Company Announcements

UK pension funding arrangements

Source: RNS
RNS Number : 9145X
BAE SYSTEMS PLC
30 November 2017
 

                                                                                                                   30th November 2017

BAE Systems plc Pension Funding Arrangements

BAE Systems completes revised UK pension funding arrangements

The information in this announcement includes inside information relating to BAE Systems plc

BAE Systems plc today announces that, after consultation with the UK Pensions Regulator, it has reached agreements with each of the Trustee Boards of its UK defined benefit pension schemes on the 2017 triennial funding valuations and deficit recovery plans.

At the 31 March 2017 funding valuation date, the aggregate of the deficits across the UK schemes was £2.1bn, broadly similar to the position at the last valuation in 2014.

The current annual deficit recovery payments of c£205m will increase by £15m to c£220m in 2018. Deficit contributions will further increase in line with any percentage growth in dividend payments made by the BAE Systems group (the "Group").

Under the new deficit recovery plans, these annual payments would subsequently fall by c£50m in 2022 and end in 2026.

The schemes' liabilities have been calculated using an asset led discount approach. Liabilities have also reduced due to both actual and forecast mortality rates since the last valuation.

The agreements reached are underpinned by contingency plans. These include a commitment by the Group to a further £50m of deficit funding into the largest scheme prior to the next triennial valuation in the event that the scheme funding level was to fall below pre-determined parameters.

The next triennial funding valuation and review of contingency plans is scheduled for 2020.

For completeness, the annual deficit contributions into the Group's US schemes are expected to remain at $80m through 2022.

 

For further information please contact:

 

Investors

Media Relations

Martin Cooper,
Investor Relations Director

Telephone: +44 (0)1252 383040

Email: investors@baesystems.com

Rowan Pearman,
Director, Media Relations

Telephone: +44 (0)7721 107716

Email: rowan.pearman@baesystems.com

 

Issued by

David Parkes - Company Secretary

BAE Systems plc


This information is provided by RNS
The company news service from the London Stock Exchange
 
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