11-K
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2006
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OR
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TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 |
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For the transition period from
to
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Commission file number: 001-15787
A. Full title of the plan and the address of the plan, if different from that of the issuer
named below:
SAVINGS AND INVESTMENT PLAN FOR EMPLOYEES OF METROPOLITAN LIFE AND PARTICIPATING AFFILIATES
B. Name of issuer of the securities held pursuant to the plan and the address of its principal
executive office:
METLIFE, INC.
200 PARK AVENUE
NEW YORK, NEW YORK 10166-0188
SAVINGS AND INVESTMENT PLAN FOR EMPLOYEES OF
METROPOLITAN LIFE AND PARTICIPATING AFFILIATES
TABLE OF CONTENTS
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3 |
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FINANCIAL STATEMENTS: |
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4 |
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5 |
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6 |
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14 |
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15 |
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16 |
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Note: Supplemental schedules not listed are omitted due to the absence of conditions under which
they are required.
Note Regarding Forward-Looking Statements
This Annual Report on Form 11-K contains statements which constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995, including
words such as anticipate, believe, plan, estimate, expect, intend and other similar
expressions. Forward-looking statements are made based upon current expectations and beliefs
concerning future developments and their potential effects on the Savings and Investment Plan for
Employees of Metropolitan Life and Participating Affiliates (the Plan). Such forward-looking
statements are not guarantees of future performance.
Actual results may differ materially from those included in the forward-looking statements as
a result of risks and uncertainties including, but not limited to, the following: (i) changes in
general economic conditions, including the performance of financial markets and interest rates;
(ii) investment losses and defaults; (iii) unanticipated changes in industry trends; (iv)
ineffectiveness of risk management policies and procedures; (v) changes in accounting standards,
practices and/or policies; (vi) adverse results or other consequences from litigation, arbitration
or regulatory investigations; (vii) downgrades in MetLife, Inc.s and its affiliates claims paying
ability, financial strength or credit ratings; (viii) regulatory, legislative or tax changes that
may affect the Plan or the products or services of MetLife, Inc. and its subsidiaries; (ix)
MetLife, Inc.s primary reliance, as a holding company, on dividends from its subsidiaries to meet
debt payment obligations and the applicable regulatory restrictions on the ability of the
subsidiaries to pay such dividends; (x) the effects of business disruption or economic contraction
due to terrorism or other hostilities; and (xi) other risks and uncertainties that may be described
from time to time in the Plans filings with the U.S. Securities and Exchange Commission.
The Plan specifically disclaims any obligation to update or revise any forward-looking
statement, whether as a result of new information, future developments or otherwise.
2
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Trustee and Participants of the
Savings and Investment Plan for Employees of
Metropolitan Life and Participating Affiliates:
We have audited the accompanying statements of net assets available for benefits of the Savings and
Investment Plan for Employees of Metropolitan Life and Participating Affiliates (the Plan) as of
December 31, 2006 and 2005, and the related statement of changes in net assets available for
benefits for the year ended December 31, 2006. These financial statements are the responsibility
of the Plans management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. The
Plan is not required to have nor were we engaged to perform, an audit of its internal control over
financial reporting. An audit includes considerations of internal control over financial reporting
as a basis for designing audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the Plans internal control over
financial reporting. Accordingly, we express no such opinion. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material respects, the net assets
available for benefits of the Plan as of December 31, 2006 and 2005, and the changes in net assets
available for benefits for the year ended December 31, 2006 in conformity with accounting
principles generally accepted in the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements
taken as a whole. The Form 5500 Schedule H, Part IV, Line 4i, Schedule of Assets (Held at End of
the Year) as of December 31, 2006 is presented for the purpose of additional analysis and is not a
required part of the basic financial statements, but is supplementary information required by the
Department of Labors Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974, as amended. This schedule is the responsibility of the
Plans management. Such schedule has been subjected to the auditing procedures applied in our
audit of the basic 2006 financial statements and, in our opinion, are fairly stated in all material
respects when considered in relation to the basic 2006 financial statements taken as a whole.
