Zarah ChoudharyBAE Systems reported a pension surplus of £0.8bn as of 31 March 2024, with assets covering 104% of accrued benefits.
The company contributed £407m to its pension schemes in 2024, including £156m in US schemes.
Contributions are expected to decrease in 2025 due to market changes and one-off payments in 2024.
A 1% increase in the discount rate would reduce pension obligations by £1.9bn, while a 1% rise in inflation would increase obligations by £1.0bn.
A one-year rise in life expectancy would reduce the surplus by £0.6bn.
Life expectancy assumptions estimate that males aged 65 will live between 85 and 88 years, and females between 88 and 91 years.
The acquisition of Ball Aerospace led to a £147m net defined benefit obligation.
A £13m gain was recorded from the settlement of US defined benefit obligations valued at £113m.
The pension surplus increased to £768m from £229m in 2023, reflecting changes in financial assumptions, with a reduced withholding tax of 25%, down from 35%.
BAE Systems is monitoring the potential impact of the Virgin Media versus NTL Pension Trustees Ltd case but does not expect a material effect on its pension obligations.
