Ford's U.S. pension plans over 95% funded at end of 2013

The funded status of Ford Motor Co.'s U.S. pension plans surged last year to just over 95%, the big automaker reported.

At year-end 2013, Ford's U.S. pension plans had $41.22 billion in assets and $43.18 billion in liabilities, the Dearborn, Mich.-based company disclosed Tuesday in its 10-K filing with the U.S. Securities and Exchange Commission.

That's a big improvement compared with 2012, when the U.S. plans had a funded ratio of 81.3%, with $42.40 billion in assets and $52.13 billion in liabilities.

Earlier, Ford reported the aggregate underfunding of its plans, but not the amount of the plans' assets or liabilities.

Ford attributed the sharp improvement in plan funding to higher interest rate assumptions, which reduced the value of plan liabilities, pumping more money into the plans; and a pension de-risking program that removed billions of dollars in obligations from its pension plan offered to salaried employees.

Under that program, which was unveiled in April 2012 and ended last year, Ford offered more than 90,000 U.S. salaried retirees and former employees the opportunity to take their monthly benefit as a cash lump-sum payment.

In all, about 35,000 plan participants accepted the offer, removing $4.2 billion in pension plan liabilities, the company reported earlier.

Funding of Ford's non-U.S. pension plans also improved in 2013, but not by as much compared to the U.S. plans. In 2013, the non-U.S. plans were 77.3% funded, with $23.84 billion in assets and $30.85 billion in liabilities. In 2012, the plans had a funded ratio of 70.7%, with $21.71 billion in assets and $30.70 billion in liabilities.