 0 1 4.70 4.00 JNPR Juniper Networks Information Technology 8.77 7.23
Supplemental Supplemental KLAC KLA-Tencor Corp Information Technology -38 -25 9 46 8 33 5.00 4.90 LLTC Linear Technology Corp Information Technology 4.19 3.82 LSI LSI Corp Information Technology -440 494 -462 -455 22 21 869 1,331 819 1,274 67 44 62 41 5.72 5.40 2011 LXK Lexmark Intl'A' Information Technology -206 216 -163 -165 -43 -45 616 779 606 771 0 43 0 45 13.20 11.90
21, MA MasterCard Inc'A' Information Technology -64 86 -4 -21 -60 -60 236 240 214 235 0 60 0 60 5.60 5.10 MCHP Microchip Technology Information Technology 0 0 0 5.42 MMI Motorola Mobility Holding Information Technology 19.00 20.00 July MOLX Molex Inc Information Technology -136 149 -90 -76 -45 -37 109 199 95 171 0 45 0 37 35.52 25.24 MSFT Microsoft Corp Information Technology 89.00 93.00
Force MSI Motorola Solutions Information Technology -2,409 2,889 -2,132 -2,387 -277 -287 5,546 7,678 5,062 7,449 170 447 174 461 51.00 53.00 MU Micron Technology Information Technology 25.90 18.20 MWW Monster Worldwide Information Technology 5.85 5.70
Task NOVL Novell Inc Information Technology -18 -13 0 18 0 13 3.40 3.60 NSM Natl Semiconductor Information Technology -67 217 284 5.80 NTAP NetApp Inc Information Technology 8.33 NVDA NVIDIA Corp Information Technology 6.03 5.71 Reform NVLS Novellus Systems Information Technology -8 -5 9 17 16 21 3 3 2.70 2.54 ORCL Oracle Corp Information Technology 105.00 PAYX Paychex Inc Information Technology 12.20 QCOM QUALCOMM Inc Information Technology 17.50 16.10 Pension RHT Red Hat Inc Information Technology 3.20 SAI SAIC Inc Information Technology -20 -42 111 131 94 136 43.40 46.20 SNDK SanDisk Corp Information Technology 3.47 3.27 SYMC Symantec Corp Information Technology 17.40 TDC Teradata Corp Information Technology -92 106 -52 -51 -40 -38 59 111 45 96 0 40 0 38 7.40 6.60 TER Teradyne Inc Information Technology -56 111 -43 -94 -13 -19 295 338 240 334 0 13 0 19 3.00 2.90 TLAB Tellabs, Inc Information Technology 0 -1 10 10 10 10 3.41 3.30 TSS Total System Svcs Information Technology 7.79 7.62 TXN Texas Instruments Information Technology -498 665 -429 -274 -69 -98 2,668 3,097 2,531 2,805 404 473 374 472 28.41 26.58 V Visa Inc'A' Information Technology -11 74 23 -36 -34 -43 766 743 703 739 0 34 0 43 6.80 5.70 VRSN VeriSign Inc Information Technology 1.05 2.33 WDC Western Digital Information Technology 62.50 45.99 WFR MEMC Electronic Materials Information Technology -44 59 -21 -14 -23 -25 192 213 177 192 0 23 0 25 6.48 5.14 WU Western Union Information Technology -113 -124 290 403 276 400 7.00 6.80 XLNX Xilinx Inc Information Technology 2.95 XRX Xerox Corp Information Technology -2,797 3,176 -1,791 -1,633 -1,006 -1,102 7,940 9,731 7,561 9,194 0 1,006 0 1,102 136.50 53.60 YHOO Yahoo Inc Information Technology 13.60 13.90
Materials -41,995 -43,775 -23,946 -25,835 -18,048 -17,940 94,090 118,036 84,995 110,830 1,961 20,010 2,030 19,970 660.01 666.61 AA Alcoa Inc Materials -5,736 6,605 -2,892 -3,109 -2,844 -2,927 9,451 12,343 8,529 11,638 58 2,902 111 3,038 59.00 59.00 AKS AK Steel Holding Materials -1,852 1,954 -1,056 -1,125 -795 -876 2,473 3,529 2,370 3,495 0 795 1 877 6.60 6.50 APD Air Products & Chem Materials -1,163 1,624 -1,042 -1,135 -121 -116 2,712 3,754 2,251 3,386 0 121 0 116 18.30 18.90 ARG Airgas Inc Materials 14.00 ATI Allegheny Technologies Materials -543 613 -56 -57 -487 -492 2,237 2,294 2,164 2,221 13 500 17 509 9.20 8.50 BLL Ball Corp Materials -726 864 -541 -603 -185 -192 1,123 1,664 984 1,588 0 185 0 192 14.00 14.50 BMS Bemis Co Materials -161 205 -153 -137 -8 -10 529 682 485 621 0 8 0 10 19.80 20.40 CF CF Industries Hldgs Materials -169 532 -85 -43 -84 -42 596 681 234 276 0 84 0 42 2.50 1.60 CLF Cliffs Natural Resources Materials -554 842 -288 -267 -266 -196 734 1,022 483 751 174 440 137 333 6.57 5.40 DD duPont(E.I.)deNemours Materials -9,510 10,770 -5,521 -5,627 -3,989 -4,132 18,403 23,924 17,143 22,770 0 3,989 0 4,132 60.00 58.00 DOW Dow Chemical Materials -7,164 8,297 -5,307 -5,325 -1,857 -1,712 15,851 21,158 14,589 19,914 238 2,095 367 2,079 49.51 52.20 ECL Ecolab Inc Materials -567 683 -427 -458 -140 -142 1,307 1,734 1,198 1,656 20 159 13 155 26.49 25.93 EMN Eastman Chemical Materials -1,218 1,310 -443 -421 -775 -726 1,178 1,621 1,087 1,508 52 827 51 777 10.00 10.00 FCX Freep't McMoRan Copper&Go Materials -812 878 -572 -465 -240 -265 1,232 1,804 1,166 1,631 0 240 0 265 29.88 28.57 FMC FMC Corp Materials -315 454 -270 -332 -45 -42 906 1,176 767 1,099 0 45 0 42 4.90 4.80 2010 2009 2010 2009 Pension Pension 2010 2009 2010 2009 2010 2010 2009 2009 2010 2009 2010 2009 OPEB OPEB Ticker Company Sector and and Pension Pension OPEB OPEB Pension Pension Pension Pension OPEB OPEB Employees Employees Assets Assets OPEB OPEB Status ($) Status ($) Status ($) Status ($) Assets ($) Oblig. ($) Assets ($) Oblig. ($) Oblig. ($) Oblig. ($) 000's 000's ($) ($) Status ($) Status ($) IFF Intl Flavors/Fragr Materials -47 -63 1,019 1,066 965 1,028 109 111 5.51 5.40 4 IP Intl Paper Materials -1,929 3,489 -1,480 -2,760 -449 -491 8,344 9,824 6,784 9,544 0 449 0 491 59.50 56.10 MON Monsanto Co Materials -643 -535 1,626 2,269 1,516 2,051 264 248 27.60 27.00
Item MWV MeadWestvaco Corp Materials 809 -515 913 806 -104 -107 3,756 2,843 3,462 2,656 0 104 0 107 17.50 20.00 - NEM Newmont Mining Materials -217 404 -122 -208 -95 -95 559 681 372 580 0 95 0 95 15.50 14.50 NUE Nucor Corp Materials 20.50 20.40 OI Owens-Illinois Materials -810 1,000 -530 -518 -280 -289 3,474 4,004 3,284 3,802 0 280 0 289 24.00 22.00
Packet PPG PPG Indus Materials -2,060 2,593 -825 -951 -1,235 -1,089 4,127 4,952 3,594 4,545 0 1,235 0 1,089 38.30 39.90 PX Praxair Inc Materials -672 900 -447 -522 -225 -263 1,651 2,098 1,423 1,945 0 225 0 263 26.26 26.16 SEE Sealed Air Materials -82 -103 259 341 242 345 16.10 16.20 SHW Sherwin-Williams Materials -91 159 224 218 -316 -301 700 476 633 414 0 316 0 301 32.23 29.22 SIAL Sigma-Aldrich Materials -113 145 -64 -51 -49 -46 335 399 303 354 0 49 0 46 7.89 7.74 TIE Titanium Metals Materials -106 133 -85 -121 -20 -21 221 307 194 315 0 20 0 21 2.39 2.21 VMC Vulcan Materials Materials -265 401 -131 -216 -134 -118 630 761 494 710 0 134 0 118 7.99 8.48
Supplemental Supplemental X U.S. Steel Materials -4,908 5,357 -1,975 -1,708 -2,933 -2,891 8,655 10,630 8,280 9,988 1,407 4,340 1,333 4,224 42.00 43.00
Telecommunication Services -58,889 -58,476 -11,149 -8,724 -47,740 -49,753 79,327 90,477 80,077 88,801 15,752 63,492 14,669 64,422 551.50 583.66 2011 AMT Amer Tower'A' Telecommunication Services 1.73 1.42
21, CTL CenturyLink Inc Telecommunication Services -1,306 1,815 -802 -962 -504 -525 3,732 4,534 3,220 4,182 54 558 57 582 20.30 20.20 FTR Frontier Communications Telecommunication Services -827 1,507 -354 -282 -472 -181 1,290 1,645 609 891 6 479 8 189 14.80 5.40 PCS MetroPCS Communic Telecommunication Services 3.60 3.60 July S Sprint Nextel Corp Telecommunication Services 40.00 40.00 T AT&T Inc Telecommunication Services -30,187 32,169 -6,296 -3,977 -23,891 -24,712 47,621 53,917 46,873 50,850 12,747 36,638 11,513 36,225 266.59 282.72
Force VZ Verizon Communications Telecommunication Services -26,176 23,252 -3,403 -3,226 -22,773 -24,246 25,814 29,217 28,592 31,818 2,945 25,718 3,091 27,337 194.40 222.93 WIN Windstream Corp Telecommunication Services -394 480 -294 -277 -100 -89 870 1,164 784 1,061 0 100 0 89 10.09 7.39
Task Utilities -39,684 -41,954 -22,859 -24,995 -16,825 -16,959 104,768 127,627 91,580 116,575 16,626 33,451 16,498 33,457 386.36 388.53 AEE Ameren Corp Utilities -1,052 -317 -729 -760 -323 -910 2,722 3,451 2,495 3,255 797 1,120 2,393 3,303 9.47 9.78 AEP Amer Electric Pwr Utilities -1,613 2,221 -949 -1,298 -664 -633 3,858 4,807 3,403 4,701 1,461 2,125 1,308 1,941 18.71 21.67 AES AES Corp Utilities -1,465 -1,280 5,172 6,637 4,437 5,717 29.00 27.00 Reform CEG Constellation Energy Grou Utilities -553 903 -218 -412 -335 -322 1,408 1,626 1,058 1,470 0 335 0 322 7.60 7.20 CMS CMS Energy Utilities -1,136 1,635 -613 -816 -523 -641 1,401 2,014 1,007 1,823 887 1,410 782 1,423 7.82 8.04 CNP CenterPoint Energy Utilities -784 851 -468 -434 -316 -304 1,501 1,969 1,432 1,866 144 460 146 450 8.84 8.81 D Dominion Resources Utilities -60 1,053 616 100 -676 -637 5,106 4,490 4,226 4,126 1,031 1,707 918 1,555 15.80 17.90 Pension DTE DTE Energy Utilities -2,148 2,677 -872 -887 -1,276 -1,287 2,913 3,785 2,549 3,436 1,029 2,305 864 2,151 9.80 10.24 DUK Duke Energy Utilities -768 1,358 -231 -644 -537 -559 4,797 5,028 4,224 4,868 186 723 169 728 18.44 18.68 ED Consolidated Edison Utilities -3,286 4,206 -2,586 -2,531 -700 -831 7,721 10,307 6,877 9,408 942 1,642 866 1,697 15.18 15.54 EIX Edison Intl Utilities -1,664 2,189 -845 -831 -819 -651 3,235 4,080 2,857 3,688 1,606 2,425 1,459 2,110 20.12 19.24 ETR Entergy Corp Utilities -2,067 2,718 -1,085 -1,230 -982 -918 3,216 4,301 2,607 3,838 404 1,386 362 1,280 14.96 15.18 EXC Exelon Corp Utilities -5,884 7,083 -3,665 -3,643 -2,219 -2,182 8,859 12,524 7,839 11,482 1,655 3,874 1,476 3,658 19.21 19.33 FE FirstEnergy Corp Utilities -1,677 1,853 -1,314 -993 -363 -356 4,544 5,858 4,399 5,392 498 861 467 823 13.33 13.38 GAS NICOR Inc Utilities -170 196 73 58 -243 -211 390 317 364 306 0 243 0 211 3.80 3.90 NEE NextEra Energy Utilities 854 -649 1,239 1,162 -385 -398 3,233 1,994 3,028 1,866 32 417 32 430 14.69 15.07 NI NiSource Inc Utilities -1,008 1,266 -578 -675 -429 -445 1,900 2,478 1,682 2,356 327 756 287 731 7.60 7.62 NRG NRG Energy Utilities -107 -94 297 404 263 357 4.96 4.61 NU Northeast Utilities Utilities -1,055 1,281 -843 -821 -211 -235 1,978 2,821 1,790 2,610 279 490 240 476 6.17 6.08 OKE ONEOK Inc Utilities -372 553 -194 -248 -178 -175 904 1,098 749 997 118 295 92 268 4.84 4.76 PCG PG&E Corp Utilities -2,239 3,327 -1,821 -1,436 -418 -342 10,250 12,071 9,330 10,766 1,337 1,755 1,169 1,511 19.42 19.43 PEG Public Svc Enterprises Utilities -1,765 2,441 -798 -1,103 -967 -1,095 3,555 4,353 2,914 4,017 195 1,162 160 1,255 9.97 10.35 PGN Progress Energy Utilities -1,418 1,614 -718 -749 -700 -488 1,891 2,609 1,673 2,422 33 733 55 543 11.00 11.00 PNW Pinnacle West Capital Utilities -830 1,221 -569 -612 -260 -210 1,776 2,345 1,462 2,074 567 828 490 701 6.74 7.20 POM Pepco Holdings Utilities -767 932 -338 -296 -429 -409 1,632 1,970 1,500 1,796 275 704 242 651 5.01 5.11 PPL PPL Corp Utilities -1,812 3,111 -1,505 -1,290 -307 -197 5,343 6,848 4,103 5,393 360 667 301 498 13.81 10.49 SCG SCANA Corp Utilities -208 266 5 -31 -214 -210 817 812 759 789 0 214 0 210 5.88 5.83 SO Southern Co Utilities -1,339 2,605 -389 -1,131 -950 -1,016 6,834 7,223 5,627 6,758 802 1,752 743 1,759 25.94 26.11 SRE Sempra Energy Utilities -1,163 1,475 -770 -953 -393 -327 2,354 3,124 2,130 3,083 746 1,139 658 985 13.50 13.84 TE TECO Energy Utilities -353 443 -131 -199 -222 -208 480 610 389 588 0 222 0 208 4.23 4.07 TEG Integrys Energy Group Utilities -610 793 -337 -404 -272 -245 1,081 1,419 934 1,337 266 539 231 476 4.61 5.03 WEC Wisconsin Energy Corp Utilities -315 363 -163 -135 -152 -172 1,060 1,223 1,026 1,161 217 368 203 375 4.60 4.69 XEL Xcel Energy Utilities -852 991 -490 -380 -363 -344 2,541 3,030 2,449 2,830 432 795 385 729 11.29 11.35 Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
APRIL 5, 2011 A Morgan Stanley Publication For Pension Pensions in Practice Plan Sponsors
S&P 500 Pension Data Book Pension Solutions Group
Caitlin Long 212.761.4995 • In this report we show data for S&P 500 companies that sponsor defined- [email protected] benefit pension plans, sorted by industry. We rank companies by pension Ethan Bronsnick liability as % of market cap, rather than pension deficit as a % of market cap as 212.761.5343 we did in prior years, based on the finding in our study, “How Corporate [email protected]
Pension Plans Impact Stock Prices,” dated October 27, 2010, that the size of the Hannah Zwiebel 212.761.3070 pension liability impacts stock prices more than pension deficit size. [email protected]
• Pension funding continues to be a major trend for corporate plans. S&P 500
companies contributed $71.1 billion to plans in 2010, 73% higher than the $41.2 billion of contributions these companies forecasted as of the beginning of Pension, Endowment and 2010 and roughly equal to the $68.4 billion contributed in 2009. Companies Foundation Coverage Group continued to take advantage of low funding costs and tax deductions. S&P 500 companies disclosed plans in their 10-Ks to contribute $45.5 billion in 2011. Sandra Haas 212.761.1320 [email protected] • We expect lump sum payouts to become a big discussion topic in 2011. In Chris Crevier 2012, plan sponsors may be able to settle a portion of their pension obligations 212.761.0039 [email protected] at or close to balance sheet value (i.e. little or no additional cost). Many plan sponsors are reviewing or preparing to execute a lump sum promotion in 2012. Ryan Vetter 212.761.8124 [email protected] • Corporate pension plans de-risked by rebalancing about 2.6% toward fixed Michael Jordan income in 2010. Adjusting for market performance, corporate plans increased 212.761.1077 [email protected] allocations to fixed income by about 2.6 percentage points in 2010, taking mostly from equities and a small amount from other assets. Cumulatively over
2 years, corporate pension funds have rebalanced toward fixed income by about
6 percentage points. The average S&P 500 pension asset allocation ended the Transition Management year at 51.9% equities (vs. 53.7% in 2009), 36.9% fixed income (vs. 35.9% in
2009) and 11.2% other (vs. 10.6% in 2009). Jim Kelly 212.761.8935 [email protected] • At year end 2010, the average funded status improved to 84.4% from 82.2%,
the average discount rate declined to 5.38% from 5.82%, and the average expected return on assets declined to 7.78% from 7.94% (for 12/31 filers).
This is not a research report and was not prepared by Morgan Stanley research department. It was prepared by Morgan Stanley sales, trading, banking or other non-research
personnel. Past performance is not necessarily a guide to future performance. Please see additional important information and qualifications at the end of this material.
Morgan Stanley does not provide tax, legal or accounting advice. This material has been prepared for information purposes to support the promotion or marketing of the transaction or matters addressed herein. It is not a solicitation of any offer to buy or sell any security, commodity or other financial instrument or to participate in any trading strategy, nor is it intended to constitute the provision of specific investment advice as such term is generally defined in ERISA. This material was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws. Each taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.
