Huntington Ingalls Industries Inc. expects to contribute $205 million to its qualified defined benefit plans in 2020.
Updated with correction
Huntington Ingalls Industries Inc., Newport News, Va., expects to contribute $205 million to its qualified defined benefit plans in 2020, the parent of Newport News Shipbuilding said Thursday in its 10-K filing with the Securities and Exchange Commission.
All of the contribution will be discretionary, the company said.
In 2009, non-collectively bargained defined benefit pension plans were closed to new entrants.
For employees hired after 2004, the defined benefit pension plans created a cash balance sub-plan, where the benefit is a pay-based credit and an interest rate.
Huntington Ingalls has four defined benefit plans and five defined contribution plans. Its pension plan assets were $6.73 billion as of Dec. 31 and its liabilities were $7.74 billion, for a funding ratio of 89%, down from 90% a year earlier.
Contributions to the qualified pension plans for the years ended Dec. 31, 2019, 2018, and 2017, were $21 million, $508 million, and $294 million, respectively. On a fourth-quarter earnings call Thursday, company officials said that $21 million of cash contributions in 2019 were discretionary.
Huntington Ingalls also sponsors a non-qualified defined benefit pension plans with $111 million in assets.
The company had a weighted average discount rate of 3.39%, down from 4.34% in 2018, and an expected 7.25% long-term rate of return as of Dec. 31.
