RTX (Raytheon) Pension Plan

The plan consolidates multiple legacy formulas. Legacy Raytheon Company salaried employees: final-average-pay formula frozen as of December 31, 2007. Legacy United Technologies Corporation (UTC) salaried employees: a final-average-earnings (FAE) formula was frozen effective December 31, 2014, followed by a transition to a cash-balance formula whose pay credits were in turn frozen effective December 31, 2019. Existing cash-balance account balances continue to earn interest credits annually until distribution. Collins Aerospace and Pratt & Whitney participants generally follow UTC-era formulas. No segment of the plan accepts new benefit accruals.

This is general educational information about how the plan's formula works, not a calculation of your individual benefit. Your actual benefit depends on your service, pay history, and the plan terms in effect during your employment.

Raytheon Company salaried (non-bargained) pension accruals were frozen effective December 31, 2007. UTC salaried employees' final-average-earnings accruals were frozen effective December 31, 2014, and UTC cash-balance pay credits were frozen effective December 31, 2019. A voluntary lump-sum option for frozen FAE benefits was introduced effective January 1, 2017. The remaining Raytheon Company qualified pension plans were formally merged into the RTX Consolidated Pension Plan effective December 31, 2023. No new participants are enrolled in any DB formula; RTX employees hired after the respective freeze dates receive retirement benefits solely through the RTX Savings Plan (401(k)).

A frozen pension does not disappear. Benefits already earned are generally protected and continue to be paid under the plan's terms. A freeze changes whether new benefits accrue going forward, not whether existing benefits are honored.

In November 2025 RTX initiated a buy-out conversion of a previously purchased group annuity contract, transferring approximately $2.5 billion in gross pension obligations to Prudential for approximately 60,000 retirees and beneficiaries, roughly one-third of the plan's total retiree population. The transfer was funded entirely from plan trust assets; no additional RTX contribution was required and the plan's funded status was not diminished. RTX recognized a one-time, non-cash pretax pension settlement charge of approximately $300 million in Q4 2025. Affected retirees continue to receive their full monthly benefit amounts, now paid directly by Prudential.

In a pension risk transfer (PRT), an employer transfers some or all of its pension obligations to an insurance company through a group annuity contract. If your benefit was transferred, your monthly payment generally stays the same, but the company paying it changes, and PBGC insurance is replaced by state insurance guaranty association coverage. For this plan, the counterparty was The Prudential Insurance Company of America (2025).

Are current RTX employees still earning new pension benefits under the defined benefit plan?

No. Benefit accruals are frozen for all RTX salaried and non-bargained employees. Raytheon legacy salaried employees stopped earning new pension credits on December 31, 2007; UTC, Collins Aerospace, and Pratt & Whitney salaried employees stopped earning cash-balance pay credits on December 31, 2019. Benefits already earned are preserved. Active RTX employees instead accumulate retirement savings through the RTX Savings Plan (401(k)), which includes age-based company contributions plus a tiered match.

How did the 2020 Raytheon-UTC merger affect legacy pension plans?

The April 2020 merger that created RTX began a multi-year consolidation of pension plans from Raytheon Company, United Technologies, Collins Aerospace, and Pratt & Whitney. The remaining Raytheon Company qualified pension plans were formally merged into the RTX Consolidated Pension Plan effective December 31, 2023. The consolidation did not change individual benefit entitlements; participants retain all accrued benefits calculated under the formulas in effect when each legacy plan was frozen. Plan administration is now unified under the single RTX Consolidated Pension Plan.

What does the 2025 Prudential pension risk transfer mean for retirees?

In November 2025 RTX transferred approximately $2.5 billion in pension obligations covering roughly 60,000 retirees and beneficiaries to The Prudential Insurance Company of America through a group annuity contract. For affected retirees, the monthly payment amount is unchanged; only the payer changes from the RTX plan to Prudential. Benefits are backed by Prudential's claims-paying ability and subject to state insurance guaranty association protections. RTX recorded a one-time non-cash settlement charge of approximately $300 million in Q4 2025.

Is my RTX (Raytheon) pension protected by the PBGC?

Most single-employer defined benefit pensions are insured by the Pension Benefit Guaranty Corporation (PBGC), a federal agency. If a covered plan terminates without enough money to pay promised benefits, the PBGC pays benefits up to a legal maximum that varies by age. Benefits that have been transferred to an insurance company through a pension risk transfer are no longer PBGC insured and are instead backed by state guaranty associations.

Should I take my RTX (Raytheon) pension as a lump sum or an annuity?

There is no single right answer. The decision depends on your health and life expectancy, your other retirement assets, whether you need to provide for a survivor, and the interest rate environment that sets the lump sum value. Our lump sum versus annuity guide walks through the trade-offs in detail.