Cleveland Clinic Health System Obligated Group - FMSbonds.com

Cleveland Clinic Health SystemNotes to Consolidated Financial Statements (continued)12. Pensions and Other Postretirement Benefits (continued)The following table sets forth the funded status of the System’s postretirement benefit plans as ofSeptember 30, 2007 and 2006 (the measurement date), and the amounts recognized in theSystem’s December 31, 2007 and 2006, consolidated balance sheets for the defined benefit andother postretirement benefit plans (in thousands):Defined BenefitPension Plans Other Postretirement2007 2006 2007 2006Change in projected benefit obligation:Projected benefit obligation at beginning of year $ 1,002,910 $ 942,367 $ 74,338 $ 70,280Service cost (credit) 49,909 47,348 (989) 130Interest cost 61,835 55,771 4,340 3,977Actuarial (gain) loss (38,047) (10,117) 7,682 14,444Plan amendments – 7,047 – (10,296)Benefits paid (37,276) (39,506) (6,320) (4,812)Federal subsidy – – 844 615Projected benefit obligation at end of year 1,039,331 1,002,910 79,895 74,338Change in plan assets:Fair value of plan assets at beginning of year 677,944 578,306 – –Actual gain on plan assets 86,898 43,612 – –System contributions 4,845 95,532 – –Benefits paid (37,276) (39,506) – –Fair value of plan assets at end of year 732,411 677,944 – –Underfunded status of plan (306,920) (324,966) (79,895) (74,338)Unrecognized net actuarial loss (gain) – 377,962 – (13,401)Unrecognized prior service cost – 7,093 – 30,056Contributions in the fourth quarter 1,770 652 1,351 1,306Cumulative minimum pension liability adjustment – (263,026) – –Accrued benefit liability $ (305,150) $ (202,285) $ (78,544) $ (56,377)Prepaid benefit cost $ – $ 110,426 $ – $ –Intangible asset – 7,032 – –Accrued benefit liability (305,150) (319,743) (78,544) (56,377)Net liability recognized in balance sheets $ (305,150) $ (202,285) $ (78,544) $ (56,377)31