Form 5500 Department of the Treasury Internal Revenue Service Department of Labor Employee Benefits Security Administration Pension Benefit Guaranty Corporation Annual Return/Report of Employee Benefit Plan This form is required to be filed for employee benefit plans under sections 104 and 4065 of the Employee Retirement Income Security Act of 1974 (ERISA) and sections 6047(e), 6057(b), and 6058(a) of the Internal Revenue Code (the Code). Complete all entries in accordance with the instructions to the Form 5500. OMB Nos. 1210-0110 1210-0089 2012 This Form is Open to Public Inspection Part I Annual Report Identification Information For calendar plan year 2012 or fiscal plan year beginning and ending A This return/report is for: X a multiemployer plan; X a multiple-employer plan; or X a single-employer plan; X a DFE (specify) _C_ B This return/report is: X the first return/report; X the final return/report; X an amended return/report; X a short plan year return/report (less than 12 months). C If the plan is a collectively-bargained plan, check here. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .X D Check box if filing under: X Form 5558; X automatic extension; X the DFVC program; X special extension (enter description) ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDE Part II Basic Plan Information—enter all requested information 1a Name of plan ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI 1b Three-digit plan number (PN) 001 1c Effective date of plan YYYY-MM-DD 2a Plan sponsor’s name and address; include room or suite number (employer, if for a single-employer plan) 2b Employer Identification Number (EIN) 012345678 ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI D/B/A ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI c/o ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI 123456789 ABCDEFGHI ABCDEFGHI ABCDE 123456789 ABCDEFGHI ABCDEFGHI ABCDE CITYEFGHI ABCDEFGHI AB, ST 012345678901 UK 2c Sponsor’s telephone number 0123456789 2d Business code (see instructions) 012345 Caution: A penalty for the late or incomplete filing of this return/report will be assessed unless reasonable cause is established. Under penalties of perjury and other penalties set forth in the instructions, I declare that I have examined this return/report, including accompanying schedules, statements and attachments, as well as the electronic version of this return/report, and to the best of my knowledge and belief, it is true, correct, and complete. SIGN HERE YYYY-MM-DD ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDE Signature of plan administrator Date Enter name of individual signing as plan administrator SIGN HERE YYYY-MM-DD ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDE Signature of employer/plan sponsor Date Enter name of individual signing as employer or plan sponsor SIGN HERE YYYY-MM-DD ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDE Signature of DFE Date Enter name of individual signing as DFE Preparer’s name (including firm name, if applicable) and address; include room or suite number. (optional) ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHIABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHIABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHIABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI Preparer’s telephone number (optional) For Paperwork Reduction Act Notice and OMB Control Numbers, see the instructions for Form 5500. Form 5500 (2012) v. 120126 12/31/2012 X 412-768-8612 01/01/1984 522110 MICHAEL BRAUNSTEIN 002 01/01/2012 THE PNC FINANCIAL SERVICES GROUP, INC. THE PNC FINANCIAL SERVICES GROUP, INC. PENSION PLAN 25-1435979 X 620 LIBERTY AVENUE 21ST FLOOR PITTSBURGH, PA 15222 10/11/2013 Filed with authorized/valid electronic signature. X
Transcript
Form 5500
Department of the Treasury Internal Revenue Service
Department of Labor Employee Benefits Security
Administration
Pension Benefit Guaranty Corporation
Annual Return/Report of Employee Benefit Plan This form is required to be filed for employee benefit plans under sections 104
and 4065 of the Employee Retirement Income Security Act of 1974 (ERISA) and sections 6047(e), 6057(b), and 6058(a) of the Internal Revenue Code (the Code).
Complete all entries in accordance with the instructions to the Form 5500.
OMB Nos. 1210-0110 1210-0089
2012
This Form is Open to Public Inspection
Part I Annual Report Identification Information For calendar plan year 2012 or fiscal plan year beginning and ending
A This return/report is for: X a multiemployer plan; X a multiple-employer plan; or
X a single-employer plan; X a DFE (specify) _C_
B This return/report is: X the first return/report; X the final return/report;
X an amended return/report; X a short plan year return/report (less than 12 months).
C If the plan is a collectively-bargained plan, check here. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
D Check box if filing under: X Form 5558; X automatic extension; X the DFVC program; X special extension (enter description) ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDE
Part II Basic Plan Information—enter all requested information 1a Name of plan ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI
1b Three-digit plan number (PN) 001
1c Effective date of plan YYYY-MM-DD
2a Plan sponsor’s name and address; include room or suite number (employer, if for a single-employer plan) 2b Employer Identification Number (EIN) 012345678
Caution: A penalty for the late or incomplete filing of this return/report will be assessed unless reasonable cause is established.Under penalties of perjury and other penalties set forth in the instructions, I declare that I have examined this return/report, including accompanying schedules, statements and attachments, as well as the electronic version of this return/report, and to the best of my knowledge and belief, it is true, correct, and complete.
SIGN HERE
YYYY-MM-DD ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDE Signature of plan administrator Date Enter name of individual signing as plan administrator
SIGN HERE
YYYY-MM-DD ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDE
Signature of employer/plan sponsor Date Enter name of individual signing as employer or plan sponsor
SIGN HERE
YYYY-MM-DD ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDE Signature of DFE Date Enter name of individual signing as DFE
Preparer’s name (including firm name, if applicable) and address; include room or suite number. (optional)ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHIABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHIABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHIABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI
Preparer’s telephone number (optional)
For Paperwork Reduction Act Notice and OMB Control Numbers, see the instructions for Form 5500. Form 5500 (2012) v. 120126
12/31/2012
X
412-768-8612
01/01/1984
522110
MICHAEL BRAUNSTEIN
002
01/01/2012
THE PNC FINANCIAL SERVICES GROUP, INC.
THE PNC FINANCIAL SERVICES GROUP, INC. PENSION PLAN
25-1435979
X
620 LIBERTY AVENUE21ST FLOORPITTSBURGH, PA 15222
10/11/2013Filed with authorized/valid electronic signature.
X
Form 5500 (2012) Page 2 3a Plan administrator’s name and address XSame as Plan Sponsor Name XSame as Plan Sponsor Address ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI c/o ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI 123456789 ABCDEFGHI ABCDEFGHI ABCDE 123456789 ABCDEFGHI ABCDEFGHI ABCDE CITYEFGHI ABCDEFGHI AB, ST 012345678901 UK
3b Administrator’s EIN 012345678
3c Administrator’s telephone number 0123456789
4 If the name and/or EIN of the plan sponsor has changed since the last return/report filed for this plan, enter the name, EIN and the plan number from the last return/report:
4b EIN 012345678
a Sponsor’s name ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI
4c PN 012
5 Total number of participants at the beginning of the plan year 5 1234567890126 Number of participants as of the end of the plan year (welfare plans complete only lines 6a, 6b, 6c, and 6d). a Active participants ..................................................................................................................................................................... 6a 123456789012 b Retired or separated participants receiving benefits ................................................................................................................. 6b 123456789012 c Other retired or separated participants entitled to future benefits............................................................................................. 6c 123456789012 d Subtotal. Add lines 6a, 6b, and 6c. .......................................................................................................................................... 6d 123456789012 e Deceased participants whose beneficiaries are receiving or are entitled to receive benefits. .................................................. 6e 123456789012 f Total. Add lines 6d and 6e. ...................................................................................................................................................... 6f 123456789012 g Number of participants with account balances as of the end of the plan year (only defined contribution plans
complete this item) .................................................................................................................................................................... 6g 123456789012 h Number of participants that terminated employment during the plan year with accrued benefits that were
less than 100% vested .............................................................................................................................................................. 6h 1234567890127 Enter the total number of employers obligated to contribute to the plan (only multiemployer plans complete this item) ......... 7 8a If the plan provides pension benefits, enter the applicable pension feature codes from the List of Plan Characteristics Codes in the instructions:
b If the plan provides welfare benefits, enter the applicable welfare feature codes from the List of Plan Characteristics Codes in the instructions: 9a Plan funding arrangement (check all that apply) 9b Plan benefit arrangement (check all that apply)
(1) X Insurance (1) X Insurance (2) X Code section 412(e)(3) insurance contracts (2) X Code section 412(e)(3) insurance contracts (3) X Trust (3) X Trust (4) X General assets of the sponsor (4) X General assets of the sponsor
10 Check all applicable boxes in 10a and 10b to indicate which schedules are attached, and, where indicated, enter the number attached. (See instructions)
a Pension Schedules b General Schedules (1) X R (Retirement Plan Information)
(1) X H (Financial Information)
(2) X MB (Multiemployer Defined Benefit Plan and Certain Money Purchase Plan Actuarial Information) - signed by the plan actuary
(2) X I (Financial Information – Small Plan) (3) X ___ A (Insurance Information) (4) X C (Service Provider Information)
(3) X SB (Single-Employer Defined Benefit Plan Actuarial Information) - signed by the plan actuary
(5) X D (DFE/Participating Plan Information) (6) X G (Financial Transaction Schedules)
X
108130
33366
50014
X
135442
X
X
X
9006
1060
1A 1C 1G
X
24750
X
109190
X
SCHEDULE SB (Form 5500)
Department of the Treasury Internal Revenue Service
Department of Labor Employee Benefits Security Administration
Pension Benefit Guaranty Corporation
Single-Employer Defined Benefit Plan Actuarial Information
This schedule is required to be filed under section 104 of the Employee
Retirement Income Security Act of 1974 (ERISA) and section 6059 of the Internal Revenue Code (the Code).
