CIT » Topics » Retirement Benefits

This excerpt taken from the CIT 8-K filed Nov 6, 2008.

Retirement Benefits

For the years ended December 31, (dollars in millions)

Expected Future Cashflows                  
Expected Company Contributions in the following fiscal year $ 8.7   $ 9.4   $ 3.5  
Expected Benefit Payments                  
1st Year following the disclosure date $ 44.2   $ 29.3   $ 24.2  
2nd Year following the disclosure date $ 27.4   $ 17.1   $ 14.4  
3rd Year following the disclosure date $ 29.9   $ 20.2   $ 14.2  
4th Year following the disclosure date $ 32.0   $ 20.0   $ 16.0  
5th Year following the disclosure date $ 33.2   $ 23.0   $ 16.4  
Years 6 thru 10 following the disclosure date $ 194.8   $ 155.4   $ 120.3  
Pension Plan Weighted-average Asset Allocations                  
Equity securities   66.9 %   64.5 %   65.7 %
Debt securities   24.9 %   29.5 %   28.3 %
Real estate            
Other   8.2 %   6.0 %   6.0 %
Total pension assets   100.0 %   100.0 %   100.0 %
Information for Pension Plans with an Accumulated Benefit Obligation
in Excess of Plan Assets
Projected benefit obligation $ 108.6   $ 100.6   $ 71.6  
Accumulated benefit obligation $ 96.8   $ 84.6   $ 57.0  
Fair value of plan assets $ 15.0   $ 14.3   $ 10.9  
Additional Information                  
(Decrease) increase in Minimum Liability Included in Other
    Comprehensive Income
$   $ (1.0 ) $ 0.7  

CIT maintains a “Statement of Investment Policies and Objectives” which specifies investment guidelines pertaining to the investment, supervision and monitoring of pension assets so as to ensure consistency with the long-term objective of ensuring sufficient funds to finance future retirement benefits. The policy asset allocation guidelines allow for assets to be invested between 55% to 70% in Equities and 25% to 45% in Fixed-Income investments. In addition, the policy guidelines allow for additional diversifying investments in other asset classes or securities such as Hedge Funds, Real Estate and Commodities, as approved by the Investment Committee. The policy provides specific guidance related to asset class objectives, fund manager guidelines and identification of both prohibited and restricted transactions, and is reviewed on a periodic basis by both the Investment Committee of CIT and the Plans’ external investment consultants to ensure the long-term investment objectives are achieved. Members of the Committee are appointed by the Chief Executive Officer of CIT and include the Chief Financial Officer, General Counsel, and other senior executives.

    Item 8: Financial Statements and Supplementary Data       PAGE 35


There were no direct investment in equity securities of CIT or its subsidiaries included in the pension plan assets at December 31, 2007, 2006, and 2005, respectively. CIT expects to contribute $8.7 million to its pension plans and $4.1 million to its other postretirement benefit plans in 2008.

Company assets, which are not included in the retirement plan assets in the preceding tables, are earmarked for the non-qualified U.S. Executive pension plan obligation.

The following tables set forth data relating to postretirement plans.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki