
(in millions)	Erie Insurance Group
	2011		2010		2009
Change in projected benefit obligation:
Benefit obligation at beginning of period	$ 400		$344		$326
Service cost	17		15		15
Interest cost	23		21		19
Amendments	1		1		3
Actuarial loss (gain)	54		25		(12	)
Benefits paid	(7	)	(6	)	(4	)
Impact due to settlement	0		0		(3	) (1)
Benefit obligation at end of period	$ 488		$400		$344

Change in plan assets:
Fair value of plan assets at beginning of period	$ 328		$279		$218
Actual return (loss) on plan assets	12		41		51
Employer contributions	15		13		14
Benefits paid	(7	)	(5	)	(4	)
Fair value of plan assets at end of period	$ 348		$328		$279
Funded status at end of period	$(140	)	$ (72	)	$ (65	)
Amounts recognized in the Consolidated Statement of Financial Position
Current liabilities	$ (1	)	$ 0		$ 0
Noncurrent liabilities	(139	)	(72	)	(65	)
Amounts recognized	$ (140	)	$ (72	)	$ (65	)
Accumulated benefit obligation, December 31,	$ 363		$297		$252

Amounts included in accumulated other comprehensive income, before tax, not yet recognized as components of net periodic benefit cost:
Net actuarial loss	$ 173		$110		$104
Prior service cost	6		5		5
Net amount not yet recognized	$ 179		$115		$109
Components of net periodic benefit cost:
Service cost	$ 17		$ 15		$ 15
Interest cost	23		21		19
Expected return on plan assets (2)	(27	)	(25	)	(24	)
Amortization of prior service cost	1		1		0
Recognized net actuarial loss	6		3		3
Settlement gain	0		0		(1	) (1)
Net periodic benefit expense before allocation to affiliates	$ 20		$ 15		$ 12

(1)	In December 2007, employment agreements for certain members of executive management were signed which incorporated a payment in full of accrued SERP benefits as of December 2008 in a lump sum payment, after which time no additional SERP benefits would accrue. This resulted in a settlement gain in 2009.

(2)	The market-related value of plan assets is used to determine the expected return component of pension benefit cost. We use a four year averaging method to determine the market-related value, under which asset gains or losses that result from returns that differ from our long-term rate of return assumption are recognized in the market-related value of assets on a level basis over a four year period. Once factored into the market-related asset value, these experience losses will be amortized over a period of 15 years, which is the average remaining service period of the employee group in the plan.

	Erie Insurance Group
	Target asset allocation		Actual asset allocation		Actual asset allocation
	2010-2011		2011		2010
Return seeking assets:
U.S. equity index (1)	17	%	17	%	17	%
U.S. large capitalization core equity (2)	16		16		16
International risk-controlled equity (3)	15		15		15
U.S. small capitalization core equity (4)	8		8		8
International small capitalization risk-controlled equity (5)	2		2		2
Emerging markets equity (6)	2		2		2
Total return seeking assets	60	%	60	%	60	%
Liability matching assets:
Long duration fixed income (7)	16	%	16	%	16	%
Broad market fixed income (8)	15		15		15
Long duration corporate fixed income (9)	8		8		8
Institutional money market fund	1		1		1
Total liability matching assets	40	%	40	%	40	%
Total plan assets	100	%	100	%	100	%

(1)	Comprises equity index funds not actively managed that track the S&P 500.
(2)	Includes equity securities that seek to achieve excess returns relative to the S&P 500 while maintaining portfolio risk characteristics similar to the index.
(3)	Seeks long-term capital growth with an emphasis on controlling return volatility relative to an international market index.
(4)	Includes equity securities that seek to achieve excess returns relative to the Russell 2000 Index while maintaining portfolio risk characteristics similar to the index.
(5)	Seeks to provide excess returns relative to an international small cap index, while maintaining regional weights similar to the index.
(6)	Seeks long-term capital growth in securities of companies that have their principal business activities in countries in the Morgan Stanley Capital International Emerging Markets Free Index.
(7)	Seeks to generate returns that exceed the Barclays Capital U.S. Long Government/Credit Bond Index through investment-grade fixed income securities.
(8)	Seeks to generate returns that exceed the Barclays Capital U.S. Aggregate Bond Index through investment-grade fixed income securities.
(9)	Seeks to generate returns that exceed the Barclays Capital U.S. Long Corporate A or Better Index investing in U.S. corporate bonds with an emphasis on long duration bonds rated A or better.