General Dynamics Corp.
(millions)
Total assets $9,581
Defined benefit $5,706
Defined contribution $3,875
DEFINED BENEFIT PLAN:
Employer DB contributions $65
Benefit payments $240
Asset mix:
Domestic stocks 59%
Domestic fixed income 6%
Covered calls 35%
DEFINED CONTRIBUTION PLAN:
Asset mix:
Sponsoring co. stock 33%
Other equity 20%
Fixed income 5%
Stable value 40%
Balanced 2%
FALLS CHURCH, Va. — As of Sept. 30, General Dynamics Corp.'s total employee benefit assets increased 10% from a year earlier. Defined benefit assets increased 12% during the same period; defined contribution assets increased 9%.
Employer contributions to the defined benefit plan increased 1,525%; benefits paid decreased 17%.
During the past year, the fund, sensing that bonds were becoming as overpriced as equities had become during the bubble, sharply cut back its fixed income holdings and put that money in covered calls to lock in a return of roughly 9%, said Joseph Gallagher, vice president of Fiduciary Asset Management, which oversees the company's pension funds. During the summer, the fund added Private Capital Management to its lineup of domestic equity managers, but the shift out of domestic fixed income ended mandates for Fiduciary Asset Management and State Street Research.
DEFINED BENEFIT MANAGERS:
Domestic equities: Dodge & Cox; Dimensional Fund Advisors; Marsico Capital; Fiduciary Asset Management; Private Capital.
DEFINED CONTRIBUTION MANAGERS:
Domestic equities: Northern Trust; DFA; BGI.
Domestic fixed-income: Fiduciary Asset Management; State Street Research.
Other: Fiduciary Asset Management.
Mr. Gallagher oversees investment management of both plans.
General Electric Co.
(millions)
Total assets $61,622
Defined benefit $41,286
Defined contribution $20,336
DEFINED BENEFIT PLAN:
Employer DB contributions $0
Benefit payments $2,197
Asset mix:
Sponsoring company stock 6%
Other domestic stock 37%
Domestic fixed income 21%
International stock 17%
Cash equivalents 2%
Private equity 7%
Real estate equity 7%
Other 3%
Internally managed assets $32,940
DEFINED CONTRIBUTION PLAN:
Assets in:
Corporate 401(k) $20,336
Internally managed assets $6,273
Total DC contributions $1,142
Asset mix:
Sponsoring company stock 68%
Other stock 13%
Fixed income 13%
Cash equivalents 6%
STAMFORD, Conn. — As of Sept. 30, General Electric Co.'s total employee benefit assets increased 14% from a year earlier. Defined benefit assets increased 11% during the same period; defined contribution assets increased 20%.
Employer contributions to the defined benefit plan remained at zero; benefits paid increased 8%.
During the past year, a July story in P&I said GE was the best funded of all pension plans reviewed with a surplus of $4.5 billion at the end of 2002 and a $5.5 billion surplus at the end of the second quarter. Also in July, GE scored lowest in addressing the financial risk posed by climate change issues, according to a study of 20 of the world's largest companies by the Investor Responsibility Research Center.
In May, the GE pension fund and Crescent Real Estate Equities set up a joint venture to acquire urban and suburban office properties.
Key personnel overseeing the investment management of both plans are John H. Myers, president and chief executive officer, GE Asset Management; Alan M. Lewis, executive vice president and general counsel; and John J. Walker, executive vice president and chief financial officer.
General Motors Corp.
(millions)
Total assets $89,738
Defined benefit $70,945
Defined contribution $18,793
DEFINED BENEFIT PLAN:
Employer DB contributions $9,081
Benefit payments $6,424
Asset mix:
Sponsoring company stock 5%
Other domestic stocks 28%
Domestic fixed income 29%
International stocks 19%
International fixed income 5%
Private equity 5%
Real estate equity 8%
Absolute return 1%
Internally managed assets $6,400
DEFINED CONTRIBUTION PLAN:
Assets in:
Corporate 401(k) $18,793
Internally managed assets $264
Total DC contributions $867
Asset mix:
Sponsoring company stock 22%
Other stock 37%
Fixed income 3%
Stable value 35%
Other 3%
NEW YORK — As of Sept. 30, General Motors Corp.'s total employee benefit assets increased 22% from a year earlier. Defined benefit assets increased 24% during the same period; defined contribution assets increased 15%.
Benefits paid increased 2%.
During the past year, the fund hired Fidelity as administrator, replacing MetLife and EDS, so employees would have one source for benefit services. The company also raised $10 billion through the sale of bonds and convertible securities, with the proceeds to go to the pension fund; it also contributed $1.2 billion in newly issued GMH shares of stock. The company announced plans to contribute a projected $18.5 billion to the pension fund by the end of the year, pending the completion of the $4.1 billion sale of Hughes Electronics. Those assets, coupled with an 18% return on assets for the first 11 months of 2003, meant no further contribution to the pension fund would be required for the rest of the decade. The fund also reduced its assumed rate of return to 9% from 10%. The fund continued to retain Putnam and Alliance as managers, despite ongoing investigations of the two firms by state and federal regulatory authorities.