File as an attachment to Form 5500 or 5500-SF.
OMB No. 1210-0110
2012
This Form is Open to Public Inspection
For calendar plan year 2012 or fiscal plan year beginning and ending
Round off amounts to nearest dollar. Caution: A penalty of $1,000 will be assessed for late filing of this report unless reasonable cause is established.
A Name of plan ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI
B Three-digit plan number (PN) 001
C Plan sponsor’s name as shown on line 2a of Form 5500 or 5500-SF ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDEFGHI
D Employer Identification Number (EIN) 012345678
E Type of plan: X Single X Multiple-A X Multiple-B F Prior year plan size: X 100 or fewer X 101-500 X More than 500
Part I Basic Information
3 Funding target/participant count breakdown: (1) Number of participants (2) Funding Target a For retired participants and beneficiaries receiving payment ................. 3a 12345678 -123456789012345 b For terminated vested participants ......................................................... 3b 12345678 -123456789012345 c For active participants: (1) Non-vested benefits ................................................................... 3c(1) -123456789012345
(3) Total active ................................................................................ 3c(3) -123456789012345 d Total ....................................................................................................... 3d 12345678 -123456789012345
4 If the plan is in at-risk status, check the box and complete lines (a) and (b) .............................. X a Funding target disregarding prescribed at-risk assumptions .............................................................................. 4a -123456789012345b Funding target reflecting at-risk assumptions, but disregarding transition rule for plans that have been in
at-risk status for fewer than five consecutive years and disregarding loading factor ..................................... 4b -1234567890123455 Effective interest rate .............................................................................................................................................. 5 123.12%
6 Target normal cost .................................................................................................................................................. 6 -123456789012345Statement by Enrolled Actuary To the best of my knowledge, the information supplied in this schedule and accompanying schedules, statements and attachments, if any, is complete and accurate. Each prescribed assumption was applied in
accordance with applicable law and regulations. In my opinion, each other assumption is reasonable (taking into account the experience of the plan and reasonable expectations) and such other assumptions, in combination, offer my best estimate of anticipated experience under the plan.
SIGN HERE
Signature of actuary Date
ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDE YYYY-MM-DDType or print name of actuary Most recent enrollment number
ABCDEFGHI ABCDEFGHI ABCDEFGHI ABCDE 1234567Firm name Telephone number (including area code)
123456789 ABCDEFGHI ABCDEFGHI ABCDE 123456789 ABCDEFGHI ABCDEFGHI ABCDE UK
1234567890
Address of the firm If the actuary has not fully reflected any regulation or ruling promulgated under the statute in completing this schedule, check the box and see instructions
X
For Paperwork Reduction Act Notice and OMB Control Numbers, see the instructions for Form 5500 or 5500-SF.
Schedule SB (Form 5500) 2012v. 120126
1 Enter the valuation date: Month _________ Day _________ Year _________
2 Assets: a Market value ........................................................................................................................................................ 2a -123456789012345b Actuarial value ..................................................................................................................................................... 2b -123456789012345
1113083855
93373536
TOWERS WATSON PENNSYLVANIA INC.
12/31/2012
01
1009743784
25-1435979
3882304881
01/01/2012
6.93
412-497-3000
24407
THE PNC FINANCIAL SERVICES GROUP, INC. PENSION PLAN
THE PNC FINANCIAL SERVICES GROUP, INC.
3795233000
10/03/2013
002
3276293729
47840
1100780485
12303370
1153466090
01
11-06419
2012
37586
X
THOMAS A. DEFILIPPO
X
600 GRANT STREET, SUITE 4940PITTSBURGH, PA 15219-2742
109833
Schedule SB (Form 5500) 2012 Page 2 - 1 x
Part II Beginning of Year Carryover Prefunding Balances (a) Carryover balance (b) Prefunding balance 7 Balance at beginning of prior year after applicable adjustments (line 13 from prior
8 Portion elected for use to offset prior year’s funding requirement (line 35 from prior year) ................................................................................................................... -123456789012345 -123456789012345
9 Amount remaining (line 7 minus line 8) ....................................................................... -123456789012345 -123456789012345
10 Interest on line 9 using prior year’s actual return of % .............................. -123456789012345 -123456789012345
11 Prior year’s excess contributions to be added to prefunding balance: a Present value of excess contributions (line 38a from prior year) ............................. -123456789012345
b Interest on (a) using prior year’s effective interest rate of % except as otherwise provided (see instructions) ............................................................... -123456789012345
c Total available at beginning of current plan year to add to prefunding balance .............. -123456789012345
d Portion of (c) to be added to prefunding balance .................................................... -123456789012345
12 Other reductions in balances due to elections or deemed elections ........................... -123456789012345 -123456789012345
13 Balance at beginning of current year (line 9 + line 10 + line 11d – line 12) ................. -123456789012345 -123456789012345
Part III Funding Percentages 14 Funding target attainment percentage ................................................................................................................................................................. 14 123.12%
16 Prior year’s funding percentage for purposes of determining whether carryover/prefunding balances may be used to reduce current year’s funding requirement ......................................................................................................................................................... 16 123.12%
17 If the current value of the assets of the plan is less than 70 percent of the funding target, enter such percentage. .............................. 17 123.12%
Part IV Contributions and Liquidity Shortfalls 18 Contributions made to the plan for the plan year by employer(s) and employees:
19 Discounted employer contributions – see instructions for small plan with a valuation date after the beginning of the year: a Contributions allocated toward unpaid minimum required contributions from prior years. ..................................... 19a -123456789012345
b Contributions made to avoid restrictions adjusted to valuation date ....................................................................... 19b -123456789012345
c Contributions allocated toward minimum required contribution for current year adjusted to valuation date ..................... 19c -123456789012345
20 Quarterly contributions and liquidity shortfalls:
a Did the plan have a “funding shortfall” for the prior year? ............................................................................................................................. X Yes X No
b If line 20a is “Yes,” were required quarterly installments for the current year made in a timely manner? ..................................................... X Yes X No
c If line 20a is “Yes,” see instructions and complete the following table as applicable:
0
0
0
6.20
0
0
0
0
0
1
-1077403
118.49
0
0
X
718268675
928329842
96.60
210061167
0
0
0
81.00
717191272
0
0
-0.15
0
0
0
X
Schedule SB (Form 5500) 2012 Page 3
Part V Assumptions Used to Determine Funding Target and Target Normal Cost 21 Discount rate:
a Segment rates: 1st segment: 123.12_%
2nd segment: 123.12_%
3rd segment: 123.12 % X N/A, full yield curve used
b Applicable month (enter code) ........................................................................................................................... 21b 1
22 Weighted average retirement age ......................................................................................................................... 22 1223 Mortality table(s) (see instructions) X Prescribed - combined X Prescribed - separate X Substitute
Part VI Miscellaneous Items 24 Has a change been made in the non-prescribed actuarial assumptions for the current plan year? If “Yes,” see instructions regarding required attachment. ........................................................................................................................................................................................................ X Yes X No
25 Has a method change been made for the current plan year? If “Yes,” see instructions regarding required attachment. ................................ X Yes X No
26 Is the plan required to provide a Schedule of Active Participants? If “Yes,” see instructions regarding required attachment. ......................... X Yes X No
27 If the plan is subject to alternative funding rules, enter applicable code and see instructions regarding attachment ............................................................................................................................................................. 27
Part VII Reconciliation of Unpaid Minimum Required Contributions For Prior Years 28 Unpaid minimum required contributions for all prior years .................................................................................... 28 -123456789012345
29 Discounted employer contributions allocated toward unpaid minimum required contributions from prior years (line 19a) ................................................................................................................................................................ 29 -123456789012345
30 Remaining amount of unpaid minimum required contributions (line 28 minus line 29) ......................................... 30 -123456789012345
Part VIII Minimum Required Contribution For Current Year 31 Target normal cost and excess assets (see instructions): a Target normal cost (line 6) .................................................................................................................................. 31a -123456789012345
b Excess assets, if applicable, but not greater than line 31a ............................................................................... 31b
a Net shortfall amortization installment .......................................................................... -123456789012345 -123456789012345
b Waiver amortization installment .................................................................................. -123456789012345 -123456789012345
33 If a waiver has been approved for this plan year, enter the date of the ruling letter granting the approval (Month _________ Day _________ Year _________ )_and the waived amount .......................................... 33
-123456789012345
34 Total funding requirement before reflecting carryover/prefunding balances (lines 31a - 31b + 32a + 32b - 33) ... 34 -123456789012345 Carryover balance Prefunding balance Total balance
35 Balances elected for use to offset funding requirement ............................................................ -123456789012345 -123456789012345 -123456789012345
36 Additional cash requirement (line 34 minus line 35) .............................................................................................. 36 -123456789012345
37 Contributions allocated toward minimum required contribution for current year adjusted to valuation date (line 19c) ................................................................................................................................................................ 37 -123456789012345
38 Present value of excess contributions for current year (see instructions)
a Total (excess, if any, of line 37 over line 36) ..................................................................................................... 38a b Portion included in line 38a attributable to use of prefunding and funding standard carryover balances ......... 38b 39 Unpaid minimum required contribution for current year (excess, if any, of line 36 over line 37) ........................... 39 -123456789012345
40 Unpaid minimum required contributions for all years ............................................................................................. 40 -123456789012345
Part IX Pension Funding Relief Under Pension Relief Act of 2010 (See Instructions) 41 If an election was made to use PRA 2010 funding relief for this plan:
a Schedule elected ............................................................................................................................................................ 2 plus 7 years X 15 years
b Eligible plan year(s) for which the election in line 41a was made ........................................................................... X 2008 X 2009 X 2010 X 2011
42 Amount of acceleration adjustment ....................................................................................................................... 42
43 Excess installment acceleration amount to be carried over to future plan years ................................................... 43
31051339
X
0
0
124424875
X
7.526.85
0
0
0
93373536
0
X
0
111180120
0
X
0
0
0
4
62
124424875
5.54
0
0
124424875
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Line 22 – Description of Weighted Average Retirement Age
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_line22.doc
The retirement assumption varies by age. The average retirement age was determined, as illustrated below, as a weighted average of the age at retirement, with weights equal to the number of a hypothetical 1,000 employee group assumed to retire at such age, according to the retirement assumption.
