Altria Group contributed $500 million to its global defined benefit pension plans last month and expects to add up to $50 million more by the end of the year, while PPG Industries will contribute as much as $150 million to its DB plans in 2012, according to 10-K filings.
Richmond, Va.-based Altria made contributions of $240 million to its global defined benefit pension plans in 2011.
As of Dec. 31, Altria had $5.3 billion in DB assets, with a funding ratio of 75.7%. The discount rate used to determine Altria’s benefit obligations was 5%, down from 5.5% in 2010.
The asset allocation for the tobacco company’s global DB plans was 53% equities; 23% corporate bonds; 17% U.S. Treasuries and foreign government securities; and 7% other.
Pittsburgh-based PPG expects to make voluntary contributions up to $60 million to its U.S. DB plans and mandatory contributions of about $90 million to its non-U.S. plans in 2012.
The glass and coatings company contributed $50 million to its U.S. DB plans last year and $71 million to its non-U.S. plans.
As of Dec. 31, assets for PPG’s global defined benefit pension plans totaled $4.4 billion, with a funding ratio of 82.2%. The discount rate used to calculate benefit obligations was 4.6% in 2011, down from 5.3% a year earlier.
The asset allocation for the company’s global DB pension plans was 61.3% fixed income; 30.5% equities; and 8.2% real estate, hedge funds and other.
