The Total View - (Page 46) Less Than 100% Funded Status Percent of Plans 100% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Average Expected Long Term Rate of Return on Assets 11.0% 90% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 83% 82% 80% 78% 80% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 73% 71% 67% 70% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 64% 60% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 50% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 40% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 30% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 20% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 10% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 2000 2.8% 7.7% 11.0% 3.5% 7.7% 10.0% 4.0% 7.7% 10.0% The Average Expected Long Term Rate of Return decreased slightly each year since 2002. 2001 2002 2003 4.9% 7.5% 9.5% 2004 4.0% 7.4% 9.00% 2005 0% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 1999 2000 2001 2002 2003 2004 2005 2006 2006 0% 2% 4.0% 7.3% 12.0% 3.00% 7.1% Maximum Expected ROR Minimum Expected ROR Average Expected ROR 4% 6% 8% 10% 12% Average Funded Status 100% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 96% 95% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 93% 91% 89% 90% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 87% 85% 83% 83% 85% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 80% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 75% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 1999 2000 2001 2002 2003 2004 2005 2006 Fast Fact The Principal provided administrative services to approximately 1,600 DB plans with 319,000 participants totaling more than $11.4 billion in assets. Average funded status increased to 89% in 2006. Since the measurement of both assets and liabilities were based on a market value basis, the funded status results were quite volatile. 46
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