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V – Statement of Actuarial Assumptions/Methods
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(a&m).doc
Demographic Assumptions
Mortality Separate rates for non-annuitants (based on RP-2000 “Employees” table without collar or amount adjustments, projected to 2027 using Scale AA) and annuitants (based on RP-2000 “Healthy annuitants” table without collar or amount adjustments, projected to 2019 using Scale AA)
Mortality basis for cash balance conversions
PNC and NCC account balance: Current IRC 417 mortality table is assumed to continue without change
Mercantile minimum benefits: 1971 Group Annuity Table (along with 6.50% interest, per plan provision)
Termination Select and ultimate rates varying by age, service and sex
Sample rates (per 1,000 active participants):
Years of Service
Age One or Less Two Three Four or More
25 274 274 244 194
40 236 196 169 107
55 191 151 121 73
For participants eligible to retire (over age 55 with at least five years of service), no termination is assumed as the retirement rates are assumed to reflect such terminations
Retirement Age dependent for active participants; age 62 for terminated vested participants; earliest possible age for spouses
prior plan benefits commence at the later of the death of the active participant or the date the participant would have attained age 55.
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V – Statement of Actuarial Assumptions/Methods
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(a&m).doc
Termination Lump sums: 30% are assumed to be payable immediately upon termination. 70% are assumed to be paid at age 62
Annuities: Assumed to be payable at age 62
For legacy PNC, prior plan benefits are assumed to commence at age 62 regardless of the form of payment, as are benefits for persons who are already terminated on the valuation date
Retirement Lump sums: 30% are assumed to be payable immediately upon termination. 70% are assumed to be paid at age 62
Annuities: Assumed to be payable immediately upon termination of employment
Disability Lump sums: 30% are assumed to be payable immediately upon termination. 70% are assumed to be paid at age 62
Annuities: Assumed to be payable at age 62
For legacy PNC, prior plan benefits are assumed to commence at age 62 regardless of the form of payment, as are benefits for persons who are already terminated on the valuation date
Form of payment PNC
For retirements, vested terminations, and preretirement deaths for participants with an account balance:
95% as lump sums
5% as life annuities
For preretirement death benefits for participants without an account balance: Benefits for death between termination and commencement for participants without an account balance, 100% as annuities; death while actively employed, 100% as lump sums
NCC:
For retirements and vested terminations:
95% of retirees are assumed to receive a lump sum; others are assumed to receive a life annuity
For preretirement death benefits: Benefits for death between termination and commencement, lump sums are paid in accordance with plan terms
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V – Statement of Actuarial Assumptions/Methods
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(a&m).doc
For Lump Sums:
When determining grandfathered minimum lump sum amounts for pre-12/31/96 participants in the PNC Pension Plan who were age 50 or over as of November 1, 1998, interest rates were assumed 1.50%. The UP-1984(-2) mortality table was used
For all other participants, grandfathered minimum lump sum amounts were determined using the mortality table prescribed by IRC 417 and funding interest rates reflecting the MAP-21 corridor of 5.54%, 6.85% and 7.52%
Percent married 90% of males; 50% of females
Spouse age Wife three years younger than husband
Covered pay Covered pay is calculated using annualized base pay as of October 1 preceding the valuation date increased with 9/12 of the salary increase assumption for all employees, plus actual paid bonus as of the prior valuation date increased with the salary increase assumption for all employees
Covered pay is limited by IRC §401(a)(17) under the plan
Administrative expense An expense assumption of $11,000,000 was included in the target normal cost. This assumption is intended to include expected noninvestment expenses and PBGC premiums to be paid from the plan trust during the year. Noninvestment expenses are based on an average of similar expenses paid from the plan in prior years.
Maximum benefits The IRC §415 limits, not adjusted for elections of joint and survivor options or grandfathered maximum benefits
Methods
Valuation date First day of plan year
Funding target Present value of accrued benefits
Target normal cost Present value of benefits expected to accrue during plan year plus plan-related expenses expected to be paid from plan assets during plan year
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V – Statement of Actuarial Assumptions/Methods
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(a&m).doc
Actuarial value of assets Average of the fair market value of assets on the valuation date and the two immediately preceding valuation dates, adjusted for contributions, benefits, administrative expenses and expected earnings (with such expected earnings limited as described in IRS Notice 2009-22). The average asset value must be within 10% of fair value, including contributions receivable.
The method of computing the actuarial value of assets complies with rules governing the calculation of such values under the Pension Protection Act of 2006 (PPA). These rules produce smoothed values that reflect the underlying market value of plan assets but fluctuate less than the market value. As a result, the actuarial value of assets will be lower than the market value in some years and greater in other years. However, over the long term under PPA’s smoothing rules, the method has a bias to produce an actuarial value of assets that is below the market value of assets.
Funding policy The company’s funding policy is to contribute an amount at least equal to the minimum required contribution under ERISA. PNC may increase its contribution above the minimum, if appropriate to its tax and cash position and the plan’s funded status.
Benefits not valued All benefits described in the Plan Provisions section of this report were valued. Towers Watson has reviewed the plan provisions with PNC and is not aware of any significant benefits required to be valued that were not.
Data sources Towers Watson used asset data supplied by PNC. Aon Hewitt, as a third party administrator, furnished participant data as of October 1, 2011. Data were reviewed for reasonableness and consistency, but no audit was performed. Assumptions or estimates were made when data were not available. Towers Watson is not aware of any errors or omissions in the data that would have a significant effect on the results of our calculations.
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V – Statement of Actuarial Assumptions/Methods
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(a&m).doc
Change in assumptions and methods since prior valuation
The segment interest rates used to calculate the funding target and target normal cost were updated from an applicable month of September 2010 to September 2011 and updated to reflect the corridor prescribed by MAP-21.
The required mortality table used to calculate the funding target and target normal cost was updated to include one additional year of projected mortality improvements.
The “No Minimum” group cash balance interest credit rate was changed from 3.95% in all years to 3.35% in all years.
The “Legacy NCC” group’s cash balance interest credit rate was changed from 3.95% in all years to 3.79% in all years.
The interest rates used to calculate grandfathered minimum lump sums are based on PBGC rates for pre-12/31/96 participants in The PNC Financial Services Group, Inc. Pension Plan, who were age 50 or over as of November 1, 1998. The assumed rates of interest were revised from 2.25% in 2011, increasing 0.25% per year to a maximum rate of 4.00% in 2018 to 1.50% in all years.
