Funding outlook
Although the Plan’s deficit increased in 2010, the Plan is in a substantially improved position from the last filed valuation in 2008. The combination of contribution increases and use of the Plan’s rate stabilization funds have proven to be an effective strategy for managing the deficit. The Plan has also benefited from two consecutive years of strong double-digit investment performance. Continued diligence, oversight and execution of the deficit management strategy should keep the Plan on track to return to surplus as projected and meet its future obligations.
To the extent that actual investment returns differ from the Plan’s funding target return assumption, any gains or losses are recognized evenly over a period of five years.
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To the extent that actual investment returns differ from the Plan's funding target return assumption, any gains or losses are recognized evenly over a period of five years. At the end of 2010, the Plan had net deferred gains of $338 million for funding purposes, which will be recognized between 2011 and 2014. Deferred losses from the 2008 market decline will be fully recognized by the Plan in 2012.
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To the extent that actual investment returns differ from the Plan's funding target return assumption, any gains or losses are recognized evenly over a period of five years. At the end of 2010, the Plan had net deferred gains of $338 million for funding purposes, which will be recognized between 2011 and 2014. Deferred losses from the 2008 market decline will be fully recognized by the Plan in 2012.