Updated with correction
CSRA Inc., a former subsidiary of Computer Sciences Corp., Falls Church, Va., might make additional contributions to the Computer Sciences Corp. Employee Pension Plan, under an agreement reached with the Pension Benefit Guaranty Corp. as part of the agency’s early warning program.
Computer Sciences spun off its federal contracting practice in November to CSRA, which became the contributing sponsor and administrator of the defined benefit plan, according to the company’s SEC filing. CSRA later combined with SRA International.
CSRA agreed to contribute $50 million to the pension fund by Aug. 31, 2018, if the company does not improve its credit quality or achieve two investment-grade ratings by the rating agencies. CSRA will make another $50 million by the end of its fiscal year 2019 if debt is not reduced to specified levels. The contributions are in addition to the minimum required contribution for the plan, which has $2.8 billion in assets.
Calls to Computer Sciences Corp. were not returned at press time.
Under its early warning program, the PBGC monitors certain companies with underfunded defined benefit plans to identify corporate transactions that could jeopardize pension contributions and to arrange suitable protections for the plans and the agency.