United Parcel Service Inc., Atlanta, expects to contribute a total of $287 million to its three pension plans through the end of this year, according to the company's second-quarter report. UPS contributed $3 million to the plans over the first six months of 2004. In its first-quarter report, the company projected it would contribute $284 million. The UPS pension plans had a total of $7.82 billion in assets as of Sept. 30, the most recent figure available.
The plans are currently fully funded, said Teresa Finley, vice president of investor relations. According to the company's most recent annual report, it contributed $1.1 billion to its pension plans in 2003 and anticipated $426 million in contributions for 2004. Ms. Finley said the change in outlook was mainly a result of new federal pension rules that increased the discount rate used to value pension plans and defers deficit reduction contributions.