Parker-Hannifin Consolidated Pension Plan - A

The plan's funded ratio exceeds 90% as of the most recent reporting period, based on aggregated pension data disclosed in Parker Hannifin's SEC filings. This strong position has been supported by sponsor contributions, favorable asset returns, and rising discount rates that have reduced the present value of future liabilities. The company has periodically executed de-risking actions, including lump-sum buyout offers to former employees.

Investment oversight rests with Parker Hannifin's corporate treasury and finance leadership, including the CFO and treasurer, guided by an internal investment committee. The treasury team sets asset allocation policy, selects and monitors external investment managers, and coordinates with the plan's actuary to align the portfolio with the frozen liability stream. No dedicated, publicly named pension investment officer has been identified.

No. Parker-Hannifin Consolidated Pension Plan - A is a frozen plan, meaning all benefit accruals have ceased. Current participants retain vested rights to benefits earned before the freeze date, but no additional credited service or compensation-based increases are applied. This freeze is part of a broader corporate shift away from defined benefit plans, common among large US industrial firms.

As a frozen plan, its primary objective is liability hedging rather than growth to cover new accruals. The allocation skews heavily toward long-duration fixed income to match the duration of frozen benefit obligations, with equities and alternatives maintained to improve overall funding status. The plan is essentially a runoff portfolio, with an investment horizon shrinking as participants retire and liabilities mature.

Parker Hannifin is the plan sponsor, responsible for funding contributions, setting investment policy through its treasury function, and guaranteeing benefits under ERISA. The plan's assets and obligations are reported on a consolidated basis in Parker's SEC filings, alongside any other US defined benefit plans the company maintains. The sponsor's credit quality and cash flow generation directly backstop the plan's ability to meet its obligations.

Parker Hannifin has offered lump-sum buyout windows to deferred vested participants in prior years, allowing former employees to receive a one-time cash payment in lieu of future monthly benefits. These voluntary programs reduce the plan's liability headcount and administrative burden. A full annuity buyout with an insurance company, transferring remaining obligations off Parker's balance sheet, has not been publicly reported but remains a common industry exit path for well-funded frozen plans.

The plan's equity and fixed income portfolios concentrate in North America and Western Europe, consistent with Parker Hannifin's corporate footprint and the domicile of its plan liabilities. US large-cap equities and dollar-denominated fixed income form the core. International developed market equities and a modest allocation to global private market funds provide additional diversification within the runoff strategy.