Principal Financial Group Inc., Des Moines, Iowa, might contribute between $125 million and $175 million to its defined benefit pension plans in 2014.
The company, in its 10-K filing to the Securities and Exchange Commission on Wednesday, said while minimum funding requirements do not require contributions “it is possible that we may fund the plans in 2014 in the range of $125 (million)-$175 million.”
“We work with our pension clients to help them have a thorough understanding of their pension costs and contribute to ensure an appropriate funding status for their business,” said Terry Lillis, Principal’s chief financial officer, in a statement. “Likewise, at the Principal, we believe it is a prudent practice to make contributions to ensure an appropriate funded status for the pension plans we make available to our employees.”
As of Dec. 31, the defined benefit pension funds had $1.926 billion in assets compared to $2.44 billion in projected benefit obligations, for a funding ratio of 78.9%.
The company contributed $123 million to the pension funds in 2013 and reported an actual return on plan assets of $199.8 million.
The actual asset allocation of the plans as of Dec. 31 was 54.5% fixed income, 21.6% domestic large-cap equities, 8.8% international equities, 5.3% domestic smidcap equities, 5% balanced portfolios and 4.8% real estate.