Defense company BAE Systems PLC will next year spend more to cover the GBP2.1 billion ($2.8 billion) deficit of its U.K. defined-benefit pension plans, the company said late Wednesday.
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Annual payments will rise from GBP205 million to GBP220 million and could grow further in line with potential increases in dividend payments, BAE said in a statement.
Under the firm's deficit recovery plans, annual payments are forecast to fall by around GBP50 million from 2022 onward and end in 2026. Annual payments to the company's U.S. defined-benefit pension plans are expected to remain stable at $80 million through 2022.
Write to Nina Trentmann at Nina.Trentmann@wsj.com
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November 30, 2017 12:05 ET (17:05 GMT)