PG&E Corp., San Francisco, expects to contribute about $327 million to its defined benefit plan this year, the company said in its 10-K filing. The firm contributed $332 million in 2014.
Total DB assets as of Dec. 31 were $14.2 billion, up 13.5% from a year earlier. The funding ratio fell to 85.1% from 89% in 2013 as the discount rate used to measure pension obligations fell 89 basis points to 4% in 2014. The expected rate of return dropped to 6.2% from 6.5% a year earlier.
The pension fund's asset allocation as of Dec. 31 was 59.4% fixed income, 22.8% global equities, 9.1% real assets, 4.6% cash and 4.1% hedge funds.
Also Wednesday, Owens-Illinois Inc., Perrysburg, Ohio, said in its annual report that it will make required contributions of $20 million in 2015. The company's U.S. DB assets totaled $2.2 billion as of Dec. 31, with a funding ratio of 90.2%. The asset allocation was 49.6% equities, 44.4% fixed income, 3% real estate, and 3% cash and other.
Separately, Woonsocket, R.I.-based CVS Health Corp. said in its annual report it expects to contribute about $36 million to its DB plans in 2015. As of Dec. 31, the company had plan assets of $568 million. The firm said its investment strategy is “liability management driven” and target allocations are 70% to 85% fixed income and 15% to 30% in equities.
