US - Tenneco Incorporated will freeze its defined benefit pension plans and replace them with defined contribution plans in a bid to save money.
The change will effect nearly all US-based and non-union hourly employees and will be implemented on 1 January 2007.
The move to DC should see the $4.4bn company saving around $11m, pre-tax, per annum following the shift.
The Illinois-based automotive supplier announced it will also make a one-time benefit payout, in the fourth quarter, in relation to the closing of the DB scheme. The sum should amount to between $6 and $7m.
Last month, the company reported a sharp drop profit during the second quarter. This was attributed to weak sales driven by production cuts at its major North American auto customers.
Tenneco is the latest company to follow the trend of the shift to DC. Several large US companies have made the same change in a bid to cut costs.
The firm reportedly argued the DB payments were hampering the competitiveness of its operations by adding to the costs to make goods.
Life expectancy in the UK saw no improvement between 2015 and 2017 as the number of people aged over 90 hit a record high, latest Office for National Statistics (ONS) data reveals.
Self-administered pension funds spent £14bn on payments to pensioners in Q2 2018, but only received £11.4bn of contributions (net of refunds), latest Office for National Statistics (ONS) data reveals.
The Pensions and Lifetime Savings Association (PLSA) has named the 17 members of its inaugural policy board after a competitive application process with 60 candidates.