BA. Bae Systems Plc

TIDMBA.

RNS Number : 9145X

BAE SYSTEMS PLC

30 November 2017

30(th) 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 GBP2.1bn, broadly similar to the position at the last valuation in 2014.

The current annual deficit recovery payments of cGBP205m will increase by GBP15m to cGBP220m 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 cGBP50m 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 GBP50m 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 
                                  Rowan Pearman, 
Martin Cooper,                     Director, Media Relations 
 Investor Relations Director       Telephone: +44 (0)7721 
 Telephone: +44 (0)1252 383040     107716 
 Email: investors@baesystems.com   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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