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Bristol-Myers Squibb expects $100 million pension contribution in 2017

Bristol-Myers Squibb, New York, will contribute approximately $100 million to its defined benefit plans in 2017, the company said in a recent 10-K filing with the Securities and Exchange Commission. The company contributed $81 million last year and $118 million in 2015.

“The principal defined benefit pension plan is the Bristol-Myers Squibb Retirement Income Plan, covering most U.S. employees and representing approximately 66% of the consolidated pension plan assets and 61% of the obligations,” the 10-K document said. “Future benefits related to service for this plan were eliminated in 2009. The company “contributes at least the minimum amount required by the ERISA.”

The company reported $5.83 billion in total pension assets for the year ended Dec. 31, 2016 vs. $5.69 billion for year-end 2015, the 10-K statement said. The funding ratio was 90.5% as of Dec. 31 vs. 88.6% a year earlier, according to the 10-K.

The discount rate used to determine pension obligations was 3.5% last year vs. 3.8% in 2015.

The company has a target asset allocation of 50% long-duration fixed income, 43% public equity — 16% international, 14% global and 13% U.S. — and 7% private equity for its U.S. pension plans, the 10-K document said. Approximately 90% of the U.S. pension plans' equity investments are actively managed. Company stock represented less than 1% of plans' assets last year.

Bristol-Myers Squibb purchased a group annuity contract from Prudential Insurance Co. of America in December 2014 that covered about $1.5 billion in U.S. pension obligations.