In December, the company announced it was considering asset allocation changes to the pension plan. The proposed changes are: U.S. equities to 24% to 28%, from the current 29% to 33%; real estate to 8% to 12%, from 7% to 11%; and alternatives to 9% to 13%, from 6% to 8%. Foreign equities will be unchanged at 17% to 21%, and global bonds will remain at 32% to 36%. The plan wants to reduce volatility and allow for more diversification.
MANAGERS:
ABA Seguros; Advisory Research; Alliance Capital; AMI Partners; Aronson + Johnson; Artisan; AXA Rosenberg; Baillie Gifford; BGI Canada; Batterymarch; BlackRock; Bogle; Bridgewater; Brown Investment Advisory; Camden Asset; CapGuardian; Capital International; Chicago Equity; David L. Babson; DDJ Capital; Declaration Asset; Dresdner RCM; EARNEST; Emerging Markets Management; Fidelity; Fiduciary Asset Management; First Quadrant; Fischer Francis Trees; Franklin Portfolio; Franklin Templeton; Friess Associates; Frontier; Genesis; Goldman Sachs; GMO; Hyperion Capital; ING Ghent; J.P. Morgan Fleming; Jennison; Lee Overlay; Lincoln; LSV; Marathon; Martingale; Merrill Lynch; Morgan Stanley; Murray Capital; Nomura; Northern Trust; Numeric Investors; PIMCO; Paradigm; Pareto; Prudential; Putnam; Pzena; Rice, Hall; RS; Salomon; Sands; Schneider; Shenkman; SSI; Steinberg Priest; T. Rowe Price International; TCW; Boston Co.; Turner; UBS Global; W.R. Huff; Wellington.
The key person overseeing the investment management of the defined benefit plan is W. Allen Reed, president and CEO of GM Asset Management. Overseeing the defined contribution plan is R. Charles Tschampion, managing director.
Employees' Retirement System of Georgia
(millions)
Total assets $13,498
Defined benefit $13,498
DEFINED BENEFIT PLAN:
Employer DB contributions $245
Benefit payments $635
Asset mix:
Domestic stocks 47.4%
Domestic fixed income 46.3%
International stocks 5.4%
Cash equivalents 0.9%
Internally managed assets $13,498
ATLANTA — As of Sept. 30, the Employees' Retirement System of Georgia's total employee benefit assets, all defined benefit, increased 8% from a year earlier.
Employer contributions to the defined benefit plan increased 7%; benefits paid increased 11%.
Key personnel overseeing the investment management of the plan are Charles W. Cary Jr., chief investment officer, and Nancie H. Boedy, co-chief investment officer.
Georgia-Pacific Corp.
(millions)
Total assets $6,366
Defined benefit $3,399
Defined contribution $2,967
DEFINED BENEFIT PLAN:
Assets in all hybrid plans $1,194
Assets in cash balance plans $1,194
Employer contributions n/a
Benefit payments $277
Asset mix:
Sponsoring company stock 0%
Other domestic stock 53%
Domestic fixed income 23%
International stock 20%
Private equity 3%
Cash equivalents 1%
DEFINED CONTRIBUTION PLAN:
Assets in:
Corporate 401(k) $2,967
Total DC contributions $222
Asset mix:
Sponsoring company stock 13%
Other stock 68%
Fixed income 6%
Cash equivalents 13%
ATLANTA — As of Sept. 30, Georgia-Pacific Corp.'s total employee benefit assets increased 21% from a year earlier. Defined benefit assets increased 22.5% during the same period; defined contribution assets increased 20%.
Benefits paid from the defined benefit plan increased 47%.
DEFINED BENEFIT MANAGERS:
Domestic equity: Alliance Capital; Analytic; Artisan; CapGuardian; DePrince Race & Zollo; INVESCO; Jacobs Levy; Schneider Capital; Suffolk Capital; Trusco; Turner.
International equity: Capital Guardian; DePrince Race & Zollo; Mercator; Morgan Stanley; Oechsle; Northern Trust; Silchester.
Emerging markets equity: CapGuardian; Rexiter; Acadian.
Fixed income: Dodge & Cox; Hoisington; Loomis, Sayles; PIMCO.
DEFINED CONTRIBUTION MANAGERS:
Domestic equity: Vanguard.
International equity: Vanguard.
Domestic fixed income: Vanguard; Loomis Sayles.
The investment consultant for the defined benefit plan is Ennis Knupp.
