PPL Corp., Allentown, Pa., and its subsidiaries expect to contribute a total of $347 million to its U.S. defined benefit plans, according to its latest 10-K filed Feb. 14.
PPL subsidiary Western Power Distribution expects to contribute roughly $273 million in 2020. PPL contributed $52 million to its U.S. defined benefit plans last month, while subsidiary LG&E & KU Energy LLC contributed $22 million to its plan in January.
PPL and LKE do not expect to make additional U.S. contributions this year.
PPL contributed $63 million to its U.S. pension plans in 2019 and $153 million in 2018. Meanwhile, it contributed $278 million to its U.K. plans in 2019 and $188 million in 2018.
PPL had $3.59 billion in U.S. plan assets as of Dec. 31 and benefit obligations of $4.15 billion, for a funding ratio of 86.5%, up from 80.2% a year earlier. Meanwhile, the company had $8.95 billion in U.K. plan assets as of Dec. 31 and benefit obligations of $8.52 billion, for a funding ratio of 105%, down from 107.1% the previous year.
The discount rate for PPL's U.S. plans as of Dec. 31 was 3.64%, down from 4.35% the year before. Its discount rate for its U.K. plans was 1.94%, down from 2.98% the year prior.
The company's target allocation for its U.S. pension plans as of Dec. 31 was 50% fixed income, 45% equities, and 5% cash and cash equivalents. Its target asset allocation for its U.K. plans was 41% global tactical asset allocation, 38% fixed income, 9% global equities, 6% alternatives, 2% U.K. equities, and 1% each European ex-U.K. equities, Asia-Pacific equities, North American equities and emerging markets equities.