Basic Materials: S&P 500 Companies with Defined-Benefit Plans 4 10-K Pension Data, Ranked by Liability as % of Market Capitalization Item
- 2010 2010 2011E* 12/31/10 Pension Pension Expected Return Employer Pension Employer Pension Pension Pension Pension Deficit as % of Pension Liability as % of Company Plan Assets Plan Liabilities % Equities % Bonds % Other Discount Rate % on Assets % 10-K Date Contribution Contribution (Deficit)/Surplus Funded Status Mkt Cap at 3/31/2011 Mkt Cap at 3/31/2011
Packet Basic Materials
AK Steel Holding Corp. $2,472.9 $3,529.2 61.0% 37.0% 2.0% 5.36% 8.50% 12/2010 $114.8 $170.0 ($1,056.3) 70.1% 60.5% 202.1% United States Steel Corp. 8,655.0 10,630.0 63.0% 25.0% 12.0% 5.00% 8.00% 12/2010 220 140 (1,975.00) 81.4% 25.3% 136.2% Owens-Illinois Inc. 3,474.0 4,004.0 60.1% 37.6% 2.3% 5.76% 7.61% 12/2010 23 60 (530.00) 86.8% 10.7% 80.9% International Paper Co. 8,344.0 9,824.0 49.0% 31.0% 20.0% 5.60% 8.25% 12/2010 1,187 36 (1,480.00) 84.9% 11.1% 73.9% Alcoa Inc. 9,451.0 12,343.0 36.0% 52.0% 12.0% 5.75% 8.75% 12/2010 718 445 (2,892.00) 76.6% 16.0% 68.4%
Supplemental MeadWestvaco Corp. 3,756.0 2,843.0 35.0% 60.0% 5.0% 5.25% 7.98% 12/2010 20 3 913.00 132.1% -17.8% 55.6% Dow Chemical Co. 15,851.0 21,158.0 44.0% 36.0% 20.0% 5.38% 7.74% 12/2010 708 700 (5,307.00) 74.9% 12.0% 48.0% E.I. DuPont de Nemours & Co. 18,403.0 23,924.0 52.0% 29.0% 19.0% 5.32% 8.64% 12/2010 782 305 (5,521.00) 76.9% 10.9% 47.3% 2011 Weyerhaeuser Co. 4,773.0 5,267.0 0.4% 16.4% 83.2% 5.40% 9.50% 12/2010 233 119 (494.00) 90.6% 3.7% 39.8% Allegheny Technologies Inc. 2,237.4 2,293.6 42.0% 45.6% 12.4% 5.80% 8.75% 12/2010 8 6 (56.20) 97.5% 0.8% 34.3% 21, PPG Industries Inc. 4,127.0 4,952.0 43.2% 53.2% 3.6% 5.30% 7.80% 12/2010 337 125 (825.00) 83.3% 5.4% 32.3% Ball Corp. 1,122.9 1,664.0 28.0% 54.0% 18.0% 5.55% 8.25% 12/2010 142 30 (541.10) 67.5% 8.8% 27.1% July Avery Dennison Corp. 869.8 1,159.4 58.5% 36.5% 5.0% 5.50% 8.75% 12/2010 78 50 (289.60) 75.0% 6.5% 26.1% Eastman Chemical Co. 1,178.0 1,621.0 38.0% 49.0% 13.0% 5.33% 8.25% 12/2010 53 0 (443.00) 72.7% 6.3% 23.0% Bemis Co. Inc. 529.2 681.9 70.0% 30.0% 0.0% 5.25% 8.25% 12/2010 19 20 (152.76) 77.6% 4.3% 19.3% Force Air Products & Chemicals Inc. 2,711.6 3,753.6 65.0% 30.0% 5.0% 5.10% 8.80% 09/2010 407 247 (1,042.00) 72.2% 5.4% 19.3% FMC Corp. 905.8 1,175.5 73.0% 22.0% 5.0% 5.40% 8.50% 12/2010 103 55 (269.70) 77.1% 4.4% 19.3%
Task Ecolab Inc. 1,307.4 1,734.1 68.0% 20.0% 12.0% 5.41% 8.50% 12/2010 31 33 (426.70) 75.4% 3.6% 14.6% Vulcan Materials Co. 630.3 761.4 65.0% 20.0% 15.0% 5.49% 8.25% 12/2010 78 5 (131.08) 82.8% 2.2% 13.0% Titanium Metals Corp. 221.3 306.7 88.0% 11.0% 1.0% 5.60% 10.00% 12/2010 13 11 (85.40) 72.2% 2.6% 9.2% Sealed Air Corp. 259.1 340.7 41.0% 48.0% 11.0% 5.40% 7.30% 12/2010 11 15 (81.60) 76.0% 1.9% 8.0% Reform Cliffs Natural Resources Inc. 734.3 1,022.3 47.0% 36.0% 17.0% 5.11% 8.50% 12/2010 46 73 (288.00) 71.8% 2.2% 7.7% CF Industries Holdings Inc. 596.4 681.2 26.0% 70.0% 4.0% 5.40% 6.60% 12/2010 13 22 (84.80) 87.6% 0.9% 6.9% Praxair Inc. 1,651.0 2,098.0 56.0% 41.0% 3.0% 5.40% 8.25% 12/2010 124 120 (447.00) 78.7% 1.4% 6.8% Monsanto Co. 1,626.0 2,269.0 54.5% 36.6% 8.9% 4.35% 7.75% 08/2010 133 45 (643.00) 71.7% 1.7% 5.8% Pension Consol Energy Inc. 537.7 701.2 60.0% 40.0% 0.0% 5.30% 8.00% 12/2010 72 64 (163.43) 76.7% 1.3% 5.7% Massey Energy Co. 268.3 362.0 35.6% 53.4% 11.0% 5.50% 8.00% 12/2010 20 20 (93.76) 74.1% 1.3% 5.2% Sigma-Aldrich Corp. 335.0 399.0 60.0% 30.0% 10.0% 5.05% 8.25% 12/2010 16 6 (64.00) 84.0% 0.8% 5.1% Peabody Energy Corp. 771.6 881.0 58.6% 35.2% 6.2% 5.84% 8.25% 12/2010 113 0 (109.40) 87.6% 0.6% 4.5% Freeport-McMoRan Copper & Gold Inc. 1,232.0 1,804.0 54.4% 34.0% 11.6% 5.40% 8.50% 12/2010 22 58 (572.00) 68.3% 1.1% 3.4% Newmont Mining Corp. 559.0 681.0 65.0% 30.0% 5.0% 5.75% 8.00% 12/2010 161 18 (122.00) 82.1% 0.5% 2.5% Totals for All Basic Material Companies $99,590.9 $124,864.8 51.5% 37.1% 11.4% 5.39% 8.27% $6,003.0 $2,999.9 79.8% Totals for 12/31/10 Basic Materials Reporting Companies $95,253.3 $118,842.2 51.0% 37.3% 11.7% 5.43% 8.27% $5,463.4 $2,707.9 80.2%
Totals for All S&P 500 Companies $1,307,309.7 $1,558,460.3 51.9% 36.9% 11.2% 5.37% 7.71% $71,107.6 $45,451.4 83.9% Totals for 12/31/10 S&P 500 Reporting Companies $1,171,974.7 $1,388,323.2 51.8% 37.5% 10.7% 5.38% 7.78% $60,024.7 $39,803.8 84.4%
Sources: FactSet, Capital IQ, company reports. * as disclosed in most recent 10-K
2
Consumer Products: S&P 500 Companies with Defined-Benefit Plans 4 10-K Pension Data, Ranked by Liability as % of Market Capitalization Item
- 2010 2010 2011E* 12/31/10 Pension Pension Expected Return Employer Pension Employer Pension Pension Pension Pension Deficit as % of Pension Liability as % of Company Plan Assets Plan Liabilities % Equities % Bonds % Other Discount Rate % on Assets % 10-K Date Contribution Contribution (Deficit)/Surplus Funded Status Mkt Cap at 3/31/2011 Mkt Cap at 3/31/2011
Packet Consumer Products
Whirlpool Corp. $2,460.0 $3,994.0 57.0% 39.4% 3.6% 5.60% 7.75% 12/2010 $67.0 $309.0 ($1,534.0) 61.6% 23.2% 60.4% Sara Lee Corp. 4,197.0 4,727.0 16.0% 74.0% 10.0% 5.30% 6.90% 06/2010 332.0 110.0 (530.0) 88.8% 4.8% 42.8% Molson Coors Brewing Co. (Cl B) 3,120.8 3,371.0 32.9% 57.4% 9.7% 5.35% 6.45% 12/2010 284.4 81.0 (250.2) 92.6% 2.9% 38.4% Kraft Foods Inc. 13,253.0 15,598.0 55.0% 39.0% 6.0% 5.53% 7.99% 12/2010 411.0 940.0 (2,345.0) 85.0% 4.3% 28.3% Reynolds American Inc. 4,934.0 5,529.0 48.0% 47.0% 5.0% 5.66% 8.24% 12/2010 811.0 318.0 (595.0) 89.2% 2.8% 26.4%
Supplemental Newell Rubbermaid Inc. 1,061.3 1,452.2 49.4% 29.6% 21.0% 5.25% 8.25% 12/2010 83.4 40.0 (390.9) 73.1% 7.0% 26.1% ConAgra Foods Inc. 2,144.6 2,614.1 46.0% 31.0% 23.0% 5.80% 7.75% 05/2010 122.6 116.0 (469.5) 82.0% 4.5% 25.2% Kimberly-Clark Corp. 4,600.0 5,658.0 62.0% 38.0% 0.0% 5.51% 7.96% 12/2010 245.0 500.0 (1,058.0) 81.3% 4.0% 21.3% 2011 International Flavors & Fragrances Inc. 1,018.6 1,065.7 42.0% 48.0% 10.0% 5.60% 8.25% 12/2010 41.0 25.5 (47.1) 95.6% 0.9% 21.2%
21, Campbell Soup Co. 1,767.0 2,275.0 49.0% 34.0% 17.0% 5.46% 8.13% 07/2010 284.0 43.0 (508.0) 77.7% 4.7% 21.2% Kellogg Co. 3,967.0 3,930.0 75.0% 23.0% 2.0% 5.40% 8.90% 12/2010 350.0 180.0 37.0 100.9% -0.2% 19.8%
July Stanley Black & Decker Inc. 1,751.2 2,377.6 59.0% 37.0% 4.0% 5.25% 7.50% 12/2010 265.0 140.0 (626.4) 73.7% 4.9% 18.7% General Mills Inc. 3,529.8 4,030.0 64.4% 22.4% 13.2% 5.85% 9.55% 05/2010 17.1 0.0 (500.2) 87.6% 2.1% 17.2% Dean Foods Co. 231.8 307.5 62.0% 34.0% 4.0% 5.28% 7.70% 12/2010 10.3 12.1 (75.7) 75.4% 4.1% 16.8%
Force H.J. Heinz Co. 2,870.0 2,586.0 58.0% 29.0% 13.0% 5.60% 8.10% 04/2010 539.9 50.0 284.0 111.0% -1.8% 16.4% Fortune Brands Inc. 989.4 1,185.2 41.1% 55.3% 3.6% 5.70% 8.20% 12/2010 107.7 0.0 (195.8) 83.5% 2.1% 12.5% Avon Products Inc. 992.3 1,422.9 58.0% 35.0% 7.0% 4.80% 8.00% 12/2010 46.3 145.0 (430.6) 69.7% 3.7% 12.1% Task Altria Group Inc. 5,218.0 6,439.0 58.0% 36.0% 6.0% 5.50% 4.50% 12/2010 30.0 50.0 (1,221.0) 81.0% 2.2% 11.8% Hormel Foods Corp. 802.4 878.6 66.1% 31.8% 2.1% 6.12% 8.25% 10/2010 72.5 22.1 (76.2) 91.3% 1.0% 11.8% PepsiCo Inc. 10,766.0 11,993.0 59.4% 37.2% 3.4% 5.70% 7.80% 12/2010 1,464.0 160.0 (1,227.0) 89.8% 1.2% 11.7%
Reform McCormick & Co. Inc. 582.5 739.3 67.3% 26.5% 6.2% 5.90% 8.30% 11/2010 49.5 40.0 (156.8) 78.8% 2.5% 11.6% Coca-Cola Enterprises Inc. 1,001.0 986.0 60.0% 40.0% 0.0% 5.50% 5.60% 12/2010 116.0 58.0 15.0 101.5% -0.2% 10.8% Archer Daniels Midland Co. 1,721.0 2,299.0 48.0% 50.0% 2.0% 5.20% 7.10% 06/2010 249.0 38.0 (578.0) 74.9% 2.5% 10.0% Constellation Brands Inc. (Cl A) 283.1 397.6 32.7% 28.4% 38.9% 5.95% 9.72% 02/2010 7.5 7.3 (114.5) 71.2% 2.7% 9.4%
Pension Hershey Co. 1,000.3 1,049.8 70.5% 28.5% 1.0% 5.20% 8.50% 12/2010 6.1 6.1 (49.4) 95.3% 0.4% 8.5% Leggett & Platt Inc. 210.3 263.6 59.0% 38.0% 3.0% 5.20% 6.80% 12/2010 2.2 8.7 (53.3) 79.8% 1.5% 7.4% Lorillard Inc. 989.0 1,023.0 34.4% 61.3% 4.3% 5.60% 7.50% 12/2010 19.0 15.0 (34.0) 96.7% 0.2% 7.3% Colgate-Palmolive Co. 1,811.0 2,688.0 50.0% 42.0% 8.0% 5.30% 8.00% 12/2010 86.0 108.0 (877.0) 67.4% 2.2% 6.7% Procter & Gamble Co. 6,562.0 11,245.0 43.0% 53.0% 4.0% 5.00% 7.10% 06/2010 439.0 321.0 (4,683.0) 58.4% 2.7% 6.5% Mattel Inc. 316.8 545.9 67.0% 29.0% 4.0% 5.20% 8.00% 12/2010 15.2 43.0 (229.1) 58.0% 2.6% 6.3% Brown-Forman Corp. (Cl B) 351.0 577.0 54.0% 33.0% 13.0% 5.91% 8.50% 04/2010 13.0 38.0 (226.0) 60.8% 2.3% 5.8% Clorox Co. 335.0 560.0 67.0% 27.0% 6.0% 5.34% 8.11% 06/2010 53.0 0.0 (225.0) 59.8% 2.3% 5.8% J.M. Smucker Co. 367.3 450.7 24.5% 22.0% 53.5% 5.80% 7.75% 04/2010 4.4 15.0 (83.4) 81.5% 1.0% 5.4% Yum! Brands Inc. 1,071.0 1,295.0 56.0% 43.0% 1.0% 5.90% 7.75% 12/2010 52.0 0.0 (224.0) 82.7% 0.9% 5.4% Hasbro Inc. 270.1 333.5 48.0% 38.0% 14.0% 5.20% 8.00% 12/2010 3.4 5.4 (63.4) 81.0% 1.0% 5.2% Estee Lauder Cos. (Cl A) 831.4 959.3 33.0% 42.0% 25.0% 5.30% 7.75% 06/2010 114.9 21.4 (127.9) 86.7% 0.7% 5.1% Coca-Cola Co. 5,497.0 7,292.0 38.0% 20.0% 42.0% 5.50% 8.00% 12/2010 77.0 800.0 (1,795.0) 75.4% 1.2% 4.8% Philip Morris International Inc. 4,874.0 5,253.0 22.0% 74.0% 4.0% 5.40% 7.20% 12/2010 433.0 153.0 (379.0) 92.8% 0.3% 4.4% Darden Restaurants Inc. 154.6 200.2 60.0% 30.0% 10.0% 5.89% 9.00% 05/2010 0.4 4.5 (45.6) 77.2% 0.7% 3.0% Dr Pepper Snapple Group Inc. 234.0 245.0 34.0% 66.0% 0.0% 5.60% 7.00% 12/2010 14.0 1.0 (11.0) 95.5% 0.1% 2.9% Mead Johnson Nutrition Co. 269.4 312.4 25.8% 59.0% 15.2% 5.59% 7.38% 12/2010 55.4 0.0 (43.0) 86.2% 0.4% 2.6% Tyson Foods Inc. (Cl A) 74.0 139.0 64.5% 18.5% 17.0% 5.06% 7.80% 09/2010 4.0 7.0 (65.0) 53.2% 0.9% 1.9% Starwood Hotels & Resorts Worldwide Inc. 176.0 202.0 40.7% 31.6% 27.7% 5.00% 6.56% 12/2010 14.0 0.0 (26.0) 87.1% 0.2% 1.8% Totals for All Consumer Companies $98,656.2 $120,490.2 50.2% 39.0% 10.8% 5.48% 7.76% $7,412.2 $4,932.1 81.9% Totals for 12/31/10 Consumer Reporting Companies $72,083.4 $85,812.3 50.5% 41.7% 7.8% 5.42% 7.55% $5,109.3 $4,098.8 84.0%
Totals for All S&P 500 Companies $1,307,309.7 $1,558,460.3 51.9% 36.9% 11.2% 5.37% 7.71% $71,107.6 $45,451.4 83.9% Totals for 12/31/10 S&P 500 Reporting Companies $1,171,974.7 $1,388,323.2 51.8% 37.5% 10.7% 5.38% 7.78% $60,024.7 $39,803.8 84.4%
Sources: FactSet, Capital IQ, company reports. * as disclosed in most recent 10-K
3
Energy: S&P 500 Companies with Defined-Benefit Plans 4 10-K Pension Data, Ranked by Liability as % of Market Capitalization Item
- 2010 2010 2011* 12/31/10 Pension Pension Expected Return Employer Pension Employer Pension Pension Pension Pension Deficit as % of Pension Liability as % of Company Plan Assets Plan Liabilities % Equities % Bonds % Other Discount Rate % on Assets % 10-K Date Contribution Contribution (Deficit)/Surplus Funded Status Mkt Cap at 3/31/2011 Mkt Cap at 3/31/2011
Packet Energy
Sunoco Inc. $1,008.0 $1,158.0 59.0% 41.0% 0.0% 4.95% 8.25% 12/2010 $234.0 0.0 ($150.0) 87.0% 2.7% 21.0% El Paso Corp. 2,048.0 2,218.0 50.0% 50.0% 0.0% 5.01% 8.00% 12/2010 4.0 4.0 (170.0) 92.3% 1.3% 17.5% ONEOK Inc. 904.1 1,098.2 65.0% 25.0% 10.0% 5.50% 8.50% 12/2010 96.8 61.3 (194.1) 82.3% 2.7% 15.4% Tesoro Corp. 294.0 564.0 45.0% 44.0% 11.0% 5.55% 7.50% 12/2010 64.0 0.0 (270.0) 52.1% 7.0% 14.6% Rowan Cos. Inc. 421.9 581.3 68.0% 27.0% 5.0% 5.45% 8.00% 12/2010 57.3 52.8 (159.4) 72.6% 2.8% 10.3%
Supplemental Exxon Mobil Corp. 27,600.0 40,729.0 60.8% 38.4% 0.8% 5.50% 7.50% 12/2010 1,184.0 1,400.0 (13,129.0) 67.8% 3.1% 9.7% Marathon Oil Corp. 2,187.0 3,636.0 13.0% 83.0% 4.0% 5.05% 8.50% 12/2010 287.0 156.0 (1,449.0) 60.1% 3.8% 9.6% Valero Energy Corp. 1,362.0 1,626.0 35.0% 43.0% 22.0% 5.40% 7.71% 12/2010 71.0 100.0 (264.0) 83.8% 1.5% 9.5% 2011 Spectra Energy Corp. 1,201.0 1,533.0 33.0% 61.0% 6.0% 4.82% 7.25% 12/2010 98.0 7.0 (332.0) 78.3% 1.9% 8.6%
21, FMC Technologies Inc. 702.4 875.4 65.0% 5.0% 30.0% 5.22% 8.30% 12/2010 50.9 63.0 (173.0) 80.2% 1.5% 7.7% ConocoPhillips 6,471.0 8,745.0 56.0% 35.0% 9.0% 4.65% 7.00% 12/2010 813.0 960.0 (2,274.0) 74.0% 2.0% 7.6%
July Chevron Corp. 12,082.0 15,341.0 60.9% 29.6% 9.5% 4.80% 7.80% 12/2010 1,450.0 950.0 (3,259.0) 78.8% 1.5% 7.1% Williams Cos. 971.0 1,267.0 72.0% 24.0% 4.0% 5.20% 7.50% 12/2010 61.0 67.0 (296.0) 76.6% 1.6% 6.9% Hess Corp. 1,365.0 1,689.0 54.0% 23.0% 23.0% 5.30% 7.50% 12/2010 212.0 190.0 (324.0) 80.8% 1.1% 5.8%
