Company: ASB
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000007789-25-000013
Chunk: 71

Company: ASSOCIATED BANC-CORP
Filing Date: 2025-02-12
Form: 10-K
Item: Item 8
Chunk 71
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75)Amortization of actuarial (gain)(28)(29)— Total net periodic benefit (income)$(31)$(26)$(22)The components of net periodic pension cost and net periodic benefit cost, other than the service cost component, are included in the line item other of noninterest expense on the consolidated statements of income. The service cost components are included in personnel on the consolidated statements of income. RAPPostretirement PlanRAPPostretirement Plan2024202420232023Weighted average assumptions used to determine benefit obligationsDiscount rate5.40 %5.40 %5.40 %5.40 %Rate of increase in compensation levels2.50 %N/A2.50 %N/AInterest crediting rate3.81 %N/A3.77 %N/AWeighted average assumptions used to determine net periodic benefit costsDiscount rate5.40 %5.40 %5.40 %5.40 %Rate of increase in compensation levels2.50 %N/A2.50 %N/AExpected long-term rate of return on plan assets7.40 %N/A7.30 %N/AThe expected long-term (more than 20 years) rate of return was estimated using market benchmarks for equities and bonds applied to the RAP’s anticipated asset allocations. The expected return on equities was computed utilizing a valuation framework, which projected future returns based on current equity valuations rather than historical returns. The actual rates of return for the RAP assets were 10.16% and 15.80% for 2024 and 2023, respectively.The RAP’s investments are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risks associated with certain investments and the level of uncertainty related to changes in the value of the investments, it is at least 

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reasonably possible that changes in risks in the near term could materially affect the amounts reported. The investment objective for the RAP is to ensure there are sufficient assets to pay pension obligations when they come due while mitigating risks and providing prudent governance. The RAP has a diversified portfolio designed to provide liquidity, current income, and growth of income and principal, with anticipated asset allocation ranges of: equity securities 50 to 70%, fixed-income securities 30 to 50%, alternative securities 0 to 15%, and other cash equivalents 0 to 10%. Based on