US - American Electric Power (AEP) has made a US$320m cash contribution to fully fund its pension liabilities, achieving a goal it set at the start of 2005.
In January 2005 the Ohio-based company announced that it had made a voluntary $200m contribution to the pension fund and said it intended to fully fund its program by the end of the year by making quarterly contributions of $100m. The $320m cash injection was made on Dec 29 2005.
A spokesman for AEP said: “They estimated at that time (January 2005) that paying $100m a quarter, so approximately $400m, would fully fund it. But we actually ended up putting in $626m.”
Michael Morris, AEP´s chairman, president and chief executive officer, said: As lawmakers debate how to address growing pension insurance liabilities, we are very pleased to have achieved our goal of fully funding our pension program.
“We weren´t required to make additional investments into our pension plans, but we believed it was very important to invest in the future financial well being of our employees, retirees and their dependants.
Fully funding our plans will also enhance our balance sheet and reduce our tax liabilities.
AEP’s retirement trust currently holds more than $4.1bn in assets, covering pension obligations for more than 40,000 individuals.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.