L3Harris Technologies Inc., Melbourne, Fla., froze benefit accruals in some of its defined benefit plans, effective Jan. 1.
The freeze affects plans acquired as a result of the merger between Harris Corp. and New York-based L3 Technologies Inc., the company disclosed Tuesday in a 10-KT filing with the SEC.
L3 Technologies had originally announced in January 2018, eight months before the merger was announced, it would freeze its defined benefit plans on Jan. 1, 2019.
The merged company's largest single defined benefit plan, the Harris Corp. Salaried Retirement Plan, which had been acquired as a result of its 2015 purchase of Exelis Inc., McLean, Va., has been frozen since Dec. 31, 2016. That plan had $4.4 billion in assets as of June 28.
Before its acquisition of Exelis, Harris Corp. did not have any defined benefit plans.
As of Jan. 3, the combined L3Harris organization's defined benefit plan assets totaled $8.618 billion, while projected benefit obligations totaled $10.268 billion, for a funding ratio of 83.9%.
Assets assumed from the L3Harris merger totaled $3.183 billion, assumed PBO totaled $4.474 billion, with a funding ratio of 71.1%, as of Jan. 3.
Company spokesman Jim Burke could not be immediately reached to provide further information.
