Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Rubber Division IEC
    • ITEC
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • War in Ukraine
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • 2022 Hose & Belt Manufacturers Conference
    • 2022 International Silicone Conference
    • 2022 International Tire Exhibition & Conference (ITEC)
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
February 13, 2013 01:00 AM

Goodyear changing investment strategy for pension plan

Rob Kozlowski, Pensions & Investments
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    AKRON—Goodyear is moving to a liability-driven investing strategy for its U.S. pension plan in a bid to eliminate defined-benefit pension plans, company executives said during an investor presentation Feb. 12.

    Darren Wells, Goodyear executive vice president and chief financial officer, said the move to "pre-fund" and "derisk" the plans affects approximately $1 billion in unfunded liabilities for plans that are currently frozen as well as $1.7 billion in unfunded liabilities for any plans that might be frozen in the future.

    For fiscal 2012, Goodyear contributed $454 million to its U.S. pension plans.

    Goodyear froze its U.S. salaried pension plans on Dec. 31, 2008, and U.S. hourly pension plans were closed to new employees covered by the United Steelworkers master labor contract on Aug. 29, 2009.

    Goodyear's view, Wells said, is that it should take the step of "freezing in our other plans as well," which will require discussions with the company's workforce.

    "I think the closer we get to fully funded, the closer we're going to be to being fully invested in fixed income," Wells said. "And I think the ultimate idea is that once the plans are fully funded that we would have an asset portfolio that would be made up of bonds that would closely mirror the bonds that are used to calculate our discount rate. So that if there is a move in the interest-rate curve, the gain on the assets would offset any loss related to discount rate and vice versa."

    In Goodyear's 10-K filing with the SEC on Feb. 12, the company said it expects to contribute $275 million to $325 million to its worldwide pension plans in 2013.

    As of Dec. 31, the U.S. pension plans had assets of $4.1 billion and projected benefit obligations of $6.76 billion, for a funding ratio of 60.7 percent, according to 10-K.

    The company's actual asset allocation as of Dec. 31 was 62-percent equities, 32-percent fixed income, 5-percent cash and short-term securities and 1-percent alternatives. Its targets are 70-percent equities and 30-percent fixed income.

    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Updated: Conti fined for compound mixer explosion, shears accident
    2
    Kumho on road to zero with sustainable products, operations
    3
    Stakes high as global NR industry urgently seeks alternate supply
    4
    Birla Carbon raising prices on carbon black products
    5
    Denka requests weaker chloroprene classification, but EPA won't budge
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Rubber Division IEC
      • ITEC
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • War in Ukraine
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • 2022 Hose & Belt Manufacturers Conference
        • 2022 International Silicone Conference
        • 2022 International Tire Exhibition & Conference (ITEC)
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
    • Advertise
    • DIGITAL EDITION