International Paper Company Retirement Plan
corporate plan · International Paper · Memphis, TN
International Paper Company Retirement Plan is overfunded: 104% funding ratio — assets ($8.8B) exceed actuarial liabilities ($8.5B). 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.
International Paper Company Retirement Plan is a corporate pension plan sponsored by International Paper — 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.
International Paper Company Retirement Plan is a large pension plan with $8.8B in assets and 83,689 participants (20,169 active, 58,302 retired). Large plans usually have professional investment management and complex actuarial structures. Participant mix skews toward retirees (58,302 retired vs 20,169 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: $200M in sponsor contributions versus $800M in benefit payments. Investment performance over the most recent year ran 7.0%, against the plan's assumed long-term return of 5.4%.
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 International Paper 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
International Paper Company Retirement Plan is in excellent financial health at 104% funded. This means for every dollar the plan owes in future benefits, it has 104 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 | $8.8B | $8.5B | 104.0% | $200.0M |
| 2022 | $8.6B | $11.1B | 77.0% | $194.0M |
| 2021 | $8.3B | $10.4B | 80.0% | $188.0M |
| 2020 | $8.0B | $10.9B | 74.0% | $182.0M |
| 2019 | $7.8B | $10.2B | 76.0% | $176.0M |
Frequently Asked Questions
International Paper Company Retirement Plan is 104% funded, meaning it has 104 cents in assets for every dollar in future benefit obligations. This is considered healthy by actuarial standards.
International Paper Company Retirement Plan has 83,689 total participants, including 20,169 active employees and 58,302 retirees currently receiving benefits.
Yes, International Paper 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.