Blount to freeze pension plan
US - Industrial firm Blount International is set to freeze its defined benefit pension plan effective January 1, 2007 in a bid to save the company up to $23m in the next five years.
As of next year, employees currently participating in the plan would cease accruing benefits, while all retirement benefits earned up to that time would be fully preserved, said James Osterman, chairman and CEO.
The firm would also begin making additional contributions to its 401(k) plan for service periods after December 31, 2006, and it intends to make annual contributions to employee accounts of between 3% and 5% of their annual wages.
The amount contributed would be based on an employee's years of service, said Osterman.
The new design of the retirement programs meets our company's objective of continuing to provide employees with a competitive retirement benefit while lowering the company's annual expense.
It is estimated the changes would cut retirement plan expenses by between $16m and $23m over the next 5 years.
In conjunction with the plan changes, the company is set to record a one time $3.7m expense in this year's third quarter.
By Damian Clarkson
Latest stories
Hyperbolic discounting and political temptation: Why Brexit-fuelled AE reversal would be a 'monumental' mistake
The home secretary has suggested AE should be scrapped in the event of a no-deal Brexit. Darren Philp explains why this would be misguided
Kodak Pension Plan 'likely to move into the PPF', say trustees
The trustees of the Kodak Pension Plan No.2 (KPP2) have said it will likely enter the Pension Protection Fund (PPF) in "due course" after reviewing the scheme's investment in Kodak Alaris.
L&G completes £285m buy-in with Fortune 500 company
A US company has completed a £285m pensioner bulk annuity for around 1,100 of UK members with Legal & General (L&G).
Dominic Chappell accused of 'cynical attempt to re-write history'
Former BHS chief Dominic Chappell has been accused of trying to rewrite history as he seeks to overturn a conviction for failing to hand over information to the regulator.
Most read
