Dow Inc., Midland, Mich., plans to contribute about $300 million to its global defined benefit plans in 2021.
The company disclosed the expected contribution in its 10-K filing with the SEC on Friday. Dow contributed $299 million to the global pension plans in 2020.
Dow did not disclose how the contribution will be distributed by region. The company has 35 global DB plans, the filing noted.
As of Dec. 31, global DB plan assets totaled $26.4 billion, while projected benefit obligations totaled $35.3 billion, for a funding ratio of 74.8%, down from 76.3% a year earlier.
The discount rate for the global DB plans was 2.2% as of Dec. 31, down from 2.81% a year earlier. For U.S. plans only, the discount rate was 2.71%, down from 3.41%. The 10-K filing did not break out the non-U.S. plan discount rate.
Also as of Dec. 31, the actual allocation of the global DB plans was 34.2% fixed income, 19.6% international equities, 14.8% domestic equities, 11.9% private markets, 7.3% real estate, 5.1% hedge funds, 4.9% cash and cash equivalents, 1.8% other investments and 0.4% derivatives.
