General Dynamics Corp., Falls Church, Va., plans to contribute $185 million to its defined benefit plans in 2015, a transcript from Wednesday's quarterly earning call shows.
General Dynamics contributed $515 million to its pension funds in 2014. This year's contributions are lower as a result of the Highway and Transportation Funding Act of 2014, which allows companies to use a higher interest rate when calculating liabilities, thereby lowering their pension contributions, the transcript said.
As of Dec. 31, 2013, the company's defined benefit plans had $8.48 billion in assets and $11 billion in benefit obligations, for a funding ratio of 77%, according to its most recent 10-K filing.
Also as of Dec. 31, 2013, the plans had an asset allocation of 56% equities, 35% fixed income, 5.6% hedge funds, 1% each money market funds, commodity funds and insurance deposit agreements, and 0.4% real estate funds, according to the 10-K.
Separately, American Electric Power Co., Columbus, Ohio, announced in its quarterly earning call Wednesday that it will contribute $87 million to its pension funds in 2015, up from $71 million in 2014.
As of Dec. 31, 2013, the company's defined benefit plans had $4.71 billion in assets and $4.84 in benefit obligations for a funding ratio of 97%, according to its most recent 10-K filing.
Also as of Dec. 31, 2013, the plans had an asset allocation of 51% fixed income, 36% equities, 7% alternatives, 5% real estate and 1% securities lending, according to the 10-K.