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Dow Chemical eyes $500 million contribution to U.S. pension plans

Updated with correction

Dow Chemical Co., Midland, Mich., expects to contribute $500 million to its global defined benefit plans in 2017, the company said in its latest 10-K filed with the Securities and Exchange Commission on Thursday.

Dow's contributions to its defined benefit plans and non-qualified supplemental plans in 2016 totaled $629 million.

The company's global defined benefit plan assets totaled $21.1 billion as of Dec. 31, an increase of 12.8% from the year-earlier date, the 10-K report showed. The U.S. pension plans make up 72% of the total assets and 71% of obligations.

Projected benefit obligations were $30.28 billion, resulting in a funding ratio of 70%. The plans’ discount rate was 3.52% in 2016 and 3.88% in 2015, according to Dow’s 10-K filing.

The asset allocation for the chemical manufacturer’s defined benefit plans as of Dec. 31 was 35% equities, 34% fixed income, 30% alternative investments and 1% other.