General American and MetLife have historically provided certain administrative services to RGA and RGA Reinsurance. Such  services have included legal, treasury, risk management and  corporate travel. The cost for the years ended December 31, 2003, 2002 and 2001 was approximately $1.0 million, $1.2 million and $1.1 million respectively. Management does not believe that the various amounts charged  for these services would be materially different if they had been incurred from an unrelated third party. Target allocation of assets are determined with the objective of maximizing returns and minimizing volatility of net assets through adequate asset diversification and partial liability immunization. Adjustments are made to target allocations based on the Company’s assessment of the impact of economic factors and market conditions. Results for the Pension and Other Benefits Plans are measured at December 31 for each year presented. Allocation of the Pension Plan’s total plan fair value by  asset type: One Percent Increase One Percent Decrease Effect on total of service and interest cost components $ 147 $(111) Effect on accumulated postretirement benefit obligation $1,115 $(854) The components of net periodic benefit cost were as follows (in thousands): Pension Benefit s Other Benefits 2003 200 2 2001 2003 2002 2001 Service cost $1,473 $1,218 $ 916 $314 $264 $213 Interest cost 1,052 972 954 303 261 218 Expected return on plan assets (643) (751) (815) – – – Amortization of prior actuarial losses 141 7 9 60 41 29 Amortization of prior service cost 30 30 30 – – – Net periodic benefit cost $2,053 $1,476 $1,094 $677 $566 $460 The Company expects to contribute $1.5 million in pension benefits and $0.1 million in other benefits during 2004. The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (in thousands): 2004 target range of allocation by asset type of the Pension Plan’s total plan fair value on a weighted average basis: Asset Category: Equity securities 65% – 80% Debt securities 25% – 50% Pension Other Benefits Benefits 2004 $ 1,095 $ 75 2005 1,266 79 2006 2,043 83 2007 1,722 87 2008 1,966 91 2009-2013 11,006 529 2003 2002 Asset Category: Equity securities 73% 66% Debt securities 27% 34% Total 100% 100% NOTE 11 RELATED PARTY TRANSACTIONS  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 69 THIS IS RGA. 2003 ANNUAL REPORT