Table 7 - Reconciliation of the Present Value of Future Benefits (dollars in millions)

1.) Liability at BOY (09/30/03)
 
Total Single Employer
Pre-MPPAA Multiemployer
Post-MPPAA Multiemployer
(a) Present Value of Future Benefits for all Plans
 $49,409 $3 $1,250
(b) Liability for Probable Plans (gross liability including unreported)
 ($9,694) $0 ($1,197)
(c) Liability for Unreported Terminated Plans and other settlements
 ($108) $0 $0
(d) 09/30/03 Liability for Terminated Plans (a + b + c)
 $39,607 $3 $53

 

2.) Change in Valuation Software
 
Total Single Employer
Pre-MPPAA Multiemployer
Post-MPPAA Multiemployer
(a) Effect on Liability as of DOPT
 ($4) $0 $0
(b) Projection of (a) from DOPT to BOY + post-DOPT changes
 ($1) $0 $0
(c) Total (a + b)
 ($5) $0 $0

 

3.) Net New Plans and Missing Participant Liability
 
Total Single Employer
Pre-MPPAA Multiemployer
Post-MPPAA Multiemployer
(a) New Missing Participant Liability
 $2 $0 $0
(b) New Termination Inventory as of DOPT
 $6,386 $0 $103
(c) Deletions as of DOPT
 $0 $0 $0
(d) Projection of (b + c) from DOPT to BOY
$538
$0
$0
(e) Total (a + b + c + d)
$6,926
$0
$103

 

4.) Nonseriatim Data Changes and Effect of DOPT Seriatim Valuation
 
Total Single Employer
Pre-MPPAA Multiemployer
Post-MPPAA Multiemployer
(a) Effect on Liability at DOPT
 ($282) $0 ($1)
(b) Projection of (a) from DOPT to BOY
 ($145) $0 $0
(c) Total (a + b)
 ($427) $0 ($1)

 

5.) Actuarial Charges/Credits
 
Total Single Employer
Pre-MPPAA Multiemployer
Post-MPPAA Multiemployer
(a) Expected Interest
 $1,881 $0 $7
(b) Change in Interest Rate (from 4.4% for 20 years; 4.5% thereafter to 4.8% for 25 years; 5.0% thereafter)
 ($1,619) $0 ($4)
(c) Change in Mortality Assumption
 $1,539 $0 $8
(d) Change in Method (Current Year: Seriatim at DOPT to Seriatim at FYE)
($89)
$0
$0
(e) Effect of Experience*
$185
$1
($1)
(f) Change in Other Assumptions (SPARR)**
$18
$0
$0
(g) Total (a + b + c + d + e + f)
$1,915
$1
$10

 

6. Expected Expense Payments
Total Single Employer
Pre-MPPAA Multiemployer
Post-MPPAA Multiemployer
($123) $0 $0

 

7.) Actual Benefit Payments
Total Single Employer
Pre-MPPAA Multiemployer
Post-MPPAA Multiemployer
($3,006) ($1) ($10)

 

8. Liabilities at End of Period (9/30/04)
 
Total Single Employer
Pre-MPPAA Multiemployer
Post-MPPAA Multiemployer
(a) Liability for all Terminated Plans = (1d) + (2c) + (3e) + (4c) + (5g) + (6) + (7)
 $44,887 $3 $155
(b) Liability for Unreported Terminated Plans and other settlements
 $65 $0 $0
(c) Liability for all Terminated Plans (a + b)
 $44,952 $3 $155
(d) Liability for Probable Plans (gross liability including unreported) ***
 $30,953 $0 $1,140
(e) 9/30/04 Present Value of Future Benefits for all Plans (c + d)
 $75,905 $3 $1,295

 

Notes:

* Includes change from expected benefits ($2,803.3 million) to actual benefits ($3,005.9 million) in Total Single Employer.
Includes change from expected benefits ($0.6 million) to actual benefits ($0.7 million) in Pre-MPPAA Multiemployer.
Includes change from expected benefits ($10.1 million) to actual benefits ($9.8 million) in Post-MPPAA Multiemployer.
Actual does not include payments made by employers.

** Includes $17.7 million increase for SPARR assumption change

*** Includes $431 million for unidentified probable terminations. Financial statements show a probables liability of $30,953 million, less assets of $14,027 million, for a net claim of $16,926 million.

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