Prudential Financial Inc., Newark, N.J., plans to contribute $125 million to its pension funds in 2015, said its 10-K filing Monday.
The contribution covers both U.S. and non-U.S. plans; the company's U.S. plans are significantly overfunded, while its non-U.S. plans have a funding ratio of about 41%.
As of Dec. 31, U.S. pension fund assets totaled about $12.4 billion, while the U.S. projected benefit obligations totaled about $10.9 billion, for a funding ratio of 113.8%, while non-U.S. plan assets totaled $651 million, and PBO totaled $1.6 billion, for a funding ratio of 40.7%, according to the 10-K filing.
As of Dec. 31, the global pension fund allocation was 69.5% fixed income, 8.8% hedge funds, 7.4% domestic equities, 6.1% real estate, 4.4% international equities, 3.5% partnerships and 0.3% short-term investments.
Separately, Xcel Energy Inc., Minneapolis, contributed $90 million to its U.S. defined benefit plans in January to meet minimum funding requirements, the company said in a 10-K filing Feb. 20.
The company made contributions of $131 million in 2014, $192 million in 2013 and $198 million in 2013. Future contributions “will be made as necessary,” the company said in the filing.
Xcel's U.S. pension plans had a combined $3.08 billion as of Dec. 31, up 2.5% from the previous year. The plans' combined funded status as of Dec. 31 was 79% vs. 86% a year earlier.
The plans' discount rate as of Dec. 31 was 4.11%, down 64 basis points from the end of 2013.
The expected long-term rate of return on its pension funds' investments is 7.09%, compared to 7.05% for 2014.
Xcel's target allocation for 2015 is 37% domestic and international equities, up from 30% in 2014; 27% long-duration fixed income and interest-rate swaps, vs. 33% last year; 21% alternative investments, vs. 20%; 13% short- to intermediate-term fixed income, compared to 15%; and 2% cash, unchanged from 2014.