Force Schlumberger Ltd. 6,399.0 6,857.0 57.3% 34.7% 8.0% 5.50% 8.50% 12/2010 620.0 650.0 (458.0) 93.3% 0.4% 5.4% Anadarko Petroleum Corp. 1,104.0 1,882.0 55.0% 28.0% 17.0% 4.75% 7.50% 12/2010 102.0 263.0 (778.0) 58.7% 1.9% 4.6% Murphy Oil Corp. 416.3 575.3 62.7% 36.2% 1.1% 5.66% 6.56% 12/2010 20.7 39.3 (159.0) 72.4% 1.1% 4.1% Task Baker Hughes Inc. 890.0 1,037.0 49.0% 24.0% 27.0% 4.90% 7.80% 12/2010 124.0 85.0 (147.0) 85.8% 0.5% 3.2% Devon Energy Corp. 632.0 1,124.0 50.8% 37.5% 11.7% 5.50% 6.94% 12/2010 66.0 93.0 (492.0) 56.2% 1.2% 2.8% Halliburton Co. 773.0 1,023.0 64.0% 36.0% 0.0% 4.90% 8.00% 12/2010 33.0 41.0 (250.0) 75.6% 0.5% 2.2%
Reform Cameron International Corp. 261.3 282.4 54.0% 46.0% 0.0% 4.10% 5.25% 12/2010 9.4 9.0 (21.1) 92.5% 0.2% 2.0% Noble Energy Inc. 206.0 262.0 73.0% 27.0% 0.0% 5.38% 7.50% 12/2010 23.0 16.0 (56.0) 78.6% 0.3% 1.5% Helmerich & Payne Inc. 61.4 102.1 68.0% 31.0% 1.0% 4.48% 8.00% 09/2010 3.4 0.6 (40.7) 60.1% 0.6% 1.4% Cabot Oil & Gas Corp. 60.1 63.9 62.0% 36.0% 2.0% 5.25% 8.00% 12/2010 15.4 0.0 (3.8) 94.1% 0.1% 1.2%
Pension National Oilwell Varco Inc. 203.0 272.0 33.0% 37.0% 30.0% 5.95% 7.50% 12/2010 8.0 17.0 (69.0) 74.6% 0.2% 0.8% Occidental Petroleum Corp. 495.0 624.0 60.0% 40.0% 0.0% 4.74% 6.50% 12/2010 15.0 7.0 (129.0) 79.3% 0.2% 0.7% Southwestern Energy Co. 56.9 67.9 61.0% 39.0% 0.0% 5.50% 7.50% 12/2010 9.7 11.3 (11.0) 83.8% 0.1% 0.5% Apache Corp. 135.0 136.0 52.0% 48.0% 0.0% 5.40% 6.65% 12/2010 12.0 11.0 (1.0) 99.3% 0.0% 0.3% Nabors Industries Ltd. 15.2 20.6 56.0% 42.0% 2.0% 5.50% 6.50% 12/2010 0.4 1.3 (5.4) 73.8% 0.1% 0.2% Totals for All Energy Companies $70,325.6 $95,390.2 55.0% 36.9% 8.1% 5.17% 7.52% $5,745.0 $5,255.6 73.7% Totals for 12/31/10 Energy Reporting Companies $70,264.2 $95,288.1 54.5% 37.2% 8.3% 5.19% 7.50% $5,741.6 $5,255.0 73.7%
Totals for All S&P 500 Companies $1,307,309.7 $1,558,460.3 51.9% 36.9% 11.2% 5.37% 7.71% $71,107.6 $45,451.4 83.9% Totals for 12/31/10 S&P 500 Reporting Companies $1,171,974.7 $1,388,323.2 51.8% 37.5% 10.7% 5.38% 7.78% $60,024.7 $39,803.8 84.4%
Sources: FactSet, Capital IQ, company reports. * as disclosed in most recent 10-K
4
Financials & REITs: S&P 500 Companies with Defined-Benefit Plans 4 10-K Pension Data, Ranked by Deficit as % of Market Capitalization Item
- 2010 2010 2011E* 12/31/10 Pension Pension Expected Return Employer Pension Employer Pension Pension Pension Pension Deficit as % of Pension Liability as % of Company Plan Assets Plan Liabilities % Equities % Bonds % Other Discount Rate % on Assets % 10-K Date Contribution Contribution (Deficit)/Surplus Funded Status Mkt Cap at 3/31/2011 Mkt Cap at 3/31/2011
Financials Packet Marsh & McLennan Cos. $10,185.0 $10,843.0 60.0% 40.0% 0.0% 5.60% 8.20% 12/2010 $458.0 320.0 ($658.0) 93.9% 4.1% 67.3% Dun & Bradstreet Corp. 1,278.1 1,709.3 65.0% 33.0% 2.0% 5.18% 8.12% 12/2010 40.6 39.0 (431.2) 74.8% 10.8% 43.0% AON Corp. 5,532.0 7,188.0 46.7% 48.6% 4.7% 4.85% 8.80% 12/2010 288.0 403.0 (1,656.0) 77.0% 9.4% 40.8% Hartford Financial Services Group Inc. 3,922.0 4,795.0 22.0% 61.0% 17.0% 5.50% 7.30% 12/2010 201.0 200.0 (873.0) 81.8% 7.3% 40.0% Allstate Corp. 4,669.0 5,545.0 46.0% 38.0% 16.0% 6.00% 8.50% 12/2010 443.0 263.0 (876.0) 84.2% 5.2% 32.6% Prudential Financial Inc. 10,533.0 9,198.0 12.0% 72.0% 16.0% 5.60% 7.50% 12/2010 128.0 110.0 1,335.0 114.5% -4.5% 30.9% Comerica Inc. 1,464.0 1,586.0 62.0% 36.0% 2.0% 5.51% 8.00% 12/2010 0.0 0.0 (122.0) 92.3% 1.9% 24.5%
Supplemental American International Group Inc. 4,379.0 5,859.0 60.0% 23.0% 17.0% 5.50% 7.75% 12/2010 172.0 144.0 (1,480.0) 74.7% 6.0% 23.9% First Horizon National Corp. 549.6 589.7 18.0% 42.0% 40.0% 5.70% 8.05% 12/2010 4.1 0.0 (40.1) 93.2% 1.4% 19.9% Assurant Inc. 533.9 749.3 43.6% 48.5% 7.9% 5.44% 7.50% 12/2010 45.5 40.0 (215.4) 71.3% 5.5% 19.1%
2011 Regions Financial Corp. (New) 1,509.0 1,725.0 27.0% 55.0% 18.0% 5.41% 8.25% 12/2010 238.0 9.0 (216.0) 87.5% 2.4% 18.9% Principal Financial Group Inc. 1,417.7 1,933.8 68.0% 23.0% 9.0% 5.65% 8.00% 12/2010 56.5 90.0 (516.1) 73.3% 5.0% 18.8%
21, Unum Group 1,355.6 1,505.6 60.0% 39.0% 1.0% 5.80% 7.50% 12/2010 176.9 172.0 (150.0) 90.0% 1.8% 18.1% Loews Corp. 2,468.0 3,146.0 25.1% 31.1% 43.8% 5.30% 7.75% 12/2010 90.0 76.0 (678.0) 78.4% 3.8% 17.6% MetLife Inc. 6,488.0 7,719.0 35.0% 44.0% 21.0% 5.80% 8.00% 12/2010 325.0 120.0 (1,231.0) 84.1% 2.8% 17.4% July KeyCorp 914.0 1,250.0 55.0% 30.0% 15.0% 4.75% 8.25% 12/2010 70.0 0.0 (336.0) 73.1% 4.3% 16.0% SunTrust Banks Inc. 2,522.0 2,261.0 60.0% 39.0% 1.0% 5.67% 8.00% 12/2010 7.0 22.0 261.0 111.5% -1.8% 15.7% Lincoln National Corp. 1,232.0 1,364.0 41.0% 54.0% 5.0% 5.50% 8.00% 12/2010 31.0 0.0 (132.0) 90.3% 1.4% 14.4%
Force Equifax Inc. 569.9 678.0 49.1% 50.3% 0.6% 5.24% 7.73% 12/2010 55.4 0.0 (108.1) 84.1% 2.3% 14.3% Citigroup Inc. 17,706.0 17,919.0 17.0% 50.0% 33.0% 5.45% 7.50% 12/2010 1,304.0 237.0 (213.0) 98.8% 0.2% 13.9% Bank of America Corp. 19,809.0 18,640.0 52.5% 36.5% 11.1% 5.33% 8.00% 12/2010 278.0 185.0 1,169.0 106.3% -0.9% 13.8% Task PNC Financial Services Group Inc. 3,991.0 4,093.0 63.0% 34.0% 3.0% 5.00% 8.00% 12/2010 20.0 0.0 (102.0) 97.5% 0.3% 12.3% Chubb Corp. 1,922.0 2,114.0 61.0% 37.0% 2.0% 6.00% 7.00% 12/2010 207.0 0.0 (192.0) 90.9% 1.1% 11.6% NYSE Euronext 771.0 1,036.0 66.0% 33.0% 1.0% 4.95% 8.00% 12/2010 4.0 42.0 (265.0) 74.4% 2.9% 11.3% Bank of New York Mellon Corp. 4,239.0 3,765.0 59.0% 32.0% 9.0% 5.71% 8.00% 12/2010 46.0 83.0 474.0 112.6% -1.3% 10.2%
Reform Huntington Bancshares Inc. 478.5 577.8 72.0% 28.0% 0.0% 5.35% 8.00% 12/2010 0.1 0.0 (99.3) 82.8% 1.7% 10.0% Travelers Cos. Inc. 2,425.0 2,572.0 60.0% 25.0% 15.0% 5.37% 8.00% 12/2010 48.0 0.0 (147.0) 94.3% 0.6% 9.9% BB&T Corp. 2,484.0 1,878.0 64.0% 31.0% 5.0% 5.52% 8.00% 12/2010 76.0 0.0 606.0 132.3% -3.2% 9.8% Berkshire Hathaway Inc. (Cl A) 8,246.0 10,598.0 37.0% 48.0% 15.0% 5.40% 7.10% 12/2010 776.0 340.0 (2,352.0) 77.8% 2.0% 8.9% M&T Bank Corp. 838.5 948.0 56.3% 40.6% 3.2% 5.25% 6.50% 12/2010 4.5 0.0 (109.5) 88.4% 1.0% 8.9% Pension Northern Trust Corp. 1,104.3 965.9 63.0% 21.0% 16.0% 5.53% 7.30% 12/2010 78.4 0.0 138.4 114.3% -1.1% 7.9% People's United Financial Inc. 318.1 344.3 65.0% 35.0% 0.0% 5.50% 8.25% 12/2010 6.5 3.5 (26.2) 92.4% 0.6% 7.8% Morgan Stanley 2,642.0 2,953.0 0.2% 64.1% 35.7% 5.44% 4.78% 12/2010 72.0 50.0 (311.0) 89.5% 0.8% 7.1% Wells Fargo & Co. 9,639.0 11,030.0 58.0% 35.0% 7.0% 5.75% 8.25% 12/2010 83.0 0.0 (1,391.0) 87.4% 0.8% 6.6% JPMorgan Chase & Co. 13,475.0 10,920.0 38.0% 37.0% 25.0% 5.50% 7.50% 12/2010 192.0 166.0 2,555.0 123.4% -1.4% 6.0% U.S. Bancorp 2,305.0 2,929.0 96.0% 0.3% 3.7% 5.70% 8.50% 12/2010 19.0 24.0 (624.0) 78.7% 1.2% 5.8% Torchmark Corp. 236.9 285.6 29.0% 57.0% 14.0% 5.77% 7.24% 12/2010 12.6 20.0 (48.7) 83.0% 0.9% 5.4% State Street Corp. 884.0 1,070.0 31.0% 62.0% 7.0% 5.50% 7.25% 12/2010 8.0 32.0 (186.0) 82.6% 0.8% 4.7% Cincinnati Financial Corp. 183.0 245.0 72.0% 28.0% 0.0% 5.85% 8.00% 12/2010 25.0 37.0 (62.0) 74.7% 1.2% 4.6% American Express Co. 2,052.0 2,435.0 50.0% 45.0% 5.0% 5.30% 6.90% 12/2010 50.0 46.0 (383.0) 84.3% 0.7% 4.5% Zions Bancorporation 160.8 177.0 70.0% 21.0% 9.0% 5.20% 8.00% 12/2010 52.0 0.0 (16.2) 90.8% 0.4% 4.2% CB Richard Ellis Group Inc. (Cl A) 256.6 296.6 67.7% 21.4% 10.9% 5.47% 6.86% 12/2010 3.5 3.6 (40.0) 86.5% 0.5% 3.4% Republic Services Inc. 363.9 376.4 40.0% 60.0% 0.0% 5.25% 7.25% 12/2010 10.3 0.0 (12.5) 96.7% 0.1% 3.3% Ameriprise Financial Inc. 327.0 469.0 51.0% 14.0% 35.0% 4.75% 8.00% 12/2010 64.0 40.0 (142.0) 69.7% 0.9% 3.1% Moody's Corp. 120.4 242.5 65.0% 25.0% 10.0% 5.39% 8.35% 12/2010 8.8 22.5 (122.1) 49.6% 1.6% 3.1% Hudson City Bancorp Inc. 151.9 156.0 53.0% 30.0% 17.0% 5.75% 8.25% 12/2010 0.3 0.0 (4.1) 97.3% 0.1% 3.1% INVESCO Ltd. 286.0 336.1 38.9% 53.2% 7.9% 5.65% 6.20% 12/2010 6.3 6.1 (50.1) 85.1% 0.4% 2.9% Discover Financial Services 321.0 376.3 36.0% 64.0% 0.0% 5.64% 6.75% 11/2010 0.8 0.0 (55.3) 85.3% 0.4% 2.8% NASDAQ OMX Group Inc. (The) 62.0 113.0 10.0% 75.0% 15.0% 5.25% 8.00% 12/2010 7.0 0.0 (51.0) 54.9% 1.1% 2.5% Leucadia National Corp. 145.1 207.9 60.0% 40.0% 0.0% 5.50% 6.00% 12/2010 32.5 9.5 (62.8) 69.8% 0.7% 2.3% Fifth Third Bancorp 197.0 227.0 74.0% 23.0% 3.0% 5.39% 8.25% 12/2010 4.0 0.0 (30.0) 86.8% 0.3% 2.1% AFLAC Inc. 356.0 511.0 50.7% 41.7% 7.6% 5.50% 7.50% 12/2010 40.0 41.0 (155.0) 69.7% 0.6% 2.1% Plum Creek Timber Company Inc. 106.0 135.0 65.0% 35.0% 0.0% 5.90% 7.75% 12/2010 5.0 6.0 (29.0) 78.5% 0.4% 1.9% XL Group PLC 33.3 66.3 67.3% 32.7% 0.0% 5.59% 8.00% 12/2010 1.3 0.0 (33.0) 50.2% 0.4% 0.8% Capital One Financial Corp. 221.0 193.0 94.3% 5.7% 0.0% 5.20% 7.50% 12/2010 1.0 1.0 28.0 114.5% -0.1% 0.8% CME Group Inc. (Cl A) 121.3 118.2 52.1% 32.9% 15.0% 5.70% 8.00% 12/2010 5.2 14.1 3.1 102.6% 0.0% 0.6% Franklin Resources Inc. 43.0 42.1 85.7% 14.4% -0.1% 5.10% 7.20% 09/2010 3.0 3.0 0.9 102.1% 0.0% 0.2% Totals for All Financials Companies $160,543.2 $171,006.6 51.7% 38.2% 10.1% 5.46% 7.67% $6,385.2 $3,420.3 93.9% Totals for 12/31/10 Financials Reporting Companies $160,179.2 $170,588.2 51.4% 38.1% 10.5% 5.47% 7.69% $6,381.4 $3,417.3 93.9%
Totals for All S&P 500 Companies $1,307,309.7 $1,558,460.3 51.9% 36.9% 11.2% 5.37% 7.71% $71,107.6 $45,451.4 83.9% Totals for 12/31/10 S&P 500 Reporting Companies $1,171,974.7 $1,388,323.2 51.8% 37.5% 10.7% 5.38% 7.78% $60,024.7 $39,803.8 84.4% Sources: FactSet, Capital IQ, company reports. * as disclosed in most recent 10-K
5
Healthcare: S&P 500 Companies with Defined-Benefit Plans 4 10-K Pension Data, Ranked by Deficit as % of Market Capitalization Item
- 2010 2010 2011E* 12/31/10 Pension Pension Expected Return Employer Pension Employer Pension Pension Pension Pension Deficit as % of Pension Liability as % of Company Plan Assets Plan Liabilities % Equities % Bonds % Other Discount Rate % on Assets % 10-K Date Contribution Contribution (Deficit)/Surplus Funded Status Mkt Cap at 3/31/2011 Mkt Cap at 3/31/2011
Packet Healthcare
Aetna Inc. $5,243.8 $5,821.2 41.1% 30.4% 28.5% 5.50% 8.00% 12/2010 $505.0 $60.0 ($577.4) 90.1% 4.0% 40.6% CIGNA Corp. 3,163.0 4,691.0 59.8% 20.9% 19.3% 5.00% 8.00% 12/2010 214.0 250.0 (1,528.0) 67.4% 12.8% 39.4% Eli Lilly & Co. 6,983.0 8,115.0 78.0% 16.0% 6.0% 5.60% 8.80% 12/2010 563.5 80.0 (1,132.0) 86.1% 2.9% 20.8% PerkinElmer Inc. 299.5 475.7 61.0% 36.0% 3.0% 5.30% 8.50% 12/2010 45.2 11.0 (176.2) 63.0% 5.8% 15.7% Bristol-Myers Squibb Co. 5,766.0 6,704.0 60.2% 32.4% 7.5% 5.19% 8.26% 12/2010 431.0 420.0 (938.0) 86.0% 2.1% 14.8%
Supplemental Pfizer Inc. 17,305.0 23,583.0 45.0% 33.0% 22.0% 5.90% 8.50% 12/2010 1,754.0 949.0 (6,278.0) 73.4% 3.8% 14.4% Baxter International Inc. 3,479.0 4,438.0 44.2% 34.2% 21.6% 5.45% 8.50% 12/2010 416.0 214.0 (959.0) 78.4% 3.1% 14.2% Merck & Co Inc 12,705.0 13,978.0 66.6% 27.0% 6.4% 5.40% 8.70% 12/2010 1,062.0 800.0 (1,273.0) 90.9% 1.2% 13.7% 2011 Abbott Laboratories 7,451.0 8,606.0 47.1% 28.4% 24.5% 5.40% 7.80% 12/2010 525.0 200.0 (1,155.0) 86.6% 1.5% 11.3%
21, Becton Dickinson & Co. 1,413.8 1,911.3 60.3% 31.2% 8.5% 5.20% 8.00% 09/2010 207.8 0.0 (497.4) 74.0% 2.8% 10.8% Johnson & Johnson 13,433.0 14,993.0 72.0% 28.0% 0.0% 5.98% 9.00% 12/2010 1,611.0 54.0 (1,560.0) 89.6% 1.0% 9.2%
July Life Technologies Corp. 759.0 864.9 53.0% 35.0% 12.0% 5.45% 7.00% 12/2010 44.7 5.5 (105.9) 87.8% 1.1% 9.1% WellPoint Inc. 1,742.7 1,715.4 48.8% 27.8% 23.4% 5.15% 8.00% 12/2010 3.9 0.0 27.3 101.6% -0.1% 6.5% Hospira Inc. 458.3 494.0 60.0% 40.0% 0.0% 5.20% 8.00% 12/2010 94.1 0.0 (35.7) 92.8% 0.4% 5.4%
Force Thermo Fisher Scientific Inc. 873.0 1,069.9 49.0% 34.0% 17.0% 5.25% 7.75% 12/2010 21.9 30.0 (196.9) 81.6% 0.9% 5.0% C.R. Bard Inc. 281.6 377.0 64.0% 32.0% 4.0% 5.15% 8.15% 12/2010 33.4 30.0 (95.4) 74.7% 1.1% 4.5% Medtronic Inc. 1,524.0 1,823.0 16.0% 17.0% 67.0% 6.05% 8.25% 04/2010 128.0 128.0 (299.0) 83.6% 0.7% 4.3% Task Dentsply International Inc. 99.5 211.5 31.0% 58.0% 11.0% 4.10% 5.20% 12/2010 9.2 6.2 (112.0) 47.1% 2.1% 4.0% Zimmer Holdings Inc. 450.9 453.6 33.0% 49.0% 18.0% 5.82% 7.50% 12/2010 37.2 65.0 (2.7) 99.4% 0.0% 3.8% Laboratory Corp. of America Holdings 264.4 348.2 55.0% 39.5% 5.5% 5.10% 7.50% 12/2010 1.1 0.0 (83.8) 75.9% 0.9% 3.7%
Reform Allergan Inc. 627.2 774.0 52.0% 47.0% 1.0% 5.51% 8.25% 12/2010 21.4 45.0 (146.8) 81.0% 0.7% 3.6% McKesson Corp. 391.0 593.0 59.0% 33.0% 8.0% 5.33% 7.90% 03/2010 18.0 7.0 (202.0) 65.9% 1.0% 3.0% Waters Corp. 105.1 148.0 59.0% 28.0% 13.0% 5.31% 6.86% 12/2010 6.4 5.0 (42.8) 71.0% 0.5% 1.9% Varian Medical Systems Inc. 113.1 141.1 34.0% 59.0% 7.0% 3.45% 4.87% 09/2010 5.5 6.6 (28.0) 80.2% 0.3% 1.7%
