Verizon Communications Inc., New York, plans to contribute $700 million to its defined benefit plans in 2015, the minimum funding requirement, the company announced in an 8-K filing with the Securities and Exchange Commission on Thursday.
Verizon contributed $1.5 billion to the pension funds in 2014.
The company also announced in 2014 it recorded a $7 billion pre-tax expense to increase its pension liabilities, primarily due to the adoption of new mortality tables, changes in the discount rate and “other actuarial assumptions,” Michael T. Stefanski, senior vice president, investor relations, said in an earnings call Thursday.
As of Dec. 31, 2013, the company reported total defined benefit plan assets of $17.11 billion and projected benefit obligations of $23.03 billion, for a funding ratio of 74.3%, according to its most recent 10-K filing.
The aggregate asset allocation as of that same date, according to the 10-K, was 26% fixed income, 24.5% equities, 23% private equity,10.5% hedge funds, 10.4% real estate and 5.6% cash.
Raymond McConville, Verizon spokesman, did not return a phone call seeking further information by press time.