Ford Motor Co., Dearborn, Mich., expects to contribute about $1 billion to its global pension plans in 2024.
The auto company disclosed its plans in its 10-K filing with the SEC on Feb. 7.
Ford contributed $756 million to its non-U.S. plans and $238 million to its U.S. plans in 2023, according to the filing. The new filing did not break down how the company plans to make contributions by region in 2024.
As of Dec. 31, Ford's U.S. pension plan assets totaled $31.423 billion, while projected benefit obligations totaled $32.676 billion, for a funding ratio of 96.2%, down from 100.2% a year earlier. Also as of that date, the discount rate for the U.S. plans was 5.17%, down from 5.51% the year before.
The U.S. pension plans' actual allocation as of Dec. 31 was 54% corporate bonds; 27% U.S. government fixed income; 10.2% hedge funds; 4.7% real estate; 4.3% private equity; 1.9% non-U.S. government fixed income; 1.3% each mortgage/other asset-backed securities and domestic equities; 0.8% international equities; 0.2% other commingled funds; 0.1% derivative financial interests; -2.4% other; and -3.4% cash, cash equivalents and repurchase agreements.
Also as of Dec. 31, Ford's non-U.S. pension plan assets totaled $22.958 billion, while the PBO totaled $24.004 billion, for a funding ratio of 95.6%, down from 98.8% the year before. Also as of that date, the discount rate for the non-U.S. plans was 3.98%, down from 4.42% a year earlier.
The non-U.S. pension plans' actual allocation as of Dec. 31 was 58.5% non-U.S. government fixed income; 14.3% other; 10.2% corporate bonds; 6.8% domestic equities; 4.7% each hedge funds and international equities; 2.7% private equity; 1.9% real estate; 1.3% mortgage/other asset-backed securities; 0.9% other commingled funds; 0.4% U.S. government fixed income; and -6.4% cash, cash equivalents and repurchase agreements.
Regarding the allocation to cash, cash equivalents and repurchase agreements, Ford in its 10-K filing said those are "primarily short-term investment funds to provide liquidity to plan investment managers, cash held to pay benefits, and repurchase agreements valued at $2.6 billion in U.S. plans and $2.1 billion in non-U.S. plans." Under the "other designations," the filing said, "For U.S. plans, amounts related to net pending security (purchases)/sales and net pending foreign currency purchases/(sales). For non-U.S plans, $2.5 billion of insurance contracts, primarily Ford-Werke, and amounts related to net pending security (purchases)/sales and net pending foreign currency purchases/(sales)."
