Boeing to freeze pension fund for non-union employees, executives in 2016
By: Bloomberg
Published: March 6, 2014 - Pensions & Investments
Boeing Co. will freeze a pension fund for 68,000 non-union employees and
executives, shifting contributions to a defined contribution plan as it works to
cut costs.
The change will take effect Jan. 1, 2016, the Chicago-based company said
Thursday in a statement. Employees will be able to keep accruals from the
company's defined benefit plan as the company shifts contributions to a DC plan.
Employees hired since 2009 and new members of 28 unions are already in the DC
plan.
Boeing is curbing pension expenses that, at $3.45 billion over the last 12
months, are the third-highest among large U.S. corporations, according to data
compiled by Bloomberg. General Electric Co.'s $5.05 billion expense was the
largest, followed by Exxon Mobil Corp.'s $3.73 billion.
Boeing will end pension accruals in 2016 for its Seattle-area machinists
under an eight-year contract extension that workers narrowly approved in January
in exchange for a company promise to manufacture the 777X jetliner and its
composite wing in Washington state. A St. Louis-area union also voted Feb. 23 to
end pension benefit accruals.
Original Story Link: http://www.pionline.com/article/20140306/ONLINE/140309920/boeing-to-freeze-pension-fund-for-non-union-employees-executives-in-2016