The components of postretirement benefit expense in 2004, 2003 and 2002 were as follows: A 1% increase in the assumed annual health care cost trend rate would have increased the accumulated postretirement benefit obligation at December 31, 2004 by approximately $54 million. A 1% decrease in the annual trend rate would have decreased the accumulated postretirement benefit obligation at December 31, 2004 by approximately $50 million. The effect on net postretirement benefit cost from a 1% increase or decrease would be approximately $4 million. The plan is only funded in an amount equal to benefits paid. The following table presents the changes in benefit obligation and plan assets for 2004 and 2003: In millions 2004) 2003) 2002) Service cost $6 ) $7 ) $  8) Interest cost 52) 54) 59) Actuarial loss 35) 23) 12) Amortization of prior service cost (40) (29) (20) Net postretirement benefit cost (a) $ 53) $ 55) $ 59) In millions 2004 ) 2003) Change in benefit obligation: Benefit obligation, January 1 $1,000) $ 890) Service cost 6) 7) Interest cost 52) 54) Participants’ contributions 38) 31) Actuarial (gain) loss (118) 292) Benefits paid (138) (134) Plan amendments (5) (141) Restructuring 2) -) Special termination benefits  1) 1) Benefit obligation, December 31 $ 838) $ 1,000) (a) Excludes $1.0 million, $5.3 million and $1.2 million of curtailment gains in 2004, 2003 and 2002, respectively, and $1.0 million and $1.3 million of special termination benefits in 2004 and 2003, respectively, related to cost reduction programs and facility rationalizations that were recorded in Restructuring and other charges in the consolidated statement of operations. Also excludes $1 million of curtailment gains in 2002 related to the divestitures of Masonite, Flexible Packaging, Decorative Products and other smaller businesses that were recorded in Net losses (gains) on sales and impairments of businesses held for sale in the consolidated statement of operations.  International Paper evaluates its actuarial assumptions annually as of December 31 (the measurement date) and considers changes in these long-term factors based upon market conditions and the requirements of SFAS No. 106, “Employers’ Accounting for Postretirement Benefits Other Than Pensions.” The discount rate assumptions used to determine net cost for the years ended December 31, 2004, 2003 and 2002 were as follows: The weighted average assumptions used to determine the benefit obligation at December 31, 2004 and 2003 were as follows: 2004% 2003% 2002% Discount rate 6.00% 6.38% 7.25% 2004% 2003% Discount rate 5.75% 6.00% Health care cost trend rate assumed for the next year 10.00% 10.00% Rate that the cost trend rate gradually declines to 5.00% 5.00% Year that the rate reaches the rate  it is assumed to remain  2009 2008 Benefit Subsidy) In millions Payments Receipts) 2005 $ 95 $ -) 2006 94 (11) 2007 92 (11) 2008 89(11) 200986 (11) 2010 - 2014 390 (55) Change in plan assets: Fair value of plan assets, January 1 $ -) $ -) Company contributions 100) 103) Participants’ contributions 38) 31) Benefits paid (138) (134) Fair value of plan assets, December 31 $ -) $ -) Funded status $ (838) $(1,000) Unamortized prior service cost (229) (267) Unrecognized actuarial loss 357) 510) Accrued benefit cost $ (710) $ (757) At December 31, 2004, estimated total future postretirement benefit payments, net of participant contributions, and estimated future Medicare Part D subsidy receipts are as follows: 75