PepsiCo sweetens pension, discretionary retiree medical plans with $1 billion

Bloomberg

PepsiCo Inc., Purchase, N.Y., made a $1 billion pension and retiree medical discretionary contribution in the first quarter, according to a third-quarter earnings statement released Wednesday.

PepsiCo expected to make a total contribution to both plans of $1.3 billion for the year, according to the company's most recent 10-K. It contributed $63 million to the $9.1 billion U.S. defined benefit plan, $176 million to the $2 billion international defined benefit plan and $110 million to retiree medical in 2011.

The pension plans have a target allocation of 40% fixed income, 33% domestic equity, 22% international equity and 5% real estate.

Company officials did not respond to requests for additional information by press time.

— Contact Kevin Olsen at kolsen@pionline.com | @Olsen_PI