Pension AmerisourceBergen Corp. 113.5 143.0 60.0% 40.0% 0.0% 5.00% 8.00% 09/2010 24.5 24.0 (29.5) 79.4% 0.3% 1.3% Stryker Corp. 199.9 307.6 39.0% 46.0% 15.0% 4.20% 5.20% 12/2010 18.2 18.7 (107.7) 65.0% 0.5% 1.3% Medco Health Solutions Inc. 189.4 253.6 70.0% 30.0% 0.0% 5.10% 8.00% 12/2010 27.8 28.6 (64.2) 74.7% 0.3% 1.1% Genzyme Corp. 80.4 125.2 76.0% 14.0% 10.0% 5.39% 7.77% 12/2010 9.6 10.0 (44.8) 64.2% 0.2% 0.6% Totals for All Healtcare Companies $85,515.1 $103,159.1 53.4% 33.8% 12.8% 5.23% 7.72% $7,839.3 $3,447.6 82.9% Totals for 12/31/10 Healthcare Reporting Companies $81,959.7 $98,547.8 55.0% 33.3% 11.7% 5.28% 7.79% $7,455.6 $3,282.1 83.2%
Totals for All S&P 500 Companies $1,307,309.7 $1,558,460.3 51.9% 36.9% 11.2% 5.37% 7.71% $71,107.6 $45,451.4 83.9% Totals for 12/31/10 S&P 500 Reporting Companies $1,171,974.7 $1,388,323.2 51.8% 37.5% 10.7% 5.38% 7.78% $60,024.7 $39,803.8 84.4%
Sources: FactSet, Capital IQ, company reports. * as disclosed in most recent 10-K
6
Industrials: S&P 500 Companies with Defined-Benefit Plans 4 10-K Pension Data, Ranked by Deficit as % of Market Capitalization Item
- 2010 2010 2011E* 12/31/10 Pension Pension Expected Return Employer Pension Employer Pension Pension Pension Pension Deficit as % of Pension Liability as % of Company Plan Assets Plan Liabilities % Equities % Bonds % Other Discount Rate % on Assets % 10-K Date Contribution Contribution (Deficit)/Surplus Funded Status Mkt cap at 3/31/2011 Mkt cap at 3/31/2011
Packet Industrials
Goodyear Tire & Rubber Co. $5,788.0 $8,337.0 54.0% 39.0% 7.0% 5.20% 8.50% 12/2010 $361.0 $300.0 ($2,549.0) 69.4% 69.8% 228.2% Northrop Grumman Corp. 23,265.0 25,263.0 35.6% 41.9% 22.5% 5.76% 8.50% 12/2010 894.0 562.0 (1,998.0) 92.1% 11.0% 138.7% Lockheed Martin Corp. 25,345.0 35,773.0 43.0% 25.0% 32.0% 5.50% 8.50% 12/2010 2,240.0 1,300.0 (10,428.0) 70.8% 37.5% 128.6% Ford Motor Co. 58,575.0 70,032.0 41.0% 42.0% 17.0% 5.24% 8.25% 12/2010 1,371.0 1,200.0 (11,457.0) 83.6% 20.3% 124.2% Boeing Co. 49,252.0 59,106.0 38.0% 49.0% 13.0% 5.30% 7.75% 12/2010 35.0 500.0 (9,854.0) 83.3% 18.2% 108.9% Supplemental Raytheon Co. 15,099.0 19,138.0 43.0% 51.0% 6.0% 5.73% 8.68% 12/2010 1,902.0 1,073.0 (4,039.0) 78.9% 22.1% 104.9% Textron Inc. 4,559.0 5,877.0 54.0% 25.0% 21.0% 5.71% 8.26% 12/2010 390.0 220.0 (1,318.0) 77.6% 17.4% 77.7%
2011 ITT Corp. 4,622.0 5,960.0 43.0% 2.0% 55.0% 5.73% 9.00% 12/2010 76.0 110.0 (1,338.0) 77.6% 12.1% 54.1% Honeywell International Inc. 16,120.0 19,363.0 55.0% 41.0% 4.0% 5.25% 9.00% 12/2010 1,347.0 55.0 (3,243.0) 83.3% 6.9% 41.4% 21, Goodrich Corp. 3,375.9 3,946.6 62.0% 32.0% 6.0% 5.67% 8.75% 12/2010 444.1 100.0 (570.7) 85.5% 5.4% 37.0% Rockwell Collins Inc. 2,169.0 3,354.0 64.0% 34.0% 2.0% 4.85% 8.75% 09/2010 110.0 13.0 (1,185.0) 64.7% 11.8% 33.5% July General Dynamics Corp. 6,250.0 9,238.0 65.0% 32.0% 3.0% 5.73% 8.43% 12/2010 300.0 350.0 (2,988.0) 67.7% 10.5% 32.4% United Technologies Corp. 22,384.0 24,445.0 52.0% 34.2% 13.8% 5.40% 8.00% 12/2010 1,621.0 450.0 (2,061.0) 91.6% 2.6% 31.3% Snap-On Inc. 793.0 1,037.4 49.0% 34.0% 17.0% 5.30% 7.80% 12/2010 59.9 11.6 (244.4) 76.4% 7.0% 29.7% Force General Electric Co. 52,604.0 61,906.0 62.0% 26.0% 12.0% 5.20% 7.63% 12/2010 756.0 670.0 (9,302.0) 85.0% 4.4% 29.0% L-3 Communications Holdings Inc. 1,585.0 2,365.0 62.0% 29.0% 9.0% 5.57% 8.55% 12/2010 186.0 185.0 (780.0) 67.0% 9.2% 27.8%
Task 3M Co. 15,930.0 17,231.0 43.0% 29.0% 28.0% 5.23% 8.50% 12/2010 556.0 600.0 (1,301.0) 92.4% 2.0% 25.9% Deere & Co. 9,504.0 10,197.0 38.0% 37.0% 25.0% 5.00% 8.30% 10/2010 763.0 283.0 (693.0) 93.2% 1.7% 25.2% Ingersoll-Rand Plc 3,248.6 3,799.5 42.5% 55.8% 1.7% 5.00% 7.75% 12/2010 499.2 51.2 (550.9) 85.5% 3.5% 23.9% Caterpillar Inc. 13,640.0 16,891.0 74.0% 23.0% 3.0% 5.10% 8.50% 12/2010 977.0 1,000.0 (3,251.0) 80.8% 4.6% 23.8% Reform Rockwell Automation Inc. 2,486.6 3,179.7 55.0% 40.0% 5.0% 5.60% 8.00% 09/2010 181.2 36.0 (693.1) 78.2% 5.2% 23.6% Parker Hannifin Corp. 2,020.2 3,430.8 56.0% 37.0% 7.0% 5.30% 8.50% 06/2010 153.3 250.0 (1,410.6) 58.9% 9.2% 22.4% Masco Corp. 509.0 1,031.0 67.0% 31.0% 2.0% 5.30% 7.25% 12/2010 41.0 35.0 (522.0) 49.4% 10.7% 21.2%
Pension Eaton Corp. 2,509.0 3,918.0 65.0% 22.0% 13.0% 5.50% 8.95% 12/2010 403.0 353.0 (1,409.0) 64.0% 7.5% 20.8% Jacobs Engineering Group Inc. 769.6 1,167.4 43.0% 35.0% 22.0% 3.60% 5.10% 09/2010 42.6 38.0 (397.8) 65.9% 6.1% 18.0% Johnson Controls Inc. 3,687.0 4,442.0 58.0% 32.0% 10.0% 5.50% 8.50% 09/2010 681.0 250.0 (755.0) 83.0% 2.7% 15.8% Cummins Inc. 2,994.0 3,123.0 50.2% 42.1% 7.7% 5.42% 8.00% 12/2010 212.0 130.0 (129.0) 95.9% 0.6% 14.5% Harley-Davidson Inc. 1,105.5 1,390.4 71.4% 25.9% 2.7% 5.79% 8.25% 12/2010 20.0 0.0 (284.9) 79.5% 2.9% 13.9% Tyco International Ltd. 1,689.0 2,320.0 60.0% 37.0% 3.0% 5.00% 8.00% 09/2010 82.0 64.0 (631.0) 72.8% 2.9% 10.8% Emerson Electric Co. 3,920.0 4,527.0 63.0% 29.0% 8.0% 5.00% 8.00% 09/2010 247.0 150.0 (607.0) 86.6% 1.4% 10.2% Fluor Corp. 1,298.6 1,293.6 32.0% 64.0% 4.0% 5.38% 6.25% 12/2010 42.6 90.0 5.0 100.4% 0.0% 9.9% Pall Corp. 356.5 604.5 53.0% 30.0% 17.0% 5.25% 7.00% 07/2010 47.3 47.0 (248.0) 59.0% 3.7% 9.1% Flowserve Corp. 479.7 625.7 50.0% 50.0% 0.0% 5.00% 7.00% 12/2010 50.2 20.0 (146.1) 76.7% 2.1% 8.8% Illinois Tool Works Inc. 1,931.8 2,287.9 43.0% 55.0% 2.0% 5.05% 7.63% 12/2010 73.9 59.3 (356.1) 84.4% 1.3% 8.5% Paccar Inc. 1,445.4 1,485.6 59.8% 38.2% 2.1% 5.40% 7.20% 12/2010 61.8 50.0 (40.2) 97.3% 0.2% 7.8% Precision Castparts Corp. 1,473.2 1,490.3 38.0% 25.0% 37.0% 6.25% 8.00% 03/2010 211.8 112.5 (17.1) 98.9% 0.1% 7.1% Danaher Corp. 1,480.3 2,067.8 26.0% 34.0% 40.0% 5.20% 8.00% 12/2010 123.2 50.0 (587.5) 71.6% 1.7% 6.1% Dover Corp. 531.6 708.1 62.0% 32.0% 6.0% 5.45% 7.37% 12/2010 56.6 58.5 (176.5) 75.1% 1.4% 5.8% Totals for All Industrials Companies $364,795.5 $442,352.3 51.9% 35.3% 12.8% 5.33% 8.01% $17,618.7 $10,827.1 82.5% Totals for 12/31/10 Reporting Industrials $336,720.4 $407,639.6 51.6% 35.9% 12.5% 5.40% 8.08% $15,099.6 $9,583.6 82.6%
Totals for All S&P 500 Companies $1,307,309.7 $1,558,460.3 51.9% 36.9% 11.2% 5.37% 7.71% $71,107.6 $45,451.4 83.9% Totals for 12/31/10 S&P 500 Reporting Companies $1,171,974.7 $1,388,323.2 51.8% 37.5% 10.7% 5.38% 7.78% $60,024.7 $39,803.8 84.4%
Sources: FactSet, Capital IQ, company reports. * as disclosed in most recent 10-K
7
Media & Telecommunications: S&P 500 Companies with Defined-Benefit Plans 4 10-K Pension Data, Ranked by Deficit as % of Market Capitalization Item
- 2010 2010 2011E* 12/31/10 Pension Pension Expected Return Employer Pension Employer Pension Pension Pension Pension Deficit as % of Pension Liability as % of Company Plan Assets Plan Liabilities % Equities % Bonds % Other Discount Rate % on Assets % 10-K Date Contribution Contribution (Deficit)/Surplus Funded Status Mkt Cap at 3/31/2011 Mkt Cap at 3/31/2011
Packet Media and Telecommunications
R.R. Donnelley & Sons Co. $3,029.6 $3,583.1 68.0% 28.0% 4.0% 5.50% 8.30% 12/2010 $38.8 $45.8 ($553.5) 84.6% 14.1% 91.5% Gannett Co. Inc. 2,588.7 3,217.9 59.0% 30.0% 11.0% 5.49% 8.75% 12/2010 174.6 63.5 (629.1) 80.4% 17.2% 88.0% Qwest Communications International Inc. 7,660.0 8,276.0 37.0% 32.0% 31.0% 5.30% 8.00% 12/2010 0.0 0.0 (616.0) 92.6% 5.1% 68.2% CenturyLink Inc. 3,731.9 4,534.0 52.3% 33.4% 14.3% 5.25% 8.38% 12/2010 304.8 100.0 (802.1) 82.3% 6.3% 35.8% Washington Post Co. (Cl B) 1,652.0 1,192.6 81.0% 19.0% 0.0% 5.60% 6.50% 12/2010 0.0 0.0 459.4 138.5% -12.7% 33.0%
Supplemental AT&T Inc. 47,621.0 53,917.0 44.0% 34.0% 22.0% 5.80% 8.50% 12/2010 0.0 0.0 (6,296.0) 88.3% 3.5% 29.7% CBS Corp (Cl B) 3,660.2 4,981.5 24.4% 69.7% 5.9% 5.20% 6.90% 12/2010 218.0 130.0 (1,321.3) 73.5% 7.8% 29.2% Verizon Communications Inc. 25,814.0 29,217.0 39.4% 22.5% 38.1% 5.75% 8.50% 12/2010 138.0 100.0 (3,403.0) 88.4% 3.1% 26.8% 2011 Frontier Communications Corp. 1,290.3 1,644.7 50.0% 39.0% 11.0% 5.25% 8.00% 12/2010 13.1 50.0 (354.4) 78.5% 4.3% 20.2%
21, Windstream Corp. 870.2 1,164.0 61.1% 34.9% 4.0% 5.31% 8.00% 12/2010 41.7 61.0 (293.8) 74.8% 4.5% 17.9% McGraw-Hill Cos. 1,566.6 1,793.5 73.0% 20.0% 7.0% 5.40% 8.00% 12/2010 167.7 29.9 (226.9) 87.3% 1.9% 14.8%
July Walt Disney Co. 5,684.0 8,084.0 44.0% 33.0% 23.0% 5.25% 7.75% 09/2010 421.0 450.0 (2,400.0) 70.3% 3.0% 10.0% Interpublic Group Of Cos. 407.4 562.0 26.0% 47.0% 27.0% 5.50% 7.49% 12/2010 37.7 34.9 (154.6) 72.5% 2.5% 9.1% Time Warner Inc. 3,130.0 3,450.0 16.8% 67.4% 15.8% 5.55% 7.84% 12/2010 104.0 160.0 (320.0) 90.7% 0.8% 8.8%
Force Meredith Corp. 113.6 116.9 66.0% 34.0% 0.0% 4.50% 8.25% 06/2010 10.6 1.2 (3.4) 97.1% 0.2% 7.6% Time Warner Cable Inc. 1,882.0 1,803.0 67.7% 30.8% 1.5% 5.90% 8.00% 12/2010 104.0 0.0 79.0 104.4% -0.3% 7.2% News Corp. (Cl A) 2,404.0 2,986.0 36.0% 40.0% 24.0% 5.70% 7.00% 06/2010 338.0 50.0 (582.0) 80.5% 1.3% 6.5% Task Cablevision Systems Corp. 228.1 309.0 0.0% 91.0% 9.0% 5.25% 4.38% 12/2010 50.1 68.3 (80.9) 73.8% 0.8% 3.0% Viacom Inc. (Cl B) 464.0 807.0 68.0% 32.0% 0.0% 5.60% 8.00% 09/2010 28.0 50.0 (343.0) 57.5% 1.2% 2.9% DIRECTV 429.0 521.0 51.0% 37.0% 12.0% 5.59% 8.25% 12/2010 45.0 15.0 (92.0) 82.3% 0.2% 1.4%
Reform Scripps Networks Interactive Inc. Cl A 41.1 95.8 66.0% 30.0% 4.0% 5.60% 7.50% 12/2010 5.9 3.5 (54.7) 42.9% 0.7% 1.1% Omnicom Group Inc. 53.9 130.0 0.0% 2.0% 98.0% 4.42% 5.18% 12/2010 7.5 7.5 (76.1) 41.5% 0.5% 0.9% Comcast Corp. (Cl A) 183.0 197.0 NA NA NA 5.25% 8.00% 12/2010 0.0 0.0 (14.0) 92.9% 0.0% 0.3% Totals for All Media and Telecomm Companies $114,504.5 $132,583.0 46.8% 36.7% 16.5% 5.39% 7.63% $2,248.5 $1,420.6 86.4%
Pension Totals for 12/31/10 Media and Telecomm Companies $105,839.0 $120,589.1 45.4% 37.1% 17.5% 5.42% 7.60% $1,450.9 $869.4 87.8%
Totals for All S&P 500 Companies $1,307,309.7 $1,558,460.3 51.9% 36.9% 11.2% 5.37% 7.71% $71,107.6 $45,451.4 83.9% Totals for 12/31/10 S&P 500 Reporting Companies $1,171,974.7 $1,388,323.2 51.8% 37.5% 10.7% 5.38% 7.78% $60,024.7 $39,803.8 84.4%
Sources: FactSet, Capital IQ, company reports. * as disclosed in most recent 10-K
8
Retail: S&P 500 Companies with Defined-Benefit Plans 4 10-K Pension Data, Ranked by Deficit as % of Market Capitalization Item
- 2010 2010 2011E* 12/31/10 Pension Pension Expected Return Employer Pension Employer Pension Pension Pension Pension Deficit as % of Pension Liability as % of Company Plan Assets Plan Liabilities % Equities % Bonds % Other Discount Rate % on Assets % 10-K Date Contribution Contribution (Deficit)/Surplus Funded Status Mkt Cap at 3/31/2011 Mkt Cap at 3/31/2011
Packet Retail
SUPERVALU Inc. $1,557.0 $2,320.0 66.1% 33.7% 0.2% 6.00% 8.00% 02/2010 $126.0 $81.0 ($763.0) 67.1% 40.4% 122.8% Sears Holdings Corp. 5,342.0 7,024.0 38.0% 61.0% 1.0% 5.75% 8.00% 01/2011 279.0 352.0 (1,682.0) 76.1% 18.7% 78.2% J.C. Penney Co. Inc. 5,251.0 4,710.0 68.0% 22.0% 10.0% 5.65% 8.40% 01/2011 424.0 29.0 541.0 111.5% -6.4% 55.4% Macy's Inc. 1,865.0 3,559.0 52.0% 23.0% 25.0% 5.65% 8.75% 01/2010 448.0 325.0 (1,694.0) 52.4% 16.5% 34.7% Safeway Inc. 1,652.2 2,257.2 67.6% 31.1% 1.3% 5.60% 8.50% 12/2010 10.2 175.0 (605.0) 73.2% 7.0% 26.1%
Supplemental Kroger Co. 2,472.0 3,115.0 33.6% 23.3% 43.1% 5.60% 8.50% 01/2011 149.0 300.0 (643.0) 79.4% 4.3% 20.9% Genuine Parts Co. 1,439.7 1,689.0 70.0% 30.0% 0.0% 5.74% 8.00% 12/2010 91.3 51.7 (249.3) 85.2% 3.0% 20.0% Sysco Corp. 1,667.0 2,212.3 55.0% 44.0% 1.0% 6.15% 8.00% 06/2010 297.9 22.2 (545.3) 75.4% 3.4% 13.8% 2011 VF Corp. 1,211.6 1,419.0 51.0% 33.0% 16.0% 5.65% 7.75% 12/2010 113.5 11.0 (207.4) 85.4% 2.0% 13.4%
21, Target Corp. 2,515.0 2,556.0 28.0% 25.0% 47.0% 5.50% 8.00% 01/2011 156.0 0.0 (41.0) 98.4% 0.1% 7.3% Staples Inc. 1,091.3 944.7 33.0% 49.0% 18.0% 5.70% 7.00% 01/2011 14.7 11.8 146.6 115.5% -1.0% 6.7%
July Tiffany & Co. 262.8 432.7 74.1% 20.9% 5.0% 6.00% 7.50% 01/2011 41.5 25.0 (169.9) 60.7% 2.2% 5.5% Sherwin-Williams Co. 700.5 476.2 66.0% 31.0% 3.0% 4.97% 7.50% 12/2010 0.0 0.0 224.3 147.1% -2.5% 5.3% TJX Cos. 663.6 715.9 18.2% 20.3% 61.5% 5.50% 8.00% 01/2011 103.4 3.9 (52.3) 92.7% 0.3% 3.7%
