BAE Systems, London, said Thursday it will contribute £1.24 billion ($1.6 billion) in 2020 to its pension plans, accelerating its pension deficit recovery plan timetable.
Following a consultation with the U.K. Pensions Regulator, the global defense, aerospace and security company will also contribute deficit funding of £250 million into its plans by March 31, 2021.
The new deficit recovery schedule replaces BAE's previous plan, after its pension funds' deficit improved by £200 million to £1.9 billion in 2019, from £2.1 billion in 2017, a BAE spokeswoman said.
However, the previous deficit recovery plan, which was set to run until 2026, would have seen the company make a similar contribution — £1.47 billion — between 2020 and 2026.