Lockheed Martin Corporation Retirement Plan
corporate plan · Lockheed Martin · Bethesda, MD
The plan is moderately funded (79%). $17.4B in assets back $22.1B in projected obligations, leaving $4.7B to close through future contributions and investment returns.
Lockheed Martin Corporation Retirement Plan is a corporate pension plan sponsored by Lockheed Martin — a single-employer defined-benefit plan governed by ERISA and insured by the Pension Benefit Guaranty Corporation (PBGC). Corporate plans peaked in U.S. usage in the 1980s and have been in steady decline since, mostly replaced by 401(k) plans. The plan remains active — accruing new benefits for current employees and accepting new participants. Among private-sector single-employer plans, the active status is increasingly rare as employers freeze accruals while continuing to fund existing obligations; public-sector plans are more often still actively accruing.
Lockheed Martin Corporation Retirement Plan is a large pension plan with $17.4B in assets and 84,564 participants (15,827 active, 64,054 retired). Large plans usually have professional investment management and complex actuarial structures. Participant mix skews toward retirees (64,054 retired vs 15,827 active) — a mature plan paying out more than it accrues. Mature plans need stable investment returns plus sponsor contributions to keep the funded ratio steady; the cash-flow profile is increasingly net-negative. Annual cash flows: $900M in sponsor contributions versus $3.2B in benefit payments. Investment performance over the most recent year ran 7.1%, against the plan's assumed long-term return of 5.5%.
PBGC risk classification: moderate. The plan's funded status puts it under enhanced monitoring but not active intervention. Corporate ERISA plans like Lockheed Martin Corporation Retirement Plan carry PBGC insurance, which guarantees retiree benefits up to a federally-set maximum even if the sponsor defaults. The guarantee is meaningful but capped — high earners may see benefit haircuts in a termination scenario.
Source: DOL EFAST2 Form 5500 filings and Boston College CRR Public Plans Database.
Funding History
What This Means for You
Lockheed Martin Corporation Retirement Plan is in good financial health at 79% funded. This means for every dollar the plan owes in future benefits, it has 79 cents in assets to cover it. This plan is also covered by the PBGC, providing an additional safety net. Participants in this plan have relatively low risk of benefit reductions.
Year-by-Year Funding
| Year | Assets | Liabilities | Funding Ratio | Contributions |
|---|---|---|---|---|
| 2023 | $17.4B | $22.1B | 78.8% | $900.0M |
| 2022 | $16.9B | $21.7B | 78.0% | $873.0M |
| 2021 | $16.4B | $20.2B | 81.0% | $846.0M |
| 2020 | $15.8B | $21.1B | 75.0% | $819.0M |
| 2019 | $15.3B | $19.9B | 77.0% | $792.0M |
Frequently Asked Questions
Lockheed Martin Corporation Retirement Plan is 79% funded, meaning it has 79 cents in assets for every dollar in future benefit obligations. This is below the 80% threshold actuaries consider healthy, and may require increased contributions.
Lockheed Martin Corporation Retirement Plan has 84,564 total participants, including 15,827 active employees and 64,054 retirees currently receiving benefits.
Yes, Lockheed Martin Corporation Retirement Plan is covered by the Pension Benefit Guaranty Corporation (PBGC), which provides a backstop if the plan cannot pay benefits. The PBGC risk level is currently "moderate."
The Pension Health Score (0-100, A-F) measures a pension plan's financial strength based on funding ratio (50%), funding trend over 3 years (30%), and PBGC risk level (20%). Higher scores indicate more secure retirement benefits.
Pension Health Score is calculated from funding ratio, 3-year funding trend, and PBGC risk classification.