The New Paradigm - Federal Reserve Bank of Dallas

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50 The weighted-average assumption used in developing the postretirement benefit obligation as of December 31, 1999, and December 31, 1998, was 7.5 percent and 6.25 percent, respectively. For measurement purposes, an 8.75 percent annual rate of increase in the cost of covered health care benefits was assumed for 2000. Ultimately, the health care cost trend rate is expected to decrease gradually to 5.5 percent by 2006, and remain at that level thereafter. Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans. A 1 percentage point change in assumed health care cost trend rates would have the following effects for the year ended December 31, 1999 (in millions): 1 Percentage 1 Percentage Point Point Increase Decrease Effect on aggregate of service and interest cost components of net periodic postretirement benefit cost $ 0.8 $ (0.6) Effect on accumulated postretirement benefit obligation 1.7 (1.6) The following is a summary of the components of net periodic postretirement benefit cost for the years ended December 31 (in millions): 1999 1998 Service cost—benefits earned during the period $ 1.3 $ 1.4 Interest cost of accumulated benefit obligation 2.2 2.7 Amortization of prior service cost (1.0) (0.5) Recognized net actuarial loss 0.3 0.1 Net periodic postretirement benefit cost $ 2.8 $ 3.7 Net periodic postretirement benefit cost is reported as a component of “Salaries and other benefits.” POSTEMPLOYMENT BENEFITS The Bank offers benefits to former or inactive employees. Postemployment benefit costs are actuarially determined and include the cost of medical and dental insurance, survivor income, and disability benefits. Costs were projected using the same discount rate and health care trend rates as were used for projecting postretirement costs. The accrued postemployment benefit costs recognized by the Bank at December 31, 1999, and December 31, 1998, were $6 million each year. This cost is included as a component of “Accrued benefit cost.” Net periodic postemployment benefit costs included in 1999 and 1998 operating expenses were $1 million each year. 1999 ANNUAL REPORT Federal Reserve Bank of Dallas
51 Volume of Operations (UNAUDITED) Number of Items Handled (Thousands) Dollar Amount (Millions) 1999 1998 1999 1998 SERVICES TO DEPOSITORY INSTITUTIONS CASH SERVICES Federal Reserve notes processed 2,126,309 1,697,447 30,649 27,380 Currency received from circulation 1,958,586 1,789,661 60,357 27,779 Coin received from circulation 1,720,739 1,512,784 150 139 CHECK PROCESSING Commercial–processed 1,256,859 1,204,449 741,096 705,416 Commercial–fine sorted 143,445 193,347 47,638 72,545 U.S. government checks 23,533 26,236 22,834 24,893 ELECTRONIC PAYMENTS Automated Clearinghouse items originated 241,852 210,360 678,462 639,038 Funds transfers processed 12,346 11,686 14,623,121 16,097,218 Book-entry security transfers processed 96 155 1,845,114 2,452,537 LOANS Advances made 92* 59* 127 327 SERVICES TO THE U.S. TREASURY AND GOVERNMENT AGENCIES Issues and reinvestments of Treasury securities 11 14 736 892 Food coupons destroyed 2,691 2,251 14 12 *Individual loans, not in thousands. Federal Reserve Bank of Dallas 1999 ANNUAL REPORT
Page 1 and 2: The New Paradigm Federal Reserve Ba
Page 3 and 4: O ut on a New-Paradigm Limb "Paradi
Page 5 and 6: 3 The New Paradigm The United State
Page 7 and 8: 5 Exhibit 2 Technology Spillovers:
Page 9 and 10: 7 a. Microgyro chip: navigation, b.
Page 11 and 12: 9 Exhibit 4 16 Stats on the New Eco
Page 13 and 14: 11 Exhibit 6 The Shifting Values of
Page 15 and 16: 13 Modern autos use upward of 120 m
Page 17 and 18: 15 Exhibit 9 First in Line and Last
Page 19 and 20: 17 Exhibit 11 Better Shop Around Th
Page 21 and 22: 19 Exhibit 13 Bigger Is Better Neve
Page 23 and 24: 21 Many of the new technologies hav
Page 25 and 26: 23 versatile, far-reaching asset—
Page 27 and 28: 25 and 1980, Compustat. 1990 and 19
Page 29 and 30: 27 Financial Services In 1999 the D
Page 31 and 32: 29 Senior Management From left: Joe
Page 33 and 34: 31 Houston Richard Weekley Chairman
Page 35 and 36: 33 February 10, 2000 To the Board o
Page 37 and 38: 35 REPORT OF INDEPENDENT ACCOUNTANT
Page 39 and 40: 37 Statements of Income (in million
Page 41 and 42: Notes to Financial Statements 1. OR
Page 43 and 44: 41 b. Special Drawing Rights Certif
Page 45 and 46: 43 U.S. government and federal agen
Page 47 and 48: 45 j. Income and Cost Related to Tr
Page 49 and 50: 47 The maturities of investments de
Page 51: 49 9. POSTRETIREMENT BENEFITS OTHER

The New Paradigm - Federal Reserve Bank of Dallas

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