Force Big Lots Inc. 56.9 59.5 5.0% 37.7% 57.3% 5.70% 8.00% 01/2010 10.8 0.0 (2.7) 95.5% 0.1% 1.8% AutoZone Inc. 117.2 211.5 66.9% 22.6% 10.5% 5.25% 8.00% 08/2010 0.0 3.0 (94.3) 55.4% 0.8% 1.8% CarMax Inc. 77.7 116.5 74.0% 25.0% 1.0% 6.85% 7.75% 02/2010 15.2 0.0 (38.8) 66.7% 0.5% 1.6% Task CVS Caremark Corp. 426.0 659.0 57.0% 42.0% 1.0% 5.50% 7.25% 12/2010 65.0 90.0 (233.0) 64.6% 0.5% 1.4% Totals for All Retail Companies $28,368.4 $34,477.5 51.3% 31.9% 16.8% 5.71% 7.94% $2,345.4 $1,480.5 82.3% Totals for 12/31/10 Retail Reporting Companies $5,430.0 $6,500.4 62.3% 33.4% 4.3% 5.49% 7.80% $280.0 $327.7 83.5% Reform
Totals for All S&P 500 Companies $1,307,309.7 $1,558,460.3 51.9% 36.9% 11.2% 5.37% 7.71% $71,107.6 $45,451.4 83.9% Totals for 12/31/10 S&P 500 Reporting Companies $1,171,974.7 $1,388,323.2 51.8% 37.5% 10.7% 5.38% 7.78% $60,024.7 $39,803.8 84.4% Pension
Sources: FactSet, Capital IQ, company reports. * as disclosed in most recent 10-K
9
Technology: S&P 500 Companies with Defined-Benefit Plans 4 10-K Pension Data, Ranked by Deficit as % of Market Capitalization Item
- 2010 2010 2011E* 12/31/10 Pension Pension Expected Return Employer Pension Employer Pension Pension Pension Pension Deficit as % of Pension Liability as % of Company Plan Assets Plan Liabilities % Equities % Bonds % Other Discount Rate % on Assets % 10-K Date Contribution Contribution (Deficit)/Surplus Funded Status Mkt Cap at 3/31/2011 Mkt Cap at 3/31/2011
Packet Technology
Computer Sciences Corp. $3,818.0 $5,036.0 68.0% 27.0% 5.0% 6.20% 8.50% 03/2010 $339.0 $180.0 ($1,218.0) 75.8% 16.2% 66.8% Xerox Corp. 7,940.0 9,731.0 40.0% 38.0% 22.0% 5.20% 7.20% 12/2010 237.0 500.0 (1,791.0) 81.6% 12.0% 65.4% Motorola Solutions Inc. 5,546.0 7,678.0 66.0% 34.0% 0.0% 5.75% 8.25% 12/2010 204.0 280.0 (2,132.0) 72.2% 14.2% 51.1% International Business Machines Corp. 85,981.0 93,877.0 41.0% 45.0% 14.0% 5.00% 8.00% 12/2010 801.0 900.0 (7,896.0) 91.6% 3.9% 46.9% Pitney Bowes Inc. 1,835.9 2,173.5 63.0% 34.0% 3.0% 5.60% 8.00% 12/2010 29.3 145.0 (337.7) 84.5% 6.5% 41.6%
Supplemental LSI Corp. 868.8 1,331.1 57.0% 38.0% 5.0% 5.25% 8.00% 12/2010 31.0 64.0 (462.3) 65.3% 11.1% 31.8% Hewlett-Packard Co. 22,187.0 26,991.0 51.0% 41.0% 8.0% 5.60% 8.00% 10/2010 772.0 777.0 (4,804.0) 82.2% 5.4% 30.3% Lexmark International Inc. 616.0 778.5 60.5% 39.5% 0.0% 5.20% 7.50% 12/2010 5.2 35.0 (162.5) 79.1% 5.6% 26.7% 2011 Agilent Technologies Inc. 2,136.0 2,317.0 62.4% 35.8% 1.8% 5.00% 8.25% 10/2010 77.0 83.0 (181.0) 92.2% 1.2% 15.0%
21, Teradyne Inc. 295.0 337.8 41.2% 51.5% 7.4% 5.20% 7.50% 12/2010 50.5 3.9 (42.8) 87.3% 1.3% 10.4% Corning Inc. 2,690.0 3,008.0 24.0% 59.0% 17.0% 5.25% 7.25% 12/2010 367.0 30.0 (318.0) 89.4% 1.0% 9.3%
July National Semiconductor Corp. 216.6 283.9 59.0% 26.0% 15.0% 3.80% 4.50% 05/2010 6.8 5.2 (67.3) 76.3% 1.9% 8.2% Texas Instruments Incorporated 2,668.0 3,097.0 45.0% 53.0% 2.0% 5.58% 6.50% 12/2010 88.0 0.0 (429.0) 86.1% 1.1% 7.7% MEMC Electronic Materials Inc. 192.2 213.3 68.0% 20.0% 12.0% 4.58% 8.38% 12/2010 0.7 1.1 (21.1) 90.1% 0.7% 7.2%
Force Amphenol Corp. (Cl A) 296.5 457.3 59.0% 36.0% 5.0% 5.20% 8.25% 12/2010 17.3 19.4 (160.8) 64.8% 1.7% 4.8% Molex Inc. 108.7 198.9 56.0% 31.0% 13.0% 5.70% 8.30% 06/2010 15.8 14.9 (90.2) 54.6% 2.1% 4.5% Automatic Data Processing Inc. 981.7 1,087.9 63.0% 37.0% 0.0% 5.25% 7.25% 06/2010 112.3 7.6 (106.2) 90.2% 0.4% 4.3% Task Jabil Circuit Inc. 85.6 133.7 24.0% 63.0% 13.0% 4.10% 4.00% 08/2010 4.3 3.9 (48.1) 64.0% 1.1% 3.1% Western Union Co. 290.1 402.9 31.0% 69.0% 0.0% 4.69% 6.50% 12/2010 24.9 25.0 (112.8) 72.0% 0.8% 3.0% SAIC Inc. 94.0 136.0 64.0% 36.0% 0.0% 5.50% 6.70% 01/2011 10.0 6.0 (42.0) 69.1% 0.7% 2.2%
Reform Analog Devices Inc. 176.2 215.0 86.9% 10.9% 2.2% 5.33% 6.73% 10/2010 28.4 9.0 (38.8) 82.0% 0.3% 1.8% Applied Materials Inc. 162.2 309.1 38.0% 29.0% 33.0% 3.55% 6.92% 10/2010 60.8 18.0 (146.9) 52.5% 0.7% 1.5% Intel Corp. 1,211.0 1,641.0 28.0% 71.0% 1.0% 5.80% 4.50% 12/2010 215.0 55.0 (430.0) 73.8% 0.4% 1.5% Visa Inc. 766.0 743.0 64.0% 30.0% 6.0% 5.25% 7.50% 09/2010 62.0 55.0 23.0 103.1% 0.0% 1.4%
Pension Teradata Corp. 59.0 111.0 41.0% 38.0% 21.0% 3.90% 4.70% 12/2010 13.0 11.0 (52.0) 53.2% 0.6% 1.3% EMC Corp. 379.6 427.2 60.0% 40.0% 0.0% 5.40% 6.75% 12/2010 0.0 0.0 (47.6) 88.9% 0.1% 0.8% MasterCard Inc. (Cl A) 236.0 240.0 71.0% 29.0% 0.0% 5.00% 8.00% 12/2010 20.0 20.0 (4.0) 98.3% 0.0% 0.7% Totals for All Technology Companies $141,837.1 $162,956.2 53.0% 39.3% 7.6% 5.11% 7.11% $3,592.4 $3,249.0 87.0% Totals for 12/31/10 Technology Reporting Companies $111,105.1 $125,504.7 49.7% 43.4% 6.8% 5.16% 7.21% $2,104.0 $2,089.4 88.5%
Totals for All S&P 500 Companies $1,307,309.7 $1,558,460.3 51.9% 36.9% 11.2% 5.37% 7.71% $71,107.6 $45,451.4 83.9% Totals for 12/31/10 S&P 500 Reporting Companies $1,171,974.7 $1,388,323.2 51.8% 37.5% 10.7% 5.38% 7.78% $60,024.7 $39,803.8 84.4%
Sources: FactSet, Capital IQ, company reports. * as disclosed in most recent 10-K
10
Transportation: S&P 500 Companies with Defined-Benefit Plans 4 10-K Pension Data, Ranked by Deficit as % of Market Capitalization Item
- 2010 2010 2011E* 12/31/10 Pension Pension Expected Return Employer Pension Employer Pension Pension Pension Pension Deficit as % of Pension Liability as % of Company Plan Assets Plan Liabilities % Equities % Bonds % Other Discount Rate % on Assets % 10-K Date Contribution Contribution (Deficit)/Surplus Funded Status Mkt Cap at 3/10/2011 Mkt Cap at 3/10/2011
Packet Transportation
Ryder System Inc. 1,428.8 1,744.2 67.0% 33.0% 0.0% 5.70% 7.65% 12/2010 63.8 15.0 (315.4) 81.9% 12.2% 67.4% FedEx Corp. 13,295.0 14,484.0 47.0% 50.0% 3.0% 6.37% 8.00% 05/2010 900.0 500.0 (1,189.0) 91.8% 4.0% 49.0% United Parcel Service Inc. (Cl B) 20,653.0 22,022.0 44.4% 31.3% 24.3% 5.98% 8.75% 12/2010 3,145.0 1,255.0 (1,369.0) 93.8% 1.9% 29.8% CSX Corp. 1,851.0 2,487.0 61.0% 39.0% 0.0% 5.00% 8.50% 12/2010 13.0 0.0 (636.0) 74.4% 2.2% 8.5% Norfolk Southern Corp. 1,756.0 1,813.0 66.0% 21.0% 13.0% 5.25% 8.75% 12/2010 111.0 12.0 (57.0) 96.9% 0.2% 7.3%
Supplemental Union Pacific Corp. 2,404.0 2,759.0 60.0% 31.0% 9.0% 5.35% 8.00% 12/2010 213.0 0.0 (355.0) 87.1% 0.7% 5.7% Totals for All Transportation Companies $41,387.8 $45,309.2 57.6% 34.2% 8.2% 5.61% 8.28% $4,445.8 $1,782.0 91.3% Totals for 12/31/10 Transportation Reporting Companies $28,092.8 $30,825.2 59.7% 31.1% 9.3% 5.46% 8.33% $3,545.8 $1,282.0 91.1% 2011 21,
Totals for All S&P 500 Companies $1,307,309.7 $1,558,460.3 51.9% 36.9% 11.2% 5.37% 7.71% $71,107.6 $45,451.4 83.9%
July Totals for 12/31/10 S&P 500 Reporting Companies $1,171,974.7 $1,388,323.2 51.8% 37.5% 10.7% 5.38% 7.78% $60,024.7 $39,803.8 84.4% Force Task Reform Pension
Sources: FactSet, Capital IQ, company reports. * as disclosed in most recent 10-K
11
Utilities: S&P 500 Companies with Defined-Benefit Plans 4 10-K Pension Data, Ranked by Deficit as % of Market Capitalization Item - 2010 2010 2011E* 12/31/10 Pension Pension Expected Return Employer Pension Employer Pension Pension Pension Pension Deficit as % of Pension Liability as % of
Packet Company Plan Assets Plan Liabilities % Equities % Bonds % Other Discount Rate % on Assets % 10-K Date Contribution Contribution (Deficit)/Surplus Funded Status Mkt Cap at 3/31/2011 Mkt Cap at 3/31/2011
Utililties
Consolidated Edison Inc. $7,721.0 $10,307.0 65.0% 27.0% 8.0% 5.60% 8.50% 12/2010 $443.0 $543.0 ($2,586.0) 74.9% 17.5% 69.7% PG&E Corp. 10,250.0 12,071.0 45.0% 50.0% 5.0% 5.42% 6.60% 12/2010 162.0 245.0 (1,821.0) 84.9% 10.4% 69.1% AES Corp. 5,172.0 6,637.0 25.3% 69.4% 5.3% 5.38% 8.00% 12/2010 186.0 201.0 (1,465.0) 77.9% 14.3% 64.8% PPL Corp. 5,343.0 6,848.0 43.0% 47.0% 10.0% 5.42% 7.96% 12/2010 379.0 5.0 (1,505.0) 78.0% 12.3% 56.0% Supplemental FirstEnergy Corp. 4,544.0 5,858.0 32.0% 50.0% 18.0% 5.50% 8.50% 12/2010 11.0 250.0 (1,314.0) 77.6% 11.6% 51.8% Ameren Corp. 2,722.0 3,451.0 57.0% 37.0% 6.0% 5.25% 8.00% 12/2010 81.0 110.0 (729.0) 78.9% 10.8% 51.1%
2011 Pinnacle West Capital Corp. 1,775.6 2,345.1 51.6% 42.4% 6.0% 5.31% 8.25% 12/2010 200.0 0.0 (569.5) 75.7% 12.2% 50.4% Pepco Holdings Inc. 1,632.0 1,970.0 53.0% 40.0% 7.0% 5.65% 5.00% 12/2010 105.0 150.0 (338.0) 82.8% 8.1% 46.9%
21, NiSource Inc. 1,900.0 2,478.4 60.4% 28.6% 11.0% 5.00% 8.75% 12/2010 161.8 149.7 (578.4) 76.7% 10.8% 46.3% Northeast Utilities 1,977.6 2,820.9 58.0% 26.0% 16.0% 5.57% 8.75% 12/2010 45.0 145.0 (843.3) 70.1% 13.8% 46.2%
July Exelon Corp. 8,859.0 12,524.0 45.0% 41.0% 14.0% 5.26% 8.50% 12/2010 766.0 2,700.0 (3,665.0) 70.7% 13.4% 45.9% DTE Energy Co. 2,913.0 3,785.0 45.0% 25.0% 30.0% 5.50% 8.75% 12/2010 206.0 200.0 (872.0) 77.0% 10.5% 45.6% CMS Energy Corp. 1,401.0 2,014.0 0.0% 35.0% 65.0% 5.40% 8.00% 12/2010 381.0 0.0 (613.0) 69.6% 12.5% 41.1% Force Integrys Energy Group Inc. 1,081.3 1,418.5 71.0% 26.0% 3.0% 5.80% 8.50% 12/2010 166.0 90.9 (337.2) 76.2% 8.6% 36.3% Entergy Corp. 3,216.3 4,301.2 64.0% 35.0% 1.0% 5.65% 8.50% 12/2010 454.4 368.8 (1,085.0) 74.8% 9.0% 35.8%
Task Edison International 3,235.0 4,080.0 46.0% 35.0% 19.0% 5.25% 7.50% 12/2010 127.0 127.0 (845.0) 79.3% 7.1% 34.2% Allegheny Energy 923.6 1,323.0 50.5% 47.0% 2.5% 5.50% 8.00% 12/2010 77.5 140.0 (399.4) 69.8% 9.4% 31.1% American Electric Power Co. Inc. 3,858.0 4,807.0 55.5% 39.0% 5.5% 5.05% 8.00% 12/2010 515.0 158.0 (949.0) 80.3% 5.6% 28.5% Public Service Enterprise Group Inc. 3,555.0 4,353.0 70.0% 25.0% 5.0% 5.51% 8.50% 12/2010 424.0 415.0 (798.0) 81.7% 5.0% 27.3% Reform CenterPoint Energy Inc. 1,501.0 1,969.0 73.0% 24.0% 3.0% 5.25% 8.00% 12/2010 8.0 44.0 (468.0) 76.2% 6.3% 26.4% Xcel Energy Inc. 2,540.7 3,030.3 4.6% 45.5% 49.9% 5.00% 7.79% 12/2010 34.1 0.0 (489.6) 83.8% 4.2% 26.3% Constellation Energy Group Inc. 1,408.1 1,626.1 42.0% 51.0% 7.0% 5.50% 8.50% 12/2010 289.1 0.0 (218.0) 86.6% 3.5% 26.1% Sempra Energy 2,354.0 3,124.0 64.0% 36.0% 0.0% 5.61% 7.00% 12/2010 159.0 267.0 (770.0) 75.4% 6.0% 24.3% Pension Southern Co. 6,834.0 7,223.0 65.0% 22.0% 13.0% 5.52% 8.75% 12/2010 644.0 0.0 (389.0) 94.6% 1.2% 22.5% Duke Energy Corp. 4,797.0 5,028.0 59.0% 27.0% 14.0% 5.00% 8.50% 12/2010 418.0 200.0 (231.0) 95.4% 1.0% 20.8% Progress Energy Inc. 1,891.0 2,609.0 70.0% 25.0% 5.0% 5.65% 8.75% 12/2010 139.0 400.0 (718.0) 72.5% 5.3% 19.3% Dominion Resources Inc. (Virginia) 5,106.0 4,490.0 54.0% 8.0% 38.0% 5.90% 8.50% 12/2010 665.0 0.0 616.0 113.7% -2.4% 17.3% Wisconsin Energy Corp. 1,059.5 1,222.8 54.0% 46.0% 0.0% 5.60% 7.25% 12/2010 6.8 0.0 (163.3) 86.6% 2.3% 17.1% SCANA Corp. 817.2 811.8 68.0% 32.0% 0.0% 5.56% 8.50% 12/2010 0.0 0.0 5.4 100.7% -0.1% 16.2% TECO Energy Inc. 479.7 610.3 56.0% 44.0% 0.0% 5.30% 8.25% 12/2010 87.6 4.4 (130.6) 78.6% 3.2% 15.1% Nicor Inc. 390.4 317.4 62.0% 38.0% 0.0% 5.40% 8.25% 12/2010 0.0 0.0 73.0 123.0% -3.0% 13.0% NextEra Energy Inc 3,233.0 1,994.0 46.0% 54.0% 0.0% 5.00% 7.75% 12/2010 3.0 0.0 1,239.0 162.1% -5.3% 8.6% NRG Energy Inc. 297.0 404.0 60.0% 40.0% 0.0% 5.47% 7.50% 12/2010 16.0 19.0 (107.0) 73.5% 2.0% 7.6% QEP Resources Inc. 30.9 78.0 70.0% 30.0% 0.0% 5.70% 7.50% 12/2010 1.6 11.9 (47.1) 39.6% 0.7% 1.1% EQT Corp. 48.1 61.5 60.0% 34.0% 6.0% 5.75% 8.00% 12/2010 1.3 5.9 (13.4) 78.2% 0.2% 0.8% Totals for All Utilities Companies $104,867.0 $127,991.2 52.7% 36.6% 10.7% 5.44% 8.04% $7,363.1 $6,950.6 81.9% Totals for 12/31/10 Utilities Reporting Companies $104,867.0 $127,991.2 52.7% 36.6% 10.7% 5.44% 8.04% $7,363.1 $6,950.6 81.9%
Totals for All S&P 500 Companies $1,307,309.7 $1,558,460.3 51.9% 36.9% 11.2% 5.37% 7.71% $71,107.6 $45,451.4 83.9% Totals for 12/31/10 S&P 500 Reporting Companies $1,171,974.7 $1,388,323.2 51.8% 37.5% 10.7% 5.38% 7.78% $60,024.7 $39,803.8 84.4%
Sources: FactSet, Capital IQ, company reports. * as disclosed in most recent 10-K
12
Pension Reform Task Force July 21, 2011 Supplemental Packet - Item 4
Important Information and Qualifications
We have prepared this document solely for informational purposes. You should not definitively rely upon it or use it to form the definitive basis for any decision, contract, commitment or action whatsoever, with respect to any proposed transaction or otherwise. You and your directors, officers, employees, agents and affiliates must hold this document and any oral information provided in connection with this document in strict confidence and may not communicate, reproduce, distribute or disclose it to any other person, or refer to it publicly, in whole or in part at any time except with our prior written consent. If you are not the intended recipient of this document, please delete and destroy all copies immediately.
