Two Akron, Ohio-based companies announced upcoming pension fund contributions in their 10-K filings Tuesday.
FirstEnergy Corp. expects to contribute $143 million to its pension fund in 2015.
This follows a contribution of $15 million in 2014. Assets fell 5.6% during the year, while projected benefit obligations jumped 11.9%.
As of Dec. 31, plan assets totaled $5.824 billion and projected benefit obligations totaled $9.249 billion, for a funding ratio of 63%. The previous year, assets and PBO totaled $6.171 billion and $8.263 billion, respectively, for a funding ratio of 74.7%.
The increase in PBO was attributed to a fall in the discount rate to 4.25% from 5%, as well as changes in the mortality tables the pension fund used in accordance with new Society of Actuaries tables.
As of Dec. 31, the pension fund's asset allocation was 36% equities, 33% fixed income, 14% absolute return strategies, 9% cash and short-term securities, 7% real estate and 1% derivatives.
Separately, Goodyear Tire & Rubber Co., said in its 10-K filing it plans to contribute $50 million to $75 million to its non-U.S. pension funds.
The company did not announce U.S. pension fund contribution expectations. In 2014, Goodyear contributed $1.167 billion to the U.S. plans and also froze its U.S. hourly plan on April 30. The company contributed $118 million to the non-U.S. plans in 2014.
As of Dec. 31, Goodyear's total U.S. plan assets were $6.25 billion and projected benefit obligations totaled $6.507 billion, for a funding ratio of 96.1%. Non-U.S. plan assets totaled $2.721 billion, while PBO totaled $3.178 billion, for a funding ratio of 85.6%.
As of Dec. 31, Goodyear's U.S. pension fund allocation was 90% fixed income, 6% equities, and 4% cash and short-term securities, and the non-U.S. plan allocation was 73% fixed income, 15% equities, 11% alternatives and 1% cash and short-term securities.
Keith Price, Goodyear spokesman, said regarding potential future derisking or risk transfer moves for the U.S. pension fund, that company officials “have not announced anything like that yet.”
