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DEFINED BENEFIT

Chevron generates $450 million contribution to global pension plans

Chevron

Chevron Corp., San Ramon, Calif., plans to contribute $450 million to its global pension plans in 2017, the company disclosed in a 10-K filing with the Securities and Exchange Commission on Thursday.

The company plans to contribute about $200 million to its U.S. plans and $250 million to its international plans. In 2016, Chevron contributed $406 million and $464 million, respectively, to its U.S. and international plans.

As of Dec. 31, U.S. plan assets totaled $9.55 billion, while projected benefit obligations totaled $13.27 billion, for a funding ratio of 72%, down from 75.8% the previous year. The discount rate for the U.S. plans dropped to 3.9% in 2016 from 4.3% in 2015.

As of the same date, international plan assets totaled $4.17 billion, while projected benefit obligations totaled $5.17 billion, for a funding ratio of 80.7%, up from 77% the previous year. The discount rate for the international plans dropped to 4.3% in 2016 from 5.3% the year before.

The U.S. plans' actual asset allocation as of Dec. 31 was 43.8% equities, 28.6% fixed income, 14.3% real estate, 10% alternative investments, 2.6% cash and cash equivalents, and 0.7% other.

The international plans' actual allocation as of that same date was 49.9% fixed income, 32% equities, 7.9% each cash and cash equivalents and real estate, and the rest in other.