Alcoa Inc., Pittsburgh, expects to make a total of $625 million in contributions to their global pension funds in 2014, of which $435 million is for their U.S. plans.
This is a 35% increase from the cash contribution of $462 million Alcoa made to the global plans in 2013, according to a 10-K the firm filed Thursday.
The fair value of Alcoa’s defined benefit pension assets totaled $10.58 billion as of Dec. 31. The asset allocation was 41% fixed income, 37% equities and 22% other.
In the U.S., employees may contribute a portion of their compensation to one of the defined contribution plans the firm sponsors. Alcoa has historically matched a portion of these contributions, mostly in company stock. Effective Jan. 1, however, Alcoa’s match now equals the employee’s investment elections instead of company stock.