Ford Motor Company Retirement Plan
corporate plan · Ford Motor Company · Dearborn, MI
Ford Motor Company Retirement Plan is overfunded: 105% funding ratio — assets ($19.3B) exceed actuarial liabilities ($18.3B). Overfunded plans are unusual in U.S. pension data; most either took advantage of strong investment returns over multiple years or carry the surplus from a closed/frozen plan.
Ford Motor Company Retirement Plan is a corporate pension plan sponsored by Ford Motor Company — a single-employer defined-benefit plan governed by ERISA and insured by the Pension Benefit Guaranty Corporation (PBGC). Corporate plans peaked in U.S. usage in the 1980s and have been in steady decline since, mostly replaced by 401(k) plans. The plan remains active — accruing new benefits for current employees and accepting new participants. Among private-sector single-employer plans, the active status is increasingly rare as employers freeze accruals while continuing to fund existing obligations; public-sector plans are more often still actively accruing.
On scale: $19.3B in plan assets across 141,948 covered participants. With 20,457 workers still accruing and 87,091 drawing benefits, the plan has the size to support institutional asset management and full-time actuarial staff. Participant mix skews toward retirees (87,091 retired vs 20,457 active) — a mature plan paying out more than it accrues. Mature plans need stable investment returns plus sponsor contributions to keep the funded ratio steady; the cash-flow profile is increasingly net-negative. Annual cash flows: $800M in sponsor contributions versus $3.8B in benefit payments. Investment performance over the most recent year ran 7.5%, against the plan's assumed long-term return of 5.3%.
On PBGC risk classification: low — the plan's funded status and solvency trajectory are favorable enough that PBGC intervention is not on the near-term horizon. Corporate ERISA plans like Ford Motor Company Retirement Plan carry PBGC insurance, which guarantees retiree benefits up to a federally-set maximum even if the sponsor defaults. The guarantee is meaningful but capped — high earners may see benefit haircuts in a termination scenario.
Source: DOL EFAST2 Form 5500 filings and Boston College CRR Public Plans Database.
Funding History
What This Means for You
Ford Motor Company Retirement Plan is in excellent financial health at 105% funded. This means for every dollar the plan owes in future benefits, it has 105 cents in assets to cover it. This plan is also covered by the PBGC, providing an additional safety net. Participants in this plan have relatively low risk of benefit reductions.
Year-by-Year Funding
| Year | Assets | Liabilities | Funding Ratio | Contributions |
|---|---|---|---|---|
| 2023 | $19.3B | $18.3B | 105.3% | $800.0M |
| 2022 | $18.7B | $22.5B | 83.0% | $776.0M |
| 2021 | $18.1B | $21.1B | 86.0% | $752.0M |
| 2020 | $17.5B | $21.9B | 80.0% | $728.0M |
| 2019 | $17.0B | $20.7B | 82.0% | $704.0M |
Frequently Asked Questions
Ford Motor Company Retirement Plan is 105% funded, meaning it has 105 cents in assets for every dollar in future benefit obligations. This is considered healthy by actuarial standards.
Ford Motor Company Retirement Plan has 141,948 total participants, including 20,457 active employees and 87,091 retirees currently receiving benefits.
Yes, Ford Motor Company Retirement Plan is covered by the Pension Benefit Guaranty Corporation (PBGC), which provides a backstop if the plan cannot pay benefits. The PBGC risk level is currently "low."
The Pension Health Score (0-100, A-F) measures a pension plan's financial strength based on funding ratio (50%), funding trend over 3 years (30%), and PBGC risk level (20%). Higher scores indicate more secure retirement benefits.
Pension Health Score is calculated from funding ratio, 3-year funding trend, and PBGC risk classification.