Cummins Inc., Columbus, Ind., plans to contribute $175 million to its U.S. and U.K defined benefit plans in 2015, the company said in its fourth-quarter earnings statement issued Thursday.
The company has $2.45 billion in its U.S. pension fund and $1.52 billion in its U.K. pension fund, both as of Dec. 31, 2013, according to the company's latest annual report.
Contributions to the plans in 2014 totaled $205 million, the company said in an earnings conference call; $169 million was contributed in 2013, the annual report said.
As of year-end 2013, the U.S. pension fund was 121% funded, while the U.K. pension fund was 106% funded.
The U.S. pension fund's asset allocation as of Dec. 31, 2013, was 64% fixed income, 10% global equities, 9% U.S. equities, 7% each private equity and real estate, and 3% international equity, according to the annual report.
The U.K. pension fund's allocation as of the same date was 45% fixed income, 30.5% global equities, 7.5% each private equity and real estate, 4.5% credit and the remainder in other investments.
Cummins also has two 401(k) plans, a $2.1 billion plan for non-union employees and a $281 million plan for unionized workers.