Marsh & McLennan defers $47 million in pension contributions

Marsh & McLennan Cos., New York, plans to defer $47 million in previously announced U.S. pension contributions until Jan. 1 under provisions of the CARES Act.

The insurer contributed a total of $27 million to its U.S. and non-U.S. plans in the three months ended March 31, the company disclosed in its May 1 10-Q filing with the SEC. The company did not provide further information on how the contributions were split by region.

The company plans to contribute $21 million and $66 million to the U.S. and non-U.S. plans, respectively, during the remainder of 2020.

Marsh & McLennan originally announced in its February 10-K filing it planned to contribute a respective $76 million and $84 million to its U.S. and non-U.S. plans in 2020.

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.

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.