Company: ASB
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000007789-25-000013
Chunk: 73

Company: ASSOCIATED BANC-CORP
Filing Date: 2025-02-12
Form: 10-K
Item: Item 8
Chunk 73
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20242023Fair value of group annuity contract at beginning of period$43,687 $40,939 Return on plan assets(731)5,313 Benefits paid(2,539)(2,565)Fair value of group annuity contract at end of period$40,416 $43,687 The Corporation’s funding policy is to pay at least the minimum amount required by federal law and regulations, with consideration given to the maximum funding amounts allowed. The Corporation regularly reviews the funding of its RAP. There were no contributions to the RAP during 2024 and 2023.

121

The projected benefit payments were calculated using the same assumptions as those used to calculate the benefit obligations listed above. The projected benefit payments for the RAP and Postretirement Plan at December 31, 2024, reflecting expected future services, were as follows: ($ in thousands)RAPPostretirement PlanEstimated future benefit payments2025$22,579 $217 202621,689 213 202720,165 208 202820,135 203 202920,179 196 2030-203484,031 856 The health care trend rate is an assumption as to how much the Postretirement Plan’s medical costs will change each year in the future. There are no remaining participants under age 65 in the Postretirement Plan. The actual change in 2024 health care premium rates for post-65 coverage was an increase of 35.72%. The health care trend rate assumption for post-65 coverage assumes a 6.00% rate of increase for 2025, declining to an ultimate trend rate of 5.00% by the year 2031.The Corporation also has a 401(k) and Employee Stock Ownership Plan (the “401(k) plan”). The Corporation’s contribution is determined by the Compensation and Benefits Committee of the Board of Directors. Total expenses related to contributions to the 401(k) plan were $17 million, $16 million, and $15 million for 2024, 2023, and 2022, respectively.

Note 12 Income Taxes 

The current and deferred amounts of income tax expense (benefit) were as follows: Years Ended December 31,($ in thousands)202420232022CurrentFederal$38,353 $29,319 $58,982 State9,436 5,283 22,092 Total current47,789 34,602