10. OTHER POSTRETIREMENT BENEFIT PLANS

In addition to the Company's pension plans, the Company also has postretirement medical and death benefits that it provides to certain full-time employees, former agents and retirees and their dependents. Benefits include hospital, major medical and a payment at death up to retirees' final annual salary with certain limits. Dependent coverage is generally provided for up to two years after death of the retiree. The medical plans have varying co-payments and deductibles, depending on the plan.

Generally, employees who were actively employed on December 31, 1995 became eligible with at least 15 years of service after the age of 40. Effective January 1, 1996, the Company revised these benefits so as to establish limits on future benefit payments to beneficiaries of retired employees and to restrict eligibility to then current employees. In 2009, the Company changed the postretirement medical benefits, only as they relate to current employees who still qualify for participation in the plan under the above formula. For these participants, the plan now provides for only post age 65 benefits. The population of agents receiving postretirement benefits was frozen as of December 31, 2002, when the Company ceased its distribution of proprietary life and annuity products. These plans are unfunded.

The Company applies the guidance in ASC 715 and as such, has recognized the funded status of its postretirement benefit plans in its Consolidated Balance Sheet. Since these plans are unfunded, the amount recognized in the Consolidated Balance Sheet is equal to the accumulated benefit obligation of these plans. The components of accumulated other comprehensive income or loss are reflected as either a net actuarial gain or loss or a net prior service cost. There are no unrecognized transition assets or obligations associated with these plans.

Obligation and Funded Status

The following table reflects the funded status of these plans:


DECEMBER 31	2010			2009
*(In millions)*
Change in benefit obligation:
Accumulated postretirement benefit obligation, beginning of year	$	44.7		$	50.1
Service cost		0.1			0.2
Interest cost		2.7			2.8
Net actuarial losses		0.8			—
Plan amendments		—			(4.5	)
Benefits paid		(2.5	)		(3.9	)

Accumulated postretirement benefit obligation, end of year		45.8			44.7
Fair value of plan assets, end of year		—			—

Funded status of plans	$	(45.8	)	$	(44.7	)

A plan amendment in 2009 resulted in a benefit of $4.5 million. The amendment modified the level of benefits provided to active participants, resulting in decreased plan costs to the Company.

Benefit Payments

The Company estimates that benefit payments over the next 10 years will be as follows:


FOR THE YEARS ENDED DECEMBER 31
*(In millions)*
2011	$	4.8
2012		4.6
2013		4.4
2014		4.1
2015		3.9
2016-2020		16.5

The benefit payments are based on the same assumptions used to measure the Company's benefit obligation at the end of 2010 and reflect benefits attributable to estimated future service.

Components of Net Periodic Postretirement (Benefit) Expense

The components of net periodic postretirement (benefit) expense were as follows:


FOR THE YEARS ENDED DECEMBER 31	2010			2009			2008
*(In millions)*
Service cost	$	0.1		$	0.2		$	0.5
Interest cost		2.7			2.8			3.2
Recognized net actuarial loss		0.4			0.3			0.4
Amortization of prior service cost		(5.9	)		(5.8	)		(5.0	)

Net periodic postretirement benefit	$	(2.7	)	$	(2.5	)	$	(0.9	)

The following table reflects the balances in Accumulated Other Comprehensive (Income) Loss relating to the Company's postretirement benefit plans:


DECEMBER 31	2010			2009
*(In millions)*
Net actuarial loss	$	7.7		$	7.3
Net prior service cost		(16.5	)		(22.4	)

	$	(8.8	)	$	(15.1	)

The following table reflects the estimated amortization to be recognized in net periodic benefit cost in 2011:


Estimated Amortization in 2011 Expense (Benefit)
*(In millions)*
Net actuarial loss	$	0.3
Net prior service cost		(5.3	)

	$	(5.0	)

Assumptions

ASC 715 requires that employers measure the funded status of their plans as of the date of their year-end statement of financial position. As such, the Company has utilized a measurement date of December 31, 2010 and 2009, to determine its postretirement benefit obligations, consistent with the date of its Consolidated Balance Sheets. Weighted-average discount rate assumptions used to determine postretirement benefit obligations and periodic postretirement costs are as follows:


FOR THE YEARS ENDED DECEMBER 31	2010			2009
Postretirement benefit obligations discount rate		5.50	%		6.00	%
Postretirement benefit cost discount rate		6.00	%		6.63	%

Assumed health care cost trend rates are as follows:


DECEMBER 31	2010			2009
Health care cost trend rate assumed for next year		8	%		9	%
Rate to which the cost trend is assumed to decline (ultimate trend rate)		5	%		5	%
Year the rate reaches the ultimate trend rate		2015			2015

A one-percentage point change in assumed health care cost trend rates in each year would have an immaterial effect on net periodic benefit cost during 2010 and accumulated postretirement benefit obligation at December 31, 2010.