We have prepared this document and the analyses contained in it based, in part, on certain assumptions and information obtained by us from the recipient, its directors, officers, employees, agents, affiliates and/or from other sources. Our use of such assumptions and information does not imply that we have independently verified or necessarily agree with any of such assumptions or information, and we have assumed and relied upon the accuracy and completeness of such assumptions and information for purposes of this document. Neither we nor any of our affiliates, or our or their respective officers, employees or agents, make any representation or warranty, express or implied, in relation to the accuracy or completeness of the information contained in this document or any oral information provided in connection herewith, or any data it generates and accept no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) in relation to any of such information. We and our affiliates and our and their respective officers, employees and agents expressly disclaim any and all liability which may be based on this document and any errors therein or omissions therefrom. Neither we nor any of our affiliates, or our or their respective officers, employees or agents, make any representation or warranty, express or implied, that any transaction has been or may be effected on the terms or in the manner stated in this document, or as to the achievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any. Any views or terms contained herein are preliminary only, and are based on financial, economic, market and other conditions prevailing as of the date of this document and are therefore subject to change. We undertake no obligation or responsibility to update any of the information contained in this document. Past performance does not guarantee or predict future performance.
This document and the information contained herein do not constitute an offer to sell or the solicitation of an offer to buy any security, commodity or instrument or related derivative, nor do they constitute an offer or commitment to lend, syndicate or arrange a financing, underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction, or commit capital, or to participate in any trading strategies, and do not constitute legal, regulatory, accounting or tax advice to the recipient. We recommend that the recipient seek independent third party legal, regulatory, accounting and tax advice regarding the contents of this document. This document does not constitute and should not be considered as any form of financial opinion or recommendation by us or any of our affiliates. This document is not a research report and was not prepared by the research department of Morgan Stanley or any of its affiliates.
Morgan Stanley bankers may from time to time provide a variety of services to the Company, including conducting capital structure or asset/liability analysis of the Company, discussing the Company’s obligations and liabilities (including its obligations to any employee benefit plan (“Plan”) the Company may maintain), discussing the Plan’s effect on the Company’s financial position, proposing particular transactions or trades that the Company and/or the Plan should consider entering into in order to manage those obligations and liabilities, and potentially entering into such transactions (collectively, the “Services”).
We are providing this notice to ensure that any Services Morgan Stanley provides to the Company are not misconstrued so as to characterize Morgan Stanley as a fiduciary for the Plan, and to that end have set forth below the conditions under which Morgan Stanley is providing the Services.
Morgan Stanley is providing the Services and related information solely as an arm’s length counterparty and not as a fiduciary or advisor to the Plan. In connection with the provision of the Services, there is no agreement, direct or indirect, between the Company (including management and any employees or agents thereof) and Morgan Stanley for Morgan Stanley to provide advice with respect to the Plan that the Company or representatives of the Company who act as fiduciaries to the Plan are authorized to rely on in taking any action with respect to the assets of the Plan. In connection with the provision of the Services, Morgan Stanley does not possess, has not exercised, and is not authorized to exercise any authority, control, or responsibility with respect to the management or administration of the Plan or the investment of the Plan’s assets. No information obtained from the Services should be utilized by the Company as a primary basis for decisions regarding the investment of the Plan’s assets.
The foregoing materials have been provided by Morgan Stanley to certain persons in their capacity as agent for the corporate entity (and not for any of its employee benefit plans) and is for informational purposes only. They are not (and should not be construed to be) “investment advice” (as defined under ERISA) from Morgan Stanley with respect to an employee benefit plan or to any person acting as a fiduciary for an employee benefit plan, or as a primary basis for any particular plan investment decision.
You and your directors, officers, employees, agents and affiliates must hold this document and any oral information provided in connection with this document in strict confidence and may not communicate, reproduce, distribute or disclose it to any other person, or refer to it publicly, in whole or in part at any time except with our prior written consent.
Notwithstanding anything herein to the contrary, each recipient hereof (and their employees, representatives, and other agents) may disclose to any and all persons, without limitation of any kind from the commencement of discussions, the U.S. federal and state income tax treatment and tax structure of the proposed transaction and all materials of any kind (including opinions or other tax analyses) that are provided relating to the tax treatment and tax structure. For this purpose, "tax structure" is limited to facts relevant to the U.S. federal and state income tax treatment of the proposed transaction and does not include information relating to the identity of the parties, their affiliates, agents or advisors.
This document is provided by Morgan Stanley & Co. Incorporated and/or certain of its affiliates, which may include Morgan Stanley Realty Incorporated, Morgan Stanley Senior Funding, Inc., Morgan Stanley Bank, Morgan Stanley & Co. International plc, Morgan Stanley Securities Limited, Morgan Stanley Bank AG, Morgan Stanley Japan Securities Co., Ltd., Morgan Stanley Asia Limited, Morgan Stanley Australia Securities Limited, Morgan Stanley Australia Limited, Morgan Stanley Asia (Singapore) Pte., Morgan Stanley Services Limited, Morgan Stanley & Co. International plc Seoul Branch and/or Morgan Stanley Canada Limited Unless governing law permits otherwise, you must contact an authorized Morgan Stanley entity in your jurisdiction regarding this document or any of the information contained herein. This material may not be sold or redistributed without the prior written consent of Morgan Stanley.
© 2010 Morgan Stanley
CONFIDENTIAL / SOLELY FOR USE BY PLAN SPONSORS / NOT INTENDED AS INVESTMENT ADVICE AS DEFINED BY ERISA
Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
New Strategies in Defi ned Contribution Plan Design: Results and Analysis From the 2010 Survey of Defi ned Contribution Plan Sponsors January 2011 Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
Executive Summary • Fifty-seven percent of plan survey respondents To be successful, a defi ned contribution (DC) employ auto-enrollment with the choice of opting retirement plan sponsor must consider and manage out. Eighteen percent of all respondents auto-enroll participant engagement, savings rates, investment all employees, and 39% of respondents auto- elections, employer contributions, distribution enroll only new employees. The opt-out rate among strategies, plan expenses, and communication and employees is very low, but slightly higher when auto- education solutions. Many plans fall short of their enrollment is applied to all employees rather than to potential to deliver benefi ts despite apparent success just new hires. The need to offer auto-enrollment to in one of these areas. all employees stems from employers adopting the new safe harbor plan provisions allowed under the Even if the fi nal accumulation is suffi cient, the retiree Pension Protection Act. may have limited choices for the actual payout • Auto-enrollment signifi cantly improves plan approach or lack a de-accumulation strategy, which participation. could cause the retirement strategy to fail. Overall • While improving participation, the initial default success in a DC plan requires attention to all the savings rates are often fairly low. To improve components and how they integrate — or don’t. saving rates, 58% of plan sponsors that offer Addressing each component of a DC plan has auto-enrollment also offer contribution escalation. become more challenging since the recent economic Notably, auto-escalation is correlated with a lower crisis. Employer concerns regarding the expense opt-out rate. of retirement plans and the signifi cant volatility in • While auto-enrollment and escalation are already employees’ retirement savings have increased. dominant, almost half of respondents not currently Participant confi dence has also been shaken, leading using these designs are planning to add them or to detrimental effects on participation and savings are considering them. We expect to see continued rates. innovation in how these designs are deployed, communicated and evaluated. To better understand what employers are doing to • While employers are encouraging employees to save improve the success of DC plans during these diffi cult more, they are also contemplating more effective economic times, Towers Watson conducted its 2010 ways of providing the company match. Almost half Survey of DC Plan Sponsors. Some of our key fi ndings of employers that reduced or suspended their on plan design include: matching contribution during the economic crisis • DC plans are a primary source of benefi ts for new have moved to a new match approach. employees. A majority of respondents also sponsor defi ned benefi t (DB) plans that are now inactive. Slightly more than a quarter of respondents offer a second DC plan.
towerswatson.com Results and Analysis From the 2010 Survey of Defi ned Contribution Plan Sponsors 2 Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
About the Survey Figure 1. Respondents by industry sector 0% 10% 20% 30% Between mid-April and mid-May 2010, Towers Watson surveyed DC plan sponsors to determine how they Business Services are addressing critical issues such as plan design, 22 investment, fees, communication and governance Education practices in the current environment. The survey 11 fi ndings refl ect responses from 334 plan sponsors Energy with more than 1,000 employees and at least $10 44 million dollars in plan assets across a broad range Financial Services (including insurance) of industry sectors. These plan sponsors have an 1414 average of 18,426 employees and a combined total Food Services and Beverages of more than six million employees and $386.5 44 billion in plan assets. Health Care 1212 The following sections provide more details about our fi ndings. Manufacturing 2424 Media and Communications Background 44 Pharmaceuticals Our survey respondents come from a wide variety 33 of industry sectors (Figure 1); the most highly represented are Manufacturing (24%), Financial Real Estate (including construction) 11 Services (including insurance) (14%), Health Care (12%) and Technology (10%). Retail/Wholesale 66 The most popular type of DC plan offered by the Technology respondents is the 401(k) plan (Figure 2). In addition 1010 to offering a DC plan, almost 60% of our respondents Transportation offer traditional DB plans, and nearly 30% offer hybrid 22 plans, although many of these are now inactive Utilities (Figure 3). Slightly more than a quarter of the 66 respondents offer an additional DC plan. Other 88
n=333
Figure 2. Type of DC plan 0% 20% 40% 60% 80% 100%
401(k) 9090 403(b) 77 Money purchase plan 00
Profit-sharing plan (non-401(k)) 11 ESOP (non-401(k)) 00
Other 22
n=333
towerswatson.com Results and Analysis From the 2010 Survey of Defi ned Contribution Plan Sponsors 3 Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
The DC plans offered by our survey respondents vary Figure 3. Other qualified retirement plans offered greatly by asset size. The plans represent a total of 0% 10% 20% 30% 40% 50% 60% $386.5 billion in DC plan assets with a median of $477.5 million. Twenty-eight percent of the No other plan 2121 1616 1111 respondents reported having $1 billion or more in assets in their primary DC plans. Figure 4 shows the Another DC plan 2626 1616 distribution of plan asset size. Traditional DB plan Respondents to this survey represent 5.3 million 1717 4040 total plan participants (including active participants, Hybrid plan retirees and benefi ciaries) and 3.6 million active plan 1111 1818 participants. The plans have an average of 16,385 Active plans Inactive plans total participants and a median of 7,700 total 88 1515 1111 n=334 participants. Active plan participants average 11,421, with a median of 5,625 active participants. Figure 5 Note:3 Because6612 plan12 sponsors offer more than one type of retirement plan, shows the distribution of total and active participants. the percentages do not total 100% 366 88
Figure 4. Distribution of plan asset size as of year-end 2010
11% 28% 19% $10-99.9 million $100-249.9 million $250-499.9 million $500-999.9 million $1 billion or more 21% 21%
n-334
Figure 5. Respondents by number of active and total participants in DC plan 0% 10% 20% 30%
Less than 1,000 44 77 1,000 − 2,499 1313 2020 2,500 − 4,999 1818 2323 5,000 − 9,999 2323 2222 10,000 − 24,999 2323 19 25,000 or more 1818 1010 Total Active n=334
towerswatson.com Results and Analysis From the 2010 Survey of Defi ned Contribution Plan Sponsors 4 Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
Although there are DC plans with low participation Figure 6. Participation rates rates, overall, almost 75% of the respondents in Percent of plan sponsors our survey reported their participation rate is over 0% 10% 20% 30% 40% 70% (Figure 6). Twenty percent report that their participation rate is over 90%. The percentage of Participation rates plan sponsors by industry with at least 80% 1% − 20% participation is highest among Pharmaceuticals 33 (100%), Utilities and Energy (63%), and Business 21% − 40% and Financial Services (54%). Figure 7 shows the 55 distribution. 41% − 60% 9 61% − 70% 1111 71% − 80% 23 81% − 90% 3030 91% − 100% 20 n=331
Figure 7. Participation rate by industry
1% – 41% – 61% – 71% – 81% – 91% – Industry 40% 60% 70% 80% 90% 100% Total Business and Financial Services 2% 4% 12% 29% 35% 19% 100% Food Services and Beverages 15% 23% 8% 0% 15% 38% 100%
Health Care 8% 25% 18% 20% 18% 13% 100%
Manufacturing 5% 6% 14% 25% 32% 17% 100% Media, Communications and Technology 2% 9% 11% 25% 25% 27% 100%
Pharmaceuticals 0% 0% 0% 0% 55% 45% 100%
Retail/Wholesale 42% 11% 5% 16% 5% 21% 100%
Utilities and Energy 3% 0% 6% 29% 40% 23% 100%
Other 13% 13% 5% 28% 33% 8% 100%
n=330
Note: Rows may not total 100% due to rounding.
towerswatson.com Results and Analysis From the 2010 Survey of Defi ned Contribution Plan Sponsors 5 Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
Plan Design Figure 8. Auto-enrollment Auto-enrollment 18% 22% To encourage employees to participate and save for Auto-enroll all employees retirement, 57% of plan survey respondents offer Auto-enroll only new employees auto-enrollment with the choice of opting out Auto-enrollment planned for 2010 or 2011 (Figure 8). Based on the survey results, 18% of all Considering auto-enrollment, but not yet planned 18% respondents auto-enroll all employees, and 39% of 39% Not considering auto-enrollment respondents auto-enroll only new employees. For the 3% remaining plan sponsors, 3% are planning to auto- enroll for 2010 or 2011, 18% are considering it and 22% are not considering it. n=333 Auto-enrollment is most prevalent in the Manufacturing Figure 9. Auto-enrollment by industry industry as 24% of those plan sponsors auto-enroll all employees, and 43% auto-enroll new employees Auto-enroll Auto-enroll (Figure 9). Auto-enrollment is least common in the all new Do not Retail/Wholesale industry. Only 16% auto-enroll all Industry employees employees auto-enroll Total employees, and 21% auto-enroll new employees in Business and Financial Services (incl. insurance) 17% 32% 51% 100% this industry. Food Services and Beverages 23% 38% 38% 100% Interestingly, a higher percentage of plan sponsors that have inactive (closed or frozen) DB plans Health Care 23% 33% 45% 100% use auto-enrollment (Figure 10). Only 39% of plan Manufacturing 24% 43% 33% 100% sponsors that have inactive traditional DB or hybrid plans do not auto-enroll, 17% offer auto-enrollment Media, Communications and Technology 18% 41% 41% 100% to all employees, and 44% offer auto-enrollment to new employees. Forty-three percent of plan sponsors Pharmaceuticals 9% 36% 55% 100% that offer additional DC plans do not auto-enroll, 13% offer auto-enrollment to all employees, and 43% offer Retail/Wholesale 16% 21% 63% 100% auto-enrollment to new employees. Plan sponsors that Transportation 14% 57% 29% 100% do not offer any additional plans are most likely not to auto-enroll. Forty-nine percent of these sponsors Utilities and Energy 11% 40% 49% 100% do not auto-enroll, only 17% auto-enroll all employees, Other 9% 50% 41% 100% and 34% auto-enroll new employees. n=333 Note: Rows may not total 100% due to rounding.
Figure 10. Auto-enrollment by other retirement plans offered
Auto-enroll Auto-enroll all new Do not employees employees auto-enroll Total Inactive traditional DB or hybrid 17% 44% 39% 100% plan offered Additional DC plans offered 13% 43% 43% 100% Active traditional DB or hybrid 22% 32% 46% 100% plan offered
No other plans 17% 34% 49% 100%
n=332 Note: Rows may not total 100% due to rounding.
towerswatson.com Results and Analysis From the 2010 Survey of Defi ned Contribution Plan Sponsors 6 Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
Offering auto-enrollment has a signifi cant impact on Figure 11. Participation rate by auto-enrollment participation. Plan sponsors that offer auto-enrollment Auto-enroll Auto-enroll Do not to all employees and to new employees have much Participation Rate all employees new employees auto-enroll employees higher participation rates compared to plan sponsors 1% – 20% 0% 2% 4% that do not offer auto-enrollment at all (Figure 11). Ninety-three percent of respondents that auto-enroll 21% – 40% 0% 1% 11% all employees report having a participation rate of 41% –60% more than 70%. Eighty-four percent of plan sponsors 0% 5% 17% that auto-enroll only new employees reported a 61% – 70% 7% 8% 15% participation rate above 70%. Only 53% of sponsors that do not offer auto-enrollment have a participation 71% – 80% 13% 23% 28% rate higher than 70%. 81% – 90% 39% 35% 20%
Although all participants who were auto-enrolled in 91% – 100% 41% 26% 5% their DC plan may elect to opt out, survey respondents say that the great majority of participants stay in the Total 100% 100% 100% plan (Figure 12). Fifty-three percent of plan sponsors n=331 that offer auto-enrollment to all employees report that Note: Rows may not total 100% due to rounding. fewer than 5% of eligible participants opt out, while only 5% report an opt-out rate of 15% or more. Fifty- nine percent of sponsors that offer auto-enrollment Figure 12. Opting out by auto-enrollment status only to new employees say that fewer than 5% of eligible participants opt out, while 5% report an opt-out Auto-enroll Auto-enroll Percent who opt out of auto-enrollment all employees new employees rate of 15% or more. However, it seems that offering additional DC plans increases the opt-out rate, while Less than 5% 53% 59% the sponsorship of a DB plan reduces the opt-out rate 5% – 9% 27% 28% (Figure 13). 10% – 14% 15% 8%
15% or more 5% 5%
Total 100% 100%
n=183 Note: Rows may not total 100% due to rounding.
