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Retirement Plans
 12 Months Ended
Dec. 31, 2020
Retirement Plans
P.    RETIREMENT PLANS​​​​​​​
ASC 715
,
“
Compensation—Retirement Benefits,
” requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by ASC 715. The pension asset or liability represents a difference between the fair value of the pension plan’s assets and the projected benefit obligation at December 31. Teradyne uses a December 31 measurement date for all of its plans.
Defined Benefit Pension Plans
Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. subsidiaries. Benefits under these plans are based on employees’ years of service and compensation. Teradyne’s funding policy is to make contributions to the plans in accordance with local laws and to the extent that such contributions are tax deductible. The assets of these plans consist primarily of fixed income and equity securities. In addition, Teradyne has an unfunded supplemental executive defined benefit plan in the United States to provide retirement benefits in excess of levels allowed by the Employment Retirement Income Security Act (“ERISA”) and the Internal Revenue Code (the “IRC”), as well as unfunded qualified foreign plans.
In 2020, Teradyne’s projected benefit obligations increased primarily due to actuarial losses of approximately $27.6 million across all pension plans from decreases in discount rates, and approximately $4.0 million from unfavorable foreign exchange effects for the German plan, partially offset by a transfer of obligations for approximately 115 retiree participants to an insurance company which resulted in a $24.4 million reduction in the projected benefit obligations and pension assets. We also recorded a settlement loss of $0.5 million related to the retiree group annuity transaction. In 2019, Teradyne’s projected benefit obligations increased primarily due to actuarial losses of approximately $29.0 million across all pension plans from decreases in discount rates.
The December 31 balances of these defined benefit pension plans assets and obligations are shown below:
 
 
  
2020
 
 
2019
 
 
  
United States
 
 
Foreign
 
 
United States
 
 
Foreign
 
 
  
(in thousands)
 
Assets and Obligations
  
      
 
      
 
      
 
      
Change in benefit obligation:
  
      
 
      
 
      
 
      
Projected benefit obligation:
  
      
 
      
 
      
 
      
Beginning of year
  
$
203,791
 
 
$
43,952
 
 
$
178,237
 
 
$
39,146
 
Service cost
  
 
1,773
 
 
 
907
 
 
 
1,608
 
 
 
751
 
Interest cost
  
 
5,770
 
 
 
516
 
 
 
7,189
 
 
 
691
 
Actuarial loss
  
 
24,671
 
 
 
2,951
 
 
 
24,447
 
 
 
4,520
 
Benefits paid
  
 
(9,844
) 
 
 
(1,299
) 
 
 
(7,690
) 
 
 
(836
) 
Retiree annuity purchase
  
 
(24,379
) 
 
 
—  
 
 
 
—  
 
 
 
—  
 
Liability loss due to settlement
  
 
451
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
Non-U.S. currency movement
  
 
—  
 
 
 
3,961
 
 
 
—  
 
 
 
(320
) 
    
 
 
    
 
 
    
 
 
    
 
 
  
End of year
  
 
202,233
 
 
 
50,988
 
 
 
203,791
 
 
 
43,952
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Change in plan assets:
  
      
 
      
 
      
 
      
Fair value of plan assets:
  
      
 
      
 
      
 
      
Beginning of year
  
 
166,932
 
 
 
1,586
 
 
 
144,301
 
 
 
1,400
 
Actual return on plan assets
  
 
23,048
 
 
 
67
 
 
 
27,516
 
 
 
64
 
Company contributions
  
 
3,098
 
 
 
1,079
 
 
 
2,805
 
 
 
923
 
Benefits paid
  
 
(9,844
) 
 
 
(988
) 
 
 
(7,690
) 
 
 
(836
) 
Retiree annuity purchase
  
 
(24,379
) 
 
 
—  
 
 
 
—  
 
 
 
—  
 
Non-U.S. currency movement
  
 
—  
 
 
 
112
 
 
 
—  
 
 
 
35
 
    
 
 
    
 
 
    
 
 
    
 
 
  
End of year
  
 
158,855
 
 
 
1,856
 
 
 
166,932
 
 
 
1,586
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Funded status
  
$
(43,378
) 
 
$
(49,132
) 
 
$
(36,859
) 
 
$
(42,366
) 
    
 
 
    
 
 
    
 
 
    
 
 
  
The following table provides amounts recorded within the account line items of the statements of financial position as of December 31:
 
 
  
2020
 
 
2019
 
 
  
United States
 
 
Foreign
 
 
United States
 
 
Foreign
 
 
  
(in thousands)
 
Retirement plans assets
  
$
17,468
 
 
$
—  
 
 
$
18,457
 
 
$
—  
 
Accrued employees’ compensation and withholdings
  
 
(3,273
) 
 
