Reynolds American lights up $111 million contribution for DB plans

Reynolds American Inc., Winston-Salem, N.C., will contribute $111 million to its defined benefit plans in 2017, the company said in its 10-K filing with the Securities and Exchange Commission on Thursday.

Reynolds American contributed $335 million to its pension funds in 2016, and $18 million the year before.

The pension funds have been closed since Jan. 1, 2004.

As of Dec. 31, defined benefit plan assets totaled $5.65 billion, while projected benefit obligations totaled $6.67 billion, for a funding ratio of 84.7%, up from 79.4% a year earlier.

As of that same date, the asset allocation was 53% fixed income, 12% each global equities and domestic equities, 8% international equities, 7% absolute return, 4% real assets, and 2% each emerging markets equities and private equity.

On Jan. 17, the company announced a merger agreement with British American Tobacco, its largest shareholder. It is expected to close in the third quarter of 2017. No details on post-merger plans for the pension funds were available.