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DEFINED BENEFIT

Cummins Inc. plans $134 million pension contribution for 2017

Cummins Inc., Columbus, Ind., will contribute $134 million to its global defined benefit plans this year, according to the company's 10-K filed on Monday.

The company had $2.75 billion in U.S. pension assets, and those plans were 118% funded as of Dec. 31, according to the filing with the Securities and Exchange Commission. Its U.K. pension assets totaled $1.74 billion and those plans were 121% funded as of Dec. 31. In 2015, the U.S. plans were 104% funded while the U.K. plans were 118% funded.Pension contributions for 2016 totaled $190 million and $205 million for 2015. Cummins also is reducing its expected rate of return in 2017 to 7.25% from 7.5%, according to the 10-K.

As of Dec. 31, the U.S. plans' target asset allocation was 57% fixed income, 13% U.S. equities, 7.5% each private equity and real estate, 6% global equities, 5% international equities and 4% opportunistic credit.

The U.K. plans' targets as of Dec. 31 were 56.5% fixed income, 23% global equities, 8% reinsurance, 7.5% corporate credit and 5% real estate.

The U.S. plans' discount rate as of Dec. 31 was 4.12%, down from 4.47% 12 months earlier. The U.K. plans' discount rate was 2.7% as of Dec. 31, down from 3.95%.