Pension Deficit to Cost BAE Systems More Next Year

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.

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

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November 30, 2017 12:05 ET (17:05 GMT)