Allstate sees $161 million contribution this year

Allstate Insurance Co., Northbrook, Ill., expects to contribute $161 million to its pension plans this year, according to its 10-K report, filed today with the SEC. The company also estimates its 2004 net pension expense will be $291 million, compared with $298 million on Dec. 31, and $126 million at the end of 2002; this cost increased "principally due to unfavorable returns on plan assets and decreases in the weighted average discount rate assumption," the filing said. Allstate lowered its discount rate to 7% in 2003, from 7.25% in 2002, and lowered its expected long-term rate of return on plans assets to 8.5% in 2003, from 9.5% in 2002, according to the report. Allstate, which has a defined benefit plan and a cash balance plan, launched in mid-2003, had total pension assets of $3.4 billion and total plan liabilities of $4.3 billion on Dec. 31, according to the filing.