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## PENSION PLANS 

Net pension cost (income) for all funded and unfunded plans includes the following components: 

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Key uses a September 30 measurement date for its pension plans. Changes in the projected benefit obligation (“PBO”) related to Key’s pension plans are summarized as follows: 

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Changes in the fair value of pension plan assets (“FVA”) are summarized as follows: 

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## 16. EMPLOYEE BENEFITS 

The funded status of the pension plans at the September 30 measurement date, reconciled to the amounts recognized in the consolidated balance sheets at December 31, 2003 and 2002, is as follows: 

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The excess of the projected beneGLYPH<222>t obligation over the fair value of plan assets. 

At December 31, 2003, Key’s qualified plans were sufficiently funded under the Employee Retirement Income Security Act of 1974, which outlines pension-funding requirements. Consequently, no minimum contributions to the plans are required in 2004. Discretionary permissible contributions for 2004 are not expected to be significant; Key has not yet determined whether any discretionary contributions will be made. 

The accumulated benefit obligation (“ABO”) for all of Key’s pension plans was $965 million at December 31, 2003, and $836 million at December 31, 2002. Related information for those pension plans that had an ABO in excess of plan assets at the September 30 measurement date is as follows: 

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Effective December 31, 2002, Key recorded an additional minimum liability (“AML”) of $42 million for its supplemental executive retirement programs. SFAS No. 87, “Employers’ Accounting for Pensions,” requires the recognition of an AML to the extent of any excess of the unfunded ABO over the liability already recognized as unfunded accrued pension cost. The after-tax effect of recording the AML was a $25 million reduction to “accumulated other comprehensive income (loss)” in 2002. Key did not record an AML in years prior to 2002 because it was not material. During 2003, the AML increased by $6 million to $48 million. The portion of the increase included in “accumulated other comprehensive income (loss)” was $4 million. 