For all other participants, the interest rate used to calculate minimum grandfathered lump sum amounts are determined using funding segment rates reflecting the corridor prescribed by MAP-21 and were changed from 3.78%, 6.31%, and 6.57% to 5.54%, 6.85%, and 7.52%.
The assumed rates of retirement and termination were revised to better reflect anticipated experience under the plan.
To more accurately reflect benefits for disabled participants after the change to the pension plan that limits pay credits to newly disabled employees to three years, an assumption has been added to assume that some current healthy employees will become disabled in the future.
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
There are three basic component programs: 1. New Participants as of January 1, 2010 2. Legacy PNC 3. Legacy NCC
1. New Participants as of January 1, 2010 Our understanding of the plan provisions in effect as of the valuation date follow.
Covered Employees All employees who were not participants in the plan prior to January 1, 2010, excluding employees at non-participating entities (Harris Williams, Hilliard Lyons, and PNC Global Investment Servicing Inc.), construction laborers and temporary employees (includes interns). Legacy NCC employees hired on or after April 1, 2006, are eligible to become new participants as of January 1, 2010.
Participation Date Full-time employees: First of the month coincident with or following six months of service with PNC
Part-time employees: First of the month coincident with or following a twelve-month period within which the employee completes 1,000 hours. After initial 12-month period, the period becomes a plan year.
Definitions Vesting service Period of elapsed time commencing on the date of hire or date of
acquisition and ending on the last of the month of termination
Credited service Period of elapsed time as an eligible employee commencing on the first of the month coincident with or following employment or acquisition, and ending on the last of the month of termination, unless the date of termination is the first of the month, in which case service ends as of the last day of the previous month. Credited service may be forfeited as a result of break in service (as defined in the plan). Credited service will not be granted for service during which the employee was not an eligible employee.
Pensionable pay Total compensation received for service rendered, including 401(k) and Section 125 deferrals. Variable pay, such as bonus, is included as follows:
100% of the first $25,000 and 50% of the next $225,000
Quarterly interest credit The 30-year Treasury yield during the first month of the previous quarter, with no minimum rate
Normal retirement date (NRD) First of month coinciding with or next following the attainment of age 65
Early retirement date First of month coinciding with or following the date on which the participant has attained age 55 and completed five years of vesting service
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Plan year Calendar year
Lump sum pension benefit An account balance equal to the sum of earnings credits at the end of each quarter based on a 3% of Pensionable Pay, accumulated with quarterly interest credits
Eligibility for Benefits Normal retirement Retirement on NRD
Early retirement Retirement before NRD and on or after both attaining age 55 and completing five years of vesting service
Postponed retirement Retirement after NRD
Deferred vested Termination for reasons other than death or retirement after completing three years of vesting service
Preretirement death benefit Death while eligible for normal, early, postponed or deferred vested retirement benefits
Disability Participants must be eligible for benefits under employer’s disability income plan
Benefits (Assuming Lump Sum Option) Paid Upon the Following Events Normal retirement Account balance determined as of NRD
Early retirement Account balance determined as of early retirement date
Postponed retirement Account balance determined as of actual retirement date
Termination with deferred vested benefit
Account balance determined as of date of termination accumulated with interest credits until commencement date no earlier than early retirement date
Preretirement death benefit Account balance determined as of date of death with interest credits until commencement date
Disability benefit Disabled prior to January 1, 2011: benefit as described in the Lump Sum Pension Benefit, assuming pensionable pay during the year prior to disability continues to normal retirement date
Disabled on or after January 1, 2011: benefit as described in the Lump Sum Pension Benefit, assuming pensionable pay during the year prior to disability continues for a maximum of three years
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Other Plan Provisions Normal form of payment Single participant: Immediate straight life annuity equal to the
annuitized account balance. Annuitization uses IRC 417 mortality and interest rates at time of commencement.
Married participant: Immediate 100% joint-and-survivor annuity equal to the life annuity benefit reduced for joint-and-survivor coverage
Lump sum pension benefit An account balance equal to quarterly earnings credits of 3% of Pensionable Pay accumulated with quarterly interest credit
Partial additions will be deposited in the calendar quarter of retirement, death or termination
Optional forms of payment Lump sum, life annuity, 50% or 100% joint-and-survivor annuity, or life annuity with five or ten years of payments certain
Maximum on benefits and pay All benefits and pay for any calendar year may not exceed the maximum limitations for that year as defined in the Internal Revenue Code. The plan provides for increasing the dollar limits automatically as such changes become effective. Increases in the dollar limits are assumed for determining pension cost but not for determining contributions.
Future Plan Changes No future plan changes were recognized in determining pension cost or in determining minimum and maximum contributions.
Changes in Benefits Valued Since Prior Year The disability benefit was updated to include pensionable pay credits during the year prior to disability, plus an additional three years.
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
2. Legacy PNC Plan Provisions Our understanding of the plan provisions in effect as of the valuation date follow.
Covered Employees All legacy PNC employees participating prior to January 1, 2010, excluding employees at non-participating entities (Harris Williams, Hilliard Lyons, and PNC Global Investment Servicing Inc.), construction laborers and temporary employees (includes interns)
Participation Date Full-time employees: First of the month coincident with or following six months of service with PNC
Part-time employees: First of the month coincident with or following a twelve-month period within which the employee completes 1,000 hours. After initial 12-month period, the period becomes a plan year.
Definitions Vesting service Period of elapsed time commencing on the date of hire or date of
acquisition and ending on the last of the month of termination. Vesting service for participants in the PNC Global Investment Servicing Inc. unit sold to Wachovia ends on the last of the month of termination from Wachovia. Vesting service for non-vested BlackRock participants ends on the last day of the month of termination from BlackRock/MLIM.
Credited service Period of elapsed time as an eligible employee commencing on the first of the month coincident with or following employment or acquisition, and ending on the last of the month of termination, unless the date of termination is the first of the month, in which case service ends as of the last day of the previous month. Credited service may be forfeited as a result of break in service (as defined in the plan). Credited service will not be granted for service during which the employee was not an eligible employee.
Pensionable pay Total compensation received for service rendered, including 401(k) and Section 125 deferrals. Variable pay, such as bonus, is included as follows:
100% of the first $25,000 and 50% of the next $225,000
For current CEG members who were CEG as of December 31, 2009, the total variable pay is included up to the greater of $25,000 and 50% of total variable pay
Quarterly interest credit The 30-year Treasury yield during the first month of the previous quarter subject to a minimum of an annual rate of 4.40%
Normal retirement date (NRD) First of month coinciding with or next following the attainment of age 65
Early retirement date First of month coinciding with or following the date on which the participant has attained age 55 and completed five years of vesting service
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Plan year Calendar year
Lump sum pension benefit An account balance equal to the sum of (a), (b) and (c) accumulated with quarterly interest credits where (a), (b) and (c) are defined as:
(a) An initial account balance as of January 1, 1999, based on the prior plan formula
(b) Earnings credits at the end of each quarter based on "points" which equal the sum of attained age and credited service (fractional years not recognized) at 12/31 of the previous plan year. The schedule is as follows:
Points Less than 40
40 - 49 50 - 59 60 - 69
70 or greater
Earnings Credit 3% of Pensionable Pay 4% of Pensionable Pay 5% of Pensionable Pay 6% of Pensionable Pay 8% of Pensionable Pay
Section 1Earnings credit percentages for all years after 2010 will remain at 2010 levels
(c) Transitional credits at the end of each quarter until December 31, 2008 based on attained age at January 1, 1999 and credited service at January 1, 1999. The schedule is as follows:
Age 45 40
Service 15 10
Transitional Credit 4% of Pensionable Pay 2% of Pensionable Pay
Partial additions will be deposited in the calendar quarter of retirement, death or termination
In no event will the benefit be less than the lump sum value of the grandfathered accrued benefit as of December 31, 1998
For prior employees retired after June 29, 2005 and for all acquired Participants after that date with a former accrued benefit which has been converted to cash balance, in no event will the benefit be less than the lump sum value of the prior pension benefit plus future accruals under the PNC Pension Plan
Eligibility for Benefits Normal retirement Retirement on NRD
Early retirement Retirement before NRD and on or after both attaining age 55 and completing five years of vesting service
Postponed retirement Retirement after NRD
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Deferred vested Termination for reasons other than death or retirement after completing three years of vesting service
Preretirement death benefit Death while eligible for normal, early, postponed or deferred vested retirement benefits
Disability Participants must be eligible for benefits under employer’s disability income plan or workers compensation
Benefits (Assuming Lump Sum Option) Paid Upon the Following Events Normal retirement Account balance determined as of NRD
Early retirement Account balance determined as of early retirement date
Postponed retirement Account balance determined as of actual retirement date
Termination with deferred vested benefit
Account balance determined as of date of termination accumulated with interest credits until commencement date
Preretirement death benefit Account balance determined as of date of death with interest credits until commencement date
Disability benefit Disabled prior to January 1, 2011: benefit as described in the Lump Sum Pension Benefit, assuming pensionable pay during the year prior to disability continues to normal retirement date
Disabled on or after January 1, 2011: benefit as described in the Lump Sum Pension Benefit, assuming pensionable pay during the year prior to disability continues for a maximum of three years
Optional forms of payment Participants commencing before age 50: lump sum or life annuity (if single) or 50% or 100% joint-and-survivor annuity (if married)
Participants commencing on or after age 50: lump sum, life annuity, 50% or 100% joint-and-survivor annuity, or life annuity with 5 or 10 years of payments certain
Existing deferred vested participants upon certain acquisitions are not eligible for a lump sum
Maximum on benefits and pay All benefits and pay for any calendar year may not exceed the maximum limitations for that year as defined in the Internal Revenue Code. The plan provides for increasing the dollar limits automatically as such changes become effective. Increases in the dollar limits are assumed for determining pension cost but not for determining contributions.
