SEATTLE (AP) — Boeing Co. said Thursday it is freezing the traditional defined-benefit pensions for 68,000 nonunion employees - including managers and executives - starting in 2016.
The Chicago-based aerospace company said in a statement that the employees will transition to a company-funded defined contribution retirement plan, effective Jan. 1, 2016. They will have a 401(k)-style retirement plan similar to what union machinists approved in a contentious contract-extension vote earlier this year.
Nonunion Boeing employees hired since 2009 have not had a traditional defined pension plan. Thursday's announcement applies to those who started working for the company earlier, KING reported (http://tinyurl.com/nrxxahf ).
In its statement, Boeing said it would make contributions each pay period to nonunion employees' retirement savings through the 401(k) plan. All benefits earned in the traditional pension plan will be paid to current and already-retired employees, and the company said it would also continue to match employee savings in an existing 401(k) plan.
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