FedEx Corp., Memphis, Tenn., expects to contribute $1 billion to its U.S. pension plans during the current fiscal year ending May 31, 2020, the shipping company disclosed Tuesday in its 10-K filing with the SEC.
The contribution is voluntary, according to the filing, since the company has no minimum required contributions for fiscal year 2020. FedEx did not provide information on whether it plans to make contributions to its non-U.S. plans.
In the fiscal year ended May 31, FedEx contributed $1 billion to the U.S. plans and $91 million to the non-U.S. plans.
As of May 31, assets of its U.S. pension plans totaled $23.32 billion, while the projected benefit obligations totaled $26.554 billion, for a funding ratio of 87.8%, down from 97.3% a year earlier.
The discount rate for the U.S. pension plans as of May 31 was 3.85%, down from 4.27% a year earlier.
As of May 31, the U.S. pension plans’ actual allocation was: 51.4% fixed income, 15.9% international equities, 11.1% domestic large-cap equities, 8% global equities, 7.1% alternative investments, 3.6% domestic smidcap equities and 2.9% cash and other.
Non-U.S. pension plan assets totaled $1.578 billion, while PBO totaled $2.301 billion, for a funding ratio of 68.6%, down from 69.6% a year earlier.
The discount rate for the non-U.S. pension plans as of May 31 was 1.92%, down from 2.37% a year earlier.
As of May 31, non-U.S. pension plans’ actual allocation was: 70.2% fixed income, 17.3% global equities, 11.1% international equities and 1.4% alternative investments.