Marsh & McLennan to contribute $160 million to pension plans in 2020

Marsh & McLennan Cos., New York, plans to contribute about $160 million to its global defined benefit plans in 2020, the company said in its 10-K filed with the SEC on Thursday.

This includes roughly $76 million to its U.S. plans and $84 million to its non-U.S. pension plans.

In 2019, Marsh & McLennan contributed $35 million to its U.S. pension plans and $87 million to its non-U.S. plans. In 2019, the discount rate for U.S. DB plans was 3.44%, down from 4.45% the year before, and the rate for non-U.S. plans was 2.09%, down from 2.89% the previous year.

As of Dec. 31, the company's U.S. DB plans had $4.7 billion in assets and projected benefit obligations of $6.3 billion, for a funding ratio of 74.6%, up 73.5% a year earlier. Meanwhile, non-U.S. pension plan assets totaled $12.3 billion as of Dec. 31, while projected benefit obligations totaled $11.3 billion, for a funding ratio of 108.8%, down from 114.9% the previous year.

The target asset allocation for the U.S. plans is 64% equities and equity alternatives, and 36% fixed income. Although the company did not the disclose total asset allocation of all non-U.S. plans, the target asset allocation for the U.K. plans, which make up about 81% of non-U.S. plan assets, is 34% equities and equity alternatives, and 66% fixed income.