Pfizer to inject $1.64 billion into pension plans in 2020

Pfizer Inc., New York, plans to contribute $1.64 billion to its global pension plans in 2020.

By region and type of plan, the pharmaceutical company plans to contribute $1.276 billion to its U.S. qualified plans, $189 million to its U.S. non-qualified plans and $172 million to its non-U.S. plans, it disclosed in its new 10-K filing with the SEC on Thursday.

Pfizer contributed $230 million to the non-U.S. plans, $144 million to the U.S. non-qualified plans, and $11 million to the U.S. qualified plans in 2019.

As of Dec. 31, U.S. qualified pension plan assets totaled $14.59 billion, while projected benefit obligations totaled $16.54 billion, for a funding ratio of 88.2%, up from 86.2% a year earlier.

The discount rate for the U.S. plans fell to 3.3% as of Dec. 31 from 4.4% the year before.

As of that same date, the actual allocation of the U.S. plans was 48.7% fixed income, 31.8% equities, 17% other investments, and 2.5% cash and cash equivalents.

As of Dec. 31, non-U.S. pension plan assets totaled $8.96 billion, while PBO totaled $11.06 billion, for a funding ratio of 81%, down from 82.5% the year before.

The non-U.S. plans' discount rate fell to 1.7% as of Dec. 31 from 2.5% a year earlier.

The actual allocation of the non-U.S. plans as of that same date was 46.9% fixed income, 29.2% other investments, 21.5% equities, and 2.4% cash and cash equivalents.