EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2011

Employee Benefit Plans [Abstract]

EMPLOYEE BENEFIT PLANS

12)EMPLOYEE BENEFIT PLANS

Pension Plans

AXA Equitable sponsors a qualified defined benefit plan covering its eligible employees (including certain part-time employees), managers and financial professionals. This pension plan is non-contributory and its benefits are generally based on a cash balance formula and/or, for certain participants, years of service and average earnings over a specified period in the plan. The Company also sponsors non-qualified defined benefit plans and post-retirement plans. AllianceBernstein maintains a qualified, non-contributory, defined benefit retirement plan covering current and former employees who were employed by AllianceBernstein in the United States prior to October 2, 2000. AllianceBernstein's benefits are based on years of credited service and average final base salary. The Company uses a December 31 measurement date for its pension plans.

For 2011, cash contributions by AXA Equitable and AllianceBernstein to their respective qualified pension plans were $665 million and $7 million. The funding policy of the Company for its qualified pension plans is to satisfy its funding obligations each year in an amount not less than the minimum required by the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended by the Pension Act, and not greater than the maximum it can deduct for Federal income tax purposes. Based on the funded status of the plans at December 31, 2011, no minimum contribution is required to be made in 2012 under ERISA, as amended by the Pension Protection Act of 2006 (the “Pension Act”), but management is currently evaluating if it will make contributions during 2012. AllianceBernstein currently estimates that it will contribute $6 million to its pension plan during 2012.

Components of net periodic pension expense for the Company's qualified plans were as follows:

	2011		2010		2009
	(In Millions)
Service cost	$	41	$	37	$	38
Interest cost		122		129		136
Expected return on assets		(120)		(115)		(126)
Net amortization		145		125		95
Plan amendments and additions		-		13		2
Net Periodic Pension Expense	$	188	$	189	$	145

Changes in the Projected Benefit Obligation (“PBO”) of the Company's qualified plans were comprised of:

	December 31,
	2011		2010
	(In Millions)
Projected benefit obligation, beginning of year	$	2,424	$	2,241
Service cost		30		30
Interest cost		122		129
Actuarial (gains) losses		229		171
Benefits paid		(179)		(170)
Plan amendments and additions		-		23
Projected Benefit Obligation, End of Year	$	2,626	$	2,424

The following table discloses the change in plan assets and the funded status of the Company's qualified pension plans:

	December 31,
	2011		2010
	(In Millions)
Pension plan assets at fair value, beginning of year	$	1,529	$	1,406
Actual return on plan assets		77		106
Contributions		672		202
Benefits paid and fees		(185)		(185)
Pension plan assets at fair value, end of year		2,093		1,529
PBO		2,626		2,424
Excess of PBO Over Pension Plan Assets	$	(533)	$	(895)

Amounts recognized in the accompanying consolidated balance sheets to reflect the funded status of these plans were accrued pension costs of $533 million and $895 million at December 31, 2011 and 2010, respectively. The aggregate PBO and fair value of pension plan assets for plans with PBOs in excess of those assets were $2,626 million and $2,093 million, respectively, at December 31, 2011 and $2,424 million and $1,529 million, respectively, at December 31, 2010. The aggregate accumulated benefit obligation and fair value of pension plan assets for pension plans with accumulated benefit obligations in excess of those assets were $2,593 million and $2,093 million, respectively, at December 31, 2011 and $2,391 million and $1,529 million, respectively, at December 31, 2010. The accumulated benefit obligation for all defined benefit pension plans was $2,593 million and $2,391 million at December 31, 2011 and 2010, respectively.

The following table discloses the amounts included in AOCI at December 31, 2011 and 2010 that have not yet been recognized as components of net periodic pension cost:

		December 31,
		2011		2010
		(In Millions)
Unrecognized net actuarial (gain) loss		$	1,679	$	1,554
Unrecognized prior service cost (credit)			7		8
	Total	$	1,686	$	1,562

The estimated net actuarial (gain) loss and prior service cost (credit) expected to be reclassified from AOCI and recognized as components of net periodic pension cost over the next year are $161 million and $1 million, respectively.

