Merck & Co. Inc., Kenilworth, N.J., plans to contribute about $250 million to its global defined benefit plans in 2020, the company disclosed Wednesday in a 10-K filing.
Merck plans to contribute about $100 million to its U.S. plans and $150 million to its non-U.S. plans. Merck contributed $130 million and $262 million to its U.S. and non-U.S. plans, respectively, in 2019, according to the regulatory filing.
As of Dec. 31, U.S. DB plan assets totaled $11.361 billion, while projected benefit obligations totaled $13.003 billion, for a funding ratio of 87.4%, down from 90.8% the previous year. Non-U.S. DB plan assets as of that same date totaled $10.163 billion, while projected benefit obligations totaled $10.612 billion, for a funding ratio of 95.8%, up from 94.5% the previous year.
The discount rate for U.S. pension and other postretirement benefit plans in 2019 was 3.4%, down from 4.4% in 2018. The international pension plan discount rate for 2019 was 1.5%, up from 2.2% a year earlier.
The target allocation ranges of Merck's U.S. DB and other postretirement benefit plans are 30% to 45% domestic equities, 15% to 30% international equities, 35% to 45% fixed income, and up to 5% cash and other investments.