/s/ Deloitte & Touche LLP
Certified Public Accountants
Tampa, Florida
June 28, 2007
3
SAVINGS AND INVESTMENT PLAN FOR EMPLOYEES OF
METROPOLITAN LIFE AND PARTICIPATING AFFILIATES
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 2006 AND 2005
(Dollars in thousands)
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2006 |
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2005 |
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Assets: |
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Participant directed investmentsat fair value (See Note 3) |
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$ |
4,397,907 |
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$ |
4,002,154 |
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Liabilities: |
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Accrued investment advisory and management fees |
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2,379 |
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0 |
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Net assets available for benefits at fair value |
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4,395,528 |
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4,002,154 |
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Adjustment from fair value to contract value for fully benefit responsive investment contracts |
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(7,760 |
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(17,566 |
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Net assets available for benefits |
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$ |
4,387,768 |
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$ |
3,984,588 |
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See accompanying notes to financial statements.
4
SAVINGS AND INVESTMENT PLAN FOR EMPLOYEES OF
METROPOLITAN LIFE AND PARTICIPATING AFFILIATES
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2006
(Dollars in thousands)
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2006 |
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Additions to net assets attributed to: |
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Contributions: |
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Participant contributions |
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$ |
176,831 |
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Employer contributions |
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69,770 |
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Rollovers |
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13,041 |
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Subtotal |
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259,642 |
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Net appreciation in fair value of investments |
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248,935 |
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Investment income |
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146,386 |
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Total additions |
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654,963 |
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Deductions from net assets attributed to: |
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Benefit payments to participants |
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235,794 |
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Investment advisory and management fees |
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15,426 |
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Other expenses |
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500 |
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Transfers-out-of-the-Plan |
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63 |
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Total deductions |
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251,783 |
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Net increase |
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403,180 |
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Net assets available for benefits: |
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Beginning of year |
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3,984,588 |
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End of year |
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$ |
4,387,768 |
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See accompanying notes to financial statements.
5
SAVINGS AND INVESTMENT PLAN FOR EMPLOYEES OF
METROPOLITAN LIFE AND PARTICIPATING AFFILIATES
NOTES TO FINANCIAL STATEMENTS
(Dollar amounts are in thousands unless otherwise stated)
1. |
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Description of the Plan |
The following description of the Savings and Investment Plan for Employees of Metropolitan
Life and Participating Affiliates (the Plan) is provided for general information purposes only.
Participants should refer to the Plan document for a more complete description of the Plan.
General Information
The Plan, a defined contribution plan, became effective on May 1, 1970 and, as subsequently
amended, is designed to comply with the requirements of the Employee Retirement Income Security Act
of 1974, as amended. Participants in the New England 401(k) Plan who had amounts invested in The
New England Financial Accumulation Account, as of December 31, 2000, have such account as a frozen
Core Fund (as defined below) of the Plan, to the extent they have retained assets in such fund.
Such assets are classified with the Plans Fixed Income Fund. The Plan is administered by a senior
officer of Metropolitan Life Insurance Company (the Company). Recordkeeping services are
performed for the Plan by an independent third-party.
The Plan consists of the following investment options through participation in various
separate account funds sponsored by the Company and The New England Financial Accumulation Account,
where applicable:
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Separate Accounts #78, #253, #378, #429 & |
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The New England Financial Accumulation |
Fixed Income Fund |
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Account |
Equity Fund
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Separate Account #413 |
Common Stock Index Fund
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Separate Account MI |
Blended Small Company Stock Fund
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Separate Account #334 |
International Equity Fund
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Separate Account #79 |
Small Company Stock Fund
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Separate Account #307 |
Value Equity Fund
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Separate Account #267 |
Emerging Markets Equity Fund
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Separate Account #247 |
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Contributions to each separate account fund are remitted to the Company pursuant to group
annuity contracts and allocated in accordance with the elections of the participants (as defined
below). The Plan also offers participants the option to invest in the shares of the Companys
parent, MetLife, Inc., through the MetLife Company Stock Fund. The separate account funds and the
MetLife Company Stock Fund together constitute the core investment options of the Plan (Core
Funds). To supplement the Core Funds, the Plan offers to all participants the ability to transfer
funds out of the Core Funds into a Self-Directed Account (SDA). The SDA works like a personal
brokerage account by providing participants with direct access to a wide variety of mutual funds
that are available to the public through many well-known mutual fund families. Both the MetLife
Company Stock Fund and the SDA are held in trust and contributions and transfers are remitted to
Mellon Bank, N.A., as trustee. |
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Participant Accounts |
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The recordkeeper maintains individual account balances for each employee of the Participating
Affiliates (as defined below) who participates in the Plan (each such employee, a participant).
