Subsequent Event

3 Months Ended

Mar. 31, 2012

Subsequent Events [Abstract]

Subsequent Event

16. Subsequent Event

On April 23, 2012, the Company amended The Hartford Retirement Plan for US Employees, its non-contributory, tax qualified defined benefit pension plan, to freeze participation and benefit accruals. The freeze will be effective December 31, 2012. Compensation earned by employees up to December 31, 2012 shall be used for purposes of calculating benefits under the Plan but there will be no future benefit accruals after this date. Participants as of December 31, 2012 will continue to earn vesting credit with respect to their frozen accrued benefits as they continue to work. The Company also amended and froze The Harford Excess Pension Plan, its non-qualified excess benefit plan for certain highly compensated employees. As a result of the amendment to freeze these plans, The Hartford will re-measure the benefit obligations of the affected plans effective April 30, 2012, which will be recorded in the second quarter of 2012. A curtailment of benefits occurs because the amendment eliminates all future service for active employees in the pension plans. Accordingly, the Company will recognize an after-tax curtailment gain of $7 during the second quarter of 2012, which is the remaining unamortized prior service cost at December 31, 2012.

Effective January 1, 2013, The Company will increase benefits under The Hartford’s Investment and Savings Plan, its defined contribution 401(k) savings plan, and The Hartford Excess Savings Plan. The Company contribution will be increased to include a 2% non-elective contribution and dollar for dollar matching contribution up to 6% of eligible compensation contributed by the employee each pay period. The plan will qualify for a “safe harbor” from annual discrimination testing. Currently, contributions are matched, up to 3% of base salary, by the Company. Additionally, in 2011, employees who had earnings of less than $110,000 in the preceding year received a contribution of 1.5% of base salary and employees who had earnings of $110,000 or more in the preceding year received a contribution of 0.5% of base salary.

Also, on April 23, 2012 the Company amended its postretirement medical, dental and life insurance coverage plans for all current employees who retire on or after January 1, 2014. As a result of the amendment to freeze these plans, The Company will re-measure the benefit obligations of the affected plans as of April 30, 2012, which will be recorded in the second quarter of 2012. A curtailment of benefits occurs because the amendments eliminate all future service for active employees. Accordingly, the Company will recognize an after-tax curtailment gain of less than $1, during the second quarter of 2012, which is the remaining unamortized prior service cost at April 30, 2012.