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Pension Funds

3M to stick up to $200 million into pension plans in 2019

3M Co., St. Paul, Minn., expects to contribute between $100 million and $200 million to its global defined benefit plans in 2019, the company disclosed in a 10-K filing with the SEC on Friday.

In 2018, 3M contributed $254 million to its U.S. pension plans and $112 million to its non-U.S. pension plans.

3M did not break the expected 2019 contributions down by region. It said in the filing that it "does not have a required minimum cash pension contribution obligation for its U.S. plans in 2019" and that "future contributions will depend on market conditions, interest rates and other factors."

3M has more than 70 defined benefit plans in 26 countries, the company noted in the filing.

As of Dec. 31, U.S. pension plan assets totaled $14.8 billion, while projected benefit obligations totaled $15.95 billion, for a funding ratio of 92.8%, up from 90.4% the year before. As of that same date, non-U.S. pension plan assets totaled $6.17 billion, while projected benefit obligations totaled $6.965 billion, for a funding ratio of 88.6%, down from 89.8% the year before.

The discount rate for the U.S. pension plans as of Dec. 31 was 4.36%, up from 3.68% the prior year, and the non-U.S. plans' discount rate was 2.5%, up from 2.41%.

As of Dec. 31, the actual allocation of the U.S. pension plans was 41.5% fixed income, 19.8% equities, 16.2% absolute return, 14% private equity, and 8.5% cash and cash equivalents. As of that same date, the actual allocation for the non-U.S. pension plans was 51.1% fixed income, 32.4% equities, 11.6% absolute return, 3.4% private equity, and 1.5% cash and cash equivalents.