Meritor Acquisition and 2022 Financial Results
Table of Contents
NOTE 11. PENSIONS AND OTHER POSTRETIREMENT BENEFITS
Pension Plans
We sponsor several pension plans covering substantially all employees. Generally, pension benefits for salaried employees are determined as a function of employee's
compensation. Pension benefits for most hourly employees are determined similarly and as a function of employee's compensation, with the exception of a small group of
hourly employees whose pension benefits were grandfathered in accordance with agreements with their union representation and are based on their years of service and
compensation during active employment. The level of benefits and terms of vesting may vary among plans and are offered in accordance with applicable laws. Pension plan
assets are administered by trustees and are principally invested in fixed income securities and equity securities. It is our policy to make contributions to our various qualified
plans in accordance with statutory and contractual funding requirements, and any additional contributions we determine are appropriate.
Prior to the acquisition, Meritor provided a range of benefits to certain employees and retirees, including pension benefits and postretirement healthcare benefits (OPEB). The
Meritor U.S. and U.K. defined benefit plans are frozen. As part of the acquisition, we assumed the assets and liabilities associated with these plans, which are included in the
tables below.
Obligations, Assets and Funded Status
Benefit obligation balances presented below reflect the projected benefit obligation (PBO) for our pension plans.The changes in the benefit obligations, the various plan assets,
the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant pension plans at December 31 were as follows:
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