Each participants account is credited with contributions, as discussed below, and allocations of
investment earnings and charged with withdrawals and allocations of investment losses and
administrative expenses paid by the Plan, as provided by the Plan document. A participant is
entitled to the benefits that can be provided by the participants vested account balance
determined in accordance with the Plan document and as described below. |
6
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Contribution and Funding |
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Contributions, as defined in the Plan document, consist of that portion of participant
contributions which are matched by the Company, MetLife Group, Inc., Metropolitan Property and
Casualty Insurance Company, Texas Life Insurance Company, MetLife Funding, Inc., MetLife Credit
Corp., MetLife Securities, Inc., MetLife Bank, National Association, MetLife Insurance Company of
Connecticut and Trumbull Street Investments, LLC (collectively, the Participating Affiliates),
each for its own participants, and that portion of participant contributions which are not matched
by any of the Participating Affiliates. Contributions of the Participating Affiliates vest in the
participants accounts in accordance with the terms of the Plan. Contributions of the participants
and Participating Affiliates are credited to the respective Core Funds in the manner elected by the
participants and provided by the Plan. Pursuant to the terms of the Plan, matching contributions of
the Participating Affiliates may be reduced to reflect forfeiture of non-vested participant
interest and are suspended for six months if money attributable to matching contributions is
withdrawn by the participant. |
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Each year, participants may contribute up to 40% of their eligible compensation, as defined in
the Plan, subject to certain Internal Revenue Code (IRC) and plan-imposed limitations. Highly
compensated employees may elect to make before-tax 401(k) and after-tax Roth 401(k) contributions
up to an aggregate maximum of 10% of such employees compensation. If such employees make
after-tax employee contributions, the aggregate percentage of such contributions may not exceed 13%
of such employees compensation. Participants who were age 50 or older during the Plan year were
permitted to make additional catch-up contributions in excess of the regular IRC and plan-imposed
limitations (up to $5 and $4 for the years ended December 31, 2006 and 2005, respectively). The
Participating Affiliates (other than Texas Life Insurance Company) each make a matching
contribution equal to 4% of the participants eligible compensation when a participant contributes
a minimum of 3% of their eligible compensation to the Plan. Texas Life Insurance Company makes a
matching contribution equal to 3% of the participants eligible compensation when a participant
contributes a minimum of 3% of their eligible compensation to the Plan. Subject to the approval of
the Plan Administrator, participants may also rollover into the Plan, amounts representing
distributions from traditional IRAs (to the extent that the participant did not make nondeductible
contributions), qualified defined benefit plans, qualified defined contribution plans, 403(b) plans
or governmental 457(b) plans. |
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Participation |
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Generally, all employees of the Participating Affiliates who are regularly scheduled to work
at least 1,000 hours per year, with the exception of certain groups of individuals performing
services for the Participating Affiliates (e.g., individuals classified by the Participating
Affiliates as leased employees, individuals classified by the Participating Affiliates as
independent contractors, and employees participating in or eligible to participate in the New
England Agents Deferred Compensation Plan and Trust, the New England Agents Retirement Plan and
Trust and/or the New England Agency Employees Retirement Plan and Trust and certain collectively
bargained employees), are eligible to become participants in the Plan on their date of hire and may
immediately make contributions to the Plan. Generally, all employees of the Participating
Affiliates, with the exception of certain groups of employees such as those described in the
preceding sentence, are eligible to receive an allocation of employer matching contributions as of
the first day of the month following the date they complete one year of service, provided that they
make the minimum contributions to the Plan, as discussed above. |
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Vesting |
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Participant contributions vest immediately. Matching contributions become fully vested upon
the participants completion of five years of service in accordance with the five-year graded
vesting schedule, as well as upon the occurrence of the events triggering acceleration of vesting
described below. A participant becomes 25% vested after the completion of two years of service, and
then increases his or her vested percentage by an additional 25% per year for each year of
completed service, until the participant is 100% vested in the Plan after five years of completed
service. Vesting is accelerated if the participant (i) is terminated under the MetLife Plan for
Transition Assistance for Officers, the MetLife Plan for Transition Assistance (which covers
non-officer level employees), or the 2005-2006 MetLife Integrated Severance Plan (which covers
employees of MetLife Insurance Company of Connecticut, Trumbull Street Investments, LLC and certain
employees of other Participating Affiliates), (ii) attains age 55, or (iii) is on disability for
more than 24 months. |
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Forfeited Accounts |
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Plan forfeitures are non-vested employer matching contributions within participants accounts.
