Chevron Corp., San Ramon, Calif., expects to contribute about $750 million to its U.S. pension plans in 2024.
The oil company disclosed its plans in its Feb. 26 10-K filing with the SEC.
Chevron previously contributed more than $1 billion to the U.S. plans in 2023. For 2024, the company said additional contributions might be necessary this year "if investment returns are insufficient to offset increases in plan obligations."
While the company's contributions exceeded $1 billion last year, the smaller estimate for this year is likely due to an improved funding ratio. As of Dec. 31, the company's U.S. pension plan assets totaled $9.137 billion, while projected benefit obligations totaled $10.392 billion, for a funding ratio of 87.9%, up from 81.8% a year earlier.
Also as of Dec. 31, the actual allocation of Chevron's U.S. pension plans was 44.7% equities, 36.6% fixed income, 11.9% real estate, 6% cash and cash equivalents, and 0.8% other. Chevron's investment committee has established target ranges of 35% to 65% equities, 25% to 45% fixed income, 5% to 25% real estate, zero to 15% cash and zero to 5% alternative investments.
The U.S. plans' discount rate was 5% as of Dec. 31 down from 5.2% a year earlier.
