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DEFINED BENEFIT

Aon plans $185 million contribution to worldwide pension funds in 2017

Aon PLC, London, expects to contribute about $185 million total to its worldwide pension plans in 2017, said its 10-K filed Thursday.

Of the $185 million, roughly $87 million will be contributed to Aon's U.S. pension plans, $80 million to its U.K. plans, and $18 million to its other major international pension plans in the Netherlands and Canada.

As of Dec. 31, Aon's major U.S. pension plans had $1.68 billion in assets and $2.91 billion in benefit obligations for a funded status of 57.7%, down from 61.7% at the end of 2015.

Also, as of Dec. 31, Aon's major U.K. pension plans had $5.68 billion in assets and $4.88 billion in benefit obligations for a funded status of 116.6%, down from 118.2% the previous year.

Aon's other major pension plans in the Netherlands and Canada had $1.08 billion in assets and $1.23 billion in benefit obligations for a funded status of 87.8%, up from 86.4% in 2015.

At the end of December, the asset allocation for the U.S. plans was 40.2% equities, 33.1% fixed income, 15.9% alternatives, 5.9% cash, 3.6% real estate and real estate investment trusts, and 1.3% in commodity derivatives.

The asset allocation for the U.K. plans was 74% fixed income, 13.6% alternatives, 9.1% equities, 1.8% real estate and the remainder in cash.

The asset allocation for the other major international plans was 62.2% fixed income, 35% equities, 0.8% alternatives, and 0.6% REITs and the remainder in cash.

The discount rates for the U.S. plans ranged from 3.53% to 4.11% in 2016, compared to 1.85% to 3.81% in 2015. The discount rate used to measure benefit obligations for the U.K plans was 2.77% in 2016, down from 3.96% in 2015. The discount rates for the other major international plans ranged from 1.85% to 3.81% in 2016, vs. 2.43% to 3.96% in 2015.

In 2016, Aon contributed $67 million to its U.K. plans, $36 million to its U.S. plans and $20 million to its other major international plans.