Figure 13. Relationship of opt-out rates to offering other qualifi ed retirement plans
Traditional DB or hybrid plans Additional DC Percent who opt out of auto-enrollment offered* plans offered No other plans Less than 5% 57% 31% 68%
5% – 9% 28% 38% 24%
10% – 14% 11% 25% 0%
15% or more 4% 6% 9%
Total 100% 100% 100%
n=183 *Includes employers that offer both DB plans and additional DC plans Note: Rows may not total 100% due to rounding.
towerswatson.com Results and Analysis From the 2010 Survey of Defi ned Contribution Plan Sponsors 7 Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
Contribution Escalation Figure 14. Contribution escalation among those with auto-enrollment Plan sponsors need to ensure that employees are not only participating in the plan, but also saving enough. To do this, some plan sponsors have added contribution escalation to the auto-enrollment feature. Offer contribution Of the sponsors that offer auto-enrollment, 58% offer escalation contribution escalation (Figure 14). 42% Do not offer contribution escalation Contribution escalation is more common for plan 58% sponsors that offer auto-enrollment for all employees. This may be due to the fact that combining these features is a requirement of the new (post-Pension Protection Act) safe-harbor plan provisions. It may n=168 also be because some sponsors have learned that designs with automatic features attract and retain new enrollees or because these features make DC plans Figure 15. Contribution escalation by type of auto-enrollment more successful by increasing savings. Contribution No contribution As noted above, offering auto-enrollment to all Auto-enrollment escalation escalation Total employees substantially improves participation Auto-enroll all employees 68% 32% 100% relative to limiting auto-enrollment to new employees. Auto-enroll only new employees 53% 47% 100% Similarly, offering automatic escalation with auto- enrollment substantially improves savings rates n=188 relative to providing auto-enrollment without Note: Rows may not total 100% due to rounding. escalation. For those that offer auto-enrollment to all employees, 68% offer contribution escalation Figure 16. Participation rate by contribution escalation compared to 53% of those that offer auto-enrollment only to new employees (Figure 15). No contribution Participation Rate Contribution escalation escalation Contribution escalation is strongly associated with higher participation rates. Seventy-nine percent of 1% – 20% 1% 3% plan sponsors that escalate contribution rates have 21% – 40% 0% 1% participation rates of at least 80%, while only 50% of plan sponsors that do not escalate contributions have 41% – 60% 2% 6% participation rates of at least 80% (Figure 16). 61% – 70% 4% 13%
71% – 80% 15% 27%
81% – 90% 41% 29%
91% – 100% 38% 21%
Total 100% 100%
n=187 Note: Rows may not total 100% due to rounding.
towerswatson.com Results and Analysis From the 2010 Survey of Defi ned Contribution Plan Sponsors 8 Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
Participants who are auto-enrolled and have their Figure 17. Opt-out rates by contribution escalation adoption for plan sponsors contribution rates periodically escalated are less that offer auto-enrollment likely to opt out compared to participants who are not Percent who opt out offered escalation features (Figure 17). Only 1% report of auto-enrollment Contribution escalation No contribution escalation that more than 15% of participants opted out, while Less than 5% 61% 52% 10% of respondents that do not offer escalation have a 15% or higher opt-out rate. 5% – 9% 27% 28%
Escalation features are really important if the default 10% – 14% 11% 10% savings rate is low. In last year’s DC plan sponsor survey, we found that plan sponsors set their initial 15% or more 1% 10% median contribution rate at 3% and their fi nal median Total 100% 100% contribution rate at 6%.* n=182 Matching Contributions Note: Rows may not total 100% due to rounding. Another provision that employers use to encourage participation is a matching contribution. This incentive Figure 18. Matching contribution can be useful in encouraging participation as employees are receiving “free money” for participating 6% in the plan. Ninety-four percent of plan sponsors report that they offer a matching contribution (Figure 18). Offer match However, due to the economic recession, a minority of Do not offer match respondent plan sponsors have temporarily suspended their matching contribution. Since late 2008, 13% of respondents have suspended their match, and 5% 94% have reduced their match (Figure 19).
n=333
Figure 19. Suspension of matching contribution
13% 5% Yes, suspended the match Yes, reduced the match No, match unchanged 82%
n=312
*Managing Defi ned Contribution Plans in the Current Environment: 2009 Defi ned Contribution Plan Trend Report, Towers Watson
towerswatson.com Results and Analysis From the 2010 Survey of Defi ned Contribution Plan Sponsors 9 Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
Plan sponsors reporting low participation rates Figure 20. Suspension of company match by participation rates suspended their matching contribution more often Company Match than those with higher participation rates. Twenty- Participation rates Suspended Reduced Unchanged Total one percent of plan sponsors with participation rates less than 40% suspended the match (Figure 20). By 1% – 40% 21% 11% 68% 100% contrast, only 7% of plan sponsors with participation 41% – 60% 22% 4% 74% 100% rates greater than 80% suspended the match. 61% – 70% 24% 3% 73% 100% Suspension of the matching contribution was also more prevalent in the Retail/Wholesale (27%) and 71% – 80% 20% 4% 76% 100% Manufacturing (21%) industries (Figure 21). None 81% – 90% 4% 8% 88% 100% of the plan sponsors in the Pharmaceutical or Food Services and Beverages industries changed their 91% – 100% 3% 2% 95% 100% matching contribution. n=310 With some improvement in the economy, 46% of the Note: Rows may not total 100% due to rounding. plan sponsors that suspended their match reinstated it, with most (37%) restoring the full match (Figure Figure 21. Matching contribution suspensions by industry 22). For those that have not reinstated the matching contribution, most are considering reinstating the match within the next 12 months. Industry Suspended Reduced Unchanged Total Business and Financial 6% 10% 84% 100% Services Food Services and 0% 0% 100% 100% Beverages Health Care 7% 4% 89% 100%
Manufacturing 21% 5% 74% 100% Media, Communications 20% 2% 77% 100% and Technology
Pharmaceuticals 0% 0% 100% 100%
Retail/Wholesale 27% 7% 67% 100%
Utilities and Energy 0% 3% 97% 100%
Other 17% 3% 80% 100%
n=311 Note: Rows may not total 100% due to rounding.
Figure 22. Reinstating matching contribution after suspension
Yes, we reinstated the full company match to
its previous level 37%
Yes, we reinstated a smaller fi xed match 5% Yes, but the match may change year to year as it is now contingent upon certain goals being met 5% 46% No, but we are currently considering reinstating
something within the next 12 months 49% No, we are not currently considering reinstating the company match 5% 54% Total 100% 100%
n=41 Note: Rows may not total 100% due to rounding.
towerswatson.com Results and Analysis From the 2010 Survey of Defi ned Contribution Plan Sponsors 10 Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
Due to the economic recession, suspending and Conclusions reducing matching contributions has had some appeal The decision to design DC plans that better prepare as a money-saving tool for plan sponsors seeking to cut employees before and at retirement has been pushed costs. We fi nd that suspending and reducing employer to the forefront due to the closures and freezing of DB contributions was done mostly by plan sponsors that plans in the last decade, especially during the recent currently have low participation rates. economic crisis. Many plan sponsors have attempted Despite the positive impact on participation as a to better engage participants by designing DC plans result of adopting certain plan design features, further that encourage participation, promote higher saving improvements are still needed if DC plans are to fulfi ll rates and educate employees about their investments. their promise as an appropriate vehicle for retirement Auto-enrollment has now become dominant among savings. Although the use of certain plan design large plan sponsors. We see that plan sponsors features has improved participation rates, and in some offering auto-enrollment to all employees and to new cases employee deferrals, the practice of allowing plan employees have much higher participation rates design to shape and develop employees’ retirement compared to plan sponsors that do not offer auto- plans has its limitations. enrollment. Many plan sponsors that offer auto- This is because planning for retirement cannot be enrollment also automatically escalate the contribution uniform for all employees, and employees are not rate. There is evidence that the use of contribution always engaged. To ensure participants are on the road escalation along with auto-enrollment also improves to success, plan sponsors must continue to provide participation rates when we compare the participation information to help the participants better gauge how rates of those sponsors that escalate contributions much they’ll need in order to meet their personal with those that do not. needs in retirement. Ensuring that participants have an Most plan sponsors are also offering a matching arsenal of tools to effectively manage their retirement contribution. This feature has been successful in fi nances should be a near-term priority for employers. helping improve participation partly because employees view it as an enticement to participate: The reward for doing so is “free money” in their account.
towerswatson.com Results and Analysis From the 2010 Survey of Defi ned Contribution Plan Sponsors 11 Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
Glossary of Terms Auto-enrollment — A defi ned contribution plan design Defi ned contribution (DC) plan — A retirement plan, feature that provides for enrollment as soon as the such as a 401(k) or 403(b), in which the benefi ts employee meets the plan’s eligibility requirements, participants will receive are the total collected in the with fi xed pretax salary reductions taken automatically DC plan account. The total in the account comes from from the employee’s paycheck. The auto-enrollment the contributions adjusted for investment performance, and salary reduction occur unless the employee and typically includes both employee contributions actively elects to opt out. (automatic or elective reductions from their pay) and employer contributions (usually a match — in most Closed plan — A defi ned benefi t plan that is frozen cases, participants select from a menu of investment for only some participants, typically those hired after options determined by the employer; in some plans, a certain date or those that do not meet specifi c age the investment [and deferral] selections are through and service criteria. default).
Company matching contribution — Employer Frozen plan — A defi ned benefi t plan in which service, contributions to a defi ned contribution plan that are pay or all benefi t accruals have ceased. contingent upon an amount the employee contributes to the plan. Hybrid pension plan — A type of retirement plan that guarantees the amount of an employee’s benefi ts, Contribution escalation — A defi ned contribution plan as with a traditional pension plan, but describes the design feature in which pretax salary reductions are benefi t as a lump sum account balance. automatically taken from the employee’s paycheck and are automatically increased on an annual basis. Traditional defi ned benefi t (DB) plan — A type of The contribution increase occurs unless the employee retirement plan that provides a guaranteed benefi t actively elects to opt out. amount at retirement, typically in the form of an annuity. The amount of the benefi t is based on a formula, which is usually related to pay and years of service.
About Towers Watson Towers Watson is a leading global professional services company that helps organizations improve performance through effective people, risk and fi nancial management. With 14,000 associates around the world, we offer solutions in the areas of employee benefi ts, talent management, rewards, and risk and capital management.
Copyright © 2011 Towers Watson. All rights reserved. TW-NA-2010-18754 towerswatson.com Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
Insider | May 2011 TW Pension 100: 2010 Disclosures of Funding, Discount Rates, Asset Allocations and Contributions
By Vishal Apte and Brendan McFarland Figure 3 (next page) depicts the distribution in funded percentages over the last four years for this 1 During 2010, aggregate funded status same set of plan sponsors. “While“ aggregate funded for defined benefit (DB) plans sponsored From 2009 to 2010, most of the changes in funded status increased over the by the Towers Watson 100 (TW 100)2 status were among plan sponsors in the middle of last year, it remains $267 increased from 82% to 84%. The results the funding distribution. In 2009, 49% of companies had funded percentages between 60% and 80%. In billion lower than it was are based on just-reported pension 2010, the number fell to 34%. By contrast, only 41% at year-end 2007 for of companies had funded levels between 80% and disclosures from the Securities and companies in this analysis.” Exchange Commission (SEC) 10-K 100% in 2009, whereas 56% of companies achieved that funded level in 2010. filings of the 100 largest publicly traded U.S. plan sponsors with year-end 2010 Funding did not improve for all plan sponsors in this analysis over 2010 — funded status actually fiscal dates. declined for 23 of these companies. But most of This annual analysis3 examines reported funding these declines were quite small; only one company results at year-end 2010, the discount rates used to realized a loss of more than 5 percentage points. measure liabilities, target asset allocation policies, returns on plan investments and plan contributions Discount rates fall again made for 2010 as well as those expected for 2011. Over 2010, the growth in plan obligations — accounted for partly by lower interest rates — once Gradual improvement in funded status again counteracted strong market gains. From 2008 continues to 2009, the average discount rate fell by 47 basis Among the TW 100, between year-end 2009 and Figure 1. Aggregate funded status for top 100 pensions ($ billions) year-end 2010, pension plan assets increased by 10%, and plan liabilities grew by 7%. The pension PBO Plan assets Surplus/(deficit) deficit decreased from $181.8 billion to $172.2 12/31/2007 $923.7 $1,018.3 $94.6 billion — a funding gain of $9.6 billion over the year 12/31/2008 $950.1 $755.7 ($194.4) (as shown in Figure 1).4 12/31/2009 $1,024.3 $842.5 ($181.8) While aggregate funded status increased over the 12/31/2010 $1,098.5 $926.3 ($172.2) last year, it remains $267 billion lower than it was at Source: Towers Watson. year-end 2007 for companies in this analysis. At year-end 2010, the average funded percentage Figure 2. Funded status percentage for TW 100, 2007–2010 (unweighted) for the TW 100 was 83%, compared 115% with 80% at year-end 2009 — and 104% at year-end 110.2 2007 (as shown in Figure 2). 110% 105% 100% 104.2 1 A plan’s funded status is the difference between plan assets and its projected benefit obligation (PBO). 95% 2 The TW 100 consists of the sponsors of the 100 largest U.S. pension plans among 90% U.S. publicly traded organizations, ranked by PBO at year-end 2009. For some 84.3 companies, the allocation of disclosed PBO and assets between U.S. and non-U.S. 85% 82.2 plans is estimated. 79.5 80% 83.4 3 See “TW Pension 100: 2009 Disclosures of Funding, Discount Rates, Asset Allocations 80.2 and Contributions,” Insider, April 2010; “Watson Wyatt Pension 100 — 2008 Disclosures 75% of Funding, Discount Rates, Asset Allocations and Contributions,” Watson Wyatt Insider, 75.3 April 2009. 70% 4 On a global basis, aggregate funding results for these companies are similar to those 2007 2008 2009 2010 mentioned above. For all pensions, domestic and foreign, the total PBO increased from $1.27 trillion to $1.36 trillion. Global pension assets also rose from $1.03 trillion to Aggregate funded percentage Average funded percentage $1.14 trillion by year-end 2010. So on a global basis, aggregate funded status rose from 81% to 83% by year-end 2010. Source: Towers Watson.
towerswatson.com/research/insider 1 Insider | May 2011 Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
Figure 3. Distribution of funded status for TW 100, 2007–2010 Figure 4. Average discount rate assumptions 0% 10% 20% 30% 40% 50% 60% for TW 100, 2007–2010 Less than 50% funded status Year Average discount rate 0 4 2007 6.29% 1 11 2008 6.39% 50–54.9% 2009 5.92% 0 2 2010 5.46% 3 Source: Towers Watson. 0 55–59.9% 0 Figure 5. Investment returns on pensions for 3 TW 100, 2008–2010 11 3 2008 2009 2010 60–64.9% Aggregate 0 14 investment return –19.9% 15.3% 13.2% 3 Average 2 investment return –22.7% 17.8% 13.0% 65-69.9% 11 Source: Towers Watson. 19 11 5 points (from 6.39% to 5.92%) as shown in Figure 4. 70-74.9% Over 2010, interest rates fell almost as far — down 11 18 an additional 46 basis points. By the end of 2010, 16 the average discount rate for these plan sponsors 14 was 5.46%. 75-79.9% 3 7 19 Investment returns were up again 13 During 2010, strong market returns (along with large 80-84.9% 5 contributions from sponsors) gave plan assets a 10% 13 boost.5 At year-end 2010, aggregate and average 15 21 (unweighted) investment returns were roughly 13% 85-89.9% (see Figure 5). While market gains were smaller in 12 2010 than in 2009, sponsors have achieved two years 5 17 of solid investment gains after the 2008 financial 19 crisis. These positive returns have played a major 90-94.9% role in lifting funded status over the last two years. 13 7 6 11 Sponsors continue gradual shift away 95-99.9% from equities 14 11 We analyze target allocation strategies in the 85 3 companies that provided allocation data for 2009, 5 6 100% or more 2010 and 2011 (Figure 6, next page). Over the last 51 three years, plan sponsors, in aggregate, continued 7 5 their incremental shift away from concentrating their 6 investment risk in public equities. While most plan sponsors didn’t make big changes to their investment I 2007 percentage of companies policy over the last year, a few shifted their allocation I 2008 percentage of companies I 2009 percentage of companies strategies more significantly during 2010 — eight of I 2010 percentage of companies the 85 reduced their target equity allocation by more than 7%. Only one company increased its target Source: Towers Watson. allocation to equity, and the increase was 4%.
5 While investment returns on assets were 13% and cash contributions were much larger than benefits accrued during 2010, plan assets grew by only 10% due to sizable benefit payouts. Companies in this analysis paid out $67.3 billion in benefits during 2010. 6 Target allocation information is usually depicted in ranges in pension disclosures. For purposes of this study, the midpoint of ranges was taken and results were normalized to total 100%.
2 towerswatson.com/research/insider Pension Reform Task Force July 21, 2011 - Supplemental PacketInsider - Item 4 | May 2011
Employers make large contributions Figure 6. Average target asset allocation percentages for TW 100 pensions, 2009–2011 As mentioned above, the value of assets increased significantly due to strong investment returns and Real Year Equity Debt Cash estate Other large employer contributions (offset somewhat by significant benefit payments). For the second year in 2009 54.6% 34.2% 0.2% 3.4% 7.7% a row, aggregate plan contributions surpassed 2010 52.4% 35.4% 0.6% 3.5% 8.2% annual benefit accruals, which helped reduce funding 2011 50.1% 37.1% 0.8% 3.2% 8.8%
deficits. Aggregate contributions for this group were Source: Towers Watson. $40.5 billion in 2010, while service cost (benefits earned over the prior year) was $19.2 billion. Figure 7. Actual and expected plan contributions by employers in the TW 100 ($ billions), 2008–2011 The majority of sponsors contributed more than their service cost over the last year. The median Plan year Contribution (unweighted) ratio of contribution to service cost for 2008 $14.3 companies in this analysis was 2.84. For the 31 2009 $30.0 plan sponsors whose funded status rose by 5 2010 $40.5 percentage points or more over the last year, the 2011 $27.7 (expected) median contribution-to-service-cost ratio was 4.31. Source: Towers Watson. Figure 7 shows actual contributions for 2008, 2009 and 2010 and expected contributions for 2011.7 These companies’ aggregate pension deficits fell Sponsors plan to contribute more than benefit from roughly $182 billion at the end of 2009 to accruals during 2011 as well. $172 billion at the end of 2010. While that is good news, the aggregate deficit for the TW 100 remains Conclusion quite large. To provide some long-term perspective, these same firms had a $95 billion pension surplus For the second year in a row, declining interest rates in 2007. As the economy continues to slowly improve, have pushed pension liabilities higher. Over both plan funding keeps climbing as well. But a return to years, however, sponsors realized strong asset full funding health is likely to take more time, returns and made substantial contributions to their favorable markets and extra contributions from plan pensions, thereby easing deficits and achieving a sponsors coupled with a turnaround in interest rates. modest aggregate funding gain of 2 percentage points — from 82% in 2009 to 84% in 2010.
7 Five firms were missing data on expected contributions for 2011 and so were dropped from the analysis on plan contributions.
Towers Watson is a leading global professional services company that helps organizations improve performance through effective people, financial and risk management. With 14,000 associates around the world, we offer solutions in the areas of employee benefit programs, talent and reward programs, and risk and capital management.