These Plan forfeitures are accumulated and used to reduce future employer matching contributions,
to pay certain Plan administrative expenses, and/or restore forfeited balances of partially vested
participants who were re-employed and timely repaid the vested portion of matching contribution |
7
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amounts that were previously distributed to the participant. The Plans General Account Fund
was established solely to track the activity of Plan forfeitures At December 31, 2006 and 2005,
the balance of the Plans General Account Fund was $584 and $2,351, respectively. For the years
ended December 31, 2006 and 2005, forfeited non-vested employer matching contributions totaled
$2,222 and $2,246, respectively. During the year ended December 31, 2006, $4,061 from the General
Account Fund were used to reduce employer matching contributions, to pay certain Plan
administration expenses, or restore forfeited balances of partially vested participants who were
re-employed. |
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Withdrawals and Distributions |
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A participant may request cash withdrawals from the Plan under the conditions set forth in the
Plan document. Distributions from the Plan may be made upon a participants retirement, death,
disability for more than 24 months, or termination of employment. |
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Loans |
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Participants may borrow from their accounts up to a maximum of $50 (reduced by the highest
outstanding balance of loans during the one-year period ending the day before the date a loan is to
be made) or 50 percent of their account balance (reduced by outstanding loans on the date of the
loan), whichever is less. The loans are secured by the balance in the participants account and
bear interest at rates commensurate with local prevailing rates at the time funds are borrowed as
determined quarterly by the Plan Administrator. The principal of and interest on the loans are paid
ratably through payroll deductions. Loan repayments are made to any or all of the Core Funds in
accordance with the participants contribution investment allocation at the time of repayment. The
loan balance outstanding as of December 31, 2006 and 2005 was $58,879 and $56,846, respectively. |
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Administrative Expenses |
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Expenses of the Plan, other than some investment-related expenses and a limited amount of
administrative expenses, are paid by the Participating Affiliates if not paid by the Plan as
provided in the Plan document. |
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Plan Amendments |
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For the year ended December 31, 2006, the following Plan amendments became effective: |
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Except as otherwise specifically provided to the contrary, effective January 1, 2006,
participants who are current employees of the Participating Affiliates may make contributions to a
Roth 401(k) feature on an after-tax basis. In addition, the Plan was amended to comply with the
final regulations governing 401(k) plans which, aside from a number of technical changes, provided
for two additional deemed hardship events (i.e., burial and funeral expenses and expenses incurred
to repair damage to the participants principal residence which would otherwise be eligible to be
taken as an itemized casualty loss deduction by the participant without regard to tax law
limitations) and treated participants with less than two years of vesting service as at least
partially vested for certain purposes. The Plan was also amended to allow participants impacted by
Hurricanes Katrina, Rita and/or Wilma to obtain loans up to double the limit (as permitted by
federal law) and to take an additional withdrawal if they had taken the maximum number of
withdrawals during the Plan year. |
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On September 1, 2005, Metropolitan Tower Life Insurance Company, a subsidiary of MetLife,
Inc., purchased from Keeper Holdings, LLC, an affiliate of Citigroup, Inc. (Citigroup), a 100%
interest in Citistreet Retirement Services LLC and its subsidiaries, including CitiStreet
Associates. Employees remaining in CitiStreet Associates were offered employment with MetLife
Group, Inc. or the Company, effective on January 1, 2006, and those who accepted such employment
were credited with service recognized by Citigroup for purposes of determining eligibility and
vesting for certain benefits under employee benefit plans offered by MetLife companies. MetLife
benefit plans will assume no obligation for benefits due under plans of Citigroup. |
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On April 26, 2006, the Company sold its MetLife Retirement Plans business (MRP) to
Great-West Life and Annuity Insurance Company (Great-West). The following amendments were made
to the Plan effective April 26, 2006: Participants who became employed by Great-West as a result of
the sale were permitted to rollover any outstanding loan balance into the Great-West 401(k) plan in
which they would be eligible to participate. Participants whose employment terminated as a result
of the sale were permitted to continue to repay their outstanding Plan loans in spite of the Plan
provision which triggers a default of all outstanding Plan loans upon a termination of employment.
