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GE 2013 ANNUAL REPORT 107
    
ACCUMULATED BENEFIT OBLIGATION
December 31 (In millions) 2013 2012
GE Pension Plan $50,967 $55,664
GE Supplementary Pension Plan 3,946 4,114
Other pension plans 12,629 12,687
PLANS WITH ASSETS LESS THAN ABO
December 31 (In millions) 2013 2012
Funded plans with assets less than ABO
Plan assets $ 57,430 $ 53,276
Accumulated benefit obligations 60,715 66,069
Projected benefit obligations 63,532 69,234
Unfunded plans (a)
Accumulated benefit obligations 5,243 5,390
Projected benefit obligations 6,512 6,828
(a) Primarily related to the GE Supplementary Pension Plan.
PLAN ASSETS
The fair value of the classes of the pension plans’ investments is
presented below. The inputs and valuation techniques used to
measure the fair value of the assets are consistently applied and
described in Note 1.
FAIR VALUE OF PLAN ASSETS
Principal pension plans Other pension plans
(In millions) 2013 2012 2013 2012
Balance at January 1 $ 44,738 $ 42,137 $ 9,702 $ 8,381
Actual gain on plan assets 6,312 4,854 1,212 720
Employer contributions 225 642 673 737
Participant contributions 156 157 14 16
Benefits paid (3,134) (3,052) (477) (425 )
Acquisitions (dispositions)/
other—net — — (31) —
Exchange rate adjustments — — (34) 273
Balance at December 31 $ 48,297 $ 44,738 $ 11,059 $ 9,702
ASSET ALLOCATION
Principal pension plans
Other pension plans
(weighted average)
2013
Target
allocation
2013
Actual
allocation
2013
Target
allocation
2013
Actual
allocation
Equity securities 17–57% (a) 45% (b) 55% 55%
Debt securities (including
cash equivalents) 13–53 31 32 34
Private equities 8–18 13 2 1
Real estate 2–12 7 6 5
Other 3–13 4 5 5
(a) Target equally divided between U.S. equity securities and non-U.S.
equity securities.
(b) Actual allocations were 26% for U.S. equity securities and 19% for non-U.S.
equity securities.
Plan fi duciaries of the GE Pension Plan set investment policies and
strategies for the GE Pension Trust and oversee its investment
allocation, which includes selecting investment managers, com-
missioning periodic asset-liability studies and setting long-term
strategic targets. Long-term strategic investment objectives take
into consideration a number of factors, including the funded sta-
tus of the plan, a balance between risk and return and the plan’s
liquidity needs. Target allocation percentages are established at
an asset class level by plan fi duciaries. Target allocation ranges
are guidelines, not limitations, and occasionally plan fi duciaries
will approve allocations above or below a target range.
Plan fi duciaries monitor the GE Pension Plan’s liquidity posi-
tion in order to meet the near-term benefi t payment and other
cash needs. The GE Pension Plan holds short-term debt securities
to meet its liquidity needs.
GE Pension Trust assets are invested subject to the following
additional guidelines:
• Short-term securities must generally be rated A-1/P-1 or
better, except for 15% of such securities that may be rated
A-2/P-2 and other short-term securities as may be approved
by the plan fi duciaries.
• Real estate investments may not exceed 25% of total assets.
• Investments in restricted securities (excluding real estate
investments) that are not freely tradable may not exceed
30% of total assets (actual was 17% of trust assets at
December 31, 2013).
According to statute, the aggregate holdings of all qualifying
employer securities (e.g., GE common stock) and qualifying
employer real property may not exceed 10% of the fair value of
trust assets at the time of purchase. GE securities represented
4.5% and 4.2% of trust assets at year-end 2013 and 2012,
respectively.
The GE Pension Plan has a broadly diversifi ed portfolio of
investments in equities, fi xed income, private equities, real estate
and hedge funds; these investments are both U.S. and non-U.S. in
nature. As of December 31, 2013, U.S. government direct and indi-
rect obligations represented 16% of total GE Pension Plan assets.
No other sector concentration of assets exceeded 15% of total
GE Pension Plan assets.