CORRECTED – CORRECTED-Chevron sees 2010 pension contribution up $600 mln

(Corrects “requirement” to “contribution” in paragraph 1, and
“require” to “get” in paragraph 2)

* Now sees U.S. pension plan contribution at $1.2 bln

* Sees total contribution of $1.5 bln, vs $1.7 bln in 2009

SAN FRANCISCO, Nov 5 (BestGrowthStock) – Chevron Corp (CVX.N: ), the
second-largest U.S. oil company, expects its 2010 contribution
to employee pension plans to be $600 million higher than it had
previously planned, due to a doubling of the U.S. contribution.

Chevron had expected to pay $900 million into pension plans
this year, including $600 million for its U.S. plans and the
rest for international, but it estimated in a regulatory filing
on Friday that the U.S. plans would now get $1.2 billion.

“Actual contribution amounts are dependent upon investment
returns, changes in pension obligations, regulatory
environments and other economic factors,” the company said,
adding that more funding may be needed if investment returns
are insufficient to offset increases in plan obligations.

In 2009, the company had contributed $1.7 billion to its
pension plans, including a U.S. portion of $1.5 billion.

A spokesman was not immediately available to comment.

The disclosure comes amid a broader trend of investors
suffering from reduced returns on fixed-income investments due
to rock-bottom U.S. interest rates.

Chevron had said that at the end of 2009 it chose a 5.3
percent discount rate for its U.S. pension plan, which
accounted for 61 percent of its total pension obligation. That
was down from the 6.3 percent rate for the previous two years.

But it also said a 1 percent increase in the 2009 U.S. rate
would have cut total pension plan expense for the year by about
$150 million.

The company also assumed a long-term rate of return of 7.8
percent on its U.S. pension plan assets at the end of 2009.

A week ago, Chevron reported third-quarter net income of
$3.77 billion, down slightly from a year ago. [ID:nN29136104]
(Reporting by Braden Reddall)

CORRECTED – CORRECTED-Chevron sees 2010 pension contribution up $600 mln