Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 422

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7A
Chunk 422
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 updates to pension plan assumptions inherent in valuations, and identification and recognition of valuation changes specific to the sale, including the establishment of a new periodic service cost using assumptions as of the remeasurement date. The remeasurement process of impacted pension plans upon the disposal of TIH included a reduction in pension benefit obligations of $783 million and a loss on plan assets of $834 million, primarily driven by an increase in the weighted average assumed discount rate from 5.12% to 5.78%, and a decrease in the value of plan assets by $508 million, primarily driven by market prices. The impact of the sale on Truist pension plans resulted in a reduction of pension benefit obligations by $97 million which was recorded as a reduction of accumulated other comprehensive loss. Refer to “Note 13. AOCI” for additional information.

136   Truist Financial Corporation

Activity in the projected benefit obligation is presented in the following table:Year Ended December 31,(Dollars in millions)Qualified PlanNonqualified Plans2024202320242023Projected benefit obligation, January 1$7,994 $7,924 $659 $655 Service cost294 308 25 33 Interest cost411 411 33 35 Actuarial (gain) loss(1)(862)93 (100)(36)Benefits paid(318)(507)(30)(28)Other(2)(76)(235)(22)— Projected benefit obligation, December 31$7,443 $7,994 $565 $659 Accumulated benefit obligation, December 31$6,816 $7,134 $536 $567 Weighted average assumptions used to determine projected benefit obligations:Weighted average assumed discount rate5.82 %5.12 %5.82 %5.12 %Assumed rate of annual compensation increases4.50 4.50 4.50 4.50 (1)For the qualified and nonqualified plans, the 2024 gain is primarily driven by an increase in the weighted average assumed discount rate. For the qualified plan, the 2023 loss is primarily due to decreases in the assumed discount rate, net of the impact of actual plan experience. For the nonqualified plans, the 2023 gain is primarily due to impact of plan experience.(2)In 2024, the Company recognized a gain related to the remeasurement of the plan