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Raytheon, Lockheed Martin to Add Billions to Pension Plans

January 26, 2012

Raytheon Co. expects to contribute a combined $4.2 billion to its pension plans over the next three years, while Lockheed Martin Corp. foresees a $1.1 billion contribution to its pension trust, according to fourth-quarter earnings statements from both firms.

Waltham, Massachusetts-based Raytheon is projecting contributions of $1.2 billion this year, $1.4 billion in 2013 and $1.6 billion in 2014, according to a presentation accompanying its quarterly earnings call.

Raytheon made $1.8 billion in contributions to its pension plans in 2011.

The company had $13.9 billion of U.S. defined benefit plan assets as of Sept. 30, according to data from Workforce Management sister publication Pensions & Investments.

Lockheed Martin of Bethesda, Maryland, made $1.1 billion of accelerated contributions to its pension plans during the fourth quarter, for a total contribution of $2.3 billion for the year. The company's U.S. defined benefit plan assets totaled $26.6 billion as of Sept. 30, according to P&I data.

Lockheed returned 4.9 percent on plan assets in 2011, below its expected long-term rate of return of 8 percent.

Also Thursday, AT&T Inc., Dallas, said it made a $1 billion contribution to its pension plan during the fourth quarter, and that no additional funding is required in 2012, according to its fourth-quarter earnings release. According to P&I data, the company had $43.9 billion of U.S. defined benefit plan assets as of Sept. 30.

On Wednesday, AK Steel Holding Corp. of West Chester, Ohio, announced that it expects to make $170 million in pension contributions in 2012, according to a transcript of the firm's fourth-quarter earnings call.

Timothy Pollard and Rob Kozlowski write for Pensions & Investments, a sister publication of Workforce Management. To comment, email editors@workforce.com.

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