Cleveland-Cliffs Inc., Cleveland, plans to contribute $202 million to its global pension plans in 2021.
Of that total, $118 million had been deferred from 2020 as part of the provisions of the CARES Act, according to the company's 10-K filing Friday with the SEC. That contribution was completed on Jan. 4, according to the filing.
The amount of the contribution reflects the addition of the pension plans of AK Steel Corp., West Chester, Ohio, and ArcelorMittal USA LLC, Chicago. Cleveland-Cliffs completed the acquisitions of those firms in March and December, respectively.
The newly combined company contributed $50 million to the plans in 2020.
As of Dec. 31, pension plan assets totaled $5.332 billion, while projected benefit obligations totaled $6.565 billion, for a funding ratio of 81.2%
A year earlier, Cleveland-Cliffs' plan assets totaled $749 million, while the PBO totaled $1.021 billion, for a funding ratio of 73.4%. AK Steel's assets as of Dec. 31, 2019, totaled $1.34 billion, while its PBO totaled $1.688 billion, for a funding ratio of 79.4%, according to that company's final 10-K filing. ArcelorMittal USA's funding information as of that date was not available.
The combined company's discount rate as of Dec. 31 was 2.34%, down from the legacy company's discount rate of 3.27% a year earlier.
As of Dec. 31, the plans' actual allocation was 51.8% equities, 33.8% fixed income, 5% structured credit, 3.3% real estate, 2.2% hedge funds, 2.1% private equity and 1.8% absolute return fixed income.