partnering for the future The weighted average assumptions used in determining the actuarial present value of the projected benefit obligations under the defined benefit plans are as follows: A one-percentage point change in assumed healthcare cost trend rates would have the following effects at December 31, 2004: The pension plans’ weighted-average asset allocations as of  the measurement date for 2004 and 2003, by category, are  as follows: The weighted average assumptions used in determining the  net periodic benefit cost under the defined benefit plans are  as follows: The sponsoring subsidiaries select the expected long-term rate of return on assets in consultation with their investment advisors and actuaries. These rates are intended to reflect the average rates of earnings expected to be earned on the funds invested or to be invested to provide required plan benefits. The plans are assumed to continue in effect as long as assets are expected to be invested. The objectives of the Plans’ trust funds are to sufficiently diver- sify plan assets to maintain a reasonable level of risk without imprudently sacrificing return, with a target asset allocation of approximately 40% fixed income securities and approximately 60% equities. Bunge retains investment managers who select investment fund managers to implement the investment strategy, such that the investments approximate the target asset allocation. Bunge’s policy is not to invest plan assets in Bunge Limited shares. Bunge expects to contribute $17 million to its defined benefit pension plans and $2 million to its postretirement healthcare benefit plans in 2005.  In estimating the expected long-term rate of return on assets, appropriate consideration is given to historical performance for the major asset classes held or anticipated to be held by the applicable plan trusts and to current forecasts of future rates  of return for those asset classes. Cash flow and expenses are taken into consideration to the extent that the expected returns would be affected by them. Because assets are generally held in qualified trusts, anticipated returns are not reduced for taxes. The following benefit payments, which reflect future service as appropriate, are expected to be paid: At December 31, 2004, for measurement purposes, a 6% annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2005 and forward. At December 31, 2003, for measurement purposes, an 8% annual rate of increase  in the per capita cost of covered healthcare benefits was assumed for 2004, decreasing to 6% for 2005, remaining at  that level thereafter.  One-percentage One-percentage (US$ in millions) point increase point decrease Effect on total service and  interest cost components $ – $ – Effect on postretirement  benefit obligation $ 2 $ 2 December 31, 2004 2003 Discount rate 5 5..7 7%% 6.0% Increase in future compensation levels 3 3..3 3%% 3.4% Year Ended December 31, 2004 2003 2002 Discount rate 6 6..0 0%% 6.8% 7.5% Increase in future  compensation levels 3 3..4 4%% 4.5% 5.0% Expected long-term rate  of return on assets 8 8..0 0%% 8.4% 9.0% Plan Assets  2004 2003 Asset Category Equities 6 61 1%% 58% Fixed income securities 3 34 4%% 41% Cash 5 5%% 1% Total 1 10 00 0%% 100% Postretirement Pension Healthcare (US$ in millions) Benefits Benefits 2005 $ 15 $ 2 2006 15 2 2007 15 2 2008 16 2 2009 18 2 2010–2014 108 11 75