U.S. Bancorp, Minneapolis, expects to contribute $125 million to its U.S. qualified pension plan in 2020.
The company did not contribute to the plan in 2019 or 2018, the bank disclosed in a 10-K filing with the SEC on Feb. 20.
The company plans to contribute $25 million to its nonqualified pension plan in 2020, equal to the expected benefit payments.
As of Dec. 31, pension plan assets totaled $5.838 billion, while projected benefit obligations totaled $6.829 billion, for a funding ratio of 85.4%, down from 89.6% the year before. The discount rate for the plans fell to 3.4% as of Dec. 31 from 4.45% a year earlier.
As of Dec. 31, the actual allocation of the plans was: 36.1% fixed income; 28.3% domestic equities; 12.9% international equities; 9.4% real estate securities; 5.2% private equity; 4.8% hedge funds; 2.3% emerging markets equities; and 1% cash and cash equivalents.