Key personnel overseeing the investment management of both plans are John E. Stettler, vice president of benefits investments; Anthony R. Abbott, director of benefits investments; and Nicholas P. Harrell, senior investment consultant.
Teachers Retirement System of Georgia
(millions)
Total assets $39,432
Defined benefit $39,432
DEFINED BENEFIT PLAN:
Employer DB contributions $769
Benefit payments $1,435
Asset mix:
Other domestic stocks 48.2%
Domestic fixed income 45.2%
International stocks 5.0%
Cash equivalents 1.6%
Internally managed assets $39,432
ATLANTA — As of Sept. 30, Teachers Retirement System of Georgia's total employee benefit assets, all defined benefit, increased 10.5% from a year earlier.
Employer contributions to the plan increased 7%; benefits paid increased 12%.
Key personnel overseeing the investment management of the plan are Charles W. Cary Jr., chief investment officer, and Nancie H. Boedy, co-chief investment officer.
GlaxoSmithKline
(millions)
Total assets $5,265
Defined benefit $2,383
Defined contribution $2,882
DEFINED BENEFIT PLAN:
Assets in all hybrid plans $2,383
Assets in cash balance plans $2,383
Employer DB contributions n/a
Benefit payments $144
Asset mix:
Sponsoring company stock 0%
Domestic stocks 50%
Domestic fixed income 22%
International stocks 23%
Cash equivalents 1%
Real estate equity 4%
DEFINED CONTRIBUTION PLAN:
Assets in:
Corporate 401(k) $2,882
Total DC contributions $228
Asset mix:
Sponsoring company stock 28%
Other stock 40%
Fixed income 6%
Stable value 18%
Lifestyle 8%
PHILADELPHIA — As of Sept. 30, GlaxoSmithKline's total employee benefit assets increased 27.2% from a year earlier. Defined benefit assets increased 35.2% during the same period; defined contribution assets increased 21.2%.
Benefits paid from the defined benefit plan increased 18%.
DEFINED BENEFIT MANAGERS:
Domestic equities: AllianceBernstein; SSgA; Goldman Sachs; Iridian; Snyder; Provident; Pilgrim Baxter.
International equities: GMO; Franklin Templeton.
Domestic fixed income: J.P. Morgan Fleming; PIMCO; STW.
Real estate: Morgan Stanley.
DEFINED CONTRIBUTION MANAGERS:
Domestic equities: Fidelity; Vanguard; SSgA; Provident.
International equities: Franklin Templeton; T. Rowe Price; Capital Research.
Domestic fixed-income: SSgA; INVESCO; Dwight.
Eileen Leahy, assistant treasurer, and Michael Smithwick, manager, benefit finance, oversee the investment management of both plans.
The Goodyear Tire and Rubber Co.
(millions)
Total assets $4,462
Defined benefit $2,715
Defined contribution $1,747
DEFINED BENEFIT PLAN:
Employer DB contributions $172
Benefit payments $240
Asset mix:
Sponsoring company stock 2%
Other domestic stocks 39%
Domestic fixed income 29%
International stocks 20%
Cash equivalents 1%
Private equity 9%
DEFINED CONTRIBUTION PLAN:
Assets in:
Corporate 401(k) $1,747
Total DC contributions $158
Asset mix:
Sponsoring company stock 10%
Other stock 36%
Fixed income 2%
Stable value 46%
Other 6%
AKRON, Ohio — As of Sept. 30, The Goodyear Tire and Rubber Co.'s total employee benefit assets increased 7% from a year earlier. Defined benefit assets increased 4% during the same period; defined contribution assets increased 11%.
Employer contributions to the defined benefit plan increased 72%; benefits paid decreased 28%.
During the year, Goodyear suspended the match on its 401(k) plan.
DEFINED BENEFIT MANAGERS:
Domestic equities: Alliance Capital; DFA; Victory Capital; Nicholas-Applegate; PIMCO; RhumbLine; AllianceBernstein; Smith Breeden; SSgA; Northern Trust.
International equities: Baillie Gifford; Clay Finlay; Morgan Stanley.
Domestic fixed-income: J.P. Morgan; Loomis Sayles; Taplin Canida.
Real estate: Heitman.
Other: BIII; Canterbury; Chancellor; Compass; DLJ Merchant Banking; Forstmann Little; Hicks Muse; H&Q Asia Pacific; J.W. Childs; Latin America Capital; Warburg Pincus.
DEFINED CONTRIBUTION MANAGERS:
Domestic equities: Northern Trust; SSgA; American Century; Franklin.
International equities: Templeton.
Stable value: INVESCO.
The investment consultant for both plans is Wilshire.
Key personnel overseeing the investment management of both plans are Robert W. Tieken, executive vice president and chief financial officer; Stephanie Bergeron, senior vice president, corporate finance; and Darren R. Wells, vice president and treasurer.