Participants loan receivable of $63 was transferred from the Plan. |
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2. |
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Summary of Significant Accounting Policies |
The following are the significant accounting policies followed by the Plan:
Basis of Accounting
The financial statements of the Plan have been prepared in conformity with accounting
principles generally accepted in the United States of America (GAAP).
Use of Estimates
The preparation of financial statements in conformity with GAAP requires the Plan
Administrator to adopt accounting policies and make estimates and assumptions that affect the
reported amounts of net assets available for benefits and changes therein. Actual results could
differ from those estimates.
Risks and Uncertainties
The Plan utilizes various investment securities, including mutual funds and investment
contracts. Investment securities, in general, are exposed to various risks, such as interest rate,
credit, and overall market volatility. Due to the level of risk associated with certain investment
securities, it is reasonably possible that changes in the values of investment securities will
occur in the near term and that such changes could materially affect the amounts reported in the
financial statements.
Adoption of New Accounting Guidance
The financial statements reflect the retroactive adoption of Financial Accounting Standards
Board Staff Position, FSP AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Contracts
Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and
Defined-Contribution Health and Welfare and Pension Plans (the FSP). As required by the FSP, the
statements of net assets available for benefits presents investment contracts at fair value, as
well as an additional line item showing an adjustment of fully benefit-responsive contracts from
fair value to contract value. The statement of changes in net assets available for benefits is
presented on a contract value basis and was not affected by the adoption of the FSP. The adoption
of the FSP did not impact the amount of net assets available for benefits at December 31, 2005.
Investment Valuation and Income Recognition
The Plans investments are stated at fair value. Contributions are recognized when due and
withdrawals and distributions are recognized when incurred. Investment income is recorded as
earned. Loans to participants are carried at the outstanding loan balance.
Funds held in the Equity Fund, Common Stock Index Fund, Blended Small Company Stock Fund,
International Equity Fund, Small Company Stock Fund, Value Equity Fund, Emerging Markets Equity
Fund, MetLife Company Stock Fund and the SDA are stated at the aggregate value of units of
participation. Such value reflects accumulated contributions, dividends and realized and unrealized
investment gains or losses apportioned to such contributions, less withdrawals, distributions,
loans to participants, allocable expenses relating to the purchase, sale and maintenance of the
assets, and an allocable part of investment related expenses. Shares of mutual funds, included in such funds, are valued at
quoted market prices, which represent the net asset value of shares held by the Plan at year end.
Funds held in the Plans General Account Fund are invested through a group annuity contract.
Amounts are stated at the aggregate amount of accumulated transfers of forfeited non-vested account
balances and interest earned thereon, less withdrawals to reduce matching contributions or pay
certain Plan administrative expenses, as discussed above. Interest is credited periodically in a
manner consistent with the Companys general practices for allocating such income.
The fully benefit-responsive investment contracts (Note 5) are stated at fair value and then
adjusted to contract value. The fair value of the contracts with the Company was determined as the
sum of the products of the Plans units of participation in each underlying separate account
multiplied by the unit value of the respective separate account. The unit value of the separate
accounts is calculated by and reported to the Company internally by the Investment Product and
Delivery Group. The fair value of the New England Financial Accumulation Account was estimated by
discounting the related cash flows using the yield of the Moodys Baa Industrial Bond Index on the
appropriate valuation dates.
9
Purchases and sales of securities are recorded on a trade-date basis. Interest income is
recorded on an accrual basis. Dividends are recorded on the ex-dividend date.
Management fees and operating expenses charged to the Plan for investments in the mutual funds
held in the SDA are deducted from income earned on a daily basis and are not separately reflected.
Consequently, management fees and operating expenses for investments in such mutual funds are
reflected as a reduction of return on such investments.
Payment of Benefits
Benefit payments to participants are recorded upon distribution. Amounts allocated to accounts
of persons who have elected to withdraw from the Plan but have not yet been paid were $1,653 and
$800 at December 31, 2006 and 2005, respectively.
