Dow Chemical Co., Midland, Mich., expects to contribute $750 million to its worldwide defined benefit plans in 2015, according to its 10-K released Friday. The company contributed $815 million to its pension funds in 2014.
Worldwide pension assets rose 4.3% in 2014 to $19.6 billion, but the funding ratio dropped to 70.2%, from 75.2% a year earlier, as the discount rate used to determine liabilities dropped 94 basis points to 3.6%.
The discount rate used to determine U.S. liabilities dropped 88 basis points to 4%.
The asset allocation of the firm’s worldwide DB assets as of Dec. 31 was 40.4% equities, 33.1% fixed income, 8.6% real estate, 6.3% hedge funds, 5.4% private equity, 5.2% cash and 1% other.
Separately, Ingersoll-Rand Co., Davidson, N.C., said in its 10-K that it expects to contribute $59.9 million to its worldwide pension funds in 2015. The company contributed $116.5 million in 2014.
Total DB assets rose 8.6% to $3 billion in 2014, while the funding ratio slipped to 81.2% from 83.4%.
The asset allocation as of Dec. 31 was 68.5% fixed income, 27.9% equities, 2.1% other, 1% cash and 0.5% real estate.