The following table discloses the allocation of the fair value of total plan assets for the qualified pension plans of the Company at December 31, 2011 and 2010:

		December 31,
		2011		2010
		(In Millions)
Fixed Maturities		52.4	%		48.5	%
Equity Securities		36.3			37.0
Equity real estate		9.3			11.8
Cash and short-term investments		2.0			2.7
	Total	100.0	%		100.0	%

The primary investment objective of the qualified pension plan of AXA Equitable is to maximize return on assets, giving consideration to prudent risk. Guidelines regarding the allocation of plan assets for AXA Equitable's qualified pension plan are formalized by the Investment Committee established by the funded benefit plans of AXA Equitable and are designed with a long-term investment horizon. During 2011, AXA Equitable continued to implement an investment allocation strategy of the qualified defined benefit pension plan targeting 30%-40% equities, 50%-60% high quality bonds, and 0%-15% equity real estate and other investments. Exposure to real estate investments offers diversity to the total portfolio and long-term inflation protection.

In 2011, AXA Equitable's qualified pension plan continued to implement hedging strategies intended to lessen downside equity risk.  These hedging programs were initiated during fourth quarter 2008 and currently utilize derivative instruments, principally exchange-traded options contracts that are managed in an effort to reduce the economic impact of unfavorable changes in the equity markets. 

The following tables disclose the fair values of plan assets and their level of observability within the fair value hierarchy for the qualified pension plans of the Company at December 31, 2011 and 2010, respectively.

December 31, 2011:		Level 1		Level 2		Level 3		Total
Asset Categories		(In Millions)
Fixed Maturities:
	Corporate	$	-	$	797	$	-	$	797
	U.S. Treasury, government and agency		-		275		-		275
	States and political subdivisions		-		11		-		11
	Other structured debt		-		-		6		6
Common and preferred equity			712		2		-		714
Mutual funds			33		-		-		33
Private real estate investment funds			-		-		4		4
Private real estate investment trusts			-		29		183		212
Cash and cash equivalents			1		1		-		2
Short-term investments			7		32		-		39
	Total	$	753	$	1,147	$	193	$	2,093

December 31, 2010:		Level 1		Level 2		Level 3		Total
Asset Categories		(In Millions)
Fixed Maturities:
	Corporate	$	-	$	564	$	-	$	564
	U.S. Treasury, government and agency		-		148		-		148
	States and political subdivisions		-		9		-		9
	Other structured debt		-		-		6		6
Common and preferred equity			410		2		-		412
Mutual funds			115		-		-		115
Derivatives, net			1		6		-		7
Private real estate investment funds			-		-		13		13
Private investment trusts			-		51		163		214
Cash and cash equivalents			6		2		-		8
Short-term investments			2		31		-		33
	Total	$	534	$	813	$	182	$	1,529

At December 31, 2011, assets classified as Level 1, Level 2, and Level 3 comprise approximately 36.0%, 54.8% and 9.2%, respectively, of qualified pension plan assets. At December 31, 2010, assets classified as Level 1, Level 2 and Level 3 comprised approximately 34.9%, 53.2% and 11.9%, respectively, of qualified pension plan assets. See Note 2 for a description of the fair value hierarchy. The fair values of qualified pension plan assets are measured and ascribed to levels within the fair value hierarchy in a manner consistent with the invested assets of the Company that are measured at fair value on a recurring basis. Except for an investment of approximately $183 million in a private REIT through a pooled separate account, there are no significant concentrations of credit risk arising within or across categories of qualified pension plan assets.

The tables below present a reconciliation for all Level 3 qualified pension plan assets at December 31, 2011 and 2010, respectively.

					Private
					Real Estate		Private
			Fixed		Investment		Investment		Common
			Maturities(1)		Funds		Trusts		Equity		Total
			(In Millions)
Balance at January 1, 2011			$	6	$	13	$	163	$	-	$	182
Actual return on plan assets:
	Relating to assets still held
		at December 31, 2011		-		3		20		-		23
	Purchases/issues			-		-		-		1		1
	Sales/settlements			-		(12)		-		(1)		(13)
	Transfers into/out of Level 3			-		-		-		-		-
Balance at December 31, 2011			$	6	$	4	$	183	$	-	$	193
Balance at January 1, 2010			$	7	$	12	$	147	$	2	$	168
Actual return on plan assets:
	Relating to assets still held
		at December 31, 2010		(1)		1		16		-		16
	Purchases, sales, issues and
		settlements, net		-		-		-		(2)		(2)
	Transfers into/out of Level 3			-		-		-		-		-
Balance at December 31, 2010			$	6	$	13	$	163	$	-	$	182

(1)       Includes commercial mortgage- and asset-backed securities and other structured debt.

