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Pension Funds

Chevron to pump $900 million into pension plans in 2019

Chevron Corp., San Ramon, Calif., expects to contribute about $900 million to its global pension plans in 2019, the oil company disclosed Friday in a 10-K filing with the SEC.

By region, Chevron plans to contribute about $700 million to its U.S. pension plans and $200 million to its non-U.S. pension plans, the filing said. In 2018, the company contributed $803 million and $232 million, respectively, to its U.S. and non-U.S. pension plans.

As of Dec. 31, U.S. pension plan assets totaled $8.5 billion, while projected benefit obligations totaled $11.7 billion, for a funding ratio of 72.8%, down from 73.3% a year earlier. Non-U.S. pension plan assets totaled $4.1 billion, while projected benefit obligations totaled $4.8 billion, for a funding ratio of 85.9%, up from 86% a year earlier. The discount rate for the U.S. plans in 2018 was 4.2%, up from 3.5% the previous year; for non-U.S. plans, it was 4.4%, up from 3.9% in 2017.

As of Dec. 31, the actual allocation for U.S. pension plans was: 42.6% equities, 30.5% fixed income, 12.5% real estate, 11% alternative investments, 2.5% cash and cash equivalents and 0.9% other. The actual allocation for non-U.S. pension plans was: 52.9% fixed income, 28.8% equities, 9.1% real estate, 6.9% cash and cash equivalents and 2.3% other.