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Pension Funds

Eaton preps $112 million in pension contributions for 2018

Eaton Corp. PLC, Dublin, plans to contribute $112 million to its global defined benefit plans in 2018, the company disclosed in a 10-K filing Wednesday.

The company said in the filing with the Securities and Exchange Commission that it plans to contribute $96 million to its non-U.S. DB plans and $16 million to its U.S. plans. In 2017, Eaton contributed $374 million to its U.S. plans and $99 million to its non-U.S. plans.

For the company's U.S. DB plans, the discount rate for 2017 was 3.64%, down from 4.12% the previous year, while the discount rate for the non-U.S. plans was 2.62%, down from 2.63% the previous year.

As of Dec. 31, U.S. DB plan assets totaled $3.585 billion, while projected benefit obligations totaled $3.961 billion, for a funding ratio of 90.5%, up from 78.7% the previous year. Non-U.S. DB plan assets as of that same date totaled $1.727 billion, while PBO totaled $2.399 billion, for a funding ratio of 72%, up from 63.9% the year before.

The target allocation for the U.S. DB plans is 31% fixed income; 28% each domestic equities and international equities; 9% real estate; and 4% other, which includes hedge funds, private equity and cash equivalents. The U.K. DB plans' target allocation is 61% equities and 39% fixed income, real estate and cash equivalents. The target allocation for Canadian plans was not provided.