Goodyear Pension Plans Underfunded, Magazine Says

Pensions & Investments magazine reports that Goodyear’s pension plan is badly underfunded, and that the tyremaker will contribute between $275 million and $325 million to its global pension plans in 2010. Goodyear had contributed $430 million to its plans in 2009, the magazine reported.

In its most recent 10-K report, Goodyear said it had $3.4 billion in assets and $5.3 billion in liabilities for its U.S. pension plan as of 31 December, and $1.7 billion in fair value of plan assets and $2.5 billion in projected benefit obligations for its non-US pension plans, P&I reported.

Last year, Goodyear closed its defined benefit pension programme to US employees hired after 31 August, replacing it with a contribution-based programme. (Tire Review)