Future Plan Changes No future plan changes were recognized in determining pension cost or in determining minimum and maximum contributions.
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Changes in Benefits Valued Since Prior Year Earnings credit percentages will be maintained at 2010 levels for all future years.
The disability benefit was updated to include pensionable pay credits during the year prior to disability, plus an additional three years.
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
3. Legacy NCC Plan Provisions Our understanding of the plan provisions in effect as of the valuation date follow.
Covered Employees All employees who were active participants and not in a non-covered classification, who merged into the plan as participants of the NCC Non-Contributory Retirement plan on December 31, 2008. Legacy NCC employees hired on or after April 1, 2006, were not eligible to participate in the NCC Non-Contributory Retirement Plan and are eligible to participate as follows effective January 1, 2010.
Participation Date Full-time employees: First of the month coincident with or following six months of service including NCC service
Part-time employees: First of the month coincident with or following a twelve-month period within which the employee completes 1,000 hours. After initial 12-month period, the period becomes a plan year. However, any NCC part-time employee with 12 months of service plus 1,000 hours worked in 2009 is eligible to participate effective January 1, 2010.
Definitions Vesting service Period of elapsed time commencing on the date of hire or date of
acquisition and ending on the last of the month of termination, measured in years and months
Credited service Period of elapsed time as an eligible employee commencing on the first of the month coincident with or following employment or acquisition, and ending on the last of the month of termination, unless the date of termination is the first of the month, in which case service ends as of the last day of the previous month. Credited service may be forfeited as a result of break in service (as defined in the plan). Credited service will not be granted for service during which the employee was not an eligible employee. Credited service is measured in years and months.
Pensionable pay Total compensation received for service rendered, including 401(k) and Section 125 deferrals. Variable pay, such as bonus, is included as follows:
100% of the first $25,000 and 50% of the next $225,000
Quarterly interest credit The average 30-year Treasury yield during September of the preceding year, subject to a minimum of an annual rate of 3.79%
Normal retirement date (NRD) First of month coinciding with or next following the attainment of age 65
Early retirement date First of month coinciding with or following the date on which the participant has attained age 55 and completed five years of vesting service
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Normal form of payment Single participant: Immediate straight life annuity equal to the annuitized account balance. Annuitization uses IRC 417 mortality and interest rates at time of commencement.
Married participant: Immediate 100% joint-and-survivor annuity equal to the life annuity benefit reduced for joint-and-survivor coverage
Optional forms of payment Single life annuity (for married participants); 10-year certain and life annuity; 50% and 100% joint and survivor annuity; lump sum; annuity/partial lump sum
Pay credits Points
Less than 35 35 – 44 45 – 54 55 – 64 65 – 74
75 or greater
Earnings Credit
3% of Pensionable Pay 4% of Pensionable Pay 5% of Pensionable Pay 6% of Pensionable Pay 7% of Pensionable Pay 8% of Pensionable Pay
Earnings credit percentages for all years after 2010 will remain at 2010 levels
Participants on January 1, 1999 who met the following criteria receive an additional pay credit of 5% per year until the earlier of December 31, 2008 and termination:
(i) Ages 50 to 54 with 15 to 19 years of service
(ii) Age 55 and over with at least 10 years of service
Cash balance account conversion The monthly benefit at retirement is the cash balance account converted to an annuity using the applicable Section 417(e) interest rate for September of the preceding year and the Section 417(e) Mortality Table
Opening cash balance account The opening cash balance account was determined on January 1, 1999 based on the December 31, 1998 accrued benefit, the 1983 Group Annuity Mortality Table (50% male), and the following interest rate:
(i) 5% for participants ages 45 to 54 with at least 20 years of service, and participants age 55 and over with at least ten years of service
(ii) 6% for all other participants
Eligibility for Benefits Normal retirement Retirement on NRD
Early retirement Retirement before NRD and on or after both attaining age 55 and completing five years of vesting service
Postponed retirement Retirement after NRD
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Deferred vested Termination for reasons other than death or retirement after completing three years of vesting service
Preretirement death benefit Death while eligible for normal, early, postponed or deferred vested retirement benefits
Disability Participants must be eligible for benefits under employer’s disability income plan or workers compensation
Benefits Paid Upon the Following Events Normal retirement The greater of (1) and (2) below:
(1) Account balance determined as of NRD from the all-service cash balance account, based on the opening account balance as of January 1, 1999 and subsequent pay credits and interest credits
(2) The sum of (a) and (b):
(a) The lump sum value of the monthly benefit accrued under the Plan as of December 31, 1998
(b) Account balance determined as of NRD from pay credits and interest credits on those pay credits after January 1, 1999
Early retirement Similar to normal retirement benefit, but amounts determined as of early retirement date. The accrued benefit as of December 31, 1998 is reduced as follows:
(i) Less than 20 years of vesting service: 6% for each year between ages 60 and 65; 4% for each year between ages 55 and 60
(ii) 20 or more years of vesting service: 6% for each year prior to age 62
Postponed retirement Normal retirement benefit determined as of actual retirement date
Termination with deferred vested benefit
Similar to normal retirement benefit, but amounts determined as of actual retirement date, with reductions for early retirement. Pay credits are not granted after termination, but interest credits continue until benefit commencement.
Preretirement death benefit Account balance determined as of date of death with interest credits until commencement date
Disability benefit Disabled prior to January 1, 2011: benefit as described in the Lump Sum Pension Benefit, assuming pensionable pay during the year prior to disability continues to normal retirement date
Disabled on or after January 1, 2011: benefit as described in the Lump Sum Pension Benefit, assuming pensionable pay during the year prior to disability continues for a maximum of three years
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Maximum on benefits and pay All benefits and pay for any calendar year may not exceed the maximum limitations for that year as defined in the Internal Revenue Code. The plan provides for increasing the dollar limits automatically as such changes become effective. Increases in the dollar limits are assumed for determining pension cost but not for determining contributions.
Changes in Benefits Valued Since Prior Year
The disability benefit was updated to include pensionable pay credits during the year prior to disability, plus an additional three years.
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, line 24 Change in Actuarial Assumptions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_line24.doc
The segment interest rates used to calculate the funding target and target normal
cost were updated from an applicable month of September 2010 to September 2011 and updated to reflect the corridor prescribed by MAP-21.
The required mortality table used to calculate the funding target and target normal cost was updated to include one additional year of projected mortality improvements.
The “No Minimum” group’s cash balance interest credit rate was changed from 3.95% in all years to 3.35% in all years.
The “Legacy NCC” group’s cash balance interest credit rate was changed from 3.95% in all years to 3.79% in all years.
The interest rates used to calculate grandfathered minimum lump sums are based on PBGC rates for pre-12/31/96 participants in The PNC Financial Services Group, Inc. Pension Plan, who were age 50 or over as of November 1, 1998. The assumed rates of interest were revised from 2.25% in 2011, increasing 0.25% per year to a maximum rate of 4.00% in 2018 to 1.50% in all years.
For all other participants, the interest rate used to calculate minimum grandfathered lump sum are determined using funding segment rates reflecting the corridor prescribed by MAP-21 and were changed from 3.78%, 6.31%, and 6.57% to 5.54%, 6.85%, and 7.52%.
The assumed rates of retirement and termination were revised to better reflect anticipated experience under the plan.
To more accurately reflect benefits for disabled participants after the change to the pension plan that limits pay credits to newly disabled employees to three years, an assumption has been added to assume that some current healthy employees will become disabled in the future.
