Prudential Financial Inc., Newark, N.J., anticipates making cash contributions of approximately $150 million to its pension plans this year, the company revealed in a recent 10-K statement filed with the Securities and Exchange Commission. Prudential contributed $187 million to the pension plans last year.
The pension plans had $12.86 billion in assets as of Dec. 31, 2016, according to the 10-K statement. The benefit obligation at year-end 2016 was $12.92 billion for a funding ratio of 99.5%, down from 102.6% the year before.
Foreign pension plans represented 5% of plan assets and 14% of pension obligations for 2016, the 10-K statement said.
The total pension plans’ asset allocation at year-end 2016 was 68% fixed maturities, 16% other, 8% real estate, and 4% each U.S. equities and international equities.The discount rate used for measuring U.S. pension obligations was 4.15% last year vs. 4.5% in 2015.