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Pension Funds

General Dynamics plans $315 million in pension contributions in 2018

A U.S. Navy destroyer in dry dock at a General Dynamics Corp. shipyard

General Dynamics Corp., Falls Church, Va., plans to contribute about $315 million to its defined benefit plans in 2018, the company said in its 10-K filing with the Securities and Exchange Commission.

General Dynamics contributed $199 million to its pension funds in 2017 and $208 million in 2016.

As of Dec. 31, defined benefit plan assets totaled $10.13 billion and projected benefit obligations totaled $14.21 billion, for a funding ratio of 71.3%. That compares to a funding ratio of 69% the previous year.

The company had a benefit obligation discount rate of 4.19% as of Dec. 31, vs. 4.46% a year earlier.

The 10-K filing Monday did not break down assets between U.S. and non-U.S. pension funds but spokeswoman Lucy Ryan confirmed in an email that more than 90% of the assets are held in a single trust for the U.S. plans. General Dynamics has seven non-contributory and five contributory pension plans covering eligible government business employees, plus two non-contributory and four contributory plans covering eligible commercial business employees, including some international operations.

The primary government pension plan, which has most of the unfunded obligation, was closed to new salaried employees on Jan. 1, 2007, and accruals were limited or stopped in 2014, according to the 10-K. Similar changes were made to the primary commercial pension plan in 2015.

The target allocation ranges for the trust as of Dec. 31 were 48% to 68% equities, 20% to 48% fixed income, up to 5% cash, and the rest in other asset classes.