Frontier Communications Corp., Norwalk, Conn., plans to postpone U.S. pension contributions totaling $153 million under the provisions of the CARES Act.
The telecommunications company contributed $37 million to its plans in the first quarter out of the $190 million in previously required contributions for 2020, the company disclosed Wednesday in a 10-Q filing with the SEC.
The remaining contributions will be made "until on or prior to Jan. 1, 2021, as permitted by the CARES Act."
The Coronavirus Aid, Relief and Economic Security Act, signed by President Donald Trump on March 27, provides companies the option of a one-year holiday from making 2020 pension contributions, with interest accrued, until Jan. 1, 2021.
Frontier Communications contributed $166 million to its pension plans in 2019.
As of Dec. 31, pension plan assets, all in the U.S., totaled $2.73 billion, while projected benefit obligations totaled $3.726 billion, for a funding ratio of 73.3%, down from 74% a year earlier, according to the company's February 10-K filing. The discount rate fell to 3.4% as of Dec. 31 from 4.3% a year earlier.
Also as of Dec. 31, the plan's actual allocation was: 49% equities, 39% fixed income and 12% alternative investments.