Excess Contributions Payable
The Plan is required to return contributions received during the Plan year in excess of the
IRC limits. An immaterial amount of such excess contributions was required to be returned to
participants for the year ended December 31, 2006.
Investment Advisory and Management Fees
Investment advisory and management fees are paid out of the assets of the Core Funds and are
recognized as expenses of the Plan.
The Plans investments were as follows for the years ended December 31, 2006 and 2005:
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December 31, |
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2006 |
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2005 |
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Fixed Income Fund |
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$ |
2,236,687 |
* |
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$ |
2,157,486 |
* |
Equity Fund |
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487,130 |
* |
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504,149 |
* |
Common Stock Index Fund |
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472,143 |
* |
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426,523 |
* |
MetLife Company Stock Fund |
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252,520 |
* |
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193,813 |
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Emerging Markets Equity Fund |
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216,735 |
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149,333 |
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Small Company Stock Fund |
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210,660 |
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195,242 |
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Value Equity Fund |
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162,864 |
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108,083 |
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International Equity Fund |
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161,184 |
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111,512 |
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Blended Small Company Stock Fund |
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109,570 |
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76,379 |
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Self-Directed Account Mutual Funds |
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28,951 |
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20,437 |
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General Account Fund** |
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584 |
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2,351 |
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Loans Receivable (at outstanding balance) |
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58,879 |
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56,846 |
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Total Investments |
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$ |
4,397,907 |
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$ |
4,002,154 |
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* |
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Represents five percent or more of net assets available for benefits. |
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** |
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Designed to hold Plan forfeitures. |
10
4. |
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Net Appreciation in Fair Value of Investments |
The Plans net appreciation in fair value of investments (including realized and unrealized
gains and losses) were as follows for the year ended December 31, 2006:
|
|
|
|
|
|
|
December 31, |
|
|
|
2006 |
|
Common Stock Index Fund |
|
$ |
56,654 |
|
MetLife Company Stock Fund |
|
|
41,872 |
|
Emerging Markets Equity Fund |
|
|
41,011 |
|
Equity Fund |
|
|
29,900 |
|
International Equity Fund |
|
|
21,901 |
|
Small Company Stock Fund |
|
|
20,826 |
|
Value Equity Fund |
|
|
19,772 |
|
Blended Small Company Stock Fund |
|
|
13,908 |
|
Self-Directed Account Mutual Funds |
|
|
3,091 |
|
|
|
|
|
Net appreciation in fair value of investments |
|
$ |
248,935 |
|
|
|
|
|
5. |
|
Investment Contracts with the Company |
The Plan has fully benefit-responsive group annuity contracts with the Company. These
contracts are included in the Plans financial statements at fair value and then adjusted to
contract value as reported to the Plan by the Company. Contract value represents contributions
made under the contracts, plus earnings, less participant withdrawals and expenses. Participants
may direct the withdrawal or transfer of all or a portion of their investment at contract value.
The crediting interest rate is based on a formula agreed upon with the Company and is reviewed
annually for resetting, but may not be less than zero. The crediting interest rate and average
yield for the investment contracts with the Company were 5.0% and 4.8% for the years ended December
31, 2006 and 2005, respectively. The crediting interest rate and average yield for The New England
Financial Accumulation Account was 7.0% for both the years ended December 31, 2006 and 2005. There
are no reserves against contract value for credit risk of the Company, as the contract issuer or
otherwise.
Assets held under the group annuity contracts with the Company are invested in various
separate accounts. As part of the Plans Fixed Income Fund, the contract value for these group
annuity contracts was $2,002,775 and $1,916,587 at December 31, 2006 and 2005, respectively. The
fair value of the separate accounts underlying these contracts was $2,003,315 and $1,926,329 at
December 31, 2006 and 2005, respectively. Upon termination of an investment contract by the
Company, as Plan sponsor, proceeds would be paid to the Plan at fair value for the benefit of the
participants, provided fair value exceeds the guaranteed contract value. While the Company may
elect to do so at any time, it does not currently intend to terminate any of these investment
contracts.
The New England Financial Accumulation Account represents a guaranteed investment contract
through the general account of the Company. Accordingly, no quoted market valuation is readily
available. This account had a contract value of $226,152 and $223,333 at December 31, 2006 and
2005, respectively. The Company estimated the fair value of this contract to be $233,372 and
$231,157 as of December 31, 2006 and 2005, respectively.
