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GM expects to contribute $849 million to pension funds in ’14

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By Rob Kozlowski, Crain News Service

DETROIT (Feb 10, 2014) — General Motors Co. said it plans to contribute $100 million to its frozen U.S. defined benefit pension plans and $749 million to its non-U.S. defined benefit pension plans in 2014.

The planned contributions come on the heels of 2013 contributions of $128 million to the U.S. plans and $886 million to the non-U.S. plans, according to the auto maker's 10-K filing with the Securities and Exchange Commission.

The company also announced in the annual report filing that it completed an investment policy study for the U.S. pension funds. As a result, the U.S. plans' target to fixed income was reduced to 58 percent from 60 percent and its target to private equity, real estate, hedge funds and other investments jumped to 23 percent from 21 percent.

GM spokesman Tom Henderson said the company would not break out the targets beyond what is disclosed in the annual report.

As of Dec. 31, U.S. pension fund assets totaled $64.17 billion, compared to $71.48 billion in projected benefit obligations, for a funding ratio of 89.8 percent. The previous year, the U.S. plans' funding ratio was 82.9 percent.

Non-U.S. plans as of Dec. 31 had assets totaling $14.97 billion and PBO totaling $27.53 billion, for a funding ratio of 54.4 percent. The previous year, the non-U.S. plans' funding ratio was 53 percent.

This report appeared in Crain's Pensions & Investments magazine, a New York-based sister publication of Tire Business.

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