Fiscal | ||||||||
2013 | 2012 | 2011 | ||||||
Discount rate for benefit obligation:(1) | ||||||||
Pension | 4.81 | % | 3.85 | % | 4.70 | % | ||
Postretirement | 2.76 | % | 2.21 | % | 3.39 | % | ||
Discount rate for net periodic benefit cost: | ||||||||
Pension | 3.85 | % | 4.70 | % | 5.25 | % | ||
Postretirement | 2.21 | % | 3.39 | % | 3.45 | % | ||
Expected long-term rate of return on plan assets(2) | 7.00 | % | 7.50 | % | 7.50 | % | ||
Rate of increase in compensation levels for: | ||||||||
Benefit obligation | 4.50 | % | 4.50 | % | 4.50 | % | ||
Net periodic benefit cost | 4.50 | % | 4.50 | % | 4.50 | % | ||
(1) | Based on a “bond duration matching” methodology, which reflects the matching of projected plan liability cash flows to an average of high-quality corporate bond yield curves whose duration matches the projected cash flows. |
(2) | Primarily based on the targeted allocation, and evaluated for reasonableness by considering such factors as: (i) actual return on plan assets; (ii) historical rates of return on various asset classes in the portfolio; (iii) projections of returns on various asset classes; and (iv) current and prospective capital market conditions and economic forecasts. |