Olin Corp., Clayton, Mo., will contribute $100 million to its pension plan in the second quarter, according to its first-quarter earnings statement. Plan assets totaled $1.416 billion as of Dec. 31, according to the companys 2006 annual report.
John E. Fischer, vice president and CFO, said during the firms April 27 earnings conference call that investment policies of the plan will be adjusted to insulate the plan from future discount-rate risks. He added that reductions in the discount rate since 2001 have increased the companys pension liability by about $200 million. Based on the combination of the intended contribution and the investment policy change, we believe it is likely that we will be able to meet the full funding requirement of the 2006 Pension Protection Act without additional contributions, he said.
Larry Kromidas, Olin's assistant treasurer and director of investor relations, said he was unable to provide more information about changes to pension investments, citing SEC Reg FD restrictions.