Allstate, NiSource plan pension contribution for 2015

Allstate Corp., Northbrook, Ill., is expected to contribute $127 million total to its U.S. and Canadian pension funds in 2015, spokeswoman Maryellen Thielen said.

The company contributed $49 million and $561 million to the pension funds in 2014 and 2013, respectively, said the company's 10-K, filed Thursday.

Allstate's pension funds ended 2014 with $5.78 billion in assets and $6.49 billion in liabilities for a funding ratio of 89%.

The discount rate used to measure benefit obligations was 4.1%, down from 5% a year earlier.

The asset allocation as of Dec. 31 was 50% fixed income; 41% equity; 7% limited partnership interests, which is composed of real estate, private equity and hedge funds; and 2% short-term investments and other.

Separately, NiSource Inc., Merrillville, Ind., plans to contribute $3.5 million to its defined benefit plan this year, the company reported in its 10-K filing Wednesday.

The company contributed $56 million to its pension fund in 2014. As of Dec. 31, its $2.33 billion pension plan was underfunded by $421 million, for a funded status of 85%.

The pension fund's asset policy ranges are 25% to 45% U.S. equities; 23% to 37% fixed income; 15% to 25% international equities; a total of up to 15% in private equity, hedge funds or real estate; and up to 10% in short-term investments and cash.

NiSource uses a liability-driven investment strategy and the pension fund will increase its allocation to fixed income once its funded status surpasses 90%, the filing said.