6. |
|
Termination of the Plan |
While the Participating Affiliates intend that the Plan be permanent, each of the
Participating Affiliates (with respect to that particular company) has the right to amend or
discontinue it. In the event of termination of the Plan, each participant shall be fully vested in
Company contributions made to the Plan, and have a right to receive a distribution of his or her
interest, in accordance with the provisions of the Plan.
7. |
|
Federal Income Tax Status |
The Internal Revenue Service (IRS) has determined and informed the Company by letter dated
May 23, 2002 that the Plan is designed in accordance with the applicable requirements of the IRC.
The Plan has been amended and restated since receiving such determination letter. The Plan
Administrator and the Plans tax counsel believe that the Plan is designed and currently being
operated
11
in material compliance with the applicable requirements of the IRC and the Plan document and
related trust continue to be tax-exempt. Therefore, no provision for income taxes has been included
in the Plans financial statements for the year ended December 31, 2006.
In May 2004, an application was filed with the IRS requesting approval of an alternative
method relating to the implementation of contribution suspensions following certain withdrawals
during the 1999-2001 Plan years. In a letter from the IRS dated February 15, 2007, the Company was
informed that its application was accepted by the IRS.
8. |
|
Related-Party Transactions |
Certain Plan investments include separate accounts managed by the Company. The balance of
these investments was $1,820,286 and $1,571,222 at December 31, 2006 and 2005, respectively. Total
investment income, including realized and unrealized gains and losses, for these investments was
$230,529 for the year ended December 31, 2006. The Company is the sponsor of the Plan and,
therefore, transactions qualify as party-in-interest transactions. During the year ended December
31, 2006, the Company received $7,959 from the Plan for investment advisory and management fees.
Certain Plan investments include separate accounts underlying the group annuity contracts with
the Company (Note 5) which are also managed by the Company. The fair value of these investments was
$2,236,687 and $2,157,486 at December 31, 2006 and 2005, respectively. Total investment income was
$116,338 for the year ended December 31, 2006. During the year ended December 31, 2006, the
Company received investment advisory and management fees of $4,805 from these separate accounts.
Certain participants, who are also employees of the Participating Affiliates, perform other
non-investment related-services for the Plan. Neither these employees nor the Participating
Affiliates receive compensation from the Plan in exchange for these services.
At December 31, 2006 and 2005, the Plan held 4,263,693 and 3,954,576 shares, respectively, of
common stock of MetLife, Inc. with a cost basis of $160,056 and $132,889, respectively, through its
investment in the MetLife Company Stock Fund. During the year ended December 31, 2006, the Plan
recorded dividend income on MetLife, Inc. common stock of $2,458.
9. |
|
Reconciliation of Financial Statements to Form 5500 |
The following is a reconciliation of net assets available for benefits between the financial
statements and the Form 5500,
Schedule H, Part I, Asset and Liability Statement as of December 31, 2006 and 2005:
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2006 |
|
|
2005 |
|
Net assets available for benefits per the financial statements |
|
$ |
4,387,768 |
|
|
$ |
3,984,588 |
|
Benefits payable |
|
|
(1,653 |
) |
|
|
(800 |
) |
Cumulative deemed distributions of participant loans |
|
|
(1,624 |
) |
|
|
(1,610 |
) |
|
|
|
|
|
|
|
Net assets per Form 5500, Schedule H, Part I, Line 1l |
|
$ |
4,384,491 |
|
|
$ |
3,982,178 |
|
|
|
|
|
|
|
|
12
The following is a reconciliation of total deductions per the financial statements to total
expenses per Form 5500,
Schedule H, Part II, Income and Expense Statement for the year ended December 31, 2006:
|
|
|
|
|
|
|
December 31, |
|
|
|
2006 |
|
Total deductions per financial statements |
|
$ |
251,783 |
|
Benefits payable at December 31, 2006 |
|
|
1,653 |
|
Benefits payable at December 31, 2005 |
|
|
(800 |
) |
Current year cumulative deemed distributions |
|
|
1,624 |
|
Prior year cumulative deemed distributions |
|
|
(1,610 |
) |
Transfers out of the Plan |
|
|
(63 |
) |
|
|
|
|
Total expenses per Form 5500, Schedule H, Part II, Line 2j |
|
$ |
252,587 |
|
|
|
|
|
Effective January 1, 2007, participants may contribute up to 45% of their eligible
compensation (as defined in the Plan), subject to certain IRC and plan-imposed limitations.
