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Pension Funds

Raytheon to contribute $1.35 billion to pension plans over 2 years

Raytheon Co., Waltham, Mass., plans to contribute about $1.35 billion total to its global pension plans in 2019 and 2020, the company disclosed in its 10-K filing with the SEC on Wednesday.

The aerospace and defense company said in the filing it has $356 million in required contributions to make to the pension plans in 2019, and will apply $1 billion "roughly split evenly between the two years" in additional contributions to partially offset the required contributions in 2019 and 2020. Raytheon contributed a total of $2.1 billion to the plans in 2018. While the company did not provide information on how the contributions will be split regionally, about 97% of the company's global pension plan assets are located in the U.S.

As of Dec. 31, domestic pension plan assets totaled $24.66 billion, while projected benefit obligations totaled $27.66 billion, for a funding ratio of 89.1%, up from 76.8% the previous year and non-U.S. pension plan assets totaled $800 million, while projected benefit obligations totaled $908 million, for a funding ratio of 88.1%, equal to a year earlier.

The discount rate as of Dec. 31 for the global pension plans was 4.28%, up from 3.68% the year before.

As of Dec. 31, the global plans' asset allocation was 31.2% fixed income, 25.4% U.S. equities, 17% international equities, 7.8% absolute return, 7.7% private equity, 6.8% private real estate, 2.6% cash and cash equivalents, 1.2% other and 0.3% real assets.