 
(1,019
) 
 
 
(2,826
) 
 
 
(922
) 
Retirement plans liabilities
  
 
(57,573
) 
 
 
(48,113
) 
 
 
(52,490
) 
 
 
(41,444
) 
    
 
 
    
 
 
    
 
 
    
 
 
  
Funded status
  
$
(43,378
) 
 
$
(49,132
) 
 
$
(36,859
) 
 
$
(42,366
) 
    
 
 
    
 
 
    
 
 
    
 
 
  
The following table provides amounts recognized in accumulated other comprehensive income as of December 31:
 
 
  
2020
 
  
2019
 
 
  
United States
 
  
Foreign
 
  
United States
 
  
Foreign
 
 
  
(in thousands)
 
Deferred taxes related to prior service cost recognized in other comprehensive income
  
$
560
 
  
$
—  
 
  
$
560
 
  
$
—  
 
    
 
 
     
 
 
     
 
 
     
 
 
  
The accumulated benefit obligation for the United States defined benefit pension plans was $196.7 million and $198.2 million at December 31, 2020 and 2019, respectively. The accumulated benefit obligation for foreign defined benefit pension plans was $46.5 million and $39.9 million at December 31, 2020 and 2019, respectively.

Information for pension plans with an accumulated benefit obligation in excess of plan assets as of Decemb
e
r 31:
 
 
  
2020
 
  
2019
 
 
  
United States
 
  
Foreign
 
  
United States
 
  
Foreign
 
 
  
(in millions)
 
Projected benefit obligation
  
$
60.8
 
 
$
51.0
  
  
$
55.3
 
  
$
44.0
 
Accumulated benefit obligation
  
 
58.5
 
 
 
46.5
  
  
 
53.2
 
  
 
39.9
 
Fair value of plan assets
  
 
—  
 
 
 
1.9
  
  
 
—  
 
  
 
1.6
 
 
Expense
For the years ended December 31, 2020, 2019, and 2018, Teradyne’s net periodic pension cost (income) was comprised of the following:
 
 
  
2020
 
 
2019
 
 
2018
 
 
  
United

States
 
 
Foreign
 
 
United

States
 
 
Foreign
 
 
United

States
 
 
Foreign
 
 
  
(in thousands)
 
Components of Net Periodic Pension Cost (Income):
  
      
 
      
 
      
Service cost
  
$
1,773
 
 
$
907
 
 
$
1,608
 
 
$
751
 
 
$
2,196
 
 
$
786
 
Interest cost
  
 
5,770
 
 
 
516
 
 
 
7,189
 
 
 
691
 
 
 
8,940
 
 
 
687
 
Expected return on plan assets
  
 
(4,840
) 
 
 
(65
) 
 
 
(6,042
) 
 
 
(29
) 
 
 
(9,049
) 
 
 
(19
) 
Amortization of prior service cost
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
58
 
 
 
—  
 
Net actuarial loss (gain)
  
 
6,463
 
 
 
2,949
 
 
 
2,973
 
 
 
4,485
 
 
 
(4,429
) 
 
 
743
 
Settlement loss
  
 
451
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
345
 
 
 
—  
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total net periodic pension cost (income)
  
$
9,617
 
 
$
4,307
 
 
$
5,728
 
 
$
5,898
 
 
$
(1,939
) 
 
$
2,197
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income:
  
      
 
      
 
      
 
      
 
      
 
      
Reversal of amortization items:
  
      
 
      
 
      
 
      
 
      
 
      
Prior service cost
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(58
) 
 
 
—  
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total recognized in other comprehensive income
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(58
) 
 
 
—  
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total recognized in net periodic pension cost (income) and other comprehensive income
  
$
9,617
 
 
$
4,307
 
 
$
5,728
 
 
$
5,898
 
 
$
(1,997
) 
 
$
2,197
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1:
 
 
  
2020
 
 
2019
 
 
2018
 
 
 
  
United States
 
 
Foreign
 
 
United States
 
 
Foreign
 
 
United States
 
 
Foreign
 
Discount rate
  
 
2.8
% 
 
 
1.1
% 
 
 
4.1
% 
 
 
1.8
% 
 
 
3.4
% 
 
 
1.8
% 
Expected return on plan assets
  
 
3.0
 
 
 
3.8
 
 
 
4.3
 
 
 
2.0
 
 
 
4.3
 
 
 
1.5
 
Salary progression rate
  
 
2.6
 
 
 
2.5
 
 
 
2.3
 
 
 
2.5
 
 
 
2.3
 
 
 
