General Dynamics, United Technologies both plan pension contributions
General Dynamics to contribute $600 million; United Technologies plans international contribution
By Timothy Pollard | January 23, 2013 3:14 pm
General Dynamics Corp., Falls Church, Va., said Tuesday during its fourth-quarter earnings call that the company expects to make $600 million in contributions to its pension funds during 2013.
L. Hugh Redd, senior vice president and chief financial officer, said 60% of the funding will occur during the third quarter of the year. The company contributed about $530 million to its pension funds in 2012.
According to Pensions & Investments data, General Dynamics had about $6.7 billion in defined benefit plan assets as of Sept. 30.
The company's latest annual report, filed Feb. 17, 2012, reveals the asset allocation for its defined benefit pension plans was 64.6% equities, 25.8% fixed income, 7.5% cash, 1.7% other and 0.4% in commingled real estate funds.
Separately, Hartford, Conn.-based United Technologies Corp. said during its fourth-quarter earnings call the company does not plan to contribute to its U.S. pension plans during 2013, but expects to contribute to its international plans.
Gregory J. Hayes, senior vice president and chief financial officer, said the company put “a couple of hundred million in the international plans in late December” and will “probably put a similar number in this year.” Mr. Hayes also indicated the company ended 2012 with an 85% funding ratio for its pension plans.
According to Pensions & Investments data, United Technologies had $22.6 billion in U.S. defined benefit plan assets as of Sept. 30. The asset allocation was 36% domestic fixed income, 23% domestic equities, 21% international equities, 6% private equity, 6% real estate and the rest in other.