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Lockheed Martin to forgo pension contributions in 2015 through 2017

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Lockheed Martin Corp., Bethesda, Maryland, announced Tuesday it has contributed $1 billion in contributions to its defined benefit plans thus far in 2014 out of an expected $2 billion and does not expect to make further contributions for at least three more years.

The company in its earnings report said it contributed a total of $485 million to its worldwide pension funds during the third quarter, and a total of $1 billion during the first nine months of 2014. Another $1 billion in incremental contributions is expected in the fourth quarter.

Lockheed Martin contributed $2.25 billion to the pension funds in 2013.

The company, which in July had announced plans to freeze its U.S. defined benefit plan in early 2016 and start shifting active salaried workers to an enhanced defined contribution program, also said in the earnings report it does not plan to make contributions to the pension funds from 2015 through 2017.

As of Dec. 31, the company's worldwide defined benefit plans had $33 billion in assets and $42.2 billion in projected benefit obligations.

Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance.