US - Transportation and supply chain management solutions company Ryder System has frozen its current pension plan and is providing its members with an enhanced 401 (k) savings plan instead.
“These changes are in line with established marketplace trends, in which retirement savings through a 401(k) plan is increasingly becoming the standard retirement offering by employers,” the company said.
Ryder said employees with at least 20 years of service with the company would not be moved over. This also applied to those workers whose age plus years of service tally to over the figure 65.
According to Ryder, the new programme has been designed to: “Give eligible employees more choices and investment options than the current pension plan, while also offering the increased portability, flexibility, and accessibility associated with 401(k) plans.”
The company will be making an automatic contribution of 3% of pay, even if employees do not choose to make a contribution - and will provide a 50% match on employees' contributions up to 5% of pay.
Depending on company performance, the workers will also have the opportunity to earn an additional Ryder contribution of up to 3% of pay.
Ryder chairman and CEO Greg Swienton said: "We have taken great care to develop a programme that we believe is in the best combined long-term interests of our employees and our company.
“We're providing our employees with a significant amount of time, information and resources to help them understand the programme, properly evaluate their options and make the right retirement plans and decisions."
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