The discount rate assumptions used by the Company to measure the benefits obligations and related net periodic cost of its qualified pension plans reflect the rates at which those benefits could be effectively settled. Projected nominal cash outflows to fund expected annual benefits payments under each of the Company's qualified pension plans were discounted using a published high-quality bond yield curve. The discount rate used to measure each of the benefits obligations at December 31, 2011 and 2010 represents the level equivalent spot discount rate that produces the same aggregate present value measure of the total benefits obligation as the aforementioned discounted cash flow analysis. The following table discloses the weighted-average assumptions used to measure the Company's pension benefit obligations and net periodic pension cost at and for the years ended December 31, 2011 and 2010.

		2011		2010
Discount rates:
	Benefit obligation	4.25	%	5.25	%
	Periodic cost	5.25	%	6.00	%
Rates of compensation increase:
	Benefit obligation and periodic cost	6.00	%	6.00	%
Expected long-term rates of return on pension plan assets (periodic cost)		6.75	%	6.75	%

The expected long-term rate of return assumption on plan assets is based upon the target asset allocation of the plan portfolio and is determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class.

Prior to 1987, participants' benefits under AXA Equitable's qualified plan were funded through the purchase of non-participating annuity contracts from AXA Equitable. Benefit payments under these contracts were approximately $13 million, $14 million and $16 million for 2011, 2010 and 2009, respectively.

The following table provides an estimate of future benefits expected to be paid in each of the next five years, beginning January 1, 2012, and in the aggregate for the five years thereafter. These estimates are based on the same assumptions used to measure the respective benefit obligations at December 31, 2011 and include benefits attributable to estimated future employee service.

	Pension
	Benefits
	(In Millions)
2012	$	201
2013		203
2014		200
2015		199
2016		197
Years 2017-2021		939

Health Plans

The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively, the “Health Acts”), signed into law in March 2010, are expected to have both immediate and long-term financial reporting implications for many employers who sponsor health plans for active employees and retirees. While many of the provisions of the Health Acts do not take effect until future years and are intended to coincide with fundamental changes to the healthcare system, current-period measurement of the benefits obligation is required to reflect an estimate of the potential implications of presently enacted law changes absent consideration of potential future plan modifications. Many of the specifics associated with this new healthcare legislation remain unclear, and further guidance is expected to become available as clarifying regulations are issued to address how the law is to be implemented. Management, in consultation with its actuarial advisors in respect of the Company's health and welfare plans, has concluded that a reasonable and reliable estimate of the impact of the Health Acts on future benefit levels cannot be made as of December 31, 2011 due to the significant uncertainty and complexity of many aspects of the new law.

Included among the major provisions of the Health Acts is a change in the tax treatment of the Medicare Part D subsidy. The subsidy came into existence with the enactment of the Medicare Modernization Act (“MMA”) in 2003 and is available to sponsors of retiree health benefit plans with a prescription drug benefit that is “actuarially equivalent” to the benefit provided by the Medicare Part D program. Prior to the Health Acts, sponsors were permitted to deduct the full cost of these retiree prescription drug plans without reduction for subsidies received. Although the Medicare Part D subsidy does not become taxable until years beginning after December 31, 2012, the effects of changes in tax law had to be recognized immediately in the income statement of the period of enactment. When MMA was enacted, the Company reduced its health benefits obligation to reflect the expected future subsidies from this program but did not establish a deferred tax asset for the value of the related future tax deductions. Consequently, passage of the Health Acts did not result in adjustment of the deferred tax accounts.

Since December 31, 1999, AXA Financial, Inc. has legally assumed primary liability from AXA Equitable for all current and future obligations of its Excess Retirement Plan, Supplemental Executive Retirement Plan and certain other employee benefit plans that provide participants with medical, life insurance, and deferred compensation benefits; AXA Equitable remains secondarily liable. AXA Equitable reimburses AXA Financial, Inc. for costs associated with these plans, as described in Note 11. In 2011, AXA Equitable eliminated any subsidy for retiree medical and dental coverage for individuals retiring on or after May 1, 2012 as well as a $10,000 retiree life insurance benefit for individuals retiring on or after January 1, 2012. As a result, the Company recognized a one-time reduction in benefits expense of approximately $37 million.