******
13
SAVINGS AND INVESTMENT PLAN FOR EMPLOYEES OF
METROPOLITAN LIFE AND PARTICIPATING AFFILIATES
FORM 5500, SCHEDULE H, PART IV, LINE 4i, SCHEDULE OF ASSETS (HELD AT END OF YEAR)
AS OF DECEMBER 31, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) Description of investment including maturity |
|
|
|
|
|
|
|
(a) (b) Identity of issuer, borrower, lessor, or |
|
date, rate of interest, collateral, par or maturity |
|
|
|
|
|
(e) Current |
|
similar party |
|
value |
|
(d) Cost |
|
|
value |
|
* Metropolitan Life Insurance Company |
|
Group Annuity Contracts: |
|
|
|
|
|
|
|
|
|
|
GAC #11557 |
|
|
* |
* |
|
$ |
345,072 |
|
|
|
GAC #24888 |
|
|
* |
* |
|
|
334,925 |
|
|
|
GAC #28894 |
|
|
* |
* |
|
|
822,551 |
|
|
|
GAC #28895 |
|
|
* |
* |
|
|
500,767 |
|
|
|
GAC #25767 (NEF Accumulation Account) |
|
|
* |
* |
|
|
233,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets in group annuity contracts - |
|
|
|
|
|
|
|
|
|
|
Fixed Income Fund |
|
|
|
|
|
|
2,236,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Metropolitan Life Insurance Company |
|
Separate Account Contracts: |
|
|
|
|
|
|
|
|
|
|
Equity Fund 413 |
|
|
* |
* |
|
|
487,130 |
|
|
|
Common Stock Index Fund MI |
|
|
* |
* |
|
|
472,143 |
|
|
|
Blended Small Company Stock Fund 334 |
|
|
* |
* |
|
|
109,570 |
|
|
|
International Equity Fund 79 |
|
|
* |
* |
|
|
161,184 |
|
|
|
Small Company Stock Fund 307 |
|
|
* |
* |
|
|
210,660 |
|
|
|
Value Equity Fund 267 (GAC #24959) |
|
|
* |
* |
|
|
162,864 |
|
|
|
Emerging
Markets Equity Fund 247 (GAC #24960) |
|
|
* |
* |
|
|
216,735 |
|
|
|
MetLife Company Stock Fund (GAC #25645) |
|
|
* |
* |
|
|
252,520 |
|
|
|
Self-Directed Account (GAC #25768) |
|
|
* |
* |
|
|
28,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets in insurance company
separate accounts |
|
|
|
|
|
|
2,101,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAC #28576 - General Account Fund |
|
|
* |
* |
|
|
584 |
|
* Various participants |
|
Loans Receivable (maturing through 2022 with
interest rates from 3.93% to 9.59%) |
|
|
* |
* |
|
|
58,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Participant
directed investments - at fair value |
|
|
|
|
|
|
4,397,907 |
|
|
|
Adjustment from fair value to contract value for
fully benefit-responsive investment contracts
|
|
|
|
|
|
|
(7,760 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Participant directed investments |
|
|
|
|
|
$ |
4,390,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Permitted party-in-interest |
|
** |
|
Cost has been omitted with respect to participant directed investments |
14
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees
(or other persons who administer the employee benefit plan) have duly caused this annual report to
be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
|
|
|
|
Savings and Investment Plan for Employees of
Metropolitan Life and Participating Affiliates |
|
|
|
|
|
|
|
By:
|
|
/s/ Margery Brittain |
|
|
|
|
|
|
|
Name:
|
|
Margery Brittain |
|
|
Title:
|
|
Plan Administrator |
DATE:
June 28, 2007
15
EXHIBIT INDEX
|
|
|
|
|
EXHIBIT |
|
|
|
PAGE |
NUMBER |
|
EXHIBIT NAME |
|
NUMBER |
23.1
|
|
Consent of Independent Registered Public Accounting Firm
|
|
17 |
16