Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 266

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 2
Chunk 266
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 state and local taxing authorities for taxable years prior to 2018. It is reasonably possible that the liability for unrecognized tax benefits could decrease by as much as $35 million during the next 12 months due to completion of tax authority examinations and the expiration of statutes of limitations. It is uncertain how much, if any, of this potential decrease will impact the Company’s effective tax rate.

Truist Financial Corporation   135

NOTE 15. Benefit Plans

Defined Benefit Retirement PlansTruist provides defined benefit retirement plans qualified under the IRC. Benefits are based on years of service, age at retirement and the employee’s compensation during the five highest consecutive years of earnings within the last ten years of employment. In addition, supplemental retirement benefits are provided to certain key officers under supplemental defined benefit executive retirement plans, which are not qualified under the IRC. Although technically unfunded plans, Rabbi Trusts, and insurance policies on the lives of certain of the covered employees are available to finance future benefits.The following tables present a summary of the qualified and nonqualified defined benefit pension plans. On the Consolidated Balance Sheets, the qualified pension plan net asset is recorded as a component of Other assets and the nonqualified pension plan net liability is recorded as a component of Other liabilities. The data is calculated using an actuarial measurement date of December 31.Year Ended December 31,(Dollars in millions)Location202420232022Net periodic pension cost:   Service cost(1)Personnel expense$319 $341 $548 Interest costOther expense444 446 351 Estimated return on plan assetsOther expense(951)(909)(1,078)Net amortization and otherOther expense1 78 35 Net periodic benefit cost (income)(187)(44)(144)Pre-tax amounts recognized in OCI:   Net actuarial loss (gain)(550)(567)1,949 Net amortization(1)(78)(35)Net amount recognized in OCI(551)(645)1,914 Total net periodic pension costs (income) recognized in total comprehensive income, pre-tax$(738)$(689)$1,770 Weighted average assumptions used to determine net periodic pension cost:Discount rate(2)5.12 %5.30 %3.18 %Expected long-term rate of return on plan assets6.80 6.70 6.50 Cash balance interest crediting rate4.50 4.50 4.00 Assumed long-term