Administration November 12, 2003

Becton Making Pension Contribution

December 23, 2002 (PLANSPONSOR.com) - Becton Dickinson & Co, a maker of medical products, has contributed $100 million to its pension plan amid expectations of rising pension costs.
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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.  

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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.

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