1 07, 2017

General Mills to freeze U.S. pension plans at the end of 2027

2017-07-01T01:26:24-07:00July 1st, 2017|Categories: Defined Benefit Plans|Tags: , |

General Mills Inc., Minneapolis, plans to freeze its U.S. defined benefit plans at the end of 2027, according to the company’s annual report filed Thursday with the SEC. Effective Jan. 1, 2028, active employees in the U.S. pension plans, which had a combined $5.925 billion in assets as of May 31, the end of General Mills’ fiscal year, will not accrue additional benefits, according to the 10-K filing with the Securities and Exchange Commission. […]

27 06, 2017

UPS to Freeze Pension Plans for Non-Union Employees

2017-06-27T21:00:17-07:00June 27th, 2017|Categories: Defined Benefit Plans|Tags: , |

United Parcel Service Inc. plans to announce changes to its benefits plan Wednesday, sources told Dow Jones, freezing the pension plans for thousands of non-union employees. The company's pension fund is currently running a $10 billion deficit, according to Dow Jones. UPS has more than 484,000 employees worldwide, and 80% of those employees reside in the U.S. Any retirement plan changes would only affect management, however, and UPS has about 78,000 management level employees. The company's pension plan was 76% [...]

4 09, 2015

AIG to Freeze Traditional Pension Plan

2015-09-04T19:45:59-07:00September 4th, 2015|Categories: Defined Benefit Plans|Tags: , |

American International Group Inc. told employees in a memo Thursday that it would freeze its traditional U.S. pension plans, becoming the latest company to shift away from guaranteed retirement benefits. The freeze will be effective Jan. 1, 2016. AIG has $4.1 billion in assets to pay out $5.7 billion in future obligations from its defined-benefit plans, meaning its liabilities are $1.6 billion. […]

11 06, 2015

Washington Post freezes DB plan for union employees

2015-06-11T20:31:39-07:00June 11th, 2015|Categories: Defined Benefit Plans|Tags: , |

After eight months of negotiations, the Washington Post’s union employees have agreed to a contract extension, which will freeze the company’s defined benefit plan, effective August 31. “We regret to say that (the) Post never budged from its demand to slash retirement benefits,” according to language in a statement from the Washington-Baltimore Newspaper Guild, which represents 860 Post employees. […]

26 03, 2014

Declining Pension Benefits Leave Workers Uneasy: Study

2014-03-26T21:14:41-07:00March 26th, 2014|Categories: 401(k), Defined Benefit Plans|Tags: , , |

High unemployment, meager raises and cuts to retirement benefits have made the majority of workers feel insecure about their financial future, according to a new survey by Towers Watson. However, the economic recovery has made the highest percentage of people feel satisfied with their financial situation since 2009. As CFO Journal reported Tuesday, more companies are shifting away from defined benefit pension plans because of increasing costs. Xerox Corp. and WellPoint Inc., for example, have closed and frozen their defined [...]

19 03, 2014

Companies Prepare To Dump Pension Plans In 2014

2014-03-19T21:42:05-07:00March 19th, 2014|Categories: Defined Benefit Plans|Tags: , , |

Will your defined benefit pension be the next to be “derisked” and then dumped? Clorox froze its defined benefit pension plan in 2011, and now it’s taking steps to prep the plan in case the fiduciary committee decides to offload it onto an insurer, according to a Clorox executive who spoke at a recent Mercer webcast on pension derisking. What does pension derisking mean for workers? Employers might offer to pay current retirees and former employees lump sums in lieu [...]

14 03, 2014

Boeing’s Pension Scale Back Is A Sign Of The Coming Times

2014-03-14T23:26:22-07:00March 14th, 2014|Categories: Retirement|Tags: , , |

The past week has brought two ultimately related pieces of news. Boeing announced it would freeze pensions for 68,000 non-union workers and move them into a 401(k)-style retirement plan, according to Bloomberg. The change starts in 2016 and is intended to cut costs, according to the report. Separately, AARP conducted a survey on baby boomers — people aged 46 to 64 — and their current financial status. The short answer was pretty bad. Only 22 percent described themselves as doing very [...]

24 02, 2014

On ice Goodyear will freeze USW pension plans

2014-03-11T00:04:34-07:00February 24th, 2014|Categories: Defined Benefit Plans|Tags: , |

Goodyear will completely freeze its defined benefit pension plan covering union employees on April 30. The Akron-based tire manufacturer disclosed the plan Feb. 13, noting the freeze was agreed to as part of a four-year contract with the United Steelworkers that was ratified last August. Under that agreement, Goodyear could fully fund the plan any time during the four-year contract, with a freeze going into effect 90 days later. Goodyear disclosed in its 10K report for 2013—released Feb. 13—that [...]

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