Schedule SB The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002) Schedule SB, Line 26 – Schedule of Active Participant Data
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_line26.doc
Attained Age <1 1 to 4 5 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 & up Total<25 Count 667 2,155 51 - - - - - - - 2,873 Avg Pay 28,062 30,487 33,409 30,035
The PNC Financial Services Group, Inc. Pension PlanAnalysis of Active Participants as of January 1, 2012 by Age and Service
--------------------------------------------------------------------------------------------Years of Credited Service-------------------------------------------------------------------------------------------------
The PNC Financial Services Group, Inc. (EIN 25-1435979)The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Line 32 – Schedule of Amortization Bases
Amortization Record in Support of Minimum Required Contribution
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Line 22 – Description of Weighted Average Retirement Age
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_line22.doc
The retirement assumption varies by age. The average retirement age was determined, as illustrated below, as a weighted average of the age at retirement, with weights equal to the number of a hypothetical 1,000 employee group assumed to retire at such age, according to the retirement assumption.
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V – Statement of Actuarial Assumptions/Methods
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(a&m).doc
Demographic Assumptions
Mortality Separate rates for non-annuitants (based on RP-2000 “Employees” table without collar or amount adjustments, projected to 2027 using Scale AA) and annuitants (based on RP-2000 “Healthy annuitants” table without collar or amount adjustments, projected to 2019 using Scale AA)
Mortality basis for cash balance conversions
PNC and NCC account balance: Current IRC 417 mortality table is assumed to continue without change
Mercantile minimum benefits: 1971 Group Annuity Table (along with 6.50% interest, per plan provision)
Termination Select and ultimate rates varying by age, service and sex
Sample rates (per 1,000 active participants):
Years of Service
Age One or Less Two Three Four or More
25 274 274 244 194
40 236 196 169 107
55 191 151 121 73
For participants eligible to retire (over age 55 with at least five years of service), no termination is assumed as the retirement rates are assumed to reflect such terminations
Retirement Age dependent for active participants; age 62 for terminated vested participants; earliest possible age for spouses
prior plan benefits commence at the later of the death of the active participant or the date the participant would have attained age 55.
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V – Statement of Actuarial Assumptions/Methods
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(a&m).doc
Termination Lump sums: 30% are assumed to be payable immediately upon termination. 70% are assumed to be paid at age 62
Annuities: Assumed to be payable at age 62
For legacy PNC, prior plan benefits are assumed to commence at age 62 regardless of the form of payment, as are benefits for persons who are already terminated on the valuation date
Retirement Lump sums: 30% are assumed to be payable immediately upon termination. 70% are assumed to be paid at age 62
Annuities: Assumed to be payable immediately upon termination of employment
Disability Lump sums: 30% are assumed to be payable immediately upon termination. 70% are assumed to be paid at age 62
Annuities: Assumed to be payable at age 62
For legacy PNC, prior plan benefits are assumed to commence at age 62 regardless of the form of payment, as are benefits for persons who are already terminated on the valuation date
Form of payment PNC
For retirements, vested terminations, and preretirement deaths for participants with an account balance:
95% as lump sums
5% as life annuities
For preretirement death benefits for participants without an account balance: Benefits for death between termination and commencement for participants without an account balance, 100% as annuities; death while actively employed, 100% as lump sums
NCC:
For retirements and vested terminations:
95% of retirees are assumed to receive a lump sum; others are assumed to receive a life annuity
For preretirement death benefits: Benefits for death between termination and commencement, lump sums are paid in accordance with plan terms
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V – Statement of Actuarial Assumptions/Methods
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(a&m).doc
For Lump Sums:
When determining grandfathered minimum lump sum amounts for pre-12/31/96 participants in the PNC Pension Plan who were age 50 or over as of November 1, 1998, interest rates were assumed 1.50%. The UP-1984(-2) mortality table was used
For all other participants, grandfathered minimum lump sum amounts were determined using the mortality table prescribed by IRC 417 and funding interest rates reflecting the MAP-21 corridor of 5.54%, 6.85% and 7.52%
Percent married 90% of males; 50% of females
Spouse age Wife three years younger than husband
Covered pay Covered pay is calculated using annualized base pay as of October 1 preceding the valuation date increased with 9/12 of the salary increase assumption for all employees, plus actual paid bonus as of the prior valuation date increased with the salary increase assumption for all employees
Covered pay is limited by IRC §401(a)(17) under the plan
Administrative expense An expense assumption of $11,000,000 was included in the target normal cost. This assumption is intended to include expected noninvestment expenses and PBGC premiums to be paid from the plan trust during the year. Noninvestment expenses are based on an average of similar expenses paid from the plan in prior years.
Maximum benefits The IRC §415 limits, not adjusted for elections of joint and survivor options or grandfathered maximum benefits
Methods
Valuation date First day of plan year
Funding target Present value of accrued benefits
Target normal cost Present value of benefits expected to accrue during plan year plus plan-related expenses expected to be paid from plan assets during plan year
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V – Statement of Actuarial Assumptions/Methods
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(a&m).doc
Actuarial value of assets Average of the fair market value of assets on the valuation date and the two immediately preceding valuation dates, adjusted for contributions, benefits, administrative expenses and expected earnings (with such expected earnings limited as described in IRS Notice 2009-22). The average asset value must be within 10% of fair value, including contributions receivable.
The method of computing the actuarial value of assets complies with rules governing the calculation of such values under the Pension Protection Act of 2006 (PPA). These rules produce smoothed values that reflect the underlying market value of plan assets but fluctuate less than the market value. As a result, the actuarial value of assets will be lower than the market value in some years and greater in other years. However, over the long term under PPA’s smoothing rules, the method has a bias to produce an actuarial value of assets that is below the market value of assets.
Funding policy The company’s funding policy is to contribute an amount at least equal to the minimum required contribution under ERISA. PNC may increase its contribution above the minimum, if appropriate to its tax and cash position and the plan’s funded status.
Benefits not valued All benefits described in the Plan Provisions section of this report were valued. Towers Watson has reviewed the plan provisions with PNC and is not aware of any significant benefits required to be valued that were not.
Data sources Towers Watson used asset data supplied by PNC. Aon Hewitt, as a third party administrator, furnished participant data as of October 1, 2011. Data were reviewed for reasonableness and consistency, but no audit was performed. Assumptions or estimates were made when data were not available. Towers Watson is not aware of any errors or omissions in the data that would have a significant effect on the results of our calculations.
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V – Statement of Actuarial Assumptions/Methods
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(a&m).doc
Change in assumptions and methods since prior valuation
The segment interest rates used to calculate the funding target and target normal cost were updated from an applicable month of September 2010 to September 2011 and updated to reflect the corridor prescribed by MAP-21.
The required mortality table used to calculate the funding target and target normal cost was updated to include one additional year of projected mortality improvements.
The “No Minimum” group cash balance interest credit rate was changed from 3.95% in all years to 3.35% in all years.
The “Legacy NCC” group’s cash balance interest credit rate was changed from 3.95% in all years to 3.79% in all years.
The interest rates used to calculate grandfathered minimum lump sums are based on PBGC rates for pre-12/31/96 participants in The PNC Financial Services Group, Inc. Pension Plan, who were age 50 or over as of November 1, 1998. The assumed rates of interest were revised from 2.25% in 2011, increasing 0.25% per year to a maximum rate of 4.00% in 2018 to 1.50% in all years.
For all other participants, the interest rate used to calculate minimum grandfathered lump sum amounts are determined using funding segment rates reflecting the corridor prescribed by MAP-21 and were changed from 3.78%, 6.31%, and 6.57% to 5.54%, 6.85%, and 7.52%.
The assumed rates of retirement and termination were revised to better reflect anticipated experience under the plan.
To more accurately reflect benefits for disabled participants after the change to the pension plan that limits pay credits to newly disabled employees to three years, an assumption has been added to assume that some current healthy employees will become disabled in the future.
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
There are three basic component programs: 1. New Participants as of January 1, 2010 2. Legacy PNC 3. Legacy NCC
1. New Participants as of January 1, 2010 Our understanding of the plan provisions in effect as of the valuation date follow.
Covered Employees All employees who were not participants in the plan prior to January 1, 2010, excluding employees at non-participating entities (Harris Williams, Hilliard Lyons, and PNC Global Investment Servicing Inc.), construction laborers and temporary employees (includes interns). Legacy NCC employees hired on or after April 1, 2006, are eligible to become new participants as of January 1, 2010.
Participation Date Full-time employees: First of the month coincident with or following six months of service with PNC
Part-time employees: First of the month coincident with or following a twelve-month period within which the employee completes 1,000 hours. After initial 12-month period, the period becomes a plan year.
Definitions Vesting service Period of elapsed time commencing on the date of hire or date of
acquisition and ending on the last of the month of termination
Credited service Period of elapsed time as an eligible employee commencing on the first of the month coincident with or following employment or acquisition, and ending on the last of the month of termination, unless the date of termination is the first of the month, in which case service ends as of the last day of the previous month. Credited service may be forfeited as a result of break in service (as defined in the plan). Credited service will not be granted for service during which the employee was not an eligible employee.