2.7
 
Weighted Average Assumptions to Determine Pension Obligations at December 31:
 
 
  
2020
 
 
2019
 
 
 
  
United States
 
 
Foreign
 
 
United States
 
 
Foreign
 
Discount rate
  
 
2.2
% 
 
 
0.7
% 
 
 
3.0
% 
 
 
1.1
% 
Salary progression rate
  
 
2.4
 
 
 
2.3
 
 
 
2.6
 
 
 
2.5
 
In developing the expected return on plan assets assumption, Teradyne evaluates input from its investment manager and pension consultants, including their forecast of asset class return expectations. Teradyne believes that 3.0% was an appropriate rate to use for fiscal 2020 for the U.S. Qualified Pension Plan (“U.S. Plan”).
Teradyne recognizes net actuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. Teradyne calculates the expected return on plan assets using the fair value of the plan assets. Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans.
The discount rate utilized to determine future pension obligations for the U.S. Plan is based on FTSE Pension Index adjusted for the plan’s expected cash flows and was 2.3% at December 31, 2020, down from 3.10% at December 31, 2019.
Plan Assets
As of December 31, 2020, the fair value of Teradyne’s pension plans’ assets totaled $160.7 million of which $158.9 million was related to the U.S. Plan and $1.9 million was related to the Taiwan defined benefit pension plan. Substantially all of Teradyne’s pension plans’ assets are held in individual trusts, which were established for the investment of assets of Teradyne’s sponsored retirement plans.
The following table provides weighted average pension asset allocation by asset category at December 31, 2020 and 2019:
 
 
  
2020
 
 
2019
 
 
  
United States
 
 
Foreign
 
 
United States
 
 
Foreign
 
Fixed income securities
  
 
94.0
% 
 
 
—  
% 
 
 
94.0
% 
 
 
—  
% 
Equity securities
  
 
5.0
 
 
 
—  
 
 
 
5.0
 
 
 
—  
 
Other
  
 
1.0
 
 
 
100.0
 
 
 
1.0
 
 
 
100.0
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
  
 
100.0
% 
 
 
100.0
% 
 
 
100.0
% 
 
 
100.0
% 
    
 
 
    
 
 
    
 
 
    
 
 
  
The assets of the U.S. Plan are overseen by the Teradyne Fiduciary Committee which is comprised of members of senior management drawn from appropriate diversified levels of the management team. The Fiduciary Committee is responsible for setting the policy that provides the framework for management of the U.S. Plan assets. In accordance with its responsibilities, the Fiduciary Committee meets on a regular basis to review the performance of the U.S. Plan assets and compliance with the investment policy. The policy sets forth an investment structure for managing U.S. Plan assets, including setting the asset allocation ranges, which are expected to provide an appropriate level of overall diversification required to maximize the long-term return on plan assets for a prudent and reasonable level of risk given prevailing market conditions, total investment return over the long term, and preservation of capital, while maintaining sufficient liquidity to pay the benefits of the U.S. Plan. The investment portfolio will not, at any time, have a direct investment in Teradyne stock. It may have indirect investment in Teradyne stock, if one of the funds selected by the investment manager invests in Teradyne stock. In developing the asset allocation ranges, third party asset allocation studies are periodically performed that consider the current and expected positions of the plan assets and funded status. Based on this study and other appropriate information, the Fiduciary Committee establishes asset allocation ranges taking into account acceptable risk targets and associated returns. The investment return objectives are to avoid excessive volatility and produce a rate of return that at least matches the Policy Index identified below. The manager’s investment performance is reviewed at least annually. Results for the total portfolio and for each major category of assets are evaluated in comparison with appropriate market indices and the Policy Index.
Teradyne’s U.S. Plan invests primarily in common trust funds. Units held in the common trust funds are valued at the unit price as reported by the investment manager based on the asset value of the underlying investments; underlying investments in equity securities are valued at the last reported sales price, and underlying investments in fixed-income securities are generally valued using methods based upon market transactions for comparable securities.
During the years ended December 31, 2020 and December 31, 2019, there were no transfers of pension assets in or out of Level 1, Level 2, and Level 3.
The fair value of pension plan assets by asset category and by level at December 31, 2020 and December 31, 2019 were as follows:
 
  
December 31, 2020
 
 
  
United States
 
  
Foreign
 
 
  
Level 1
 
  
Level 2
 
  
Level
 
3
 
  
Total
 
  
Level
 
1
 
  
Level 2
 
  
Level
 
3
 
  
Total
 
 
  
(in thousands)
 
Fixed income securities:
  
      
  
      
  
      
  
      
  
      
  
      
  
      
  
