Deere & Company’s defined benefit pension plan holds approximately $13 billion in assets, serving employees and retirees from the company’s agricultural equipment, construction and forestry machinery, and financial services operations. Founded in 1837 and headquartered in Moline, Illinois, Deere is the world’s largest manufacturer of agricultural machinery and a major employer in the U.S. industrial heartland.
The company’s pension obligations cover both salaried and hourly employees, with benefit terms for production workers typically governed by collective bargaining agreements with the United Auto Workers (UAW). Deere’s labor relations and pension commitments have been prominent topics during contract negotiations, including the 2021 UAW strike that resulted in enhanced retirement benefits.
Investment Strategy
Deere’s pension plan employs a diversified investment strategy that balances growth-seeking assets with liability hedging. The portfolio includes allocations to public equities, fixed income, and alternative investments. Fixed income holdings include long-duration corporate bonds and government securities designed to match the timing of projected benefit payments.
The equity allocation spans U.S. and international markets, providing growth potential over the plan’s long-term horizon. Deere’s pension investment team oversees asset allocation with input from external investment consultants, conducting regular reviews to ensure alignment with the plan’s funded status and risk tolerance.
Private Markets Approach
Deere’s pension plan includes allocations to private equity and real estate within its alternatives portfolio. Private equity investments are made through commitments to institutional buyout and growth equity managers. The program is structured to deliver return premiums relative to public markets while maintaining vintage year diversification.
Real estate allocations provide diversification, income, and inflation-hedging benefits. The plan’s alternatives program is managed with attention to liquidity needs and overall portfolio construction. All alternative investment decisions are subject to the plan’s governance framework, including fiduciary oversight and comprehensive due diligence.
Frequently Asked Questions
How large is the John Deere pension fund?
Deere & Company's defined benefit pension plans hold approximately $13 billion in assets, covering employees and retirees from the company's agricultural equipment, construction, forestry, and financial services operations.
Does John Deere still offer a defined benefit pension?
Deere & Company has modified its pension offerings over time. The company has frozen the defined benefit plan for certain employee groups while maintaining it for others, particularly union-represented production workers under collective bargaining agreements.
How are John Deere pension assets invested?
Deere's pension assets are invested across a diversified portfolio including fixed income, public equities, private equity, and real estate. The investment strategy is designed to meet long-term benefit obligations while managing funded status volatility.
