EAFE—Europe, Australasia, Far East Sample Clauses

EAFE—Europe, Australasia, Far East. Westcoast assets for registered pension plans are maintained by a Master Trust. The investment objective of the master trust is to achieve reasonable returns on trust assets, subject to a prudent level of portfolio risk, for the purpose of enhancing the security of benefits for participants. The asset allocation targets were set after considering the investment objective and the risk profile with respect to the trust. Canadian equities are held for their high expected return. Non-Canadian equities are held for their high expected return as well as diversification relative to Canadian equities and debt securities. Debt securities are also held for diversification. The long-term rate of return of 7.25% as of September 30, 2005 for the Westcoast assets was developed using a weighted-average calculation of expected returns based primarily on future expected returns across classes considering the use of active asset managers. The weighted-average returns expected by asset classes were 2.7% for Canadian equities, 1.4% for U.S. equities, 1.45% for Europe, Australasia and Far East equities, and 1.7% for fixed income securities. The following benefit payments, which reflect expected future service, as appropriate, as expected to be paid over the next five years and thereafter: Expected Benefit Payments U.S. Plan Westcoast Plans (in millions) Years Ended December 31, 2006 $ 176 $ 31 2007 194 31 2008 203 32 2009 217 32 2010 250 34 2011 – 2015 1,421 198 Duke Energy also sponsors employee savings plans that cover substantially all U.S. employees. Duke Energy contributes to the plan a matching contribution equal to 100% of before-tax employee contributions, of up to 6% of eligible pay per pay period. Duke Energy expensed employer matching contributions of $61 million in 2005, $57 million in 2004, and $63 million in 2003. Dividends on Duke Energy shares held by the savings plan are charged to retained earnings when declared and shares held in the plan are considered outstanding in the calculation of basic and diluted earnings per share. Duke Energy also maintains a non-qualified, non-contributory defined benefit retirement plan which covers certain U.S. executives. Duke Energy recognized net periodic pension expense of $8 million in 2005, $11 million in 2004, and $11 million in 2003. There are no plan assets. The projected benefit obligation was $86 million as of September 30, 2005 and September 30, 2004.