Alcoa to hold off on U.S. pension contribution

Alcoa Corp., Pittsburgh, will defer $220 million in U.S. pension plan contributions under the provisions of the CARES Act.

The aluminum producer said the deferment is part of a series of new actions to "effectively manage cash during the economic downcycle caused by the pandemic," according to an 8-K filing Wednesday with the SEC.

The Coronavirus Aid, Relief and Economic Security Act, signed by President Donald J. Trump on March 27, provides companies the option of a one-year holiday from making 2020 pension contributions.

The company originally disclosed in its Feb. 21 10-K filing with the SEC it planned to make $250 million in minimum required contributions to its U.S. pension plans this year. It could not be immediately learned whether Alcoa already has contributed $30 million to its plans so far this year.

As of Dec. 31, U.S. pension plan assets totaled $3.429 billion, while projected benefit obligations totaled $4.532 billion, for a funding ratio of 75.7%, up from 74.4% a year earlier.

Alcoa spokesman Jim Beck could not be immediately reached for further information.