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UPS to deliver $1.2 billion to U.S. pension plans in 2025
United Parcel Service Inc., Atlanta, plans to contribute $1.2 billion to its U.S. pension plans in 2025.
The shipping company disclosed its plans in its Feb. 18 10-K filing with the SEC.
UPS previously contributed $1.2 billion each to the U.S. pension plans in 2024 and 2023 and $2 billion to the plans in 2022.
In 2024, UPS hired Goldman Sachs Asset Management to provide outsourced CIO services for its U.S. pension plans. As of Sept. 30, UPS’ team of 22 investment staff, including CIO Ernie Caballero, moved to GSAM to manage the assets.
As of Dec. 31, the actual allocation of the U.S. pension plans was 47.2% fixed income (down from 58.9% the year before), 16.8% equities (down from 23.3%), 15.6% private equity/private debt/other (up from 14.2%), 13.7% cash (up from 2.3%), 6.4% real estate (up from 5.9%), 4.9% hedge funds (down from 9.1%) and -4.6% derivatives (up from -13.7%).
As of Dec. 31, U.S. pension plan assets totaled $41.5 billion, while projected benefit obligations totaled $46.6 billion, for a funding ratio of 89.1%, down from 91.2% a year earlier.
The discount rate for U.S. plans was 5.88% as of Dec. 31, up from 5.42% the year before.
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