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Pension Funds

General Dynamics to contribute at least $190 million to pensions in 2019

General Dynamics Corp., Falls Church, Va., plans to contribute at least $190 million to its defined benefit plans in 2019, the company said in a 10-K filing Wednesday with the Securities and Exchange Commission.

General Dynamics contributed $570 million to its pension plans in 2018, including required contributions of $315 million and a discretionary contribution of $255 million, according to the filing. It contributed $199 million in 2017 and $208 million in 2016.

As of Dec. 31, defined benefit plan assets totaled $11.5 billion and projected benefit obligations were $15.7 billion, for a funding ratio of 73.4%, compared to a funding ratio of 71.3% in 2017.

The company had a benefit obligation discount rate of 4.3% as of Dec. 31 vs. 4.2% a year earlier.

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. More than 90% of the assets are held in a single trust for the U.S. plans. 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.

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 remainder in other asset classes.

As of Dec. 31, asset allocations were 49.5% equity funds, 8.7% equities, 29.3% fixed income, 3.2% fixed income funds, 3.8% real estate funds, 0.5% real estate, 3.2% hedge funds, and the rest in cash and insurance deposit contracts.