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Retirement Plans
 12 Months Ended
Dec. 31, 2011
Retirement Plans [Abstract]  
Retirement Plans

15        RETIREMENT PLANS

Postretirement Health Care and Other Benefits:

Ambac provides postretirement and postemployment benefits, including health and life benefits covering certain employees who meet certain age and service requirements. Effective August 1, 2005, new employees were not eligible for postretirement benefits. None of the plans are currently funded. Postretirement and postemployment benefits expense was $4,037 and $2,226 in 2011 and 2010, respectively. The unfunded accumulated postretirement benefit obligation was $12,201 as of December 31, 2011. The assumed health care cost trend rates range from 10% in 2011, decreasing ratably to 7% in 2016. Increasing the assumed health care cost trend rate by one percentage point in each future year would increase the accumulated postretirement benefit obligation at December 31, 2011, by $3,298 and the 2011 benefit expense by $405. Decreasing the assumed health care cost trend rate by one percentage point in each future year would decrease the accumulated postretirement benefit obligation at December 31, 2011 by $2,584 and the 2011 benefit expense by $309.

 

The following table sets forth projected benefit payments from Ambac's postretirement plan:

 

     Amount  

2012

    $ 439   

2013

      489   

2014

      495   

2015

      575   

2016

      651   

All later years

      3,773   
  

 

 

  
   $ 6,422   
  

 

 

  

The discount rate used in determining the projected benefit obligations for the postretirement plan is selected by reference to the year-end Moody's corporate AA rate, as well as other high-quality indices with similar duration to that of the benefit plans. The rate used for the projected plan benefit obligations at the measurement date for 2011 and 2010 (December 31) was 4.50% and 5.50%, respectively.

Savings Incentive Plan:

Substantially all employees of Ambac are covered by a defined contribution plan (the "Savings Incentive Plan"). Prior to January 1, 2010 Ambac made employer matching contributions of 100% of the employee's contributions up to 6% of such participants' base compensation, subject to limits set by the Internal Revenue Code. Ambac had the option to make a Basic Profit Sharing contribution of 3% of base compensation and a Supplemental Profit Sharing contribution of an additional 3% of base compensation to eligible employees. Effective January 1, 2010, matching contributions now equal 100% of the employees' contributions, up to 3% of such participants' base compensation plus 50% of contributions to an additional 2% of base compensation, subject to limits set by the Internal Revenue Code. No Basic Profit-Sharing contributions or Supplemental Profit-Sharing contributions will be made to the Plan. The total cost of the Savings Incentive Plan was $610 and $1,455 in 2011 and 2010, respectively.