UPS to deliver $1.1 billion to global pension plans in 2020

United Parcel Service Inc., Atlanta, plans to contribute $1 billion to its U.S. pension plans in 2020, the company disclosed Thursday in a 10-K filing with the SEC.

The shipper also plans to contribute $62 million to its non-U.S. pension plans during the year. In 2019, UPS contributed $2 billion to the U.S. plans and $67 million to its non-U.S. plans.

As of Dec. 31, the company's U.S. pension plan assets totaled $46.172 billion, while projected benefit obligations totaled $54.039 billion, for a funding ratio of 85.4%, down from 87.2% the year before. The discount rate for the U.S. plans as of that date was 3.6%, down from 4.5% the year before.

The actual allocation of the U.S. plans as of Dec. 31 was: 41.5% fixed income; 36% equities; 7.1% hedge funds; 6.6% private equity; 4.2% real estate; 2.1% cash and cash equivalents; 1.7% private debt; 0.5% risk parity; and 0.3% mortgage- and asset-backed securities.

As of that same date, UPS' non-U.S. pension plan assets totaled $1.558 billion, while the PBO totaled $1.906 billion, for a funding ratio of 81.7%, down from 82.7% the year before. The discount rate for the non-U.S. plans as of Dec. 31 was 2.21%, down from 2.94% a year earlier.

As of Dec. 31, the actual allocation of the non-U.S. plans was: 46.8% equities; 24.5% fixed income; 15.9% other; 8.2% real estate; and 4.6% cash and cash equivalents.