Howmet Aerospace to deposit $140 million into pension plans in 2021

Howmet Aerospace Inc., Pittsburgh, expects to contribute $140 million to is defined benefit plans, $130 million of which will be for its U.S. plans.

The aerospace company contributed $227 million to its plans in 2020, according to its 10-K form filed Tuesday with the SEC.

As of Dec. 31, total DB plan assets totaled $1.724 billion, while projected benefit obligations totaled $2.713 billion, for a funding ratio of 63.5%, down from 67.2% the year before.

U.S. plan assets totaled $1.361 billion, while projected benefit obligations totaled $2.327 billion for a funding ratio of 58.5%, down from 59.7% the year before. Its non-U.S. pension assets totaled $363 million, while projected benefit obligations totaled $386 million, resulting in a funding ratio of 94%, down from 99.3% from the year before.

The discount rate was 2.4% as of Dec. 31, down from 3% a year earlier.

As of Dec. 31, the actual allocation of total DB plan assets was 55.8% fixed income, 33.1% equities, and the rest in other investments.

In 2020, $2.982 billion in DB plan assets were transferred to Arconic Corp., Pittsburgh, which was formed April 1 after Arconic Inc. split into two companies, the other being Howmet Aerospace.