Question-and-Answer Session
Thank you. The floor is now open for questions. [Operator Instructions]. Thank you. Our first question is coming from Keith Walsh of Citi. Please state your question.
Keith Walsh - Citigroup
Good morning everybody and thank you.
J. Patrick Gallagher, Jr. - Chairman, President and Chief Executive Officer
Good morning, Keith.
Keith Walsh - Citigroup
I guess first for Doug. Just on pension expense. Obviously, with the decline in planned assets we've seen, I'm assuming year-to-date and probably higher discount rates. I know that these assumptions are set on December 31st, but if you can just give us a little color incremental GAAP pension expense, how that's going to change for you guys, if the year ended today and then I have follow up fro Pat. Thanks.
Douglas K. Howell - Corporate Vice President and Chief Financial Officer
First, to step the stage. We frozen our plan, you recall three years ago and so we have frozen plan. The assets in that plan, well refunded last year. They are slightly under funded this year. We think it'll drive between $2 million and $3 million of additional expense into '09 numbers compared to our '08 numbers.
Keith Walsh - Citigroup
Great. Okay, so for pretty modest headwind there.
Douglas K. Howell - Corporate Vice President and Chief Financial Officer
Right.
Keith Walsh - Citigroup
And then I just for Pat. Lots of talk about pricing going on. Okay, just what's your take, what's the reality of this on 10.1 renewals and what do you think about 1.1 renewals and any color that you're seeing out there?
J. Patrick Gallagher, Jr. - Chairman, President and Chief Executive Officer
Yes, thanks. We are not seeing that Keith. Certain areas of the market, heavy marine that type of things that was really hit by Ike, you might see some pricing improvement there, but by and large where we play the pricing is still going down and was going down at 10.1. As for first of the year, my crystal ball would more the same.
Keith Walsh - Citigroup
Okay and do you think that's something that's just maybe more geared towards where you guys play in the market relative to maybe some of other, maybe larger brokers out there or is that something just overall you are seeing?
J. Patrick Gallagher, Jr. - Chairman, President and Chief Executive Officer
I think it's overall. I think we are all playing in the same... in the same playing field.
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