Boeing has proposed closing its defined benefit pension plan to Puget Sound-based new hires beginning Jan. 1, 2013, much to the chagrin of the Society of Professional Engineering Employees in Aerospace (SPEEA), the union that represents engineers at the plane manufacturer's facilities across the country. Instead, it proposes offering an enhanced Voluntary Investment Plan, which would include a new automatic company contribution and a company match on employee contributions, according to the Boeing website.
Even though the company's DB plan is 100 percent funded, according to the site, moving new employees to a defined contribution model would save the company a lot of money in the long run.
In its proposal to SPEEA, it showed that people under age 40 would receive an automatic company contribution of 3 percent, a 6 percent company match on 8 percent employee contribution of pay for a total company contribution of 9 percent.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.