Exelon Corp., Chicago, plans to make a $250 million discretionary contribution to its U.S. pension plans this year, confirmed senior vice president and chief investment officer Douglas Brown.
Exelon also will make similar discretionary contributions in the future as part of a level funding plan, Mr. Brown said in a telephone interview. The company contributed $160 million in 2012 following a $2.1 billion contribution in January 2011 as it was building up its liability-driven investing portfolio.
Separately, Mr. Brown confirmed Exelon paid out $260 million in pension assets to terminated vested salaried employees that accepted a lump-sum buyout offer. Exelon offered the lump-sum payment to about 7,500 former employees in October and November and made the payout in mid-December. Mr. Brown said just over half of participants accepted the offer, in line with the company's expectations.
Exelon's gross pension liability was reduced by $425 million as a result of the lump-sum payments, resulting in a $165 million funded status improvement at year-end.
The pension plans had a total of $13.55 billion in assets as of Sept. 30, according to Pensions & Investments data. The plans were 78% funded as of Sept. 30.