Delphi Corp., Troy, Mich., expects to contribute $600 million to its $7.5 billion U.S. defined benefit plan in 2004, more than double its minimum ERISA contribution for next year, the company announced today. Delphi contributed a total of $1 billion this year, said Paula Angelo, spokeswoman. The company faces a minimum 2004 contribution of $260 million, Delphi said.
Delphi expects the plan to face a funding shortfall of $4 billion at the end of 2003, about the same as last year. The company will maintain its 9% expected rate of return on plan assets for 2004, Ms. Angelo said. As of the first week of December, the plan had returned 16% on investments for 2003, she said.