Pensionable pay Total compensation received for service rendered, including 401(k) and Section 125 deferrals. Variable pay, such as bonus, is included as follows:
100% of the first $25,000 and 50% of the next $225,000
Quarterly interest credit The 30-year Treasury yield during the first month of the previous quarter, with no minimum rate
Normal retirement date (NRD) First of month coinciding with or next following the attainment of age 65
Early retirement date First of month coinciding with or following the date on which the participant has attained age 55 and completed five years of vesting service
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Plan year Calendar year
Lump sum pension benefit An account balance equal to the sum of earnings credits at the end of each quarter based on a 3% of Pensionable Pay, accumulated with quarterly interest credits
Eligibility for Benefits Normal retirement Retirement on NRD
Early retirement Retirement before NRD and on or after both attaining age 55 and completing five years of vesting service
Postponed retirement Retirement after NRD
Deferred vested Termination for reasons other than death or retirement after completing three years of vesting service
Preretirement death benefit Death while eligible for normal, early, postponed or deferred vested retirement benefits
Disability Participants must be eligible for benefits under employer’s disability income plan
Benefits (Assuming Lump Sum Option) Paid Upon the Following Events Normal retirement Account balance determined as of NRD
Early retirement Account balance determined as of early retirement date
Postponed retirement Account balance determined as of actual retirement date
Termination with deferred vested benefit
Account balance determined as of date of termination accumulated with interest credits until commencement date no earlier than early retirement date
Preretirement death benefit Account balance determined as of date of death with interest credits until commencement date
Disability benefit Disabled prior to January 1, 2011: benefit as described in the Lump Sum Pension Benefit, assuming pensionable pay during the year prior to disability continues to normal retirement date
Disabled on or after January 1, 2011: benefit as described in the Lump Sum Pension Benefit, assuming pensionable pay during the year prior to disability continues for a maximum of three years
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Other Plan Provisions Normal form of payment Single participant: Immediate straight life annuity equal to the
annuitized account balance. Annuitization uses IRC 417 mortality and interest rates at time of commencement.
Married participant: Immediate 100% joint-and-survivor annuity equal to the life annuity benefit reduced for joint-and-survivor coverage
Lump sum pension benefit An account balance equal to quarterly earnings credits of 3% of Pensionable Pay accumulated with quarterly interest credit
Partial additions will be deposited in the calendar quarter of retirement, death or termination
Optional forms of payment Lump sum, life annuity, 50% or 100% joint-and-survivor annuity, or life annuity with five or ten years of payments certain
Maximum on benefits and pay All benefits and pay for any calendar year may not exceed the maximum limitations for that year as defined in the Internal Revenue Code. The plan provides for increasing the dollar limits automatically as such changes become effective. Increases in the dollar limits are assumed for determining pension cost but not for determining contributions.
Future Plan Changes No future plan changes were recognized in determining pension cost or in determining minimum and maximum contributions.
Changes in Benefits Valued Since Prior Year The disability benefit was updated to include pensionable pay credits during the year prior to disability, plus an additional three years.
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
2. Legacy PNC Plan Provisions Our understanding of the plan provisions in effect as of the valuation date follow.
Covered Employees All legacy PNC employees participating prior to January 1, 2010, excluding employees at non-participating entities (Harris Williams, Hilliard Lyons, and PNC Global Investment Servicing Inc.), construction laborers and temporary employees (includes interns)
Participation Date Full-time employees: First of the month coincident with or following six months of service with PNC
Part-time employees: First of the month coincident with or following a twelve-month period within which the employee completes 1,000 hours. After initial 12-month period, the period becomes a plan year.
Definitions Vesting service Period of elapsed time commencing on the date of hire or date of
acquisition and ending on the last of the month of termination. Vesting service for participants in the PNC Global Investment Servicing Inc. unit sold to Wachovia ends on the last of the month of termination from Wachovia. Vesting service for non-vested BlackRock participants ends on the last day of the month of termination from BlackRock/MLIM.
Credited service Period of elapsed time as an eligible employee commencing on the first of the month coincident with or following employment or acquisition, and ending on the last of the month of termination, unless the date of termination is the first of the month, in which case service ends as of the last day of the previous month. Credited service may be forfeited as a result of break in service (as defined in the plan). Credited service will not be granted for service during which the employee was not an eligible employee.
Pensionable pay Total compensation received for service rendered, including 401(k) and Section 125 deferrals. Variable pay, such as bonus, is included as follows:
100% of the first $25,000 and 50% of the next $225,000
For current CEG members who were CEG as of December 31, 2009, the total variable pay is included up to the greater of $25,000 and 50% of total variable pay
Quarterly interest credit The 30-year Treasury yield during the first month of the previous quarter subject to a minimum of an annual rate of 4.40%
Normal retirement date (NRD) First of month coinciding with or next following the attainment of age 65
Early retirement date First of month coinciding with or following the date on which the participant has attained age 55 and completed five years of vesting service
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Plan year Calendar year
Lump sum pension benefit An account balance equal to the sum of (a), (b) and (c) accumulated with quarterly interest credits where (a), (b) and (c) are defined as:
(a) An initial account balance as of January 1, 1999, based on the prior plan formula
(b) Earnings credits at the end of each quarter based on "points" which equal the sum of attained age and credited service (fractional years not recognized) at 12/31 of the previous plan year. The schedule is as follows:
Points Less than 40
40 - 49 50 - 59 60 - 69
70 or greater
Earnings Credit 3% of Pensionable Pay 4% of Pensionable Pay 5% of Pensionable Pay 6% of Pensionable Pay 8% of Pensionable Pay
Section 1Earnings credit percentages for all years after 2010 will remain at 2010 levels
(c) Transitional credits at the end of each quarter until December 31, 2008 based on attained age at January 1, 1999 and credited service at January 1, 1999. The schedule is as follows:
Age 45 40
Service 15 10
Transitional Credit 4% of Pensionable Pay 2% of Pensionable Pay
Partial additions will be deposited in the calendar quarter of retirement, death or termination
In no event will the benefit be less than the lump sum value of the grandfathered accrued benefit as of December 31, 1998
For prior employees retired after June 29, 2005 and for all acquired Participants after that date with a former accrued benefit which has been converted to cash balance, in no event will the benefit be less than the lump sum value of the prior pension benefit plus future accruals under the PNC Pension Plan
Eligibility for Benefits Normal retirement Retirement on NRD
Early retirement Retirement before NRD and on or after both attaining age 55 and completing five years of vesting service
Postponed retirement Retirement after NRD
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Deferred vested Termination for reasons other than death or retirement after completing three years of vesting service
Preretirement death benefit Death while eligible for normal, early, postponed or deferred vested retirement benefits
Disability Participants must be eligible for benefits under employer’s disability income plan or workers compensation
Benefits (Assuming Lump Sum Option) Paid Upon the Following Events Normal retirement Account balance determined as of NRD
Early retirement Account balance determined as of early retirement date
Postponed retirement Account balance determined as of actual retirement date
Termination with deferred vested benefit
Account balance determined as of date of termination accumulated with interest credits until commencement date
Preretirement death benefit Account balance determined as of date of death with interest credits until commencement date
Disability benefit Disabled prior to January 1, 2011: benefit as described in the Lump Sum Pension Benefit, assuming pensionable pay during the year prior to disability continues to normal retirement date
Disabled on or after January 1, 2011: benefit as described in the Lump Sum Pension Benefit, assuming pensionable pay during the year prior to disability continues for a maximum of three years
Optional forms of payment Participants commencing before age 50: lump sum or life annuity (if single) or 50% or 100% joint-and-survivor annuity (if married)
Participants commencing on or after age 50: lump sum, life annuity, 50% or 100% joint-and-survivor annuity, or life annuity with 5 or 10 years of payments certain
Existing deferred vested participants upon certain acquisitions are not eligible for a lump sum
Maximum on benefits and pay All benefits and pay for any calendar year may not exceed the maximum limitations for that year as defined in the Internal Revenue Code. The plan provides for increasing the dollar limits automatically as such changes become effective. Increases in the dollar limits are assumed for determining pension cost but not for determining contributions.
Future Plan Changes No future plan changes were recognized in determining pension cost or in determining minimum and maximum contributions.
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Changes in Benefits Valued Since Prior Year Earnings credit percentages will be maintained at 2010 levels for all future years.
The disability benefit was updated to include pensionable pay credits during the year prior to disability, plus an additional three years.
