Navistar International Corp., Lisle, Ill., plans to defer $162 million in contributions to its pension plans to 2021 under provisions of the CARES Act.
The company said the deferment is part of a series of temporary cost reduction measures to "further preserve financial flexibility," it disclosed in an April 13 8-K filing with the SEC.
The company originally announced in its 10-K filing in December it planned to contribute about $190 million to its pension plans in the fiscal year ending Oct. 31, 2020. Navistar already contributed $30 million to its plans in the quarter ended Jan. 31, spokeswoman Bre Whalen said in an email.
The Coronavirus Aid, Relief and Economic Security Act, signed by President Donald J. Trump on March 27, provides companies the option of a one-year holiday from making 2020 pension contributions.
As of Oct. 31, Navistar's pension plan assets totaled $2.013 billion, while projected benefit obligations totaled $3.347 billion, for a funding ratio of 60.1%, down from 64.7% a year earlier.
As of Oct. 31, the actual allocation of the pension plans was: 37.2% fixed income; 14.6% international equities; 14.5% U.S. equities; 11.3% global equities; 9.6% hedge funds of funds; 7.6% real estate; 2.4% private credit; 1.7% insurance-linked securities; and 1.1% private equity.