Copyright © 2011 Towers Watson. All rights reserved. towerswatson.com Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
Insider | May 2011 2009 Plan Funding of the TW 100 on a Regulatory Basis: Actuarial Assumptions and Methods
By Brendan McFarland and Mark Warshawsky plans.2 Nineteen plans included only union members, and 15 (three of which included only In general, the Pension Protection Act union participants) were not yet subject to PPA of 2006 (PPA) narrows plan sponsors’ funding rules because they were sponsored by “Of“ the 154 plans, during choices of actuarial assumptions and government contractors. the 2009 plan year, about three-fifths were open, methods for their defined benefit (DB) The plans analyzed have 10.2 million participants divided into active, retired and terminated vested and the rest were closed plans. More recently, however — status as shown in Figure 2. Only 35% of all or frozen.” especially following the financial crisis participants are actively employed. and consequent legal and regulatory Assets: Values and methods relief — it has become apparent that sufficient short-term discretion remains As reported in Schedule SB, the market value of total pension assets for these companies was to make sponsors’ actuarial elections and $685.6 billion at the beginning of the plan year, choices interesting and useful to know. commonly January 1, 2009. The mean value per plan was $4.45 billion. Because most plan sponsors The Department of Labor (DOL) now posts the completed Forms 5500 — including Schedules SB Figure 1. Pension plans sponsored by the TW 100 by plan type and status, and other relevant actuarial and accounting 2009 (number of plans) statement attachments — on its website on an almost real-time basis. Calendar-year plans filed Type Open Closed Frozen Total the 2009 Form 5500 on October 15, 2010. This Career average 6 5 3 14 website availability enables us to gather and code Final average 59 the data directly and comprehensively for a defined 29 22 8 set of sponsors. Flat benefit 12 1 5 18 Cash balance 33 7 10 50 The Towers Watson 100 (TW 100) is a group of Pension equity 11 sponsors of the largest U.S. plans, based on the 7 3 1 size of their pension liabilities. For TW 100 U.S. Other 2 0 0 2 plans with at least 1,000 participants, we collected Total 89 38 27 154 2009 plan year Forms 5500, Schedules SB and Source: Towers Watson calculations based on Form 5500 data sets, Employee Benefits Security Administration, U.S. attachments, and accountants’ reports filed with the Department of Labor (available at www.dol.gov/ebsa/foia/foia-5500.html#2009). DOL. Information was available for 93 companies and 154 qualified pension plans. Figure 2. Participants by status in pension plans of For the TW 100, this analysis identifies valuation the TW 100, 2009 methods, asset values, funding targets, funded (number of participants) status, plan contributions, funding balances and Retired 3,840,751 actuarial assumptions for the 2009 plan year. Terminated vested 2,832,637 Plan characteristics Active 3,541,583 Total participants 10,214,971 Of the 154 plans, during the 2009 plan year, about three-fifths were open, and the rest were closed or Source: Towers Watson calculations based on Form 5500 data sets, Employee 1 Benefits Security Administration, U.S. Department of Labor (available at www. frozen (see Figure 1). About three-fifths were dol.gov/ebsa/foia/foia-5500.html#2009). traditional DB formulas, while two-fifths were hybrid
2 Traditional DB formulas include career average, final average and flat benefit where the retirement benefit is denominated as a flow of income at retirement for life. Hybrid 1 Open plans are still accepting new participants and current participants are accruing plans, including cash balance and pension equity, by contrast, quote a current accrued benefits. In closed plans, a segment of existing workers (but no newly hired ones) are account balance to plan participants. Where there was a combination of formulas, we accruing benefits, while in frozen plans, there are no continuing accruals of benefits. chose the most prominent one.
towerswatson.com/research/insider 1 Insider | May 2011 Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
used smoothing techniques to reduce volatility, actuarial value was set equal to market value. The however, the actuarial value of assets was $741.5 rest employed smoothing — most often over 24 billion. months, as shown in Figure 3. As market values declined, actuarial values held up Smoothing would have reduced the ratio of market better. For the most part, actuarial value is used to value to actuarial value even further for 2009, determine required cash contributions. The overall except the law places lower and upper thresholds of ratio of market value to actuarial value was 0.925; 90% and 110%, respectively, on actuarial value the simple average ratio was 0.919. For 9% of plans, compared to market value. As shown in Figure 4, this constraint affected 83% of PPA-governed plans. Figure 3. Types of asset valuation methods, 2009 The predominant use of smoothing is quite different from the asset valuation method used in 2008, 3% 9% 4% as 67% of sponsors that used smoothing in 2009 employed market value in 2008. (The other 33% I Market value of plans that used smoothing in 2009 used a I Smoothing 1–6 months simple averaging method in 2008.) Smoothing “On“ a plan-weighted I Smoothing 12 months was encouraged by a December 2008 law and basis, 63% of the funding I Smoothing 24 months subsequent regulations that changed the original target was attributable to 84% PPA asset averaging concept. The move to smoothing was likely a reaction to the dramatic retired and terminated stock market decline in 2008 and should not vested participants.” N=139 necessarily be viewed as a long-term trend, as plan Source: Towers Watson calculations based on Form 5500 data sets, Employee Benefits Security Administration, U.S. Department of Labor sponsors are permitted to change their asset (available at www.dol.gov/ebsa/foia/foia-5500.html#2009). valuation method again in 2010 (when it will be more locked-in). Figure 4. Distribution of ratios of market to actuarial value, 2009 Funding targets 3% The funding requirements are based on the present value of accrued benefits, referred to as the 5% 9% “funding target.” Funding targets (that is, plan I .90 (10% threshold) liabilities) for the 2009 plan year totaled $673.7 I billion, and the mean value per plan was $4.37 83% .90–.99 I 1.00 (market) billion. On a plan-weighted basis, 63% of the funding I 1.00–1.04 target was attributable to retired and terminated vested participants, and 37% was attributable to active participants (both vested and non-vested), as shown in Figure 5. N=139 Source: Towers Watson calculations based on Form 5500 data sets, On a liability-weighted basis, however, 69% of the Employee Benefits Security Administration, U.S. Department of Labor (available at www.dol.gov/ebsa/foia/foia-5500.html#2009). funding target was attributable to retired and
Figure 5. Distribution of funding target across participant status, 2009 Plan-weighted distribution Liability-weighted distribution
28%
33% I Retired participants I 48% 58% Terminated vested participants I Non-vested active participants 3% I Vested active participants 11% 4% 15%
N=154 N=154
Source: Towers Watson calculations based on Form 5500 data sets, Employee Benefits Security Administration, U.S. Department of Labor (available at www.dol.gov/ebsa/foia/foia-5500.html#2009).
2 towerswatson.com/research/insider Pension Reform Task Force July 21, 2011 - Supplemental PacketInsider - Item 4 | May 2011
Figure 6. Plan-weighted distribution of funding targets across participant status, 2009 Open plans Closed plans Frozen plans
21%
36% 32% I Retired participants 2% I 46% 51% 50% Terminated vested participants I Non-vested active participants I Vested active participants 26% 4% 13% 13% 5%
N=89 N=40 N=25 Source: Towers Watson calculations based on Form 5500 data sets, Employee Benefits Security Administration, U.S. Department of Labor (available at www.dol.gov/ebsa/foia/foia-5500.html#2009). terminated vested participants and only 31% to fully funded for this purpose, the actuarial value of active participants. These figures bracket the assets must be at least 94% and 96% of the funding participant count ratio described above. target in the 2009 and 2010 plan years, respectively, and 100% thereafter. Plan status — open, closed or frozen — affects these proportions as well. On a plan-weighted As stated above, 139 out of the 154 plans analyzed basis, 59%, 64% and 76% of the funding target are subject to the PPA’s funding rules. Figure 7 was attributable to non-active participants for open, shows the average FTAP and AFTAP on plan- and “Accor“ ding to these closed and frozen plans, respectively (see Figure 6). liability-weighted bases. According to these measures, average funded Over time, as the closed group of active participants measures, average funded status was relatively high status was relatively high retire or terminate, all liabilities in closed and frozen in 2009 — much higher than in the accounting plans will become attributable to inactive participants. disclosures. This resulted from using the smoothed in 2009 — much higher actuarial value of assets and a higher discount rate than in the accounting Across all plans for the 2009 plan year, the mean to value funding targets (a temporary event as funding target was $111,700 per retired participant, disclosures.” explained below). Only three of the 139 plans were $28,534 per terminated vested participant and deemed to be “at-risk,” meaning their 2008 FTAP $81,169 per active participant.3 was less than 70%. Plans designated at-risk are Funded status subject to additional rules that generally increase funding requirements.4 Two important PPA funded status measures are Figure 7. Funded status, mean ratios, 20095 disclosed in Schedule SB: the funding target attainment percentage (FTAP) and the adjusted FTAP (N=154) AFTAP (N=139) funding target attainment percentage (AFTAP). Plan-weighted 92.72% 107.04% The FTAP is the ratio of the actuarial value of assets, Liability-weighted 89.89% 111.32% reduced by the funding standard carryover balance Source: Towers Watson calculations based on Form 5500 data sets, Employee and prefunding balance (“funding balances” — Benefits Security Administration, U.S. Department of Labor (available at www. notional accounts arising from past contributions in dol.gov/ebsa/foia/foia-5500.html#2009). excess of the minimums required) to the funding Figure 8 (next page) shows the distribution of FTAPs target. and AFTAPs, respectively, across plans. For 2009, in The AFTAP is identical to the FTAP except that the the majority of plans, FTAPs ranged from 75% to numerator and denominator are increased by 95%, and in more than three-quarters of plans, purchases of annuities for non-highly compensated AFTAPs were higher than 95%. plan participants in the last two years, and, more significantly, assets are not reduced by funding balances if the plan is fully funded. To be considered
3 By contrast, at the end of 2008, the average 401(k) balance was $45,519, according to the Employee Benefit Research Institute. 4 For these plans, the ratio of the “at-risk” funding target (line 4b in Schedule SB) to the “normal” funding target (line 3d(2)) is 1.044. 5 For the 139 plans subject to PPA funding rules, their FTAP status was 92.31% on a plan-weighted basis and 89.59% on a liability-weighted basis.
towerswatson.com/research/insider 3 Insider | May 2011 Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
Figure 8. Distribution of FTAPs vs. AFTAPs, 2009 Contributions: Minimum required 0% 5% 10% 15% 20% 25% and actual Of the 139 plans subject to the PPA in 2009, 109 120% 66 had non-zero minimum funding requirements totaling 1717 $9.6 billion — $8.3 billion in normal cost and $1.3 115–119.9% billion for amortization installments. Of this amount, 55 $6.6 billion was “paid” through funding balances 88 and $3.0 billion was paid by cash contributions. 110–114.9% Thirty-two percent of these plans paid the minimum 11 1818 amount required entirely through funding balances and 22% paid entirely in cash — with the others 105–109.9% 66 paying in some mix. 1111 The TW 100 companies contributed more than the 100–104.9% 66 minimum required amount. Of the 109 plans, 85 1212 contributed $21.8 billion in cash. The 30 plans with 95–99.9% no funding requirement contributed $.9 billion. The 55 15 not subject to the PPA contributed $3.8 billion. 1212 90–94.9% The fact that many plan sponsors contributed 1212 non-required amounts — with some not used to 66 create funding balances — may reflect sponsors’ 85–89.9% trying to avoid an at-risk designation or the benefit 1818 restrictions imposed by law on plans funded below 22 certain levels. Other factors might have influenced 80–84.9% sponsors’ behavior as well, such as wishing to 2424 99 preserve the ability to use funding balances, or to 75–79.9% avoid triggering the Pension Benefit Guaranty 1111 Corporation’s special reporting requirements or 33 restrictions in loan covenants. 70–74.9% 33 Funding balances 11 Less than 70% Some plan sponsors use funding balances to 33 manage the timing of their contributions, despite 11 associated restrictions and disincentives. Of the
I FTAPs (N=154) I AFTAPs (N=139) 139 plans subject to the PPA, 126 (91%) had a funding balance at the beginning of the 2009 plan Source: Towers Watson calculations based on Form 5500 data sets, year. For these plans, on average, funding balances Employee Benefits Security Administration, U.S. Department of Labor (available at www.dol.gov/ebsa/foia/foia-5500.html#2009). were 17% of the funding target, calculated as a mean on a plan-weighted basis. Figure 9 (next page) shows the distribution across plans of the funding balances as a percentage of funding targets. At the beginning of the 2009 plan year, 99 of the 109 plans with minimum funding requirements had “$6.6“ billion of the available $115.4 billion prior-year funding balances. Fourteen percent of these plans did not use their funding balance in in funding balances were applied to satisfy 2009. Overall, $6.6 billion of the available $115.4 billion in funding balances were applied to satisfy minimum funding requirements.” minimum funding requirements.
4 towerswatson.com/research/insider Pension Reform Task Force July 21, 2011 - Supplemental PacketInsider - Item 4 | May 2011
Actuarial assumptions and methods Figure 9. Distribution of funding balances as a percentage of funding targets, 2009 In determining required contributions, the most significant actuarial assumption is the interest rate 0% 5% 10% 15% 20% 25% used to value the funding target and normal cost. 0% Under the PPA, plan sponsors may choose either the 99 yield curve, reflective of a one-month average of 0.01–4.9% corporate bond yields across all maturities, or a 2222 segment rate approach, a simplified yield curve 5–9.9% computed as a 24-month average corporate bond 99 yield. In addition, plans could choose a method that 10–14.9% looks back as much as four months from the 1212 beginning of the plan year in deriving a rate. 15–19.9% For 2009, of the 139 PPA-governed plans, 129 used 1313 the yield curve. Of those, 117 selected October, the 20–24.9% month in 2008 that produced the highest effective 99 rate, 8.17%. The higher the rate, the lower the 25–29.9% funding target. Only 10 plans used segment rates, 1313 with most selecting December (see Figure 10). 30%+ 1313 Following the financial crisis, IRS regulations N=126 effectively made the October 2008 yield curve available for the 2009 plan year as a form of Source: Towers Watson calculations based on Form 5500 data sets, Employee Benefits Security Administration, U.S. Department of Labor temporary funding relief. Of the 117 plans that (available at www.dol.gov/ebsa/foia/foia-5500.html#2009). selected the October 2008 yield curve, 42 had used the December 2007 yield curve and 69 had used Figure 10. Interest rate used for funding purposes, 2009 segment rates in the 2008 plan year. Four plans Full yield curve Segment rates used the October yield curve the prior year (data Plan Plan about prior-year interest rate assumptions could not Month count Average Month count Average be found for two plans). For years after 2009, December 10 6.86% December 7 6.46% sponsors that employ the yield curve may not use a October 117 8.17% October 1 6.41% look-back approach. For 2010 valuations, plan September* 2 7.13% September 2 6.26% sponsors can elect a new interest rate method. *One sponsor has a non-calendar plan year. Figure 11 shows retirement rate assumptions by Source: Towers Watson calculations based on Form 5500 data sets, Employee Benefits Security Administration, U.S. Department of Labor (available at www.dol.gov/ebsa/foia/foia-5500.html#2009). age. Retirement rates generally increase with age, spiking at 62 (the Social Security early retirement Figure 11. Assumed rates of retirement (%), 2009 age) and 65 (the Medicare eligibility age). The rates reported are before any at-risk adjustments. Age Average Median Schedule SB reports an average retirement age for 55 6.61 5.0 active plan participants. Across all plans, this 58 6.66 5.25 assumed retirement age averaged 61.3 years, with the distribution frequency of average retirement 60 12.76 10.0 ages highest at ages 61 and 62, significant 61 13.58 12.0 frequency at ages 60 and 63, and a smattering at 62 26.88 25.0 older and younger ages. 63 21.57 20.0 64 23.30 20.0 All plans but one used the mortality rate 65 60.02 50.0 assumption prescribed in law, with separate tables 66 51.69 35.4 for non-annuitants and annuitants. One plan used 67 54.27 40.0 a substitute table based on its own mortality 70 96.53 100.0 experience.6 Source: Towers Watson calculations based on Form 5500 data sets, Employee Benefits Security Administration, U.S. Department of Labor (available at www. 6 This option is available only for the very largest plans in the country. dol.gov/ebsa/foia/foia-5500.html#2009).
towerswatson.com/research/insider 5 Insider | May 2011 Pension Reform Task Force July 21, 2011 - Supplemental Packet - Item 4
“While“ some plan sponsors used the relief in Assumed termination (withdrawal) rates can be important in determining plan costs. Some plans combination with funding balances to stave simply vary termination rates by employee age regardless of service (Figure 12a). A more common off the need for cash contributions, many method, however, is to consider both age and years others contributed more than required.” of service in a select and ultimate format. Figure 12b reports ultimate rates by age. In determining normal cost, the assumed rate of salary increase is used primarily for final-average-pay Figure 12a. Withdrawal rates by age regardless of service and pension equity plans — less so for other plan types. Forty-one plans simply used a flat rate of Age Plan count Average Median increase, averaging 4.23%. Seventy plans used a 25 52 16.52% 16.24% scale graded by age, with average rates starting at 40 52 7.19% 6.34% 8.79% at age 20, moving down to 6.9% at 30, 55 50 2.46% 1.83% 5.09% at 40, 4.03% at 50 and 3.53% at 60. Conclusion Source: Towers Watson calculations based on Form 5500 data sets, Employee Benefits Security Administration, U.S. Department of Labor (available at www.dol.gov/ebsa/foia/foia-5500.html#2009). As described in our simulation modeling work,7 Figure 12b. Withdrawal rates by age based on service (values reflect the 2009 was a year of significant regulatory funding ultimate basis) relief, particularly in allowing sponsors to calculate funded status using the actuarial value of assets Age Plan count Average Median and the October 2008 yield curve. While some 25 87 12.95% 13.0% plan sponsors used the relief in combination with 40 84 6.87% 6.35% funding balances to stave off the need for cash 55 86 3.54% 1.71% contributions, many others contributed more than Source: Towers Watson calculations based on Form 5500 data sets, Employee Benefits Security Administration, required, thereby improving the funded status of U.S. Department of Labor (available at www.dol.gov/ebsa/foia/foia-5500.html#2009). their plans. Future analyses should be instructive in reflecting a longer-term view of plan sponsor elections under the PPA.
7 See “Funding Obligations for Single-Employer DB Pension Plans: Updated Projections for 2011–2014,” Insider, April 2011.
Towers Watson is a leading global professional services company that helps organizations improve performance through effective people, financial and risk management. With 14,000 associates around the world, we offer solutions in the areas of employee benefit programs, talent and reward programs, and risk and capital management.
Copyright © 2011 Towers Watson. All rights reserved. towerswatson.com EBRI Databook on Employee Benefits
Please visit: http://www.ebri.org/publications/books/?fa=databook Pension Reform Task Force July 21, 2011 – Item 7 Pension Reform Task Force July 21, 2011 – Item 7 Pension Reform Task Force July 21, 2011 – Item 7 Pension Reform Task Force July 21, 2011 – Item 7 Pension Reform Task Force July 21, 2011 – Item 7 Pension Reform Task Force July 21, 2011 – Item 7 Pension Reform Task Force July 21, 2011 – Item 7 Pension Reform Task Force July 21, 2011 – Item 7 Pension Reform Task Force July 21, 2011 – Item 7 Pension Reform Task Force July 21, 2011 – Item 7 Pension Reform Task Force July 21, 2011 – Item 7 Pension Reform Task Force July 21, 2011 – Item 7 Pension Reform Task Force July 21, 2011 – Item 7 Pension Reform Task Force July 21, 2011 – Item 7 Pension Reform Task Force July 21, 2011 – Item 7 7 Item - COPERS Benefit Formula and Packet Eligibility Supplemental Supplemental - Straight Life Pension amount is calculated as: 2011
21, Final average compensation x credited service x benefit ratio July Force
Task There are six payment options, some include survivor provisions Reform Retirement eligibility: Pension Age 60 with at least 10 years of service
Age 62 with at least 5 years of service
Age plus service equals at least 80
Data: Service retirements during calendar years 2009 and 2010 currently receiving benefits (population = 795) 7 Item - 2009 and 2010 Retirees Packet Supplemental Supplemental - Age 60 with at least 10 years of service 2011 21, 83 – 10% July Force
Task Average monthly FAC: $5,027
Reform Average Service: 14.31 years Pension Average monthly pension: $1,325 Example: $ 5,027 x 14.31 x 2% = $1,439 7 Item - 2009 and 2010 Retirees Packet Supplemental Supplemental - Age 62 with at least 5 years of service 2011 21,
July 36 – 5% Force
Task Average monthly FAC: $4,262 Reform Average Service: 6.71 years Pension Average monthly pension: $518 Example: $4,262 x 6.71 x 2%= $572 7 Item - 2009 and 2010 Retirees Packet Supplemental Supplemental - Age plus service equals at least 80 2011 21,
July 676 – 85% Force
Task Average monthly FAC: $7,200 Reform Average Service: 27.61 years Pension Average monthly pension: $3,689 Example: $7,200 x 27.61 x 2%= $3,976