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
3. Legacy NCC Plan Provisions Our understanding of the plan provisions in effect as of the valuation date follow.
Covered Employees All employees who were active participants and not in a non-covered classification, who merged into the plan as participants of the NCC Non-Contributory Retirement plan on December 31, 2008. Legacy NCC employees hired on or after April 1, 2006, were not eligible to participate in the NCC Non-Contributory Retirement Plan and are eligible to participate as follows effective January 1, 2010.
Participation Date Full-time employees: First of the month coincident with or following six months of service including NCC service
Part-time employees: First of the month coincident with or following a twelve-month period within which the employee completes 1,000 hours. After initial 12-month period, the period becomes a plan year. However, any NCC part-time employee with 12 months of service plus 1,000 hours worked in 2009 is eligible to participate effective January 1, 2010.
Definitions Vesting service Period of elapsed time commencing on the date of hire or date of
acquisition and ending on the last of the month of termination, measured in years and months
Credited service Period of elapsed time as an eligible employee commencing on the first of the month coincident with or following employment or acquisition, and ending on the last of the month of termination, unless the date of termination is the first of the month, in which case service ends as of the last day of the previous month. Credited service may be forfeited as a result of break in service (as defined in the plan). Credited service will not be granted for service during which the employee was not an eligible employee. Credited service is measured in years and months.
Pensionable pay Total compensation received for service rendered, including 401(k) and Section 125 deferrals. Variable pay, such as bonus, is included as follows:
100% of the first $25,000 and 50% of the next $225,000
Quarterly interest credit The average 30-year Treasury yield during September of the preceding year, subject to a minimum of an annual rate of 3.79%
Normal retirement date (NRD) First of month coinciding with or next following the attainment of age 65
Early retirement date First of month coinciding with or following the date on which the participant has attained age 55 and completed five years of vesting service
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Normal form of payment Single participant: Immediate straight life annuity equal to the annuitized account balance. Annuitization uses IRC 417 mortality and interest rates at time of commencement.
Married participant: Immediate 100% joint-and-survivor annuity equal to the life annuity benefit reduced for joint-and-survivor coverage
Optional forms of payment Single life annuity (for married participants); 10-year certain and life annuity; 50% and 100% joint and survivor annuity; lump sum; annuity/partial lump sum
Pay credits Points
Less than 35 35 – 44 45 – 54 55 – 64 65 – 74
75 or greater
Earnings Credit
3% of Pensionable Pay 4% of Pensionable Pay 5% of Pensionable Pay 6% of Pensionable Pay 7% of Pensionable Pay 8% of Pensionable Pay
Earnings credit percentages for all years after 2010 will remain at 2010 levels
Participants on January 1, 1999 who met the following criteria receive an additional pay credit of 5% per year until the earlier of December 31, 2008 and termination:
(i) Ages 50 to 54 with 15 to 19 years of service
(ii) Age 55 and over with at least 10 years of service
Cash balance account conversion The monthly benefit at retirement is the cash balance account converted to an annuity using the applicable Section 417(e) interest rate for September of the preceding year and the Section 417(e) Mortality Table
Opening cash balance account The opening cash balance account was determined on January 1, 1999 based on the December 31, 1998 accrued benefit, the 1983 Group Annuity Mortality Table (50% male), and the following interest rate:
(i) 5% for participants ages 45 to 54 with at least 20 years of service, and participants age 55 and over with at least ten years of service
(ii) 6% for all other participants
Eligibility for Benefits Normal retirement Retirement on NRD
Early retirement Retirement before NRD and on or after both attaining age 55 and completing five years of vesting service
Postponed retirement Retirement after NRD
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Deferred vested Termination for reasons other than death or retirement after completing three years of vesting service
Preretirement death benefit Death while eligible for normal, early, postponed or deferred vested retirement benefits
Disability Participants must be eligible for benefits under employer’s disability income plan or workers compensation
Benefits Paid Upon the Following Events Normal retirement The greater of (1) and (2) below:
(1) Account balance determined as of NRD from the all-service cash balance account, based on the opening account balance as of January 1, 1999 and subsequent pay credits and interest credits
(2) The sum of (a) and (b):
(a) The lump sum value of the monthly benefit accrued under the Plan as of December 31, 1998
(b) Account balance determined as of NRD from pay credits and interest credits on those pay credits after January 1, 1999
Early retirement Similar to normal retirement benefit, but amounts determined as of early retirement date. The accrued benefit as of December 31, 1998 is reduced as follows:
(i) Less than 20 years of vesting service: 6% for each year between ages 60 and 65; 4% for each year between ages 55 and 60
(ii) 20 or more years of vesting service: 6% for each year prior to age 62
Postponed retirement Normal retirement benefit determined as of actual retirement date
Termination with deferred vested benefit
Similar to normal retirement benefit, but amounts determined as of actual retirement date, with reductions for early retirement. Pay credits are not granted after termination, but interest credits continue until benefit commencement.
Preretirement death benefit Account balance determined as of date of death with interest credits until commencement date
Disability benefit Disabled prior to January 1, 2011: benefit as described in the Lump Sum Pension Benefit, assuming pensionable pay during the year prior to disability continues to normal retirement date
Disabled on or after January 1, 2011: benefit as described in the Lump Sum Pension Benefit, assuming pensionable pay during the year prior to disability continues for a maximum of three years
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Part V– Summary of Plan Provisions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_PartV(pp).doc
Maximum on benefits and pay All benefits and pay for any calendar year may not exceed the maximum limitations for that year as defined in the Internal Revenue Code. The plan provides for increasing the dollar limits automatically as such changes become effective. Increases in the dollar limits are assumed for determining pension cost but not for determining contributions.
Changes in Benefits Valued Since Prior Year
The disability benefit was updated to include pensionable pay credits during the year prior to disability, plus an additional three years.
Schedule SB
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, line 24 Change in Actuarial Assumptions
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_line24.doc
The segment interest rates used to calculate the funding target and target normal
cost were updated from an applicable month of September 2010 to September 2011 and updated to reflect the corridor prescribed by MAP-21.
The required mortality table used to calculate the funding target and target normal cost was updated to include one additional year of projected mortality improvements.
The “No Minimum” group’s cash balance interest credit rate was changed from 3.95% in all years to 3.35% in all years.
The “Legacy NCC” group’s cash balance interest credit rate was changed from 3.95% in all years to 3.79% in all years.
The interest rates used to calculate grandfathered minimum lump sums are based on PBGC rates for pre-12/31/96 participants in The PNC Financial Services Group, Inc. Pension Plan, who were age 50 or over as of November 1, 1998. The assumed rates of interest were revised from 2.25% in 2011, increasing 0.25% per year to a maximum rate of 4.00% in 2018 to 1.50% in all years.
For all other participants, the interest rate used to calculate minimum grandfathered lump sum are determined using funding segment rates reflecting the corridor prescribed by MAP-21 and were changed from 3.78%, 6.31%, and 6.57% to 5.54%, 6.85%, and 7.52%.
The assumed rates of retirement and termination were revised to better reflect anticipated experience under the plan.
To more accurately reflect benefits for disabled participants after the change to the pension plan that limits pay credits to newly disabled employees to three years, an assumption has been added to assume that some current healthy employees will become disabled in the future.
Schedule SB The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002) Schedule SB, Line 26 – Schedule of Active Participant Data
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_line26.doc
Attained Age <1 1 to 4 5 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 & up Total<25 Count 667 2,155 51 - - - - - - - 2,873 Avg Pay 28,062 30,487 33,409 30,035
The PNC Financial Services Group, Inc. Pension PlanAnalysis of Active Participants as of January 1, 2012 by Age and Service
--------------------------------------------------------------------------------------------Years of Credited Service-------------------------------------------------------------------------------------------------
The PNC Financial Services Group, Inc. (EIN 25-1435979)The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB, Line 32 – Schedule of Amortization Bases
Amortization Record in Support of Minimum Required Contribution
The PNC Financial Service Group, Inc. (EIN 25-1435979)
The PNC Financial Services Group, Inc. Pension Plan (PN 002)
Schedule SB Statement by Enrolled Actuary
V:\The PNC Financial Service - 109629\13\RET\ACTUARIAL\Deliver\GOVTFORMS\SB\Attachments 2012\PNCSchdSB_EAstmt.doc
The actuarial assumptions that are not mandated by IRC Section 430 and regulations represent the enrolled actuary’s best estimate of anticipated experience under the plan. The actuarial valuation, on which the information in this Schedule SB is based, has been prepared in reliance upon the employee and financial data furnished by the plan administrator and the trustee. The enrolled actuary has not made a rigorous check of the accuracy of this information but has accepted it after reviewing it and concluding it is reasonable in relation to similar information furnished in previous years. The amounts of contributions and dates paid shown in Item 18 of Schedule SB were listed in reliance on information provided by the plan administrator and/or trustee.