      
Corporate debt securities
  
$
—
 
  
$
127,098
 
  
$
—
 
  
$
127,098
 
  
$
—
 
  
$
—
 
  
$
—
 
  
$
—
 
U.S. government securities
  
 
—
 
  
 
22,250
 
  
 
—
 
  
 
22,250
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
Global equity
  
 
—
 
  
 
7,925
 
  
 
—
 
  
 
7,925
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
Other
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
1,856
 
  
 
—
 
  
 
1,856
 
Cash and cash equivalents
  
 
1,582
 
  
 
—
 
  
 
—
 
  
 
1,582
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
  
$
1,582
 
  
$
157,273
 
  
$
—
 
  
$
158,855
 
  
$
—
 
  
$
1,856
 
  
$
—
 
  
$
1,856
 
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  

 
  
December 31, 2019
 
 
  
United States
 
  
Foreign
 
 
  
Level 1
 
  
Level 2
 
  
Level
 
3
 
  
Total
 
  
Level
 
1
 
  
Level 2
 
  
Level
 
3
 
  
Total
 
 
  
(in thousands)
 
Fixed income securities:
  
      
  
      
  
      
  
      
  
      
  
      
  
      
  
      
Corporate debt securities
  
$
—
 
  
$
133,792
 
  
$
—
 
  
$
133,792
 
  
$
—
 
  
$
—
 
  
$
—
 
  
$
—
 
U.S. government securities
  
 
—
 
  
 
23,186
 
  
 
—
 
  
 
23,186
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
Global equity
  
 
—
 
  
 
8,344
 
  
 
—
 
  
 
8,344
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
Other
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
1,586
 
  
 
—
 
  
 
1,586
 
Cash and cash equivalents
  
 
1,610
 
  
 
—
 
  
 
—
 
  
 
1,610
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
  
$
1,610
 
  
$
165,322
 
  
$
—
 
  
$
166,932
 
  
$
—
 
  
$
1,586
 
  
$
—
 
  
$
1,586
 
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Contributions
Teradyne’s funding policy is to make contributions to the plans in accordance with local laws and to the extent that such contributions are tax deductible. During 2020, Teradyne contributed $3.1 million to the U.S.
supplemental executive defined benefit pension plan and $1.1 million to certain qualified plans for non-U.S. subsidiaries. During 2019, Teradyne contributed $2.8 million to the U.S. supplemental executive defined benefit pension plan and $0.9 million to certain qualified plans for non-U.S. subsidiaries. In 2021, contributions to the U.S. supplemental executive defined benefit pension plan and certain qualified plans from non-U.S. subsidiaries will be approximately $3.3 million and $1.1 million, respectively.
Expected Future Pension Benefit Payments
Future benefit payments are expected to be paid as follows:
 
  
United States
 
  
Foreign
 
 
  
(in thousands)
 
2021
  
$
8,902
 
  
$
1,058
 
2022
  
 
8,782
 
  
 
1,063
 
2023
  
 
9,189
 
  
 
1,313
 
2024
  
 
9,815
 
  
 
1,192
 
2025
  
 
10,374
 
  
 
1,140
 
2026-2030
  
 
54,145
 
  
 
7,053
 
Postretirement Benefit Plans
In addition to receiving pension benefits, U.S. Teradyne employees who meet early retirement eligibility requirements as of their termination dates may participate in Teradyne’s Welfare Plan, which includes medical and dental benefits up to age 65. Death benefits provide a fixed sum to retirees’ survivors and are available to all retirees. Substantially all of Teradyne’s current U.S. employees could become eligible for these benefits, and the existing benefit obligation relates primarily to those employees.
The December 31 balances of the postretirement assets and obligations are shown below:
 
  
2020
 
 
2019
 
 
  
(in thousands)
 
Assets and Obligations
  
      
 
      
Change in benefit obligation:
  
      
 
      
Projected benefit obligation:
  
      
 
      
Beginning of year
  
$
9,003
 
 
$
9,256
 
Service cost
  
 
57
 
 
 
41
 
Interest cost
  
 
240
 
 
 
347
 
Actuarial loss
  
 
421
 
 
 
717
 
Benefits paid
  
 
(1,205
) 
 
 
(1,358
) 
End of year
  
 
8,515
 
 
 
9,003
 
Change in plan assets:
  
      
 
      
Fair value of plan assets:
  
      
 
      
Beginning of year
  
 
—
 
 
 
—
 
Company contributions
  
 
1,205
 
 
 
1,358
 
Benefits paid
  
 
(1,205
) 
 
 
(1,358
) 
End of year
  
 
—
 
 
 
—
 
Funded status
  
$
(8,515
) 
 
