In a regulatory filing, the company said the contribution, made during the first quarter of the company’s 2003 fiscal year, is necessary due to a decline in overall pension asset value, according to Dow Jones. The contribution is being made in conjunction to other steps taken by the company, including expectations of lowering long-term rates of return from 9.75% to 8% and reduced discount and salary rate assumptions.
The $100 million cash contribution is identical to one made by the company in fiscal year 2002.
The filing said Becton’s benefit obligation under the pension plan stands at $853 million, as of September 30, with plan assets at $519 million.
“As a result of these developments, the 2003 net periodic benefit cost for the U.S. pension plan is anticipated to be approximately $24 million higher than in 2002,” the annual report said.