Ford Motor Co., Dearborn, Mich., plans to contribute $600 million to $800 million to its non-U.S. defined benefit plans in 2021, the company disclosed in a 10-K filing with the Securities and Exchange Commission.
Ford does not expect to contribute to its major U.S. pension plans in 2021, the company said in its Feb. 5 filing.
In 2020, Ford contributed $744 million to its non-U.S. plans and $186 million to its U.S. plans, down from the 2019 contributions of $789 million and $284 million, respectively.
As of Dec. 31, U.S. plan assets totaled $48.4 billion, while projected benefit obligations totaled $49 billion, for a funding ratio of 98.8%. Non-U.S. plan assets as of that same date totaled $33.8 billion, while projected benefit obligations totaled $39.8 billion, for a funding ratio of 84.9%. The discount rate used to determine benefit obligations in the U.S. plans dropped to 2.6% in 2020 from 3.3% the previous year, while the non-U.S. plans' discount rate fell to 1.2% from 1.7%.
As of Dec. 31, the actual allocation of the U.S. defined benefit plans was 55.8% corporate fixed income, 23.6% U.S. government fixed income, 6.8% hedge funds, 4.5% domestic equities, 3.3% private equity, 2.9% international equities, 2.5% international government fixed income, 2.5% real estate, 1% mortgage and other asset-backed securities, -2.5% other, -1.2% in cash and cash equivalents, and the rest in other assets.
Also as of Dec. 31, the actual allocation of the non-U.S. defined benefit plans was 60.4% non-U.S. government fixed income, 16.6% other, 10% corporate fixed income, 5.9% domestic equities, 4.7% international equities, 3.8% hedge funds, 2% private equity, 1.4% mortgage and other asset-backed securities, 0.8% real estate, -6.8% cash and cash equivalents, and the rest in various commingled funds.