$
(9,003
) 
The following table provides amounts recorded within the account line items of financial position as of December 31:
 
 
  
2020
 
 
2019
 
 
  
(in thousands)
 
Accrued employees’ compensation and withholdings
  
$
(1,161
) 
 
$
(1,231
) 
Retirement plans liability
  
 
(7,354
) 
 
 
(7,772
) 
    
 
 
    
 
 
  
Funded status
  
$
(8,515
) 
 
$
(9,003
) 
    
 
 
    
 
 
  
The following table provides amounts recognized in accumulated other comprehensive income as of December 31:
 
 
  
2020
 
 
2019
 
 
  
(in thousands)
 
Prior service credit, before tax
  
$
(49
) 
 
$
(58
) 
Deferred taxes
  
 
(1,686
) 
 
 
(1,684
) 
    
 
 
    
 
 
  
Total recognized in other comprehensive income, net of tax
  
$
(1,735
) 
 
$
(1,742
) 
    
 
 
    
 
 
  
Expense
For the years ended December 31, 2020, 2019, and 2018, Teradyne’s net periodic postretirement benefit cost (income) was comprised of the following:
 
  
2020
 
 
2019
 
 
2018
 
 
  
(in thousands)
 
Components of Net Periodic Postretirement Benefit Cost (income):
  
      
 
      
 
      
Service cost
  
$
57
 
 
$
41
 
 
$
39
 
Interest cost
  
 
240
 
 
 
347
 
 
 
196
 
Amortization of prior service credit
  
 
(9
) 
 
 
(191
) 
 
 
(373
) 
Net actuarial loss
  
 
421
 
 
 
717
 
 
 
25
 
Special termination benefits
  
 
—
 
 
 
—
 
 
 
3,708
 
    
 
 
    
 
 
    
 
 
  
Total net periodic postretirement benefit cost
  
 
709
 
 
 
914
 
 
 
3,595
 
    
 
 
    
 
 
    
 
 
  
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income:
  
      
 
      
 
      
Reversal of amortization items:
  
      
 
      
 
      
Prior service credit
  
 
9
 
 
 
191
 
 
 
373
 
    
 
 
    
 
 
    
 
 
  
Total recognized in other comprehensive income
  
 
9
 
 
 
191
 
 
 
373
 
    
 
 
    
 
 
    
 
 
  
Total recognized in net periodic postretirement cost and other comprehensive income
  
$
718
 
 
$
1,105
 
 
$
3,968
 
    
 
 
    
 
 
    
 
 
  
Weighted Average Assumptions to Determine Net Periodic Postretirement Benefit Income as of January 1:
 
 
  
2020
 
 
2019
 
 
2018
 
Discount rate
  
 
3.0
% 
 
 
4.0
% 
 
 
3.4
% 
Initial health care cost trend rate
  
 
7.1
 
 
 
7.5
 
 
 
7.9
 
Ultimate health care cost trend rate
  
 
4.5
 
 
 
4.5
 
 
 
4.5
 
Year in which ultimate health care cost trend rate is reached
  
 
2026
 
 
 
2026
 
 
 
2026
 
Weighted Average Assumptions to Determine Postretirement Benefit Obligation as of December 31:
 
  
2020
 
 
2019
 
 
2018
 
Discount rate
  
 
2.2
% 
 
 
3.0
% 
 
 
4.0
% 
Initial medical trend
  
 
7.3
 
 
 
7.1
 
 
 
7.5
 
Ultimate health care trend
  
 
4.5
 
 
 
4.5
 
 
 
4.5
 
Medical cost trend rate decrease to ultimate rate in year
  
 
2029
 
 
 
2026
 
 
 
2026
 
Expected Future Benefit Payments
Future benefit payments are expected to be paid as follows:
 
 
  
Benefit Payments
 
 
  
(in thousands)
 
2021
  
$
1,161
 
2022
  
 
961
 
2023
  
 
786
 
2024
  
 
646
 
2025
  
 
533
 
2026-2030
  
 
1,601
 
The target asset allocation and the index for each asset category for the U.S. Plan, per the investment policy, are as follows:
 
Asset Category:
  
Policy Index:
 
Target

Allocation
 
U.S. corporate fixed income
  
Bloomberg Barclays U.S. Corporate A or Better Index
  
 
75
% 
Global equity
  
MSCI World Minimum Volatility Index
  
 
5
 
U.S. government fixed income
  
Bloomberg Barclays U.S. Long Government Bond Index
  
 
14
 
High yield fixed income
  
Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Cap Index
  
 
5
 
Cash
  
Citigroup Three Month U.S. Treasury Bill Index
  
 
1